• Registered Users :
  • 155721
  • Current Active Users :
  • 96562

News Indirect Tax-Service Tax

  • Mar 26, 2018
  • Service tax can't be imposed in J&K, says tribunal of pre-GST levy

    A tribunal has rejected indirect tax authorities’ demand to levy service tax for goods transported to Jammu and Kashmir on the reverse charge mechanism. The case was from the earlier service tax regime, prior to rollout of the current goods and services tax (GST). Experts say such a dispute would not arise in the GST regime. A company supplying petroleum products had got a notice for services given by a goods transport agency in J&K between April 2011 and September 2014. The company contended that service tax, imposed since 1994, excluded the state of J&K; hence, no such levy was possible.

  • Dec 14, 2017
  • Service tax notices to IT firms: Concerns will remain till rules are amended, say Experts

    Even though the tax department has set aside a clutch of orders sent to IT companies reversing their tax exemptions in respect of IT/IT-enabled services (IT/ITes) provided to clients abroad and also slapping service tax and penalty on them, tax experts said the “technical issue” could linger. Under the Place of Supply Rules — which were applicable to service tax earlier and hold good for the GST now — in case goods are provided to a service provider, the place of supply of the service is where the goods are located and the tax needs to be paid there.

  • Dec 13, 2017
  • Orders on service tax demand to IT firms set aside: Govt

    In a relief to IT companies, a Rs 10,000 crore service tax demand notices on dozens of IT companies has been set aside, the government said today.The tax department had slapped service tax demand notices on about 200 information technology and IT-enabled services companies in the country. It had asked them return export benefits claimed between 2012 and 2016 on softwares provided to clients outside India. A day after IT companies raised the issue of tax demand with Finance Minister Arun Jaitley in the customary pre-budget consultations, the finance ministry issued a statement to state that the Commissioner (Appeals) set aside the orders of the lower adjudicating authority.

  • Jun 21, 2017
  • Capital gains tax evasion under CBI scanner

    The Central Bureau of Investigation (CBI) is probing if any government officials were involved in misusing stock exchange platforms to benefit from the long-term capital gains tax (LTCG) exemption.According to sources, CBI officials visited the headquarters of the Securities and Exchange Board of India (Sebi) in Mumbai to get relevant files pertaining to LTCG cases probed by the markets regulator.This comes at a time the income tax (I-T) department is probing the entities which had allegedly misused capital gains provisions to evade taxes worth Rs 34,000 crore.

  • Jun 20, 2017
  • I-T Lays Claim to Cairn Dividends as Part of Retro Tax Payment

    The income tax department has demanded all dividends due to Cairn Energy Plc from Cairn India (renamed Vedanta Ltd) against part of the Rs 10,247-crore tax levied on the company in the wake of the controversial retrospective tax amendment. The company was required to pay the amount by June 15, failing which the department had said it would start recovery proceedings.Vedanta said late on Monday that money held in escrow for this purpose will be paid to the tax department.“Vedanta Ltd has advised the banks holding approximately Rs.666 crore in the dividend account to be transferred to the IT authorities,” the company said in its release. “It may be recalled that the dividends due to Cairn Energy Plc for the last three years were lying in an unpaid dividend account as initially they were subject to an attachment order under Section 281B by the tax department and were not available for use by Cairn (now Vedanta Ltd).”

  • Apr 27, 2017
  • Government extends service tax return filing date to April 30

    Centre has extended the last date for filing service tax return by five days to April 30, in a relief to lakhs of service providers. “The CBEC hereby extends the date for submission of form ST-3 for the period from October 1 to March 31, 2017, from April 25 to April 30, 2017,” the apex policy makingCentre has extended the last date for filing service tax return by five days to April 30, in a relief to lakhs of service providers. “The CBEC hereby extends the date for submission of form ST-3 for the period from October 1 to March 31, 2017, from April 25 to April 30, 2017,” the apex policy making body of the indirect tax department said in an office order.

  • Apr 17, 2017
  • Mumbai zone service tax mop-up falls short of revised target

    The Union Budget 2017 had set a target of Rs 76,300 crore from the Mumbai zone but this was revised upwards to Rs 83,000 crore in February. (Reuters)The service tax collection from the Mumbai zone has missed the revised target by a whisker at Rs 81,599 crore, which is a growth of 18.8 per cent from Rs 68,696 crore a year ago, a senior official has said. The Union Budget 2017 had set a target of Rs 76,300 crore from the Mumbai zone but this was revised upwards to Rs 83,000 crore in February. The Mumbai zone of the service tax department is responsible for over one-third of overall service tax collection from the entire country.

  • Jan 27, 2017
  • Ahead of Budget 2017, service tax blow for online travel players

    Domestic hotel and tour aggregators such as OYO Rooms, EaseMyTrip and MakeMyTrip were expecting tax relief in the Budget to be presented on February 1. But the mood has turned sombre, with the finance ministry deciding to impose service tax on what they receive from customers and not just the commission earned from hotels and others. In a quiet move, the Central Board of Excise and Customs has amended the service tax rules to clarify this because there was ambiguity on the point.

  • Jan 23, 2017
  • Amended I-T law harsh, prone to misuse by taxmen: Experts

    As the dust begins to settle on demonetization and the taxman hunts for unexplained money, there is a lurking concern among practitioners and senior levels of the tax office as to how harshly the new law would be used.Money borrowed from a friend, jewellery inherited from great grandmother, gifts, capital received by a small businessman, amount spent in daughter's wedding or in regular household expenditure can be questioned and taxed at a far higher rate if someone fails to offer a "satisfactory explanation" to the tax officer.

  • Jan 20, 2017
  • India to levy service tax on freight for imports on delivered basis

    Overseas exporters chartering foreign vessels to supply goods to India will have to pay a service tax on freight from Sunday, a government notification said. It will be the same as the 4.5 percent service tax that India currently levies on free-on-board (FOB) cargoes, where the ship is chartered by a local buyer. Prior to the change, imports in foreign ships hired by the overseas seller - known as on a cost and freight (CFR) basis - have been exempt from this charge.

  • Dec 27, 2016
  • Service tax mop from Mumbai zone jumps 25.5 per cent till November

    In spite of demonetisation, the Mumbai zone of the service tax department has not only exceeded the revenue collection as of November, but also has surpassed the target for the period. The revenue collection from the Mumbai zone rose 25.5 per cent or by Rs 10,362 crore to Rs 51,062 crore as of end November, according to the department sources.

  • Nov 14, 2016
  • Mumbai zone's Apr-Oct service tax mop-up exceeds target

    Service tax collection from the Mumbai zone rose to Rs 45,821 crore in the April-October period of this fiscal, exceeding the target by more than Rs 5,000 crore. Revenue collection by the service tax department was up by Rs 9,801 crore or 27.3% compared to Rs 36,020 crore mopped up in the same period of the previous fiscal, the department's data showed.The zone has surpassed the target for the period by Rs 5,062 crore or 12.4%.

  • Sep 28, 2016
  • Yoga-promoting institutions out of service tax net

    Yoga instructor Ramdev's trusts and similar other institutions engaged in promoting yoga are not required to pay the service tax for a period, starting from June 20, 2012 to October 20, 2015, provided they are registered as charitable entities. For period after October 20, 2015, Yoga-promoting institutions has come under the negative list which are exempt from the service tax. There was confusion whether service tax is applicable to yoga-promoting institutions or not before October 21, 2015. This was so because negative list of services issued witheffect from June 20, 2012 did not specifically mentions Yoga.

  • Sep 14, 2016
  • Service tax collection from Mumbai zone up 21.3 per cent till August

    Service tax collection from Mumbai zone has surged by over 21 per cent in the first five months of the fiscal year over the year-ago period, surpassing target. Revenue collection from the Mumbai zone rose 21.3 per cent to Rs 29,003 crore as of August 31, or Rs 5,097 crore in absolute terms from collection of Rs 23,906 crore in the corresponding period last year, data from the service tax department showed.

  • Aug 27, 2016
  • No service tax on tubewell construction for government projects, says CBEC

    Construction of tubewells for government projects is exempt from payment of service tax, the Central Board of Excise and Customs (CBEC) has said. The clarification comes after Rajasthan Chief Minister Vasundhara Raje had written to Finance Minister Arun Jaitley last month on the issue as many contractors who were working with the Public Health and Engineering Department in Jhunjhnu, Sikar and Bikaner for tubewell construction had been served service tax notices.

  • Jul 18, 2016
  • Service tax collection up in Mumbai

    Service tax collection by the city zone department in the first quarter has increased by 23 per cent, which has helped it surpass the target by nearly 4 per cent for the period. Service tax mop-up from Mumbai zone rose 22.9 per cent to ?17,583 crore as of end June from ?14,307 crore a year ago, according to the data from the Service Tax Department. Moreover, the zone has exceeded the collection target by 3.6 per cent, up from ?16,969 crore. For the current fiscal, the Mumbai zone has been given a revenue collection target of ?76,300 crore. Last fiscal, the zone had collected a revenue of ?68,714 crore.

  • Jun 27, 2016
  • Krishi cess not applicable if invoice generated before May 31

    In a bid to end confusion over retrospective applicability of new Krishi Kalyan Cess, the government has stated that the 0.5 per cent tax will not apply on services whose invoice had been issued on or before May 31. Finance Minister Arun Jaitley had in his Budget for 2016-17 fiscal introduced the 0.5 per cent Krishi Kalyan Cess on all taxable services. Proceeds of the cess are to be used for improvement of agriculture sector and farmer welfare.

  • Jun 10, 2016
  • Service Tax department may appeal against tax relief

    Those buying under construction property may not have to pay service tax. The recently-announced Delhi High Court judgement has said that there is no provision to calculate the value of service in a deal between a builder and a buyer. While the judgment will definitely apply to buyers within the Delhi jurisdiction, it could also have an impact on property deals in other states.

  • May 21, 2016
  • Firms approaching arbitration tribunals to pay service tax: CBEC

    Firms with a turnover of over ?10 lakh who go in for arbitration proceedings will be liable to pay service tax at the rate of 14 per cent. “The services provided or agreed to be provided by an arbitral tribunal to a business entity (turnover exceeding ?10 lakh)… is taxable under reverse charge mechanism and recipient of service is liable to discharge service tax liability,” said the Central Board of Excise and Customs in a new clarification after doubts arose over who would pay the service tax.

  • May 14, 2016
  • Service tax on lawyers: Supreme Court takes up plea to transfer petitions

    The Supreme Court on Friday issued notice to various state bar associations, including Delhi High Court Bar Association (DHCBA) and senior advocate Kevin Gulati, asking why their petitions challenging the government’s notification imposing service tax on senior lawyers should not be transferred to it to avoid multiplicity of proceedings, as sought by the Centre.

12345678910...