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Service Tax & CBEC - Page 3

Double whammy for franchises

There are conflicting rules on whether a franchise is subject is to service tax, VAT, or both. The negative list has not helped either. Franchising is a prevalent business model whereby the brand owner (or franchisor) provides representational rights to the buyer (or franchisee) for a consideration. This consideration is

No Service Tax on Advertisements

July 30, 2012
[By Shaleen Shah (Partner), VNCA] Selling of space or time slots for advertisements other than advertisements broadcast by radio or television is not taxable service vide Clause (g) of Negative List of Services u/s 66D w.e.f. 1-Jul-2012.  In other words, service tax is payable only on advertisements on radio or

Tackling double taxation of software

Budget 2012-13 possibly provides an opportunity to resolve this longstanding problem through the proposed taxation of services. The indirect taxation of information technology software has been a longstanding matter of debate and dispute. In particular, the challenge of double taxation has been endemic. This article highlights the recent developments in

Service Tax on `Legal Consultancy Service’

March 6, 2012
[By Shaleen Shah (Partner), VNCA] This article appeared in the Feb-2012 edition of the Sales Tax Journal published by The Gujarat Sales Tax Bar Association After amendments w.e.f. 01-05-2011, even Individual legal consultants are covered in respect to certain services – Legal Consultancy Service is applicable to any person providing

Indirect tax reforms not to wait for GST

November 23, 2011
Without waiting any more for introduction of the much-debated Goods and Services Tax (GST), the Union finance ministry has decided to go ahead with indirect tax reforms, particularly those related to services. The ministry is planning to time the rollout of Place of Supply (PoS) rules with the negative list

Service Tax Return – Extension of due date

October 21, 2011
F. No. 137/99/2011 – Service Tax Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs *** New Delhi dated the 20th October 2011 ORDER NO.1 /2011 – Service Tax In exercise of the powers conferred by Rule 7(4) of the Service Tax Rules 1994