Goods and Services Tax : The GST Council at its meeting on May 18, 19 has evolved a consensus on GST rates for goods and services, leading us closer to Jul...
Goods and Services Tax : As per Section 12(6) of CGST Act, 2017 relating to Time of Supply of Goods states that time of supply to the extent it relates to ...
Goods and Services Tax : Since the assessee has the option to take single registration for business verticals within a State, it will be imperative for the...
Goods and Services Tax : At present, the manufacturers/dealers registered under the Central Excise Act, 1944 have the option to surrender their registratio...
Goods and Services Tax : Generally place of supply will be the place of recipient of service, if it is not available then place of supplier of service exce...
Exemptions and beneficial amendments are always prone to litigation – whether it is due to ambiguous language or due to creative interpretational skills of Revenue officers. Whatever be the reason, the departmental authorities are always less interested in extending the benefit of exemptions to the assessees. One such beneficial provision is being inserted in the negative list which exempts the processes that amount to manufacture or production from the levy under service tax. This piece of diction is about probable litigation on this item of negative list.
After six years of uncertainties, finally section 66A of the Finance Act, 1994 has few more days to survive. 1.7.2012 is the day when this section will cease to exist. On this date, Export of Services Rules, 2005 and Taxation of services (Provided from outside India and received in India) Rules, 2006 will also extinguish. In place of these, a new charging section 66B will come into force and instead of import-export rules, a new set of rules namely, Place of provision of services rules, 2012 will be implemented. In this article, an effort has been made to bring out its impact on the import of intermediary services from abroad.
Service tax by way of Negative list is the beginning of a new era in the 18 years old Service tax law. Most of the existing provisions have been reviewed to line up them with the new scheme. Inspite of a no. of ambiguities regarding the negative list to be introduced w.e.f. 1.7.2012, the hotel industry is receiving positive signs therefrom. This piece of articulation is about the impact of negative list scheme on the hotel industry.
Service tax on Works Contract was introduced on 1.6.2007. Starting with an attractive rate of 2% service tax on the composite value of both material & labour, today it has reached the rate of 4.8% w.e.f. 1.4.2012. Under the current scheme, the works contract covers only immovable properties, however, in order to bring it up to the proposed negative list; the definition of works contract has been amended so as to include the movable properties also. Further the reverse charge mechanism is also extended to it. This article revolves around the enhanced scope of the works contract service under negative list scenario.
Deemed sale – it is a critical aspect of the Sales Tax law and it is going to have direct impact on the upcoming Negative list scheme. The new definition of service as defined in context of negative list excludes the deemed sale. In other words, service tax is not to be levied on the deemed sale. However, simultaneously, the concept of declared services is also brought into the service tax law where certain services are declared to be services for the purpose of levy of service tax. Some of these declared services are part of transactions which include the deemed sale; thus, there are certain transactions which will be subject to both sales tax as well as service tax. This bit of diction is about those transactions which will suffer dual taxes – sales tax as well as service tax.
The rate of service tax on Authorised dealers in foreign exchange or authorized changers have been changed against this year by Budget, 2012. The method of computation of service tax is prescribed in sub-rule(7B) of principal Rule 6 of Service Tax Rules, 1994. The said Rule is reproduced here under for ready reference:
Recent Budget has introduced a Section 80A for waiver of penalty subject to following conditions – Service tax due on renting of immovable property service is paid within a period of six month along with interest. The amount of service tax due will be as on 6.3.2012.
Budget, 2012 has brought a facility of transferring Cenvat Credit for the manufacturer having more than one registered premises. Notification No. 18/2012-Central Excise(Non-Tariff) dated 16.3.2012 has been issued in this regard which is effective from 1.4.2012. This notification says that Cenvat balance of special additional duty (SAD) lying with any of the premises can be transferred to any other premises of the same manufacturer who have obtained the common Permanent Account Number.
The first and foremost issue is that whether the Circulars issued by the Board will be binding on the Revenue? Whether the Board circulars will be binding on the Assessee? Also, whether the Circulars will be binding on the Quasi Judicial Bodies i.e. the Original Adjudicating Authority (Deputy/Additional/Assistant Commissioner), Commissioner (Appeals) and the Tribunal? Whether, the High Court and the Supreme Court will also be bound by these circulars? Can department challenge the Circular issued by the Board when assessee has a right to challenge the same?
The Budget 2012-13 will be announced on March 16, 2012 by the Finance Minister Pranab Mukherjee. There are a lot of expectations from Budget as the economy of the country is not yet stable and after effects of recession can still be felt. The European Union economic crisis is also having a negative effect on the Indian economy
