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Showing posts with label Service Tax. Show all posts
Showing posts with label Service Tax. Show all posts
Service Tax on Builders2 comments Sunday, June 16, 2013
The revenue and the builders have always been at
dispute when comes to leviability of service tax on the consideration received
in advance by the builders/developers from the prospective buyers of immovable
property to be constructed.
After the negative list regime the construction of a
complex, building, civil structure or a part thereof, including a complex or
building intended for sale to a buyer, wholly or partly has been declared to be
a service liable to service tax. However, if the entire consideration from the
prospective buyer is received after
issuance of completion certificate by competent authority then it is outside
the purview of declared service.
CBEC's circular on recovery of confirmed demands seems unjustified0 comments Friday, January 4, 2013
CBEC has issued a circular regarding recovery of confirmed demand during pendency of stay application. It has been directed in the circular that recovery proceedings are to be initiated within 30 days after the filing of an appeal if no stay is granted.
It is well known that hearing of cases before the appellate authorities dont come within 30 days from the date of filing of an appeal as the number of appeals is huge. Thus stay application moved may also not be heard within 30 days. In such cases if recovery proceedings are initiated then it will amount to hardship to the appellent and is also against the basic rule of law audi alteram partem i.e No one should be condemned unheard.
Katrina kaif held not liable to pay service tax as its paid by her agent0 comments Sunday, December 30, 2012
Mumbai CESTAT in Katrina Kaif's (famous actress) case has held that once the service tax is paid by agent the assessee herself need not to pay service tax again. Since definition of assessee includes agent, where service tax liability of assessee-actress had been discharged by her agent, service tax could not be demanded from assessee-actress.
This judgement implies that service tax liability can also be discharged by agent of assessee and in which case assessee need not to pay service tax. Similarly service tax liability can also be shifted by agreement on to the service provider in cases where reverse charge is applicable. Main thing is that revenue should get its due taxes irrespective of the fact who is paying it or on whom it has been shifted by agreement between the service provider and service receiver Reimbursement of expenses not liable to service tax-Rule 5(1) is ultra vires0 comments Tuesday, December 11, 2012
Delhi High Court
has in a very important case namely Intercontinental Consultants and
Technocrats Pvt Ltd Vs UOI held that reimbursement of expenses cannot be
charged to service tax by treating the same as part of service charges. Rule
5(1) of Service Tax (Determination of value) Rules has been held as ultra vires
to the extent it brings the reimbursement of expenses within the ambit of
service tax
Works contract service after negative list-Part II(reverse charge)0 comments Wednesday, October 17, 2012
In the previous article(see previous article here) some aspects of works
contract service were discussed. In this continuing article an attempt has been
made to discuss the reverse charge mechanism in works contract service.
What is
reverse charge: Before
jumping to the reverse charge mechanism in works contract service, it is
important to understand what is reverse charge. Normally service tax is payable by the service
provider after charging/collecting the same from the service receiver.
Due date of Service tax return for April-June-2012 extended to 25-11-20120 comments Monday, October 15, 2012
Due date for filing of service tax returns for the period 01-04-2012 to 30-06-2012 has been extended from 25-10-2012 to 25-11-2012.
Rule 7 of the Service Tax Rules, 1994 - Returns - Extension of time to file return in form ST3
ORDER NO. 3/2012 [F.No.137/99/2011-ST], dated 15-10-2012
Works contract service after negative list-Part 11 comments Sunday, October 14, 2012
Service
portion in the execution of a works contract has been declared as service u/s
66E after the introduction of negative list. That means works contract service per
se is not a service but it is a service because it has been declared to be a service u/s 66E. Here an attempt has been
made to elaborate on the works contract service after the introduction of
negative list.
Service Tax return required to be submitted by 25th October, 2012 shall cover period between April to June, 2012 only0 comments Saturday, September 29, 2012
Rule 7 of the Service Tax Rules has been amended so as to provide that the Form ‘ST-3’ required to be submitted by the 25th day of October, 2012 shall cover the period between 1st April to 30th June, 2012 only. It means that now the ST-3 return required to be filed by 25th October 2012 will be only for the period April-June, 2012 and not for the period of 6 months from April-September, 2012. Service tax on legal services under reverse charge mechanism stayed by Delhi High Court0 comments Tuesday, September 25, 2012
Service Tax on Legal services under reverse charge mechanism was imposed by Central Government w.e.f 01-07-2012. Thereby recepient of service, if its a business entity was made liable to pay service tax on the legal services received. Clarification-service tax on vocational education/training course0 comments Wednesday, August 29, 2012Circular No. 164/15/2012-ST, New Delhi, 28th August, 2012 Subject: service tax – vocational education/training course — regarding. Clarification has been sought in respect of levy of service tax on certain vocational education/training/ skill development courses (VEC) offered by the Government (Central Government or State Government) or local authority themselves or by an entity independently established by the Government under the law, as a society or any other similar body. Works contract services provided by sub-contractor in exempt works contract services, exempt from service tax0 comments Friday, August 17, 2012
Recently I received a query that under the negative list of services regime whether in a works contract service which is exempt from service tax, sub-contractor would also be exempted from payment of service tax?
The answer to the above question is being provided under serial No. 29 sub-clause (h) of the mega Notification, which provides that service provided by following person in respective capacities are exempt from service tax : (h) sub-contractor providing services by way of works contract to another contractor providing works contract services which are exempt[Notification No. 25/2012-ST, dated 20.06.2012] The above entry makes it clear that if the principal contractor is providing an exempt works contract service [for example providing works contract service to Government] then in such case if some part of the works contract is sub-contracted then the sub-contractor would also be exempt from payment of service tax. No service Tax on foreign remittances0 comments Thursday, July 12, 2012
CBEC issues Clarification Regarding Leviability of Service Tax on the Remittance of Foreign Currency in India from Overseas
The Central Board of Excise and Customs (CBEC) issued today necessary clarification regarding the leviability ofservice tax on the remittance of foreign currency in India from overseas. Various concerns have been expressed at different forums in this regard.
The CBEC through a circular issued today stated that the matter has been examined and it is clarified that there is no service tax per se on the amount of foreign currency remitted to India from overseas. In the negative listregime, ‘service’ has been defined in clause (44) of section 65B of the Finance Act 1994, as amended, which excludes transaction in money. As the amount of remittance comprises money, the activity does not comprise a ‘service’ and thus not subjected to service tax.
One accounting code for all services w.e.f 01-07-20120 comments Saturday, July 7, 2012 Accounting Code for payment of service tax under the Negative List approach to taxation of services, with effect from the first day of July 2012 - regarding. Negative List based comprehensive approach to taxation of services came into effect from the first day of July, 2012. For payment of service tax under the new approach, a new Minor Head - ‘All taxable Services’ has been allotted under the Major Head “0044-Service Tax”. Exemption of small service provider is a statutory benefit must be available to ignorant assessee0 comments Sunday, June 24, 2012
Ahmedabad CESTAT has held in Jay Travels v Commissioner of Service Tax that Benefit of small service provider's exemption under Notification No. 6/2005-ST, dated 1-3-2005 being a statutory benefit, should be considered by adjudicating authority. The Tribunal held that since the exemption of basic limit for small service provider is a statutory benefit, hence it is ought to be granted to the innocent person who did not raise the ground that his service charges were below the exempted limit for small service provide, before the lower authorities, hence the matter was remanded by the CESTAT to reconsider the issue a fresh.
14 new services added to negative list w.e.f 01-07-20120 comments Friday, June 22, 2012
While releasing the Guidance Paper Hon'ble Finance Minister also announced some new exemptions as follows:
(a) Service provided by advocates to other advocates and business entities upto a turnover of Rs. 10 lakh in the preceding financial year.
(b) Exemption to firm of advocates on the same lines as individual advocates. Service tax (settlement of cases) rules, 20120 comments Thursday, May 31, 2012Service tax (settlement of cases) rules, 2012 NOTIFICATION NO. 16/2012-ST, DATED 29-5-2012 In exercise of the powers conferred by clause (j) of sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as “the Act”), read with sections 31, 32 and 32A to 32P of the Central Excise Act, 1944 (1 of 1944) made applicable to service tax vide section 83 of the Act, 1994, the Central Government hereby makes the following rules, namely:- Service Tax- Compounding of offences Rules, 20120 commentsNOTIFICATION NO. 17/2012-ST, dated 29-5-2012 In exercise of the powers conferred by clause (i) of sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994)(hereinafter referred to as “the Act”) read with sub-section (2) of section 9A of the Central Excise Act, 1944 (1 of 1944), made applicable to service tax vide section 83 of the Act, the Central Government hereby makes the following rules, namely : Transfer of Right to use goods-deemed sale or a service8 comments Sunday, April 15, 2012Transfer of Right to use goods for cash, deferred payment or valuable consideration is considered as deemed sales under sub-clause (d) of Article 366(29A) of Constitution of India and also consequently under Punjab VAT Act and CST Act liable to VAT and CST respectively. Right to use of tangible goods service has also been brought under service tax net by the Finance Act, 2008, w.e.f 16-05-2008 vide notification No. 18/2008-ST, dated 10-05-2008.whereby taxable service has been defined u/s 65(105)(zzzzj) of Finance Act, 1994 to mean as “any services provided or to be provided, to any person, by any other person in relation to supply of tangible goods including machinery, equipment and appliances for use, without transferring right of possession and effective control of such machinery, equipment and appliances”. Lump sum scheme for payment of service tax in works contract introduced0 comments Tuesday, March 20, 2012In works contract service lump sum scheme for payment of service tax in a works contract has been introduced by amendment in Rule 2A of the Service Tax (Determination of Value) Rules, 2006 vide Notification No. 11/2012 - Service Tax dated 17-03-2012. In works contract service there were two types of schemes which were earlier available i.e payment of service tax on actual service involved and the composite scheme. In the composite scheme service tax @ 4.8% is required to be paid on the total value of the whole contract including material part, while in the other case service tax is required to be paid on the actual value of labour and services incorporated in works contract(which can be possible where proper books of accounts are being maintained). Rate of tax in composite scheme under works contract service enhanced to 4.8%0 commentsRate of tax in composite scheme in Works contract service has been changed w.e.f 01-04-2012. The earlier rate of tax in the composite scheme was 4% which now has been enhanced to 4.8%.
Rule 3 of the Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007, has been suitably amended whereby for the words ―four per cent, the figures and words ―4.8 per cent has been substituted.
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