Laws and rules relating to Indirect Taxes have been evolving on account of development in business models, economic growth of the country, global developments, and technological advances and also with reforms in this field of taxation especially, in the area of service tax.
These changes, when applied practically, often give rise to various issues. Sometimes, a provision in law/rule/procedure, the way it is drafted or applied, could lead to undue hardships when the desired objective could be achieved in a simpler and easier manner. Also, as you would have noticed, the Government is continuously working towards reducing cost of compliance.
Indirect Taxes Committee would be delighted to receive any issue that you may notice together with your suggestions. The Committee would then take these up at the appropriate levels.
The issues arising out of the Finance Bill, 2010 have been addressed by the Committee in the Post Budget Memorandum, 2010 submitted to the Government of India and were also discussed with the concerned officers of the Finance Ministry.
Do send your suggestions at suggest.idtc@icai.org
Dear Sir,
As you are aware the Budget 2010-11 contains a proposal to amend the defination of “Port Services” to apply to any service if rendered with a port despite (a) that port services is not within the objects clause of a Company and (b) the Company is already a registered factory paying VAT and not a service provider.
(c) Further the revision seeks to deny the service providers of Port services the classiification benefit under sec. 65A of the service tax provisions when a service is classifiable under two or more heads like port services or repair and maintanence services or ship management services, etc. This is violation of Public Policy, constitutional right to equal treatment before law and highly discriminatory. The Tax Practitioners (Direct and Indirect tax) should protest these proposals by the Finance Ministry.
I have taken up the matter to ASSOCHAM and ICAI