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Service Tax & CBEC

This category contains 55 posts

Centre mulls hike in service tax rate if GST rollout is delayed

[Source: www.thehindubusinessline.com] The Centre could consider increasing the service tax rate in the coming Budget as a fallback option in case the rollout of the Goods and Services Tax (GST) is delayed beyond April 1. “There is some thinking of an increase in the service tax rate in case the GST is not implemented from [...]

Equalisation Levy is going to create a huge problem for startups

[Source: www.forbesindia.com] Tax lawyer Nishith Desai believes the Equalisation Levy, also known as ‘Google Tax’, will have important repercussions for the Indian startup ecosystem As part of the continuing opposition from industry bodies to the ‘Equalisation Levy’ that came into effect earlier this year, the Internet and Mobile Association of India (IAMAI) and law firm [...]

B2C music, e-books, cloud services from foreign portals will now attract service tax

[By Shaleen Shah (Partner), VNCA] If you download music or an e-book from a site within India, or buy some storage on a cloud from a domestic service provider within India, it attracts service tax.  However if such downloads are made or storage is purchased from an overseas site service tax does not apply if [...]

GST Enrolment–Transition of existing tax payers to GST

[By Shaleen Shah (Partner), VNCA] The Government has started preparation for transition of existing tax payers to GST. All existing taxpayers registered under any of the following Acts will be transitioned to GST:  1) Central Excise 2) Service Tax 3) State Sales Tax or VAT 4) Entry Tax 5) Luxury Tax 6) Entertainment Tax Existing [...]

Exporters need to prepare for GST

[Source: www.thehindubusinessline.com; Author: Ajay Srivastava] GST will usher in a new regulatory regime for India’s exports. For the manufactured product exporters, the most significant impact would be the increased requirement and blockage of working capital. For manufacturing a product, a firm buys locally or imports raw material and machinery. The current export schemes allow firms [...]

GST may trigger consolidation in warehousing space

[Source: economictimes.indiatimes.com] The goods and services tax (GST) regime could usher in consolidation in the Indian warehousing space, property consultants and analysts said. With the government pushing for an April 2017 rollout of the single tax structure, many manufacturers who had built or leased warehouses in nearly every state to avoid duplication of taxes don’t [...]

Service Tax Department cannot conduct audit under Rule 5A(2)–Delhi High Court

[By Shaleen Shah (Partner), VNCA] It is a general practice of Service Tax Department to conduct audit of service tax assessees for last five years by deputing their own officers of the rank of Inspectors and Superintendents. Service Tax Department also seeks voluminous details and seeks information in self-specified format/annexures of about 32 pages, which [...]

Budget 2016 enacted on 14-May – Service Tax Amendments effective from various dates

[By Shaleen Shah (Partner), VNCA]   The Union Budget 2016 presented by Hon’ble Finance Minister, Shri Arun Jaitley was passed by both houses of the Parliament and received the Presidential assent and thus stands enacted on 14-May-2016.   Service Tax Changes proposed in the Union Budget-2016 are coming into effect on various dates, as indicated [...]

Is higher service tax fuelling black money in the system?

[Author: Latha Venkatesh, Executive Editor, CNBC-TV18; Source: www.moneycontrol.com] One criticism of bankers and money market dealers of the Reserve Bank’s monetary policy conduct in the past year has been the rising liquidity deficit in the interbank market. Since December 2015, banks have been borrowing Rs 1.5-2.5 lakh crore from RBI to meet their daily CRR [...]

Rate of service tax further increased with levy of Swachh Bharat Cess from 15-Nov

Budget 2015 had provided for a new levy viz. Swachh Bharat Cess (SBC) on all taxable services effective from the date to be notified at a rate not exceeding 2%. Now, CBEC vide Notification No. 21/2015-ST dated 6-Nov-2015 has provided that SBC would be leviable @ 0.5% on value of all taxable services with effect [...]