Service Tax by O5XwpfV

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									SERVICE TAX




by
g. natarajan, advocate
swamy associates
               BASIC FEATURES

 Levy on Service Provider & exceptions.

 Levy on Realisation -
  But Point of Taxation Rules from 01.04.11.
  Provision of service / Issue of Invoice / Receipt of payment.
  Continuous supply of service.
  Applicable rate on change of rate.



 Levy on Gross amount.
             VALUATION

 Section 67 – Gross Amount.

  - Reimbursement of Expenses.
  - Abatements.
  - Notification 12/2003.
  - Consideration in kind.
  - Services provided free.
  - Transactions between associated enterprises.
           PROCEDURES

 Registration – Centralised registration.
 Payment – Due dates.
 Return – ST 3.
 Self Assessment / Self adjustment.
 Issue of Invoice.
CERTAIN IMPORTANT SERVICES

        Goods Transport Agency.

   Reverse Charge.
   Exemptions & Abatement.
   No threshold exemption.
   Cenvat Credit implications.
   Lakshminarayana Mining Co Vs CCE
    2009 (16) STR 691 Tri.
     CERTAIN IMPORTANT SERVICES

         Construction related services.

 Site Formation Service.
 Commercial or Industrial Construction service.
 Construction of Residential Complex Service.
 Works Contract Service.
             CERTAIN IMPORTANT SERVICES

                            Business Auxiliary service.
“business auxiliary service” means any service in relation to, —
(i) promotion or marketing or sale of goods produced or provided by or belonging
     to the client; or
(ii)       promotion or marketing of service provided by the client; or

(iii)       any customer care service provided on behalf of the client; or
(iv)        procurement of goods or services, which are inputs for the client; or
      Explanation. — For the removal of doubts, it is hereby declared that for the
       purposes of this sub-clause, “inputs” means all goods or services intended for use
       by the client;
(v)         production or processing of goods for, or on behalf of, the client;
(vi)        provision of service on behalf of the client; or
(vii) a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi),
     such as billing, issue or collection or recovery of cheques, payments, maintenance
     of accounts and remittance, inventory management, evaluation or development of
     prospective customer or vendor, public relation services, management or supervision,
    and includes services as a commission agent, but does not include any activity that
    amounts to manufacture of excisable goods.
CERTAIN IMPORTANT SERVICES


     Professional services.

 CAs / ICWAs / CSs / Advocates.
 Consulting engineers.
 Management Consultants.
   CERTAIN IMPORTANT SERVICES

              Some more…

 Clearing and Forwarding.
 Customs House Agents.
 Information Technology Services.
 Hospitals.
 Erection, Commissioning & Installation.
 Repairs and Maintenance.
 Renting of immovable property.
 Supply of tangible goods.
 And what not?
EXPORT AND IMPORT OF SERVICES

          Export of Service Rules.

 3 Categories of Services.
 No ST on export of services.
 Rebate.
 Cenvat Credit / Refund.

  Import of Services

 Section 66 A – 19.04.2006
  Indian National Ship Owners Association
   2009 (13) STR 235 Bom.
REFUND FOR EXPORTS / SEZ

  Services consumed for Export.

 Notification 41/2007.
 Notification 17 & 18/2009.
 Rule 5 of CCR, 2004.

Services to SEZ Developers / Units.

 Notification 4/2004.
 Notification 9/2009 & 15/2009.
 Notification 17/2011.
        PENAL PROVISIONS

 Penalty under Sec. 76. 100 per day / 1 % p.m
 Penalty under Sec. 77. Rs.10,000.
 Penalty under Sec. 78
 Delayed filing of return – upto Rs.20,000.
 Waiver under Sec. 80.
 Prosecution introduced.
 Recovery measures.
Situation        Position in     Penalty           Relief
                 records         prescribed        available
No fraud, etc.   Disclosed.      1 % p.m. or       No penalty if
                                 Rs.100 per day,   paid before
                                 upto 50 % of      SCN – u/s 73
                                 tax               (3).
                                 u/s 76            Section 80
                                                   waiver.
Fraud, etc.      Disclosed.      50 % of Tax       1 % p.m. upto
                                 u/s 78            25 % - if paid
                                                   before notice.
                                                   25 % if paid
                                                   within 30 days
                                                   of order.
                                                   Waiver u/s 80
Fraud, etc.      Not Disclosed   Equal to tax      No relief.
                                 u/s 78
 APPELLATE REMEDIES



 Adjudication and Appeals.
 Pre deposit.
 No settlement commission.
Thank you
mail@swamyassociates.com

								
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