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Liability of service tax

nupura (CA) (140 Points)

14 September 2012

Whether 'Vastu Shastra Consultancy' is taxable service under service tax?

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10 Replies

gbalakrishnan (owner) (1373 Points)
Replied 14 September 2012

Today is one kind of fluid economic situations. No one knows what gets under what tax. see did any one conceive VAT will be charged on sales tax on flat owners but suddenly it showed up. see Builders and developers go 'gung ho' on flat owners who purchased after 2006 on, sothe developers and builders on their own perceptions charge so heavily on flat owners while that liability indeed shoul be on builders/developers as they took heavy premiums on sq ft rate of flats today.

Now a days Courts are the last resort.

see vasthu shastra is one whether it is recognized under law is the question, like on palmistry or astrology though people rely. True income tax charges on any income generated even illegally.

If Central Excise to tax service tax the question arises whether it can charge service tax on vastu shastra an imaginary practice?

So it is to be moved before high court/supreme court, whether the government can charge service tax on services are not recognized under a law, if allowed govt may charge service tax on black magic tht means government for revenue purposes recognize non recognizable superstitious practices is it not that kind of questions need to be raised before constitutional courts as if one government for rvenue collect taxes on superstitions does it recognize superstitious practices then it should pass first recognition of superstitious practices Act then only it is meaningful to collect revenue.

Any services are taxed but without defining the service under services tax Act charging service tax is indeed preposterous when it defines 'other services' that can include even murdering child to proptiate goddess to give wealt as some people. so i used the word 'preposterous' meaning it is clothed under all fictitious names just for revenue. may one day when your river water crosses to another country that country can charge water service tax on india when perennial rivers flow through different countries like bramaputra/ganges/indua to name a few.

service tax i indeed a preposterous concept under any sensible and reasonable law

Vikas (CA) (1135 Points)
Replied 14 September 2012

Yes, subject to the exemption limit of Rs.10 Lakhs given vide Notification No.33/2012-ST. dated 20.06.2012.

CA.Vinita Gupta (Deputy Manager- Finance) (2918 Points)
Replied 14 September 2012

Yes it is taxable as it is not covered under the Negative List

CA Ram (CA) (310 Points)
Replied 14 September 2012

Yes it is taxable as it is not covered under the Negative List

nupura (CA) (140 Points)
Replied 14 September 2012

Thank u 4 ur guidance....!!!

venkatesh (learner) (116 Points)
Replied 15 September 2012

yes it is taxable sevice.....

nikhil shah (shahbhai) (63 Points)
Replied 16 September 2012

if it is taxable then provide it's code no of service

CA Muthukrishnan Hariharan (Partner) (36 Points)
Replied 17 September 2012

A 'Service" means any kind of service with 'reward' or 'remuneration' or any kind of exchange in value in Indian Monetrory System.. The boraded sense every service to public [ means anybody who get the advise fromany one and pays for the service in Indian Currebcy] is taxable. This is the 'negative lists serve the ambit of such service look casual/ oridinary. The idea of Govt.. is every one pays the services of any type 'imanaginable' by any one and parcticed in India , pay the 'sevice tax"!!! There may be enlarged list of 'negative' lists appear every now and then, some one start receiving fees in Indian Rupee!!! Wait and see.

This is the understanding about the "Sevice Tax" what I understood.. May be right or wrong no fight with authorities.. we get a prolonged legal clarification.. we may have another one in waiting... never endss

nupura (CA) (140 Points)
Replied 13 March 2013

But if 'Vastu shastra services ' are provided by an architect then is it liable to service tax?

Prasad (Sr. Manager) (617 Points)
Replied 14 March 2013

In a Broad sense, anything you call it a service and not covered in the Negative list is taxable. So it is up to some one's (Revenue's) interrepration of the law, most of the services are covered for service tax. There are instances where a lot of taxes and levies which are subject matter of State Govt has been bought in to Service tax indirectly. This is a very reason almost all changes in the service tax is brought about through notifications and not as a change in the law which is passed by parliament......