04/06/2013
Rs 150-cr service tax evasion by NBFCs unearthed
Several major non-banking financial companies (NBFC) have dodged at least Rs 150 crore of service tax due in the process of securitizing their loans with top new-generation private banks.Service tax authorities, who are zeroing in on frontline NBFCs based in Kerala, Mumbai, Chennai and Kolkata, which together have over 10,000 branches across the country, have found that the evasion has been going on for years.The NBFCs had securitised their loans –mainly gold, vehicle and home – with some of the country’s most successful new-generation private banks.
|
29/05/2013
Taxman’s Fiat for Bharti: Pay service tax on freebies to staffers
The revenue authorities’ refusal to accept discounted price as the base for levying tax is not just confined to excise as in the now-famous Fiat India case, but extends to service tax as well. Several leading corporates including the country’s largest telecom operator Bharti Airtel are set to bear the brunt of the new policy.According to sources, employers who give free or discounted services such as free air tickets, mobile, landline or data connections to their staff are in for service tax demands from tax authorities on the actual market value of such services. Companies offering short-duration discounts to win customers (including incidents of predatory pricing) could also be hit by the move, as in such cases they will have to fork out the taxes as applicable on the discount value also.
|
27/05/2013
Jaypee to get Rs 21-cr service tax notice for hosting F1 race
A Rs 21-crore notice to Jaypee Sports International, a subsidiary of Jaiprakash Associates, is on its way for alleged evasion of service tax on acquisition of the rights to host and stage the Formula 1 motor sports race.
In October 2011, the first Formula One Grand Prix was organised by Jaypee Sports. The company entered into a contract with Formula One World Championship (FOWC) of the UK to acquire the right to host and stage Formula 1 for Rs 197 crore. It allegedly did not pay any service tax on the amount paid.The directorate general of Central Excise Intelligence (DCCEI) said the company was liable to pay service tax under the reverse charge mechanism in the taxable service category of "franchisee services". Usually, the tax is paid by the service provider but in a reverse charge mechanism, it is paid by the service recipient.
|
27/05/2013
FinMin to write 'polite letters' to tax defaulters
Service tax, Customs and excise duty defaulters will get "polite letters" seeking information about their pending liability and any suspicions on dealings by them, possibly with black money.The method of non-intrusive letters will be sent to seek clarifications from an entity or an individual who has carried out a financial transaction, red-flagged by economic intelligence agencies as black money or seen as an attempt to dodge paying of taxes, finance ministry officials said. It will be for the first time that such polite letters will be issued to indirect tax defaulters.Earlier, only the income tax department issued such letters to tax dodgers. The Directorate General of Central Excise Intelligence (DGCEI) and Directorate General of Revenue Intelligence (DGRI), have been made the nodal authorities for the purpose.
|
20/05/2013
Govt gets power to arrest service tax defaulters
Service tax evaders beware! Failing to deposit this tax may attract arrest and imprisonment upto seven years.With the passage of Finance Bill 2013 last week, the Revenue department officials can now arrest a person for non-payment of collected service tax.Earlier, the officials did not have any power to arrest a person for service tax evasion. Besides, director and manager of a company who fail to pay collected service tax can now be arrested with imprisonment for upto seven years in addition to the penalty which may extend to Rs one lakh.
|
16/05/2013
FinMin notifies scheme to encourage service tax payment
In an effort to boost revenue, the Finance Ministry has notified Service Tax Voluntary Compliance Encouragement Scheme. This will be a one time scheme.It aims to cover nearly 10 lakh service tax assessees who have stopped filing tax returns. This scheme will be for non-filers too.The assessees concerned will have to give a truthful declaration of all pending dues between October 1, 2007 and December 31, 2012.It is clarified that the tax-payers will need to settle their dues for the period after December 31, 2012.Under the scheme, the assessee will be given an opportunity to pay half of the dues by December 31 this year while remaining amount can be paid by June 30, 2014. There will be no interest, penalty or any proceeding. However, if dues remain as on July 1, 2014, the assessee will have to pay with interest by December 31.
|
13/05/2013
Circular No. 169/4 /2013 - ST
Regarding The Service Tax Voluntary Compliance Encouragement Scheme-clarifications
|
13/05/2013
Notification No. 10/ 2013 - Service Tax
Rules regarding the form and manner of declaration, form and manner of acknowledgement of declaration, manner of payment of tax dues and form and manner of issuing acknowledgement of discharge of tax dues under the Service Tax Voluntary Compliance Encouragement Scheme,2013.
|
10/05/2013
Pay more service tax on house costing over Rs 1 crore
The finance ministry has tightened norms for application of lower rate of service tax on construction, dealing a blow to buyers purchasing houses above a certain size or value. The Central Board of Excise and Customs, the apex indirect taxes body, has issued new norms that restrict lower service tax to only those houses that cost below Rs 1 crore and have carpet area less than 2000 square feet.
|
08/05/2013
Notification No. 09/ 2013 - Service Tax
Seeks to amend the notification No.26/2012-Service Tax, dated the 20th June, 2012.
|
|