Johnny and Service Tax Refund [Series- II] Part 1: ‘INVOICE’

Prepared By: -
CA. Pradeep Jain
Mayank Palgauta


We have already written one complete series of articles for the refund of service tax to exporters under notification no. 41/2007-ST. The litigation on the same is still going on. The Government has come up with the new notification no. 17/2009-ST dated 7th July, 2009 to make the scheme simple so that the refund is available to the exporters conveniently.Read More

Point of Taxation Draft Rules– Gennie of the Magic Lamp

CA. Pradeep Jain

CA. Preeti Parihar

CA. Ridhi Anchalia

Introduction-



“Alladin & his magic lamp” - hearing the stories since ages. Gennie fulfilling the desires sound too good, but what if it comes out and becomes uncontrollable… too difficult to put him in again… Now let’s take a look into its latest version – “The Government and drafts rules for determining the point of taxation”. The government has come out proposing new rules namely - Point of Taxation (for Services Provided or Received in India) Rules, 2010. Read More

Sequence to Uniqueness for Associated Enterprises

Prepared By:
CA Pradeep Jain,
CA Ridhi Anchalia and
Sukhvinder Kaur, LLB [FYIC]

Introduction: -

Every Finance Act brings with it some new services under the purview of the Service Tax. The Associated Enterprises were also a part of those services that were brought under Service Tax Act in the year 2008 vide the Finance Act. From the beginning the service of the Associated Enterprise is walking with some uniqueness.Read More

No Room for Builders under Service tax net

Prepared By:
CA Pradeep Jain
Sukhvinder Kaur, LLB

Introduction: -

The amendment relating to Construction service has big implications and everyone is talking about the same. We have already written an article titled ‘Deeming Construction Service: Caught in Tax Net’ on the same. This was also available on our website as well as published on taxindiaonline.com also. Through this article, we are taking deeper look on the matter`Read More

120/01/2010-ST, Dated: 19/01/2010

Subject: Problems faced by exporters in availing refund of excess credit – regarding

CENVAT Credit Rules, 2004 permit taking of credit of inputs and input services which are used for providing output services or output goods. In order to zero-rate the exports, Rule 5 of CENVAT Credit Rules, 2004 provides that such accumulated credit can be refunded to the exporter subject to stipulated conditions. Notification No. 5/2006-CE (NT) dated 14.03.2006 provides the conditions, safeguards and limitations for obtaining refund of such credit.

2. It has been represented by the exporters of services (mainly the call centres or the BPOs) that they are facing difficulties in getting refund under the said notification. In order to ascertain the causes for such delay a number of meetings were held with the refund sanctioning authorities. During these meetings the officers pointed out the following legal/procedural impediments partly responsible for such delays:readmore

119/13/2009-ST, Dated: 21/12/2009

Subject : Service tax valuation issues pertaining to Customs House Agents Service-reg.

Customs House Agent's (CHA) Services are taxable since 15th June 1997. As per the definition (section 65 (105) (h) of the Finance Act, 1994) the 'taxable service' means any service provided or to be provided to any person, by a custom house agent in relation to the entry or departure of conveyance or the import or the export of goods and the term 'service provider' shall be construed accordingly. Further, as per definition appearing under section 65(35) of the aforesaid Act, a 'custom house agent' means a person licensed, temporarily or otherwise, under the regulations made under sub-section (2) of section 146 of the Customs Act, 1962. The Custom House Agents Licensing Regulations, 2004, made under the said section, prescribe the procedure for grant of license by the customs department. They (regulation no. 13) also place obligations on such license holders during their interface with customs department pertaining to customs formalities for conveyance or imported or export goods. In sum, the above provisions read in harmony, show that the activities of a CHA i.e. pertaining to customs formalities in relation to the entry or departure of conveyance or the import or the export of goods, is subjected to service tax under CHA services.readmore

118/12/2009-ST, Dated: 23/11/2009

Subject:   Refund of service tax paid on foreign agent commission by exporters – Notification No.18/2009 dated 07/07/2009 – clarification - Reg.         

            Representations have been received from exporters, seeking clarification whether ten per cent of free on board (FOB) value of export goods  allowed as foreign agency commission vide Notification 41/2007-ST dated 06/10/2007 as amended, has been reduced to one per cent vide Notification 18/2009-ST dated 07/07/2009 . readmore