Goods and Services Tax : GST Insights- Further Relief Measures- COVID-19 –Updated Compliance Chart for GSTR-3B and GSTR-1 -Reduction in Late fee in f...
Goods and Services Tax : a. various changes in formats of GSTR-9 and 9C to give effect to its applicability for F.Y 2018-19 b. changes in formats of GST...
Goods and Services Tax : If you think GST is a ‘Good and Simple Tax’, you are mistaken. GST is all about technical glitches, daily amendments, and conf...
Goods and Services Tax : We present to you key decisions are taken by the GST Council in a meeting held on 21st July 2018. Some decisions will be given eff...
Goods and Services Tax : This Series will cover the most important Topic- Transitional Provisions. This topic is very much relevant at this stage for all e...
After new regime in service tax has been introduced, there hves been various issues regarding availability of Cenvat Credit for Real Estate Industry. Through this write-up all major issues have been clarified specifically.
It was 18 years ago when the levy of service tax was introduced with a meagre three services which has now grown manifold to 119 services. The scope of services has widened during the period of time. At present the levy of service tax is based on positive list. That is, only those services are taxable which are specifically mentioned in taxable category of service under Section 65(105) of the Finance Act, 1994. Service Sector enjoys considerable 55.6% of GDP whereas it contributes only 7 % in tax revenue to the Government. Further in order to facilitate transition to GST in near future, A concept of negative list has been introduced in the Budget 2012 presented on 16.03.2012 by inserting some proposed new sections in Finance Act, 1994 which will come into effect by way of notification after the Finance Bill gets presidential assent. Once this concept is given effect the scope of service will be expanded drastically since under this concept every activity which meets the new definition of ‘service shall be leviable to service tax except those which are proposed in negative list and exempted by way of Suitable Notification.
The deduction of Rs. 20000 under Section 80CCF for investment in infrastructure bonds was extended to A.Y. 2012-13 in last year budget to promote investment in infrastructure sector for its growth and development. But this time Mr. FM was silent on its continuance or otherwise. The lack of clarity on its scraping is a major concern. Views and expectations of Industry are mixed one, some expecting its continuance and some anticipating its scrapping. In my considered view the deduction shall likely be available next year also even though there is no announcement in the Budget in this regard. This view is further supported from the fact that Government has allowed Rs. 60000 Crore to be raised via tax-free infrastructure bonds this year.
Shift to Negative List Approach from Positive List: (Applicable date to be notified) Present: A present under positive list approach, only those services are taxable which are specifically prescribed under service tax law (more than 125 services). And other activities which are not specifically mentioned under law are not liable to pay service tax.
