http://www.pdicai.orgThe latest news and journals from all over the world.Copyright 2005 - 2006 Feedpedia.com. All rights reserved.Service tax evaders beware! Failing to deposit this tax may attract arrest and imprisonment upto seven years.With the passage of Finance Bill 2013 last week, the Revenue department officials can now arrest a person for non-payment of collected service tax.Earlier, the officials did not have any power to arrest a person for service tax evasion. Besides, director and manager of a company who fail to pay collected service tax can now be arrested with imprisonment for upto seven years in addition to the penalty which may extend to Rs one lakh.http://articles.economictimes.indiatimes.com/2013-05-19/news/39369877_1_service-tax-defaulters-finance-bill20 May 2013 00:00:00 GMTThe power ministry has sought reduction in import duty on all forms of coal used for power generation from 4% at present to 1%, stating in a letter to the finance ministry that this would help increase the viability of power plants using imported coal.The price of imported coal ? defined in terms of calorific value ? is almost double that of domestic coal produced Coal India and its subsidiaries, but many upcoming plants are forced to use imported coal due to the shortage in domestic coal availability.The government, in Budget 2013-14, announced uniform duty structure for all forms of coal ? 2% basic customs duty and 2% countervailing duty (in lieu of excise). This meant that both high calorific value bituminous coal and steam coal were brought under the 4% duty.http://www.financialexpress.com/news/cut-coal-import-duty-to-boost-plants-power-min/111732218 May 2013 00:00:00 GMTIndirect tax collection in April, the first month of the 2013-14 fiscal, grew by a meagre 3.3 percent to Rs 33,684 crore with excise duty collection declining 14.7 per cent year-on-year. Customs duty collection grew by 12.8 percent to Rs 13,083, while service tax collection grew 13.6 per cent to Rs 10,712 in April, a senior Finance Ministry official said.Excise duty collection fell Rs 9,889 crore for during the month, compared to Rs 11,590 crore in April 2012.The decline is attributed to the fact that companies could not take Cenvat credit during the last fiscal given the government's tight fiscal situation, the official said.http://www.moneycontrol.com/news/economy/no-cheer-for-fm-april-indirect-tax-moprises-only-33_872400.html16 May 2013 00:00:00 GMTIn an effort to boost revenue, the Finance Ministry has notified Service Tax Voluntary Compliance Encouragement Scheme. This will be a one time scheme.It aims to cover nearly 10 lakh service tax assessees who have stopped filing tax returns. This scheme will be for non-filers too.The assessees concerned will have to give a truthful declaration of all pending dues between October 1, 2007 and December 31, 2012.It is clarified that the tax-payers will need to settle their dues for the period after December 31, 2012.Under the scheme, the assessee will be given an opportunity to pay half of the dues by December 31 this year while remaining amount can be paid by June 30, 2014. There will be no interest, penalty or any proceeding. However, if dues remain as on July 1, 2014, the assessee will have to pay with interest by December 31.http://www.thehindubusinessline.com/features/taxation-and-accounts/finmin-notifies-scheme-to-encourage-service-tax-payment/article4718470.ece16 May 2013 00:00:00 GMTExcise duty collections have taken a big knock in the first month of the new fiscal, as companies took credit for higher tax paid in the last month of 2012-13 to help government meet fiscal deficit target for the year. While the overall indirect taxes grew by a meager 4%, excise duty collections bore the biggest brunt of enhanced payments in March 2013, witnessing a sharp fall of 14% in April, 2013. Excise collections came in at only .`9,800 crore as companies rushed to get their accumulated input tax credit.http://economictimes.indiatimes.com/news/economy/finance/excise-duty-collections-dips-14-in-april/articleshow/20040873.cms14 May 2013 00:00:00 GMTThe Centre and States have agreed to have a common exempted list for at least 96 goods under the proposed Goods and Services Tax (GST) regime.consensus was reached on the first day of a two-day meeting of State finance ministers here.?Overall, we have moved forward. We have moved positively,? the Chairman of the Empowered Committee of States? Finance Ministers Sushil Kumar Modi told reporters after the conclusion of the first day?s meeting.However, going by the current political situation, he also sounded a note of caution. ?This is an election year. I do not know to what extent the Centre will be able to take decisions,? said Modi, who belongs to the BJP.http://www.thehindubusinessline.com/features/taxation-and-accounts/gst-regime-to-exempt-at-least-96-items-from-tax/article4703060.ece11 May 2013 00:00:00 GMTThe finance ministry has tightened norms for application of lower rate of service tax on construction, dealing a blow to buyers purchasing houses above a certain size or value. The Central Board of Excise and Customs, the apex indirect taxes body, has issued new norms that restrict lower service tax to only those houses that cost below Rs 1 crore and have carpet area less than 2000 square feet. http://economictimes.indiatimes.com/personal-finance/tax-savers/tax-news/pay-more-service-tax-on-house-costing-over-rs-1-crore/articleshow/19980016.cms10 May 2013 00:00:00 GMTThe Centre and states are likely to clinch a deal on a threshold for the Goods & Services Tax (GST) when they meet for two days in this picturesque hill station tomorrow. However, a consensus on a revenue-neutral rate (RNR) under the proposed tax regime is not likely. Dual control of the Centre and states, and exemptions and threshold for annual turnover below which GST would not apply are likely to be discussed in the meeting of the empowered committee of state finance ministers. In the previous meeting in Bhubaneswar, the empowered committee had formed three committees to give reports on integrated GST and value added tax (VAT) on imports; dual control, threshold and exemptions; a revenue-neutral rate and place of supply rules.http://www.business-standard.com/article/economy-policy/state-fms-to-meet-in-mussoorie-to-resolve-gst-issues-113050900716_1.html10 May 2013 00:00:00 GMTMobile phones and tablets could become cheaper if states accept the telecom department's proposal to define these as goods of special importance, under the Central Sales Tax (CST) Act.The Empowered Committee (EC) of State Finance Ministers would consider bringing mobile phones and tablets under the declared goods category at its next meeting, in Mussoorie on May 10-11. Industry associations and representatives from the Department of Telecom would make a presentation to the EC on May 11.http://www.business-standard.com/article/economy-policy/proposal-to-limit-state-tax-on-cell-phones-tablets-113050800019_1.html08 May 2013 00:00:00 GMTKeen to strike a consensus with states on the few remaining contentious issues related to the proposed goods and services tax (GST), the Centre has decided to allow them the flexibility to have a state-level GST within a wide band of 10-15%. The major relaxation by finance minister P Chidambaram reflects the UPA government?s resolve to have a breakthrough in finalising the new Centre-state indirect tax regime through a process of give and take even when Opposition parties that rule in some of the states are staging walkouts in Parliament over several issues including the alleged vetting of the CBI report on the coal allocation scam by senior government functionaries. Officials privy to the development said that states could levy their component of GST anywhere between 10% and 15%, keeping in mind their revenue considerations. The rate that the Centre would levy is yet to be finalised. The proposal will be discussed at a two-day meeting of the empowered committee of state finance ministers led by Sushil Kumar Modi, deputy chief minister of Bihar, in Mussoorie, Uttarakhand, from May 10.http://www.financialexpress.com/news/centre-agrees-to-broader-1015-band-for-state-gst/111192506 May 2013 00:00:00 GMTUtter chaos prevails due to a major backlog in service tax returns. The Central Board of Excise and Customs, that introduced the negative list from July 1, 2012, did not think about the service tax return form.This form was introduced in February 2013, almost 11 months after the the negative list based on service tax rules was implemented. The department which was working on the negative list for a long time, took 11 months to draft and furnish service tax return forms. The initial deadline to file service tax returns for the third quarter of 2012, i.e., July to September 2012, was October 25, 2012. It was not followed due to the faux pas by the CBEC.http://www.deccanchronicle.com/130503/news-current-affairs/article/service-tax-returns-not-form03 May 2013 00:00:00 GMTICICI Prudential Life Insurance Company Ltd (ICICI Pru) has received a tax demand for Rs 136 crore from the Revenue Department that has alleged service tax evasion by the insurer. A combined show-cause and demand notice has been served on the private life insurer by the Directorate-General of Central Excise Intelligence, the apex intelligence arm of the Central Board of Excise and Customs.After verifying the company?s books for financial years 2007-08 to 2011-12, the DGCEI concluded that the life insurer had violated service tax laws over this period.http://www.thehindubusinessline.com/todays-paper/tp-money-banking/icici-prudential-life-gets-rs-136cr-tax-demand-notice/article4674567.ece02 May 2013 00:00:00 GMTTen solar power producers, including Jackson Ltd, Vikram Solar, Symphony Vyapar Pvt Ltd and Lexicon Vanijya Pvt Ltd have written to the ministry of new and renewable energy ( MNRE) saying imposition of anti-dumping duty on solar imports will severely affect the fledgling Indian solar industry. Producers and equipment manufacturers have been at loggerheads since the latter filed an anti-dumping case against China, the US, Taiwan and Malaysia last year for imported solar panels. Producers have called a halt to such measures till phase two of the national solar mission begins and new projects are commissioned. http://economictimes.indiatimes.com/news/news-by-industry/energy/power/solar-power-producers-oppose-any-anti-dumping-duty-on-imported-gears/articleshow/19812047.cms01 May 2013 00:00:00 GMTDespite the introduction of the negative list of services, with effect from July 1, 2012, the Government could not achieve the expected growth in service tax collection. One of the reasons could be non-compliance by taxpayers. Finance Minister P. Chidambaram, in his budget speech, has indicated that of 17 lakh registered assessees only 7 lakh file returns.To encourage taxpayers to come forward and comply with the service tax provisions, the Government has introduced the one-time amnesty scheme ? Service Tax Voluntary Compliance Encouragement Scheme 2013, effective from the date of enactment of Finance Bill 2013.http://www.thehindubusinessline.com/todays-paper/tp-others/tp-taxation/service-tax-golden-opportunity-to-come-clean/article4664155.ece29 Apr 2013 00:00:00 GMTThe growing hostility between the government and the Opposition does not seem to have deterred two men-one, the finance minister and the other, BJP leader and Bihar's deputy CM-from tirelessly pursuing the task of making the Goods and Services Tax (GST) a reality.A day after P Chidambaram put the chances of the GST bill being passed in Parliament in the UPA's tenure at 70%, Sushil Modi, who heads the empowered group, said a broad consensus had been evolved on 80% of the issues, but indicated that being poll year, it was a toss up.http://economictimes.indiatimes.com/news/politics-and-nation/one-modi-hits-out-at-government-other-may-save-gst/articleshow/19732028.cms26 Apr 2013 00:00:00 GMTThe proposed Goods and Service Tax (GST) is designed in a way that it will not hamper the financial autonomy of states, rather it will incentivize them, says the chairman of the empowered committee of state finance ministers. The committee has been tasked with building a consensus on this major indirect tax reform. "We have sorted out 80% of the issues raised by various states," said Sushil Kumar Modi, the chairman of the committee. He said the committee was also looking at incentivizing states that agree to implement GST, in line with international practices. "Canada and Singapore have similar structures where they have incentivized states who implemented GST." http://economictimes.indiatimes.com/news/economy/policy/government-considering-to-incentivise-state-who-are-willing-to-implement-gst/articleshow/19680037.cms23 Apr 2013 00:00:00 GMTThe Revenue Department has said service tax will be imposed on erection of pandal or shamiana for organising a function. "Services provided by way of erection of pandal or shamiana would attract the levy of service tax," the Central Board of Excise and Customs (CBEC) said in a circular. Service tax is levied at the rate of 12 per cent on all services except for those exempted or mentioned in the 'negative list'. However, in case of certain services abatement is given, meaning the tax is charged at lower rate. The circular has been issued after the CBEC received several representations to clarify the "doubt" on levy of the duty on an "activity of preparation of place for organising event or function by way of erection/laying of pandal and shamiana".http://economictimes.indiatimes.com/news/economy/finance/service-tax-applicable-on-erection-of-pandal-shamiana/articleshow/19582274.cms17 Apr 2013 00:00:00 GMTA growth impetus for utility vehicles (UVs) priced below R10 lakh may soon be around the corner with the government actively considering an excise duty hike rollback for models that fall in the price bracket before the Budget session resumes in Parliament. The finance ministry has now asked the auto industry to submit detailed sales data as per companies, variants and models by this week that will help it separate luxury SUVs, such as Toyota Fortuner and BMW X1, from the more mass market models such as Mahindra Bolero, Tata Sumo, Force Trax and Chevrolet Tavera, sources told FE. The plan is to limit the excise hike to premium models only.?The finance ministry has asked for further details on SUVs such as sales statistics in terms of value, and model-wise, company-wise and variant-wise divisions.http://www.financialexpress.com/news/finmin-asks-car-makers-for-data-on-suvs-to-restrict-excise-hike-to-premium-models/110354717 Apr 2013 00:00:00 GMTThe Finance Ministry has imposed definitive anti-dumping duty on certain gypsum plaster boards imported from China, Indonesia, Thailand and the United Arab Emirates. The levy does not apply to fire boards, impact boards, ECHO boards, heat boards and thermal boards.This anti-dumping duty will be valid for five years with effect from June 7, 2012, the date of imposition of provisional anti-dumping dutyhttp://www.thehindubusinessline.com/economy/dumping-duty-on-plaster-boards-from-china-3-other-nations/article4620633.ece16 Apr 2013 00:00:00 GMTOil tankers went off the road from Monday in Andhra Pradesh, as truck owners resorted to strike as they were engaged in a dispute with the oil companies on payment of value-added tax of 5 per cent imposed by the State Government.It is the contention of the truck owners that the companies should pay VAT of five per cent from Nov. 8, 2011, and the association is condemning the attitude of the oil companies. ?It is unfortunate that the oil companies ? IOC, BPCL, and HPCL ? are refusing to pay the VAT going against the promise they gave to us in 2011. We cannot bear the burden and therefore nearly 1,000 oil tankers in the Visakhapatnam region and 2,000 in the entire State have gone off the road. We are left with no option,? said T. Naidu, President of Visakhapatnam Oil Tank Truck Owners' Association.http://www.thehindubusinessline.com/industry-and-economy/logistics/vat-issue-oil-tankers-go-off-the-road-in-ap/article4620555.ece16 Apr 2013 00:00:00 GMT