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
Monday, September 27, 2010
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
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
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
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
Friday, April 2, 2010
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.
Tuesday, March 2, 2010
Goods Transport Agency: Disputes forever
Goods Transport Agency: Disputes forever
Prepared By:
CA Pradeep Jain,
Ghanshyam Chauhan
It will be very strange to see that the Indian budget is being presented and it does not have mention of service of “Transport of goods by road”. It has been a most litigant and most debated service under service tax. This year budget is no exception. There is a small amendment relating to this service....read more
Port/Airport Services: At Great Expansion
PORT/AIRPORT SERVICES: AT GREAT EXPANSION
Prepared By:
CA Pradeep Jain,
Monu Toshniwal
The introduction of Budget 2010 has brought a drastic change in the definition of the Port/Airport services which will definitely expand the scope of accepting the refund of service tax to the exporters.
The change can be compared by studying the earlier and amended definitions. The earlier definition of Port services as given at Section 65(82) (zn) of the Finance Act, 1994 which is produced as follows.....read more
Deeming Construction Service: Caught in Tax Net
Deeming Construction Service: Caught in Tax Net
Prepared By:
CA Pradeep Jain,
Siddharth Rutiya
The Budget 2010 was eagerly awaited by all sections of the society. Never before, any budget had been so awaited by many of the Indian citizens. Finally the Finance Minister Mr. Pranab Mukherjee announced the Budget on 26-02-2010. This budget brought many welcome steps but also some disappointments to various sections and business classes of the society. Increasing worth of Service tax, which clearly depicted by the statistical data that service sector contributes nearly 60% of the GDP,....read more
Service tax on Transportation by Railway: An unsolved puzzle or a mystery?
Service tax on Transportation by Railway: An unsolved puzzle or a mystery?
Prepared By:
CA Pradeep Jain,
Sukhvinder Kaur
Monu Toshniwal
The service tax on transportation of goods by railway was introduced in the Budget 2009 last year by the Finance Minister. With the levy of service tax, provisions for abatement and exemptions were also introduced. The levy was to come into effect on September 1, 2009. However, under the pressure from the Railway Minister the service on transport of goods by rail was completely scraped by granting exemption to the said service vide Notification no 33/2009-ST dated September 1, 2009 the very day the levy of service tax on Rail was to come into effect......read more
Export of Services: Confusing Exported
Export of Services: Confusing exported
Prepared By:
CA Pradeep Jain
Ghanshyam Chaudhary
Indian budget has also brought many changes related to export of services. As per Export of Service Rules, there are three criterions for declaring a service as export. These criterions are as under:-
(A) Immovable property related services[rule 3(1)(i)]
(B) Performance related services[rule 3(1)(ii)]
(C) Residual Category of Services[rule 3(1)(iii)]
The categories of services are listed in particular criteria’s. The exporter has to fulfil requirement of that criteria under which his services are listed.
Now in this budget there are some services whose criteria has been changed......read more
Commercial Coaching: Only commercial for Government
Commercial Coaching: Only commercial for Government
Prepared By:
CA Pradeep Jain
Mayank Palgauta
The budget, 2010-11 has brought many changes in Service Tax field, although the same was not referred in Finance Minister’s speech. Yet there are many changes in service tax. The service providers of “commercial training or coaching service” are greatly affected due to applicability of new Notifications inserted in this Budget. Prior to this Budget, the word “Commercial” was a point of litigation that this word is to be considered as “for profit making” or not, for service tax purposes. Therefore, we are giving the whole analysis of notifications which will help to know how they will affect upon service providers of the said service.
Definition:
The definition of Commercial training or coaching service has been given in Section 65 (26) of the Finance Act, 1994. The said definition is reproduced hereunder for ready reference, .....read more
Budget Notification No. 17/2010-ST, Dated: 27/02/2010
Notification No. 17/2010-Service Tax
New Delhi, the 27th February, 2010
G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service providing packaged or canned software, …..read more
Budget Notification No. 16/2010-ST, Dated: 27/02/2010
Notification No. 16/2010-Service Tax
New Delhi, the 27th February, 2010
G.S.R. (E). - In exercise of the powers conferred by section 93 and section 94, read with section 66A of the Finance Act, 1994 (32 of 1994), the Central Government, hereby makes the following rules further to amend the Taxation of Service (Provided from outside India and Received in India) Rules, 2006, namely: - ….read more
Budget Notification No. 15/2010-ST, Dated: 27/02/2010
Notification No. 15/2010-Service Tax
New Delhi, the 27th February, 2010
G.S.R. (E). - In exercise of the powers conferred by clause (aa) of sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government, hereby makes the following rules to amend the Service Tax (Determination of Value) Rules, 2006, namely: - ….read more
Budget Notification No. 14/2010-ST, Dated: 27/02/2010
Notification No. 14/2010-Service Tax
New Delhi, the 27th February, 2010
G.S.R. (E). - In exercise of the powers conferred by clause (a) of the section (6) of and clause (a) of sub-section (7) of section 7 of the Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976 (80 pf 1976), and in supersession of the Government of India in Ministry of Finance (Department of Revenue), notification No. 01/2002-Service Tax, dated the 1st March, 2002, ….read more
Budget Notification No. 13/2010-ST, Dated: 27/02/2010
Notification No. 13/2010-Service Tax
New Delhi, the 27th February, 2010
G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided in relation to on-line information and database access or retrieval services and,….. read more
Budget Notification No. 12/2010-ST, Dated: 27/02/2010
Notification No. 12/2010-Service Tax
New Delhi, the 27th February, 2010
G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service referred to in sub-clause (zzd) of clause (105) of section 65 of the Finance Act,….. read more
Budget Notification No. 11/2010-ST, Dated: 27/02/2010
Notification No. 11/2010-Service Tax
New Delhi, the 27th February, 2010
G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided to any person, by any other person for transmission of electricity….. read more
Budget Notification No. 10/2010-ST, Dated: 27/02/2010
Notification No. 10/2010-Service Tax
New Delhi, the 27th February, 2010
G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided by a Central or State Seed Testing Laboratory….. read more
Budget Notification No. 09/2010-ST, Dated: 27/02/2010
Notification No. 09/2010-Service Tax
New Delhi, the 27th February, 2010
G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 01/2006-Service Tax …..read more
Budget Notification No. 8/2010-ST, Dated: 27/02/2010
Notification No. 08/2010-Service Tax
New Delhi, the 27th February, 2010
G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided to any person in relation to transport of goods, the description of which is specified in …..read more
Budget Notification No. 07/2010-ST, Dated: 27/02/2010
Notification No. 07/2010-Service Tax
New Delhi, the 27th February, 2010
G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby rescinds the notification of Government of India in the Ministry of Finance (Department of Revenue), No. 33/2009-Service Tax, …..read more
Budget Notification No. 06/2010-ST, Dated: 27/02/2010
Notification No. 06/2010-Service Tax
New Delhi, the 27th February, 2010
G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section 93 and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government, hereby makes the following rules to amend the Export of Services Rules, 2005, namely: - …..read more
Budget Notification No. 05/2010-ST, Dated: 27/02/2010
Notification No. 05/2010-Service Tax
New Delhi, the 27th February, 2010
G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby rescinds the notification of Government of India in the Ministry of Finance (Department of Revenue), No. 01/2000-Service Tax, …..read more
Budget Notification No. 04/2010-ST, Dated: 27/02/2010
Notification No. 04/2010-Service Tax
New Delhi, the 27th February, 2010
G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following amendment in the notification of Government of India in the Ministry of Finance (Department of Revenue), No. 33/2004-Service Tax, dated the 3rd December, 2004, published in the Gazette of India, Extraordinary vide number G.S.R. 788(E), dated the 3rd December, 2004, namely: - …..read more
Budget Notification No. 03/2010-ST, Dated: 27/02/2010
Notification No. 03/2010-Service Tax
New Delhi, the 27th February, 2010
G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfies that it is necessary in the public interest so to do, hereby makes the following amendment in the notification of Government of India in the Ministry of Finance (Department of Revenue), No. 24/2004-Service Tax, dated the 10th September, 2004, published in the Gazette of India, Extraordinary vide number G.S.R. 598(E), dated the 10th September, 2004, namely:- …..read more
Budget Notification No. 02/2010-ST, Dated: 27/02/2010
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART-II, SECTION 3, SUB-SECTION (i)]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 27th February, 2010
Notification No. 02/2010-Service Tax
G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfies that it is necessary in the public interest so to do, hereby exempts the taxable service as referred to ….read more
Friday, February 26, 2010
TOP HIGHLIGHTS OF BUDGET 2010
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Transportation by rail to remain exempt. - Process of refund of accumulated credit to exporters of services, especially in the
area of Information Technology and Business Process Outsourcing, made easy bymaking necessary changes in the definition of export of services and procedures -
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Thursday, February 25, 2010
BUDGET UPDATES 2010
Mr Pranab Mukherjee said that revenue on direct tax proposals is put at Rs 20,000 crore, Indirect Tax proposals to result in Rs 46,000 crore.
No roll back in service tax which remains at 10%. And Service Taxes would rake in Rs 3,000 crore.
No roll back in service tax which remains at 10%. And Service Taxes would rake in Rs 3,000 crore.
BUDGET UPDATES 2010
- Changes in definition of export of services in IT and BPOs.
- More services to be brought under tax net
- No taxes on transport of pulses and cereals: Pranab
- Service Tax rates unchanged
- Account auditing for all income above Rs 15 lacs
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