Service Tax News, Articles, Notifications and Forms

  • Oct
  • 24
  • 2014

Service Tax on Transfer of Development Rights of Land – A Detailed Legal Analysis

Added In Service Tax
Service tax legislation has seen a lot many changes from the days it was introduced and has always been evolving to ensure effective revenue collection. A large number of issues tend to be matter of disagreement between the revenue authorities, trade at large and consultants / experts. Obviously most of them go to the judiciary […]

Read the Full Article

  • Oct
  • 24
  • 2014

ST-3 due date extended to 14th Nov’14 for 1st Half of 2014-15

Added In Service Tax
In exercise of the powers conferred by sub-rule (4) of rule 7 of the Service Tax Rules, 1994, the Central Board of Excise & Customs hereby extends the date of submission of the Form ST-3 for the period from 1st April 2014 to 30th September 2014, from 25th October, 2014 to 14th November, 2014.

Read the Full Article

  • Oct
  • 22
  • 2014

Service Tax on Joint Development Agreements

Added In Service Tax
A. Whether the agreement between developer and land owners is in the nature of joint venture? B. If it is not a joint venture then whether the transaction of giving 400 units of flats in return of a land (i.e. a non – monetary consideration) amounts to service and whether the same is liable for service tax?

Read the Full Article

  • Oct
  • 17
  • 2014

Services to Foreign Principals for marketing in India is an export of service

Added In Service Tax
We are sharing with you an important judgment of the Hon’ble CESTAT, Delhi in the case of Microsoft Corporation (I) (P) Ltd. Vs. Commissioner of Service Tax, New Delhi [2014-TIOL-1964-CESTAT-DEL] on the following issue: Issue: Whether the services provided to principals situated outside India to market their products in India is an export of service […]

Read the Full Article

  • Oct
  • 15
  • 2014

No penalty if there is mass unawareness about taxability of certain service

Added In Service Tax
We are sharing with you an important judgment of the Hon’ble Allahabad High Court in the case of H.M. Singh & Co. Vs. Commissioner of Central Excise, Customs & Service Tax [2014 (49) taxmann.com 417(Allahabad)] on the following issue: Issue: Whether penalty could be levied under Section 77 and 78 of the Finance Act, 1994 […]

Read the Full Article

  • Oct
  • 15
  • 2014

Service tax on services in relation to inward remittances from abroad

Added In Service Tax
Vide circular No. 163/14/2012–ST, dated 10th July, 2012, on the issue of levy of service tax on the activities involved in the inward remittance it was clarified that there is no service tax per se on the foreign exchange remitted to India from outside for the reason that money does not constitute a service and that conversion charges or fee levied for sending such money would also not be liable to service tax

Read the Full Article

  • Oct
  • 14
  • 2014

Service Tax -Reverse Charge Mechanism For Individual/Proprietorship firm

Added In Service Tax
1. Freight paid/payable to Goods Transport Agency (GTA) 1.1    Does individual/proprietorship firm is liable to pay service an When tax under reverse charge? An Individual or a proprietorship firm is liable to take service tax registration and pay service tax under reverse charge only if:- i. It is registered as a dealer of excisable goods […]

Read the Full Article

  • Oct
  • 09
  • 2014

Service Tax – Why irrelevant Payment code ‘1089’ not been removed?

Added In Service Tax
CA M. Lakshmanan While we go for e-payment of service tax we are given the codes for various services that existed till 1st July 2012 and additionally we are given an option to select ALL TAXABLE SERVICES – OTHER THAN IN THE NEGATIVE LIST (WITH EFFECT FROM 1ST JULY 2012 and the code given is 1089 whereas […]

Read the Full Article

  • Oct
  • 07
  • 2014

No Penalty in the absence of mens rea

Added In Service Tax
The Hon’ble Tribunal in absence of any discussion with regard to mala fide intention and mens rea set aside the OIO to the extent it related to imposition of penalty under Section 78 of the Finance Act.

Read the Full Article

  • Oct
  • 07
  • 2014

In October Heat – Exponential Rise in Rate of Interest of Service Tax

Added In Service Tax
Krishna, October month’s heat has started. In this by increasing rate of interest of service tax from 1st October 2014 the department has increased heat of taxpayers. However from 1st October 2014 rate of interest has been increased by the department. Depending upon the period of delay rate of interest has been increased.

Read the Full Article