Introduction:- The binding nature of the Circulars issued by Board is the issue that has been a matter of litigation since inception. There have been a number of decisions on this matter, that too, of Supreme Courts which have added fuel to the fire of litigation. There has been a constant fight … [Read more...]
Credit Balance of Education Cess & SHE Cess – Never ending Story !!!
Introduction:- The announcement of the exemption to the levy of Education Cess and SHE Cess levied on Excise duty with effect from 01.03.2015 and that levied on service tax with effect from 01.06.2015 created new hopes in the minds of the assessees as regards ‘Ease of doing business’ with reduction … [Read more...]
Swachh Bharat Cess-Cleaning India or Cleaning Pockets!!
Preface:-The moment when it was announced by the Hon’ble Finance Minister that the exemption is being provided to the levy of Education Cess and Secondary & Higher Education Cess, there was a sigh of relief that there will be reduction in the rate of service tax. Moreover, it was represented by … [Read more...]
Clarifications on Swachh Bharat Cess
Swachh Bharat Cess will come into effect from 15th November 2015, at the rate of 0.5% on all services, which are presently liable to service tax. This will translate into a tax of 50 paisa only on every one hundred rupees worth of taxable services. The proceeds from this cess will be used for … [Read more...]
Mere transfer of title in immovable property is exempted from Service Tax
In order to resolve a long standing issue relating to levy of Service Tax on sale of flats/dwellings etc. after issue of occupancy certificate but before issue of completion certificate in areas under the jurisdiction of Municipal Corporation of Greater Mumbai i.e. Brihanmumbai Municipal Corporation … [Read more...]
Limits in case of offence of evasion of tax in case of Central Excise and Service tax have been revised to Rs.1 crore
Persons involved in serious offences of tax evasion are liable for arrest and prosecution under the Central Excise Act, 1994, Finance Act, 1994 dealing with Service Tax and Customs Act, 1962. Central Board of Excise and Customs (CBEC) has issued instructions from time to time prescribing the … [Read more...]
Service Tax On Director’s Remuneration-Instigating Litigation!
Introduction:- The issue regarding leviability of service tax on remuneration paid to the directors has been matter of concern since 07.08.2012 when reverse charge mechanism was introduced vide notification no. 45/2012-ST dated 07.08.2012 for the service tax liability as regards services provided … [Read more...]
Revised Guidelines on Conducting Manual Scrutiny of Service Tax Returns to come into Operation from 1st August, 2015
The Central Board of Excise and Customs had issued detailed guidelines in 2009 to its field formations on conducting detailed manual scrutiny of service tax returns. In view of the legal changes brought about by the Negative List based taxation of services and administrative changes like creation of … [Read more...]
Effective rate of service tax on restaurant having air condition facilities has increased to 5.6% from 1st June 2015
Circular No. 184/3/2015-ST F. No. 334 / 5 /2015-TRU (Pt.) Ministry of Finance (Tax Research Unit) Dated the 3rd June, 2015. Chief Commissioner of Customs and Central Excise (All) Director General of Central Excise Intelligence Director General of … [Read more...]
Service tax rate increased to 14% with effect from 1st June 2015
In the Union Budget, 2015, an increase in the rate of Service Tax from 12% to 14% had been proposed from a date to be notified. The Finance Bill, 2015 has since been enacted and the Central Government has notified 1st June, 2015 as the date from which the rate of 14% would become applicable. The … [Read more...]