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...
Service tax on transportation had a bad innings right from its first levy. It has gone through the ups and downs since it was levied for the first time on 16.11.1997. The levy was challenged and was withdrawn on 2.6.1998 just after few months. Though government did retrospective amendments twice in this category of service, yet the issue does not seem to be settled till date. The levy of service tax for the mid-period of 16.11.97 to 2.6.98 is still in limelight by one reason or another. Here is the anatomy of the issue that has been on fire since past so many years.
Circular no. 36/2010-Cus dt. 23.09.2010 was issued for simplifying the procedure related to conversion of shipping bills. It was issued as a consequence of series of Tribunal judgments which held that the conversion of free shipping bills to export promotion scheme is allowed as there is no such bar in the section 149 of customs act, 1962. But this prime need is also not fulfilled by this circular. Indeed, the process of conversion of shipping bills from one scheme to another has also been made complicated. Prior to issuance of this circular, conversion from one scheme to another was freely allowed but now conversion can also be made to schemes that require equal level of examination of documents or that require lower level of examination of documents. Thus, the actual purpose of issuing this circular is mislead and has opened another door of litigation.
Finance Bill, 2011 has substituted the language of this section. The basic theme of this section has been kept alive alongwith certain additions. The new section states as follows:- Sub section 1 to section 11A says that where any duty is short levied/paid or not levied/paid or erroneously refunded by way of any reason other fraud, collusion or willfull misstatement of suppression of fact of contravention of this Act or of the rules made thereunder with intent to evade payment of duty:–
The Legal Consultancy service was brought under Service Tax net from 01.09.2009. The Taxable service was defined under sub-clause (zzzzm) of clause (105) of Section 65 of the Finance Act, 1994. The Legal services provided to a business entity by any other business entity in relation to advice, consultancy or assistance in any branch of law were covered.
In the chain of imposition of duty on new services the levy on hospitals has also been added in the budget 2010-11. Although the rate of service tax is kept constant at 10% but in order to increase indirect tax revenues the Hon’ble Finance Minister has proposed a new levy for hospitals. In his budget speech he expressed that the hospitals having 25 or more beds with centralized air-conditioner system is proposed to be taxed under service tax system.
The Finance Minister has in Budget 2011-12 proposed to introduce self-assessment in Customs. In it speech the Finance Minister had said that this is done to quicken the clearance of the cargo by Customs authorities and to further modernize the Customs administration. It was further stated that under this, importer and exporters will themselves assess their duty liabilities while fighting declarations in the EDI system. The Department will verify such assessments on a selective system driven basis.
The service tax on the services provided by an Authorised Service Station was made taxable from 16.07.2001 onwards. In the start only servicing or repair of motor cars, two-wheeled and light motor vehicles by service stations or centres authorized by the manufacturers was covered under this service. From 16.06.2005 onwards reconditioning or restoration services were also covered.
The Export of Service Rules, 2005 provides that there will no service tax on the export of services. In these rules, the criteria are prescribed as to what will constitute export of service. In Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 the services received from outside India are taxed. Now, Budget 2011 changes have been made in these Rules. The changes in Export of Service Rules, 2006 have been made vide Notification No. 12/2011-ST dated 01.03.2011. And similar re-arrangement has been effected in the Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 vide Notification No. 13/2011-ST dated 01.03.2011. These changes will come in effect from 1st April, 2011.
The Interest liability is amplified in all the sections of custom, excise and service tax to 18% as from earlier of 13% per annum from this budget. This is one of highest increase in the rates of interest ever. In Central Excise the notification no. No. 6/2011-Central Excise (N.T.) dt. 01.03.2011 has brought an amendment for the purpose of the section 11AB of the Central Excise Act, 1944 by fixing the interest rate at 18% p.a. The similar amendment is made in the section 75 of Service Tax Act vide notification No. 14/2011-Service Tax dt. 01.03.2011 and 15/2011-Service Tax dated 01.03.2011 in which also the rate of interest is increased to 18% p.a. from 13% p.a. The new rate of interest of 18% will be applicable from 1st April, 2011.
In respect to the service tax Law, the Central Government of India, as always, has come with lots of amendments and clarifications in the Budget, 2011. When a particular service will be taxed is the major aspect in the service tax law. As on date the service tax is payable on the receipt of payment towards the service provided, but now government has notified the “Point of Taxation Rules, 2011” which prescribe the procedure for determination of point of taxation, i.e. when the service tax will be payable. For prescribing these rules, Notification No. 18/2011-Service Tax dated 1st March, 2011 has been issued which will be effective as from 1.4.2011.
