Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

SERVICE TAX PROVISIONS IN EASE OF DOING BUSINESS IN INDIA

Service Tax - By: - Mr. M. GOVINDARAJAN - Dated:- 2-11-2015 Last Replied Date:- 8-11-2015 - Ease of doing business is an index published by the World Bank. It is an aggregate figure that includes different parameters which define the ease of doing business in a country. Higher rankings (a low numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of property rights. Empirical research funded by the World Bank to justify their work show that the eff .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d score becomes the Ease of doing business index. Indicators for which distance to frontier is computed include construction permits, registration, getting credit, tax payment mechanism etc. Countries are ranked as per the index. India was ranked 142 in the ranking for the year 2015 which is declined from the point 140 for the year 2014. India now is ranked 130 in the ranking for the year 2016 which depicts that the situation in India in doing business is improving. In this article how do the pr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

CENVAT credit in certain cases; Rationalization of penal provisions; Digital signature and preserving records in electronic form; Withdrawal of prosecution in certain circumstances; Re-credit of reversed CENVAT credit in case of export proceeds received within one year; Certainty in determination of point of taxation for reverse charge mechanism. The following are the measures taken industry specific: Uniform abatement for transport; Exemption in respect of services provided to Government; Rati .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

within two working days which has been ordered vide No. 1/2015-Service tax, dated 28.02.2015. Comments - It is a welcome step and if it is actually implemented it will be appreciated. The registration done in this method is on trust base method. After this the assessee has to submit relevant documents within 7 days of filing of ST-1 form online for verification. On verification there is the possibility of revocation of certificate. No time limit is prescribed for complete verification of the ass .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Reverse Charge Mechanism, the condition of having made the payment of consideration to the service provider has been done away with, vide Notification No. 6/2015-Central Excise (N.T) dated 01.03.2015. Comments - This is the welcome one. Sometimes the payment of bills may be delayed to various reasons. Once service tax is paid on reverse charge mechanism, the credit may be taken without waiting for making payment to the service provider for the concerned input service. Rationalization of penal p .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

.2015 the section 76 provides that if any person fails to pay service tax, he is liable to pay a penalty of Rs.100 for every day during which the failure continues; or 1% of service tax payable whichever is higher. The newly substituted section provides various circumstances for imposing penalty. If a show cause notice is issued for failure to pay service tax - penalty is liable to pay not exceeding 10% of the amount of service tax; If the assessee pays the tax and interest within 30 days from t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t. The new section gives some concession but it cannot be told that the provisions are much beneficial to the assessees. Section 78 - This section provides for penalty for failure to pay service tax for reasons of fraud etc., Before 14.05.2015 this section provides that the penalty equal to the amount of service tax so not levied or paid or short-levied or short-paid or erroneously refunded will be imposed. The relaxations in reduction of penalties are as follows: where true and complete details .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

service tax. the benefit of reduced penalty under this shall be available only if the amount of penalty so determined has also been paid within the period of thirty days from the date of communication of order; in case of a service provider whose value of taxable services does not exceed sixty lakh rupees during any of the years covered by the notice or during the last preceding financial year, the period of thirty days shall be extended to ninety days. After 14.05.2015 Section 78 provides that .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ervice of notice under the proviso to sub-section (1) of section 73, the penalty payable shall be fifteen per cent. of such service tax and proceedings in respect of such service tax, interest and penalty shall be deemed to be concluded; the date of receipt of the order of the Central Excise Officer determining the amount of service tax under sub-section (2) of section 73, the penalty payable shall be twenty-five per cent. of the service tax so determined The benefit of reduced penalty under the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

secution in certain circumstances CBE&C highlighted that instructions have been issued providing for withdrawal of prosecution where a noticee has been exonerated in the quasi judicial proceedings and such order has attained finality. Comments - This decision has been taken on the basis of Supreme Court judgment in Radheshyam Kejriwal - 2011 (2) TMI 154 - Supreme Court of India. However it is a welcome step. Re-credit of reversed CENVAT credit in case of export proceeds received within one y .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ation of point of taxation in case of reverse charge mechanism, it has been provided that the point of taxation will be the payment of date or three months from the date of invoice whichever is earlier. Comments - Rule 7 of Point of Taxation Rules, 2011 provides for the determination of point of taxation for reverse charge mechanism is the date on which the payment is made. The proviso to this Rule provides that where the payment is not made within a period of six months of the date of invoice, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rvice tax in all these cases will now be charged on 30% of the gross value of such service subject to non availment of CENVAT credit on inputs, capital goods and input services. Comments - Before the Notification NO. 8/2015-ST, dated 01.03.2015 the abatement for services of goods transport agency in relation to transportation of goods is 75% and the abatement of services of transport of goods in a vessel is 60%. By means of Notification No.8/2015-ST, dated 01.03.2015 uniform rate of abatement of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

amended read as follows: Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of - a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958); canal, dam or other irrigation wor .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ract entered into for maintenance or repair or reconditioning or restoration or servicing of any goods, service tax shall be payable on seventy percent. of the total amount charged for the works contract. Rule 2A(C) provides that in case of other works contracts, not covered under sub-clauses (A) and (B), including maintenance, repair, completion and finishing services such as glazing, plastering, floor and wall tiling, installation of electrical fittings of an immovable property , service tax s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version