Show cause notice
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 April 2013
MY CLIENT RUNNING A NURSING HOME AND RECEIVED A SHOW CAUSE NOTICE FOR DUES OF SERVICE TAX SINCE FINANCIAL YEAR 2007-2008 TO 2011-12. PLS SUGGEST US THE MEANING OF NOTIFICATION NO.24/2010 DATED 22/06/2010 & 30/2011 DATED 25/04/2011 AS WE HAVE REGISTERED ACCORDING TO ABOVE NOTIFICATION FOR THE SAID PERIOD UNDER THE CAT OF "HEALTH SERVICES", BUT S.T. DEPARTMENT DEMANDING 40LAKHS DURING THE PERIOD FORM 2007-08, 08-09 & 09-10.
PLS HELP
PLS HELP
01 May 2013
Dear Sir,
Noti. 24/2010 brought the levy of ST on nursing homes/hospitals where amounts were received from business entities or insurance co.s from 1 july 2010. The said levy was amended by Finance ACt 2011 and nursing homes/hospitals having more than 25 bed and AC were also brought into net, simultaneously all the healthcare services were made exempt through noti 30/2011. Therefore for a very short period such service was taxable when receipts were through insurance co.s or business entities only. There is no ST now.
I have examined one such show cause notice and have opined that no ST liability is maintainable.In your case no ST can be demanded for period prior to 2010 or after May 2011. For the period July 2010 to Apr 2011 the notice needs to be examined. However I beleive that even for that period no demand would sustain as the taxable head in SCN is not at all maintainable.
Noti. 24/2010 brought the levy of ST on nursing homes/hospitals where amounts were received from business entities or insurance co.s from 1 july 2010. The said levy was amended by Finance ACt 2011 and nursing homes/hospitals having more than 25 bed and AC were also brought into net, simultaneously all the healthcare services were made exempt through noti 30/2011. Therefore for a very short period such service was taxable when receipts were through insurance co.s or business entities only. There is no ST now.
I have examined one such show cause notice and have opined that no ST liability is maintainable.In your case no ST can be demanded for period prior to 2010 or after May 2011. For the period July 2010 to Apr 2011 the notice needs to be examined. However I beleive that even for that period no demand would sustain as the taxable head in SCN is not at all maintainable.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- TAN for Partnership
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- E way bill for tractors
- Is it compulsory to File 10E if Income including Pension Arrears is below 12 Lakh for the F Y 25 26
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- Loan by Partnership Firm
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
