Whether the above activity of providing motor cars to the customers under different business models attract service tax or VAT is a matter of debate since long but in order to understand the governing provisions of the statute which determines its taxability we shall understand the relevant provisions in the Service tax law and the Sales tax law which governs the taxability of above services.
Litigation under service tax starts by issuance a “Show Cause Notice” under the provision of section 73 of the Finance Act, 1994, which could be a resultant of a Audit, ST-3 scrutiny, investigation or pending issues of previous period. This notice would be adjudicated by the Central Excise and Service Tax officer by following the […]
Service tax is a subject which has been posing quite a few problems to assessees since its introduction in the year 1994 through Chapter V of Finance Act 1994. Over Rs.131,000 Crores has been collected last year on this count. The service tax law like other tax laws prevalent in the country is not simple, not equitable, not certain and tax administration not fair.
