21 January 2017
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Indirect Tax Service Tax 002004

  • India to levy service tax on freight for imports on delivered basis
    Jan 20, 2017
    Overseas exporters chartering foreign vessels to supply goods to India will have to pay a service tax on freight from Sunday, a government notification said. It will be the same as the 4.5 percent service tax that India currently levies on free-on-board (FOB) cargoes, where the ship is chartered by a local buyer. Prior to the change, imports in foreign ships hired by the overseas seller - known as on a cost and freight (CFR) basis - have been exempt from this charge.
  • Service tax mop from Mumbai zone jumps 25.5 per cent till November
    Dec 27, 2016
    In spite of demonetisation, the Mumbai zone of the service tax department has not only exceeded the revenue collection as of November, but also has surpassed the target for the period. The revenue collection from the Mumbai zone rose 25.5 per cent or by Rs 10,362 crore to Rs 51,062 crore as of end November, according to the department sources.
  • Mumbai zone's Apr-Oct service tax mop-up exceeds target
    Nov 14, 2016
    Service tax collection from the Mumbai zone rose to Rs 45,821 crore in the April-October period of this fiscal, exceeding the target by more than Rs 5,000 crore. Revenue collection by the service tax department was up by Rs 9,801 crore or 27.3% compared to Rs 36,020 crore mopped up in the same period of the previous fiscal, the department's data showed.The zone has surpassed the target for the period by Rs 5,062 crore or 12.4%.
  • Yoga-promoting institutions out of service tax net
    Sep 28, 2016
    Yoga instructor Ramdev's trusts and similar other institutions engaged in promoting yoga are not required to pay the service tax for a period, starting from June 20, 2012 to October 20, 2015, provided they are registered as charitable entities. For period after October 20, 2015, Yoga-promoting institutions has come under the negative list which are exempt from the service tax. There was confusion whether service tax is applicable to yoga-promoting institutions or not before October 21, 2015. This was so because negative list of services issued witheffect from June 20, 2012 did not specifically mentions Yoga.
  • Service tax collection from Mumbai zone up 21.3 per cent till August
    Sep 14, 2016
    Service tax collection from Mumbai zone has surged by over 21 per cent in the first five months of the fiscal year over the year-ago period, surpassing target. Revenue collection from the Mumbai zone rose 21.3 per cent to Rs 29,003 crore as of August 31, or Rs 5,097 crore in absolute terms from collection of Rs 23,906 crore in the corresponding period last year, data from the service tax department showed.
  • No service tax on tubewell construction for government projects, says CBEC
    Aug 27, 2016
    Construction of tubewells for government projects is exempt from payment of service tax, the Central Board of Excise and Customs (CBEC) has said. The clarification comes after Rajasthan Chief Minister Vasundhara Raje had written to Finance Minister Arun Jaitley last month on the issue as many contractors who were working with the Public Health and Engineering Department in Jhunjhnu, Sikar and Bikaner for tubewell construction had been served service tax notices.
  • Service tax collection up in Mumbai
    Jul 18, 2016
    Service tax collection by the city zone department in the first quarter has increased by 23 per cent, which has helped it surpass the target by nearly 4 per cent for the period. Service tax mop-up from Mumbai zone rose 22.9 per cent to ?17,583 crore as of end June from ?14,307 crore a year ago, according to the data from the Service Tax Department. Moreover, the zone has exceeded the collection target by 3.6 per cent, up from ?16,969 crore. For the current fiscal, the Mumbai zone has been given a revenue collection target of ?76,300 crore. Last fiscal, the zone had collected a revenue of ?68,714 crore.
  • Krishi cess not applicable if invoice generated before May 31
    Jun 27, 2016
    In a bid to end confusion over retrospective applicability of new Krishi Kalyan Cess, the government has stated that the 0.5 per cent tax will not apply on services whose invoice had been issued on or before May 31. Finance Minister Arun Jaitley had in his Budget for 2016-17 fiscal introduced the 0.5 per cent Krishi Kalyan Cess on all taxable services. Proceeds of the cess are to be used for improvement of agriculture sector and farmer welfare.
  • Service Tax department may appeal against tax relief
    Jun 10, 2016
    Those buying under construction property may not have to pay service tax. The recently-announced Delhi High Court judgement has said that there is no provision to calculate the value of service in a deal between a builder and a buyer. While the judgment will definitely apply to buyers within the Delhi jurisdiction, it could also have an impact on property deals in other states.
  • Firms approaching arbitration tribunals to pay service tax: CBEC
    May 21, 2016
    Firms with a turnover of over ?10 lakh who go in for arbitration proceedings will be liable to pay service tax at the rate of 14 per cent. “The services provided or agreed to be provided by an arbitral tribunal to a business entity (turnover exceeding ?10 lakh)… is taxable under reverse charge mechanism and recipient of service is liable to discharge service tax liability,” said the Central Board of Excise and Customs in a new clarification after doubts arose over who would pay the service tax.
  • Service tax on lawyers: Supreme Court takes up plea to transfer petitions
    May 14, 2016
    The Supreme Court on Friday issued notice to various state bar associations, including Delhi High Court Bar Association (DHCBA) and senior advocate Kevin Gulati, asking why their petitions challenging the government’s notification imposing service tax on senior lawyers should not be transferred to it to avoid multiplicity of proceedings, as sought by the Centre.
  • Service tax returns filing date extended to April 29
    Apr 27, 2016
    The Centre has extended the due date for filing of service tax returns to April 29 from April 25 specified earlier. This follows certain difficulties faced by taxpayers in accessing the Automation of Central Excise and Service Tax (ACES) application on April 25. Monday was the last day for filing service tax return for the period October 2015 to March 2016.
  • Companies remitting pay overseas to parent may face FEMA scrutiny; matter referred to RBI
    Apr 21, 2016
    Multinationals that have challenged service tax levies on salaries paid overseas to expats employed in India may be faced with a more fearsome challenge — scrutiny under the Foreign Exchange Management Act (FEMA), which deals with forex violations.Remitting the salary of anyone employed in India by an entity in the country in foreign currency is not permitted under FEMA, said an official.
  • Delhi HC stays 14% service tax on senior advocates
    Apr 02, 2016
    The Delhi High Court on Friday stayed the government's decision to impose a 14% service tax on senior lawyers, who are so designated by either the high courts or the Supreme Court because of their stature or knowledge of law. The union budget had withdrawn the service tax exemption given to services offered by these senior advocates to an advocate or partnership firm of advocates providing legal service; and people represented on arbitral tribunals.
  • Service tax levy on spectrum to increase tariff rates: COAI
    Mar 14, 2016
    Industry body COAI today said the proposal in Finance Bill 2016 to declare spectrum allocations as services will result in a tax burden of Rs 77,000 crore for operators and is likely to hurt consumers as they have to pay higher tariff rates if the load passed on to them. The Cellular Operators Association of India (COAI) further said this will also have an adverse impact on the government's 'Digital India' initiative and financial inclusion plan.
  • Service tax relief for mutual fund agents in Budget
    Mar 02, 2016
    In a major relief to mutual fund distributors, the government in the Budget has proposed to exempt service tax levied on agents earning less than R10 lakh annually. This move will bring in comfort to more than 33,500 mutual fund distributors.It has been proposed in the Budget that services provided by mutual fund agents/distributors to a mutual fund or asset management company be made taxable under forward charge with effect from April 1, 2016.
  • Service tax exemption to regulators: ‘intermediaries’ may benefit
    Mar 01, 2016
    Services provided by financial sector regulators, SEBI, Insurance Regulatory and Development Authority (IRDA) besides Employees’ Provident Fund Organisation (EPFO) have been exempted from service tax in the Union Budget effective April 1. Earlier, their services were charged at 14 per cent. Tejesh Chitlangi, Partner, IC Legal, said, “The services provided by SEBI were not specifically exempted or kept in the negative list, which resulted in a huge service tax demand which SEBI had contested. The move to specifically exempt the regulators, such as SEBI and IRDA from service tax ambit would be helpful for the intermediaries and other entities paying fee to such regulators, since they would not have to incur any additional costs on account of service tax levy.”
  • Finance Ministry to refund Swachh Bharat cess paid by SEZs
    Feb 04, 2016
    Providing relief to SEZ units and developers, the Finance Ministry today said they will be entitled to refund of the Swachh Bharat cess, a levy imposed by the government from November last year to fund its cleanliness drive. "The SEZ Unit or the Developer shall be entitled to refund of the Swachh Bharat Cess paid on the specified services on which ab-initio exemption is admissible but not claimed," the Central Board of Excise and Customs said in a notification.
  • Govt may increase service tax threshold
    Jan 15, 2016
    The finance ministry is contemplating several reforms in the indirect tax space, even as the Goods and Services Tax (GST) has been caught in a political tussle.There is a possibility that the exemption threshold for payment of service tax will be hiked. This will be good news for many small independent service providers, ranging from consultants to interior designers. But the government is also considering a balancing act by lowering the exemption threshold limit for excise.
  • IT department sends a service tax reminder to aggregators like Foodpanda and Oyo Rooms
    Nov 18, 2015
    Aggregators such as Foodpanda, Oyo Rooms and Airbnb have been asked whether they are paying service tax. "Letters were sent to ascertain if these entities are registered with the department and paying due tax," said a department official. This seems to be part of a 'friendlier' approach to alert service providers of their potential liability, in line with the Centre's desire for a non-adversarial tax regime that's more welcoming to investors.
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