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Sabka Vikas : Scheme for closing pending dispute in Service tax and excise from 1st Sep 2019

Sabka Vishwas - Legacy Dispute Resolution Scheme notified; to be operationalized from 1st September 2019 Government expects Scheme to be availed by large number of taxpayers for closing their pending disputes relating to legacy Service Tax and Central Excise cases In the Union Budget 2019-20, the Hon’ble Finance Minister announced the Sabka Vishwas-Legacy Dispute Resolution Scheme, 2019. The Scheme has now been notified and will be operationalized from 1st September 20..

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Reimbursements on electricity expenses from the occupants chargeable to Service tax

Recently, the issue of levibility of Service Tax on reimbursements on electricity expenses received from the occupants of a complex came before a Single Member Bench of the Hon'ble Calcutta High Court, wherein the Hon'ble High Court has upheld the levy of Service Tax on such transactions. [Srijan Realty (P) Ltd. v/s Commissioner of Service Tax, Service Tax Commissionerate II - Kolkata &Ors. W.P. No. 770 of 2015]. Issue: Whether the supply of electricity by the petitioner to the occupiers ..

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No Service Tax on reimbursements prior to May 14, 2015 held by SC

The issue of taxability of out-of-pocket expenses has always been a matter of litigation. Before April, 2006 there was no specific provision to this effect. However, from April 19, 2006 onwards, with the introduction of the Service Tax (Determination of Value) Rules, 2006, ('the Valuation Rules') Service tax is applicable on gross consideration including all expenses barring the expenses incurred as pure agent. The matter of taxability of such expenses, which is reimbursed by the service ..

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Highlights of CAG report on Service Tax

Executive Summary Section 16 of CAG's (DPC) Act, 1971 mandates CAG to audit receipts payable into consolidated fund of India and to satisfy that the rules and procedures are designed to secure an effective check on the assessment, collection and proper allocation of revenue and are being duly observed. We examined functions of Service Tax Department relating to scrutiny, internal audit etc. and verified records of assessees, which form the basis for tax calculation, to examine the extent of e..

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CBEC to redistribute cases to reduce Pendency of Cases with Commissioners appeal

CBEC to Redistribute Cases in Jurisdictions to Reduce Pendency of Cases With Commissioners (Appeal) In order to clear the pendency of cases as on 30th June 2017 before the Commissioners of Central Excise and Service Tax (Appeals), the CBEC will redistribute the cases pending in the jurisdiction of a Principal Chief Commissioner / Chief Commissioner of Central Excise and Service Tax, among other Commissioner rank officers posted in that jurisdiction. A notification and circular have been is..

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FM writes to state to reduce burden of VAT on petroleum products

Finance Minister Sh Arun Jaitley writes to State Chief Ministers to reduce burden of Value Added Tax on Petroleum Products used for manufacturing  The Union Minister of Finance, Defence and Corporate Affairs, Shri Arun Jaitley has written to State Chief Ministers urging the States to reduce burden of Value Added Tax (VAT) on Petroleum Products used as inputs in making of goods after the introduction of Goods and Services Tax (GST). The letter by Finance Minister highlights a concern b..

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ST return for April to June to be submitted by 15th August

[TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)]  GOVERNMENT OF INDIA  MINISTRY OF FINANCE  (DEPARTMENT OF REVENUE)  (CENTRAL BOARD OF EXCISE AND CUSTOMS)  Notification No. 18 /2017- Service Tax  New Delhi, the 22nd June, 2017  1 Ashadha , 1939 Saka    G.S.R. (E). - In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 94 of the Finance Act, 1994 (32 of 199..

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Cost Inflation indexes notified with Base Year as 2001-02

MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECTTAXES) NOTIFICATION NO. 44/2017 New Delhi, the 5th June, 2017  INCOME-TAX S.O. 1790(E).—In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the Cost Inflation Index as mentioned in column (3) of the Table for the Financial Years mentioned in the corresponding entr..

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Preparing and filing service tax return

Service Tax is a form of indirect tax levied by Central Government on services provided or agreed to be provided excluding certain services covered under the negative list and mega exemption list. The Service Tax has been levied through the Finance Act, 1994 and Service Tax Rules, 1994. Currently, the rate of service tax is 15% including Krishi Kalyan Cess of 0.5% and Swachh Bharat Cess of 0.5%. Service tax payment must be paid by entity on the respective due date. The due date for payment of se..

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ST return last date extended to 30th April

F.No.137/99/2011-Service Tax  Government of India  Ministry of Finance  Department of Revenue  Central Board of Excise & Customs  Service Tax Wing  New Delhi, dated the 25th April, 2017    ORDER NO: 1 /2017-Service Tax  In exercise of the powers conferred by sub-rule(4) of rule 7 of the Service Tax Rules, 1994, the Central Board of Excise & Customs hereby extends the date of submission of the Form ST-3 for the period from 1st Oc..

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Utilities for efiling ST3 return made available

Utilities for e-filing Service Tax Returns (ST-3 & ST3C) for the period October, 2016-March, 2017 are now available in both offline and online version. The last date of filing the ST-3/ST3C return for the said period is 25th April, 2017. To avoid congestion and inconvenience in the last minute, all assesses are requested to file their ST-3/ST3C return for the said period immediately and not to wait till the last date. The assesses can file return either online or use the offline utility by d..

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Amendments applicable on Educational Institutions under service tax

In this article, we will discuss the amendment applicable from 1st April 2017 on education service under service tax. We divide our discussion in 3 parts, which are as follows:- 1) Definition of Educational Institute; 2) Taxability  3) Impact of notification. Definition: According to clause (I) of section 66D of the Finance Act, 1994 "educational institution" means an institution providing services by way of :- (i) Pre-school education and education up to higher seco..

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Service tax under Reverse Charge Mechanism on Goods Transport Agency (GTA)

'Goods Transport Agency (GTA)' means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. Generally, service tax is payable by the provider of Service. However in Reverse Charge Mechanism Service Receiver is made liable to pay service tax and comply with other provisions of Finance Act, 1994. In case of GTA, a person liable to pay the freight for the transport of goods has also been made liable to pay service tax. I..

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Cenvat credit on deposits insurance - Banks v/s Departments

Introduction: Banks are registered under service tax in the category of 'Banking and Financial Services'. They collect and pay service tax on its various incomes such as commissions, bank charges, documentation charges, processing fees etc. levied on its customers. However, one of the major revenue earned by the bankers is in the form of interest which is outside the purview of service tax as the same is covered in the negative list. Issue: Rule 6(3B) of the CENVAT Credit Rules, 2004, s..

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Service Charges are Discretionary and Voluntary

Service Charges are Discretionary/ Voluntary: Ministry of Consumer Affairs, Food and Public Distribution  The Ministry of Consumer Affairs, Food and Public Distribution has issued advisory to all the State Governments/UTs to sensitise the companies, hotels and restaurants in the state regarding the relevant provisions of the Consumer Protection Act, 1986 on unfair trade practices. It also aims to advise the hotels/restaurants to disseminate information through display at the appropriate ..

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Withdrawal of Service Tax Exemption for Educational Institutions

With the Introduction of Negative List Regime in the year 2012, all services becomes taxable except the services which are covered in Negative List or which are exempted by government through issue of any exemption notification. Earlier to Finance Act, 2016, Following services of Educational Institutions were covered in Negative List Entry: Services by way of- Pre-school education and education up to higher secondary school or equivalent; Education as a part of a curriculum for obt..

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Govt withdraws Service tax exemption for educational institute

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) NOTIFICATION No. 10/2017-Service Tax, New Delhi, the 8th March, 2017 GSR_______(E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary for the public interest so to do, hereby makes the following further amend..

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Taxability of Aggregator service

Aggregator service - A student's guide We all are familiar with e-commerce companies like Flipkart and Amazon which act as a platform for customers like us to purchase the goods we want from a variety of brands available. We also are keen to book tickets on makemytrip the moment we finalize a family tour. As a finance student, have you ever wondered the nature of service these companies provide? These service providers are called aggregators. Previously there were doubts and disputes r..

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Interpretation of New Notification for Tour Operators

In this article, an attempt has been made to interpret the various aspects of this New Notification. The recent amendment, instead of clarifying the issue, creates more doubts for the industry, specially in relation to taxability of the stand-alone hotel booking transactions, in the hands of tour operators. The key points regarding the above amendment are: 1. IMPACT ON COST OF TRAVEL: Under revised scheme, an abatement of 40% is available on the value in respect of all services provided by..

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Service tax liability on liquor license fee paid to state governments

One of the recent trends has been enquiries and letters by the service tax department to all restaurants/bars/wine shops demanding payment of service tax on the liquor license fee paid to the state government. Department is also backing this vide circular 192/02/2016-Service Tax dated 13.04.2016 (Sl. No. 5) clarifying that service tax is leviable on the license/permit fees paid. In this background, an attempt was made to articulate the service tax applicability on the liquor license fee along wi..

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