Service Tax

Madras HC: No service tax on payment received from employees for Notice Period

Hon’ble HC, Madras in the matter of GE T & D India Limited v. Deputy Commissioner of Central Excise held that service tax is not leviable on the payment received by the Petitioner in lieu of notice period paid by the outgoing employees....

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Interest Subvention: Interest Or Service?

This paper will analyse various types of loan agreements entered that are now being entered into, and the tax liability of these loans. It will focus specifically on interest subvention and how it should be categorised for tax purposes, with more focus on the automobile industry, given the recent judgements and jurisprudence....

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Practical Approach – Sabka Vishwas (Legacy Dispute Resolution) Scheme

Long Awaited and Vital scheme for Taxpayers……. Finally, in the Union Budget 2019-20, the Hon’ble Finance Minister announced the Sabka Vishwas-Legacy Dispute Resolution Scheme, 2019. The Scheme has now been notified and operationalized from 1st September 2019. The Scheme would continue till 31st December 2019. Government expects ...

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Service Tax on Mining Royalty

In recent times, we have seen a spate of notices on the above subject proposing the huge demands. On the ground realities of being able to survive for some involved in this sector is itself in question. In terms of Notification No. 30/2012-ST dated 20.06.2012 read with amended Notification No. 7/2015-ST dated 01.03.2015 Central Government...

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Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019- Benefit & Eligibility

Benefits of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019: ♦ Relief from payment of tax dues to the extend of 50% to 70% of the tax dues depending on the amount of tax dues involved. ♦ Relief from payment of interest and penalty. ♦ Person discharged not be liable for prosecution. Details Amount (In Rs) […]...

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Director of a company arrested for evasion of Service Tax

 Officers of CGST Delhi North Commissionerate have arrested one Director of a Company for evasion of Service Tax. The Company had collected more than Rs. 3 Crores as Service Tax from its clients but had not deposited the same with the Government Exchequer. The power to arrest is provided under Section 91 of the Finance Act […]...

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ICAI Pre Budget 2018 Suggestion on Service Tax, Cenvat Credit Rules, Excise Duty, Custom Duty & CST

A suitable amnesty scheme must be thought of for all Central Laws and State Laws which have been merged in GST in one go to reduce existing litigation. The scheme must be well thought out since most schemes have failed for the following key reasons, among others...

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Summary of CAG Audit Report on Service Tax for Year ending on March 2017

Section 16 of CAG’s (DPC) Act, 1971 mandates CAG to audit receipts payable into consolidated fund of India and to satisfy that the rules and procedures are designed to secure an effective check on the assessment, collection and proper allocation of revenue and are being duly observed. ...

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CAG Report on Levy & collection of Service Tax on Entertainment Sector

We conducted a Performance Audit on levy & collection of Service Tax on Entertainment Sector, to seek an assurance regarding adequacy of Service Tax rules and regulations relating to entertainment sector and systems in place to ensure compliance to the same. The. audit was conducted in 17 selected. Commissionerates, including one division...

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ST3 & ST3C utilities April-June, 2017 available for filing

E-filing of Return: Existing registered assessees can file their returns for transactions up to the period June, 2017 by 15th August, 2017 as provisioned under Notification No.18/2017-ST Dated 22.06.2017. The facility for E-filing of return [ST3 & ST3C) for the period April-June, 2017 is provided -...

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No Service Tax on recovering back of Cheque dishonor charges

TVS Finances and Services Ltd. Vs Commissioner of Central Excise (CESTAT Chennai) - The appellant is providing financial services and gives loans. For recovery of loans, the appellant collects post-dated cheques. There are instances when post-dated cheques after being presented to bank get dishonoured. The bank collects charges for dishonouring of the cheques. Such charges are reco...

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No service tax on Independent Buildings having single Residential Unit

Prakash Wadhwani Vs Commissioner, Central Excise, Customs and Service Tax, Bhopal (CESTAT Delhi) - Service tax can be demanded under 65(105)(zzzh) only if the building concerned has more than 12 residential units in the building and such levy will not apply in cases where in one compound has many buildings, each having not more than 12 residential units....

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No demand of service tax could be fastened on construction of complex

Prakash Builders Vs Commissioner, Central Excise, Customs and Service Tax (CESTAT Delhi) - The definition of 'construction of complex' and a 'residential complex' continued to remain the same after 1 July, 2012 and, therefore, service tax liability could not have been fastened even after 1 July, 2012 under 'construction of complex'....

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Service tax is applicable on clubs or associations incorporated prior to 1st July, 2012

Principal Commissioner of Central Tax, GST Vs Indian Medical Association (Delhi High Court) - Principal Commissioner of Central Tax Vs Indian Medical Association (Delhi High Court) The issue under consideration is that whether service tax is applicable on clubs or associations incorporated prior to 1st July, 2012? The definition of “club or association” contained in Section 65(25a) makes...

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‘Evacuation of Ash Pond’ and its Transportation are not Cleaning activities and hence service tax not leviable

Blue Star Civil Engineering Company Private Limited Vs Commissioner of Central Excise (CESTAT Kolkata) - Blue Star Civil Engineering Company Private Limited Vs Commissioner of Central Excise (CESTAT Kolkata) The facts of the case are that the assessee M/s. Blue Star Civil Engineering Co. Pvt. Ltd. Mecheda was engaged in evacuation of ash pond for Durgapur Projects Ltd., Purba Medinipur Zilla Parishad, ...

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Provisions in Cenvat Credit Rules 2004 regarding reversal of credit

Circular No. 213/3/2019-Service Tax - (05/07/2019) - Is reversal under rule 6(3) of the Cenvat Credit Rules 2004 additionally required for all the services specified in notification 26/2012-Service Tax dated 20-6-2012?...

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Tax on road or bridge access service during 08.11.2016 to 01.12.2016

Circular No. 212/2/2019-Service Tax - (21/05/2019) - The service that is provided by toll operators is that of access to a road or bridge. toll charges being merely a consideration for that service. On MoRTH/ NHAI's instructions, for the period 8-11-2016 to 1-12-2016 this service of access to a road/bridge was continued to be provided without collecti...

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CBIC identifies mismatch of Rs. 12 Lakh Crores in Service Tax & ITR

D.0. F. No. IV(20/3/2015-Systems Pt.1 - (29/03/2019) - There is a considerable gap between the turnover on account of services as per the ITR/TDS data and the value of services declared in the corresponding Service Tax returns (above threshold of Rs. 1o lakhs). For FY 2015-16 alone, the mismatch is to the tune of of approx. Rs. 12 Lakh Crores. ...

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No service tax on training under Deen Dayal Upadhyaya Grameen Kaushalya Yojana

Notification No. 01/2019-Service Tax [G.S.R. 179(E)] - (06/03/2019) - Central Government hereby directs that service tax  on the services provided by training providers (project implementation agencies) under the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDUGKY) under the Ministry of Rural Development by way of offering skill or vocational training courses certi...

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Applicability of Service Tax on ADB and IFC – reg

Circular No. 211/1/2019-Service Tax - (15/01/2019) - Kind reference is invited to Circular No 83/02/2019-GST dated 01.01.2019 clarifying that that the services provided by IFC and ADB are exempt from GST in terms of provisions of IFC Act, 1958 and ADB Act. The exemption will be available only to the services provided by ADB and IFC and not to any enti...

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Recent Posts in "Service Tax"

No Service Tax on recovering back of Cheque dishonor charges

TVS Finances and Services Ltd. Vs Commissioner of Central Excise (CESTAT Chennai)

The appellant is providing financial services and gives loans. For recovery of loans, the appellant collects post-dated cheques. There are instances when post-dated cheques after being presented to bank get dishonoured. The bank collects charges for dishonouring of the cheques. Such charges are recovered by the appellant from their client...

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No service tax on Independent Buildings having single Residential Unit

Prakash Wadhwani Vs Commissioner, Central Excise, Customs and Service Tax, Bhopal (CESTAT Delhi)

Service tax can be demanded under 65(105)(zzzh) only if the building concerned has more than 12 residential units in the building and such levy will not apply in cases where in one compound has many buildings, each having not more than 12 residential units....

Read More

No demand of service tax could be fastened on construction of complex

Prakash Builders Vs Commissioner, Central Excise, Customs and Service Tax (CESTAT Delhi)

The definition of 'construction of complex' and a 'residential complex' continued to remain the same after 1 July, 2012 and, therefore, service tax liability could not have been fastened even after 1 July, 2012 under 'construction of complex'....

Read More

Service tax is applicable on clubs or associations incorporated prior to 1st July, 2012

Principal Commissioner of Central Tax, GST Vs Indian Medical Association (Delhi High Court)

Principal Commissioner of Central Tax Vs Indian Medical Association (Delhi High Court) The issue under consideration is that whether service tax is applicable on clubs or associations incorporated prior to 1st July, 2012? The definition of “club or association” contained in Section 65(25a) makes it plain that any person or body of per...

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‘Evacuation of Ash Pond’ and its Transportation are not Cleaning activities and hence service tax not leviable

Blue Star Civil Engineering Company Private Limited Vs Commissioner of Central Excise (CESTAT Kolkata)

Blue Star Civil Engineering Company Private Limited Vs Commissioner of Central Excise (CESTAT Kolkata) The facts of the case are that the assessee M/s. Blue Star Civil Engineering Co. Pvt. Ltd. Mecheda was engaged in evacuation of ash pond for Durgapur Projects Ltd., Purba Medinipur Zilla Parishad, Rites Ltd. for railway and McNally Bhara...

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Services rendered by appellant in J&K were exempted services

ECIL Rapiscan Ltd. Vs Commissioner of Central Excise, Customs & Service Tax (CESTAT Hyderabad)

ECIL Rapiscan Ltd. Vs Commissioner of Central Excise (CESTAT Hyderabad) In view of the above, we find that this is a fit case to be remanded to the original authority to re-determine the amount of cenvat credit which needs to be disallowed, the interest thereon and the appropriate penalty as follows: (i) while computing the […]...

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To Levy Services Tax No Presumption of Deemed Sale on the ground of Non Payment of VAT

Transpek Industry Ltd. Vs C.C.E. & S.T. (CESTAT Ahmadabad)

Authority has contended that since there is no payment of VAT, the transaction is not a deemed sale. However, we are of the view that there may be cases where even though there is a deemed sale, but the particular transaction may not attract sales tax/VAT....

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Appeal related to chargeability of activity to service tax not maintainable before HC

Principal Commissioner Goods and Services Tax Vs Premium Real Estate Developers (Delhi High Court)

Principal Commissioner Goods and Services Tax Vs Premium Real Estate Developers (Delhi High Court) The case sought to be build up, by the appellant, in the present appeal, is that the learned Tribunal erred in not treating the respondent as providing “real estate agent”service, and in treating the transaction, between the respondent a...

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No service tax on sale of banking software to bank

InfrasoftTech India Ltd Vs Commissioner of Central Excise (CESTAT Mumbai)

Sale of banking software to a bank was 'commercial exploitation' merely because the bank deployed the software in its normal business activities was not correct in the absence of facts that establish otherwise or of any evidence that such was the transaction between assessee and the customers, therefore, demanding service tax on the same ...

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Service Tax on Sale of Books, hostel facility as bundled service with coaching services

Major Kalshi Classes Pvt. Ltd. Vs Commissioner, Central Excise (CESTAT Allahabad)

(i) Whether sale of books is service. (ii) Whether provisions of hostel facility and sale of books are to be combined with provisions of commercial training or coaching service as bundled service. (iii) Whether service tax was exempted on hostel facility....

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Latest Service Tax News India

Service tax in India is the tax which is collected by the government from service providers for providing services. The person liable to pay service tax could be a service provider or the recipient of service or any person responsible for providing services. Generally, the service tax is required to be paid on all the services except for those provided in the negative list. All the service providers together with the union and state government providers and private sector service providers too are liable for paying service tax. Services Tax Act and Service Tax Rules together with the Finance Act, 2016 has provided an increase in service tax from 12.36% to 14%. This revised service tax rate would comprise of Education Cess and Secondary and Higher Education Cess. At Taxguru, we provide all the latest service tax notifications and service tax circulars. We bring you all the recent developments and updates to the Service Tax Act and the Service Tax Rules. From a change in the service tax rates to any change in the format service tax challan or any other service tax notification, we provide a comprehensive and detailed approach to service tax in India. You can view and download all the service tax circulars free of cost. We keep on updating our portal regularly so that we keep you posted on all the recent service tax notifications and updates. With our group of service tax experts, we provide a cohesive and complete analysis of the service tax related matters. We post regular blogs and articles on all the trending service tax related issues. At Taxguru, we try to solve all your service tax related queries. Ensure to bookmark us to keep a track of all the service tax updates.