Service Tax News, Articles, Notifications and Forms

Circular No. 152/3/2012-ST Service tax is not leviable on toll paid by the users of roads, including those roads constructed by a Special Purpose Vehicle (SPV) created under an agreement between National Highway Authority of India (NHAI) or a State Authority and the concessionaire (Public Private Partnership Model, Build-Own/Operate-Transfer arrangement). ‘Tolls’ is a matter enumerated (serial number 59) in List-II (State List), in the Seventh Schedule of the Constit.. Full Article

The Central Bureau of Investigation has arrested a Superintendent, Service Tax, IAP-X, Bangalore for demanding & accepting a bribe of Rs.25,000/-from the complainant. A case was registered against him U/s 7 of Prevention of Corruption Act, 1988 on the allegation of demanding a bribe from the complainant as a motive or reward for not imposing heavy service tax penalty and also to allegedly close the file. Full Article

Ahead of the Union Budget, the state Finance Ministers will meet here on March 3 and suggest steps for increasing the ambit of the service tax net with a view to garnering more resources. The state Finance Ministers have decided on the negative list and are expected to sort out issues concerning definition of services so that more economic activities could be brought under the tax net. Full Article

The C & A G of India has pointed out that Banks are recovering Commitment charges for keeping available the undisbursed balance of a loan commitment and they are in the nature of charges for services provided. In this regard attention is invited to the letter F. No. 345/6/2008-TRU, dated 11.6.2008 (Annexure) wherein it has been clarified that any amount collected by the service provider on account of lending is either interest or service charges. Pre-closure/fore-closure.. Full Article

On hearing both sides, we find that the issue in dispute is as to whether service tax liability arises on recipient of commission who resides outside India and has no office in India, for the period prior to 18.4.2006. The Apex Court has held that such liability arises only with effect from 18.4.2006 with the introduction of Section 66A of the Finance Act, 1944. The ratio of the Apex Court's decision in Union of India Vs. India Full Article

What is Works Contract? According to Section 65 (105) (zzzza), any service provided or to be provided to any person, by any other person in relation to the execution of a works contract, excluding works contract in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams, is a taxable service; Full Article

Circular No. 151/2/2012-ST Many issues have been referred by the field formations, in the recent past, seeking clarification regarding the levy and collection of service tax on construction services [clauses (zzq),(zzzh) of section 65(105) of the Finance Act, 1994], in the light of varying business models. Across the country, divergent business models and practices are being followed in the construction sector. Some of these business models and practices could be region .. Full Article

OFFICE OF THE CHIEF COMMISSIONER OF CENTRAL EXCISE:MUMBAI ZONE – I CENTRAL EXCISE BUILDING, 115, M.K. ROAD, CHURCHGATE, MUMBAI-400 020. Email:dcccunit@rediffmail.com                                                          Fax No.022-22014170 TRADE NOTICE NO. 1/RAC/CCO MUMBAI ZONE-I/2011-12 DT.30th JAN, 2012 Sub.: Constitution of Regional Advisory Committee of Central Excise Mumbai Zone-I for Calendar Years 2.. Full Article