1 / 13

AN INTRODUCTION TO – SERVICE TAX

AN INTRODUCTION TO – SERVICE TAX. by g. natarajan advocate, swamy associates. GENESIS OF THE LEVY. Entry 97 of List I – The residual power to tax. Effective from 2003 – Entry 92 C of the List I. Finance Act, 1994 – An adhoc Act for 18 years!. GROWING REVENUE. Challenges to the levy.

hammett-douglas
Télécharger la présentation

AN INTRODUCTION TO – SERVICE TAX

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. AN INTRODUCTION TO – SERVICE TAX by g. natarajan advocate, swamy associates

  2. GENESIS OF THE LEVY • Entry 97 of List I – The residual power to tax. • Effective from 2003 – Entry 92 C of the List I. • Finance Act, 1994 – An adhoc Act for 18 years!

  3. GROWING REVENUE

  4. Challenges to the levy. Renting of immovable property service Home Solutions Retail India Limited Vs Union of India 2009 (14) STR 433 Delhi HC Construction of Residential complex service Maharashtra Chamber of Housing Industry Vs Union of India 2012-TIOL-78 Mum HC

  5. Challenges to the levy. Financial Leasing Services. Association of Leasing and Financial Service Companies Vs Union of India 2010 (20) STR 417 SC Chartered Accountants, etc. service All India Federation of Tax Practitioners Vs Union of India 2007 (7) STR 625 SC

  6. BASIC FEATURES • Levy on service providers. • - Exceptions. • Positive List of Taxable service • {Section 65 (105) (a) to (zzzzw)} • Move towards negative list. • Value – Gross amount. • - Abatements • - Reimbursements. • Classification of Services – Section 65 A. • Point of Taxation.

  7. EXPORT / IMPORT OF SERVICES • Export of Service Rules, 2005 – Pre & Post. • Property based services. • Performance based services. • Location based services. • - Benefits for Export of Services. • Import of Services. Section 66 A. • Indian National Shipowners Association – 2009 (13) STR 235 Bom HC.

  8. CERTAIN IMPORTANT SERVICES Legal services – Born in 2009 & Graduated in 2011. Medical services – the story of “misery tax”. Professional services – CAs, ICWAs, CSs, Architects, Engineers, etc. Construction related services. Business Auxiliary service / Business Support Service. “Celebrity” services. Hotels and Bars.

  9. PROCEDURES • Registration. • Issue of Invoice. • Self Assessment. • Monthly / Quarterly Payment. • Half yearly return. • Self Adjustment. • Cenvat Credit.

  10. IMPORTANT EXEMPTIONS • Small Scale Exemption. • - Threshold limit – Rs. 10 lakhs. • - Eligibility limit – Rs. 10 lakhs. • Notification 12/2003 • - Exclusion for value of goods sold. • BSNL Vs UOI – 2006 (2) STR 161 SC • Agarwal Colour Advance Photo Systems – 2012 (23) STR 608 Tri-LB. • Notification 1/2006 • - Abatements.

  11. PENAL PROVISIONS • Penalties. • - Section 76 – Rs.100 per day of default or 1 % pm, whichever is higher. • - Section 77 - General penalty for specified offences. • - Section 78 – Equal penalty. • - Section 80 – Power to waive – rarely used! • Prosecution – Section 89. • - Providing service without issue of invoice. • - Irregular availment of cenvat credit. • - Maintenance of false records, failure to give information. • - Collects service tax and not remitting it.

  12. Show Cause Notice APPELLATE REMEDIES Adjudication below Commissioner Adjudication by Commissioner Appeal to Commissioner (Appeals) Appeal to Tribunal Appeal to SC (Classification, Value, exemption) Appeal to HC (Question of law)

  13. Thank you g. natarajan 93400 54477 mail@swamyassociates.com www.swamyassociates.com

More Related