Service Tax News, Articles, Notifications and Forms

  • Feb
  • 25
  • 2015

Opening the Jugglery of Work Contract under Service Tax

Added In Service Tax
A composite contract means a contract which involves transactions involving an element of provision of service and an element of transfer of title in goods in which various elements are so inextricably linked that they essentially form one composite transaction.

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  • Feb
  • 25
  • 2015

Assessee not prohibited from paying tax on services exempted under a notification

Added In Service Tax
Under Service Tax law, the Assessee is not prohibited from paying tax on services exempted under a notification – there is no provision akin to Section 5A(1A) of the Central Excise Act, 1944 M/s Deloitte Haskins And Sells Vs. Commissioner of Central Excise, Thane [2015-TIOL-366-CESTAT-MUM] M/s Deloitte Haskins and Sells (the Appellant) is a firm […]

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  • Feb
  • 25
  • 2015

No extended period if demand arose out of correct figures shown in ST-3 Returns

Added In Service Tax
The Hon’ble CESTAT, Ahmedabad, relying on the decision in the Meghmani Dyes case, held that if prescribed Returns are filed by Assessee giving correct information, then extended period of limitation cannot be invoked. In the instant case also, prescribed ST-3 Returns were duly filed by the Appellant giving correct information and differential tax payable was apparent from the figures furnished by the Appellant.

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  • Feb
  • 25
  • 2015

Pre-deposit has to be waived off if Assessee’s case is a good/ strong prima facie case covered by a binding precedent

Added In Service Tax
Shukla & Brothers (the Appellant) is a proprietorship firm registered under Service tax under the category of ‘Construction Work’. However, under some confusion and misguidance, the Appellant was issued registration under ST-2 in the category of ‘Civil Structure Construction Work’. The Appellant claimed that the services provided are of maintenance/ sanitation services provided at factory premises of clients, which does not fall within the Service tax net.

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  • Feb
  • 25
  • 2015

Service Tax on Banking and Financial Services – An analysis

Added In Service Tax
Dr. Sanjiv Agarwal Banking and financial services are subject to levy of Service Tax in more than one form. While only specific services were taxed prior to 1.7.2012, all such services are taxable now barring those which are in negative list. W.e.f.1.07.2012, all services, other than services specified in the negative list, provided or agreed […]

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  • Feb
  • 22
  • 2015

Director’s service to Company or Body Corporate

Added In Service Tax
Clause 1.1 With effect from 1.7.2012, any service provided by a director who is non executive, nominee and independent directors to the company, thus on such activity carried service tax is payable. Under are the justifications for clarity.

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  • Feb
  • 22
  • 2015

We the people or we the sitting Ducks

Added In Service Tax
Almost all of us go for family outings every now and then and one of the most important activities, without which an outing is not complete, is having a meal at a nice Restaurant. However, it’s the ‘RESTAURANT’S BILL’ which acts as a party spoiler due to the respective taxes and charges applied therein.

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  • Feb
  • 17
  • 2015

Computerized invoices downloaded through internet are eligible documents for claiming Service tax Refund

Added In Service Tax
Computerized invoices downloaded through internet are eligible documents for claiming Refund of Service tax paid on services used for export provided it contains all relevant details Suncity Art Exporters Vs. Commissioner of Central Excise & Service Tax, Jaipur-II [(2015) 53 taxmann.com 207 (New Delhi – CESTAT)] Suncity Art Exporters (the Appellant) were exporters of handicrafts […]

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  • Feb
  • 17
  • 2015

Non-Authorised service station not liable to pay Service tax on Maintenance or Repair of any ‘part’ of motor vehicle

Added In Service Tax
Non-Authorised service station not liable to pay Service tax on Maintenance or Repair of any ‘part’ of motor vehicle – SC dismissed SLP filed by the Department Commissioner of Central Excise, Customs & Service Tax, Kerala Vs. Kuttukaran Trading Ventures [(2015) 53 taxmann.com 532 (SC)] In the instant case, Kuttukaran Trading Ventures (the Assessee) was […]

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  • Feb
  • 17
  • 2015

Sum paid as a pure agent of service recipient not includible in value of services

Added In Service Tax
The issue of taxability of out-of-pocket expenses has always been a matter of litigation. Before April, 2006 there was no specific provision to this effect. However, from April 19, 2006 onwards, with the introduction of the Valuation Rules, Service tax is applicable on gross consideration including all expenses barring the expenses incurred as pure agent.

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