SERVICE TAX by g natarajan advocate swamy associates

SERVICE TAX by g. natarajan advocate, swamy associates

Basic Features Ø Statutory provisions. Ø Levy on service provider. - Exceptions. Ø Levy on realisation.

Classification of Service Ø Specific description than general description. Ø Essential character. Ø Which occurs first in the definition.

Valuation… Ø Gross amount. Ø Cum - tax. Ø Abatements. Ø Notification 12/2003.

Valuation… Ø Services rendered free. Ø Consideration in kind. Ø Reimbursement of expenses. Upto 18. 04. 2006 – No liability. Judgements and circulars. From 19. 04. 2006 – Concept of pure agent.

Proceedings in Service Tax Ø Issue of show cause notice. Ø Adjudication. Ø Appellate remedies. Commissioner (Appeals) CESTAT High Court / Supreme Court

Procedures in Service Tax… Ø Registration – Centralised Registration. Ø Issue of invoice. Ø Maintenance of records.

Procedures in Service Tax. Ø Payment of service tax. - Due date. Advance payment. Self adjustment – if service not rendered. Provisional payment. Self adjustment of excess payments. Ø Filing of return – ST 3. - Due date / Half yearly. - Revised return. - Fine for delayed return.

Penalties in Service Tax. Ø Sec. 76 – Delayed payment of S. Tax. Ø Sec. 77 – General Penalty. Ø Sec. 78 – Suppression, etc. Ø Sec. 80 – Power of waiver. Ø Rule 7 C – Fine for delayed return.

Certain important services.

Business Auxiliary Service. Ø Promotional activities. Ø Customer care services. Ø Procurement of goods or services. Ø Production or processing. Ø Provision of service on behalf of client. Ø Manufacture – excluded. Ø Notification 8/2005.

Commercial / Industrial construction Service. Ø Exclusion for roads, airports, railways transport terminals, bridges, tunnels, dams and ports. Ø 67 % Abatement.

Construction of Residential Complex Service. Ø More than 12 units. . Ø Personal use - exempted.

Erection, Commissioning and Installation Service. Franchise Service.

Intellectual Property Service. Management Consultant Service. Manpower recruitment / Supply agencies.

Goods Transport Agency Service. Ø Reverse Charge. Ø Abatement. Ø Exemption. Ø Payment mode. Ø No SSI exemption.

Renting of immovable property. Support Services for business.

Works Contract Service. Ø Re-classification. Ø Composition Scheme.

Legal Consultancy Service. Ø Only B 2 B covered. Ø No liability for appearances.

Small Scale exemption. Ø Threshold limit – Rs. 10 lakhs. Ø Conditions.

Export of Service and Import of Service.

Some new Services proposed in Budget 2010. Ø Corporate health check up. Ø Medical record keeping. Ø Brand Promotion. Ø Commercial exploitation of events. Ø Copyright.

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