Normally, service tax is payable by the person who is providing the taxable service. However, the Central Government is empowered under Section 68(2) to notify the specified persons who are liable to pay service tax in respect of notified taxable services. In this budget a proviso has been inserted wherein the Central Government can notify the specified services and the extent of service tax which shall be payable such person and the remaining part of the service tax shall be paid by the service provider. In other words, by insertion this proviso both the service recipient and the service provider together is required to pay the service tax.
Although the negative list approach largely obviates the need for descriptions of services, such descriptions continue to exist in the following areas – • In the negative list of services. • In the declared list of services. • In exemption notifications.
The taxability of services or the charge of service tax has been specified in section 66B of the Act. To be a taxable a service should be – provided or agreed to be provided by a person to another in the taxable territory ♦ and should not be specified in the negative list.
7 new markets are being added to Focus Market Scheme (FMS). These countries are Algeria, Aruba, Austria, Cambodia, Myanmar, Netherland Antilles, and Ukraine. 7 new markets are being added to the Special Focus Market Scheme (Special FMS). These countries are Belize, Chile, El Salvador, Guatemala, Honduras, Morocco, and Uruguay. 46 new items are being added to Market Linked Focus Product Scheme (MLFPS). This would have the effect of including 12 new markets for the first time.
Recognizing the efficacy of the market diversification scheme, this year we are adding 7 new markets to Focus Market Scheme (FMS). These countries are Aruba, Algeria, Austria, Cambodia, Myanmar, Netherland Antilles, and Ukraine. 7 new markets are being added to the Special Focus Market Scheme (Spl FMS)- Belize, Chile, El Salvador, Guatemala, Honduras, Morocco, and Uruguay. 46 new items are being added to Market Linked Focus Product Scheme (MLFPS). This would have the effect of including 12 new markets for the first time.
In exercise of powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act,1992 (No.22 of 1992) read with paragraph 1.2 of the Foreign Trade Policy, 2009-2014, the Central Government hereby notifies the Foreign Trade Policy, 2009-2014 as updated upto 5th June 2012 and incorporating the Annual Supplement. This shall come into force w.e.f. 5th June, 2012.
Reporting is an integral part of any audit through which an Auditor expresses his opinion. In case of Companies, the auditor of the company is required to report on the 21 clauses as given in the Companies (Auditor’s Report) Order (CARO), 2003 issued by Central Government u/s227 (4A) of the Companies Act, 1956.
We have considered the rival submissions. We have also perused the said order dated 27-05-2011 of the co-ordinate bench of this tribunal in assessee’s own case for the assessment years 2004-05 & 2007-08 (refer to supra). As it is noticed that the co-ordinate bench of this tribunal in assessee’s own case (refer to supra) in para 4 & 5 of the said order dated 27-05-11 has taken into consideration the decision of the Hon’ble Madhya Pradesh High Court in the case of CIT –vs- Darshan Talkies [217 ITR 744] as also the decision of the co-ordinate bench of this tribunal in assessee’s own case for the assessment year 2006-07 in ITA No.1689/Kol/2009 dated 26-11-2009 and the tribunal has dismissed the revenue’s appeals [in ITA Nos.2210 & 2211/Kol/2010] upholding the finding of the ld.CIT(A) in directing the Assessing Officer to grant exemption u/s. 11 of the I.T Act, respectfully following the said order/decision dated 27/05/2011 of the co-ordinate bench of this tribunal in assessee’s own case for the assessment years 2004-05 & 2007-08 (refer to supra) and as also as no contrary view has been taken by any superior authority and no contrary evidence has been placed before us by the revenue, the findings of the learned Commissioner of Income-tax (Appeals) stand confirmed. The issues of revenue’s appeal are dismissed.
The material on record discloses that the assessee on being pointed out by the authorities for not paying the service tax, has paid the service tax with interest even before the issue of show cause notice. Sub-section (3) of Section 73 of the Finance Act, 1994, categorically states that if tax and interest is paid and the same is informed to the authorities, then the authorities shall not serve any notice calling upon the authorities to pay penalty. It is unfortunate that inspite of statutory provisions, the authorities have issued a show cause notice claiming penalty. So tax and interest was paid before issue of show cause notice.
As a result of the aforesaid protests and representations, there has been roll-back or reduction in the rigour, in respect of some of the aforesaid proposed amendments. The same were announced by the Finance Minister in his speech, while introducing the Finance Bill, 2012, for consideration. Besides, in certain respects, some additional reliefs have also been announced by the Finance Minister. The same are briefly discussed as follows:
