CA Pradip R Shah

Whether Charitable Trusts (CT) are liable to pay ST? Yes. Refer to charging section i.e. Section 66B which reads as follow: 66B. There shall be levied a tax …. provided ….. by one person to another……. Does it mean that CT will have to pay ST on services provided by it? Yes. Section 66D containing Negative List (NL) is not having any specific reference to services provided by CT. Hence, services provided by CT are taxable. Full Article

Let the reader not be under an impression that this article deals with English Grammar as a subject. This article makes an attempt to demonstrate importance of prepositions viz.to, by etc. in understanding the provisions of Service Tax (ST). It is normal human behavior to take certain things granted and jump to conclusion based on the initial perception. However, the casual approach or jumping to conclusion on the basis of first reading can be dangerous leading to substa.. Full Article

Service tax is supposed to be paid by the service provider (SP). However, in some of the cases like import of services, payment to transporter for transport of goods by road, etc., the liability to pay tax has been cast on the service recipient (SR). Budget 2012 has made large number of changes in the scheme of taxation with respect to Service Tax (ST). Of the many changes, a major change has been with respect to extension of the Reverse Charge (RC) mechanism to many oth.. Full Article

The concept of reverse though important, has limited applicability in our day-to-day life. We are familiar with reversing a vehicle for limited purposes. A vehicle cannot be driven in reverse for moving forward. However, when it comes to levy of taxation it is not the case. Under the ST, till 30th June, 2012 the concept of levying tax on reverse charge (RC) had limited applicability as only few types of transactions were covered there under. With effect from 1st July, 20.. Full Article