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REVERSE CHARGE SYSTEM

Service Tax - Started By: - pankaj jain - Dated:- 17-11-2015 Last Replied Date:- 30-7-2016 - A private limited company bought tender form from State Government for supplying of country liquor. Service tax department demanding Service tax on Tender form cost under , Serial no. 6 of notification no. 30/2012 dt. 20/06/2012 as amended. Is tender form covered in support services. - Reply By Rajagopalan Ranganathan - The Reply = Sir,The tender form is sold by the State government and it attracts sales .....

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tax were payable by business entity receiving such services from government or local authority were as under: support services means infrastructural, operational, administrative, logistic, marketing or any other support of any kind comprising functions that entities carry out in ordinary course of operations themselves but may obtain as services by outsourcing from others for any reason whatsoever and shall include advertisement and promotion, construction or works contract, renting of immovable .....

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ve developments. - Reply By Ganeshan Kalyani - The Reply = Service means any activity carried out by one person for another person for a consideration. Merely purchasing of tender form would not constitute to any service is provided. it is just a sale of form by one party and purchase of the same by another and hence with due respect to Mahir sir input the service tax as demanded by the service tax department is not logical. This is my view. - Reply By Rajagopalan Ranganathan - The Reply = Sir, .....

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form. CBEC has clarified in its circular No. 96/7/2007-ST dated 23.8.2007 that Service tax is not leviable on a transaction treated as sale of goods and subjected to levy of sales tax / VAT. Payment of VAT / sales tax on a transaction indicates that the said transaction is treated as sale of goods. This clarification had been issued prior to the intriduction of Negative list regime. However, Section 66 D (e) of Finance Act, 1994 includes 'trading of goods' in the negative list. Therefore .....

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are full of legal force and have been explained well. Both the replies clearly explain the difference between sale and service. Sale of Form cannot be classified under Business Support Service by any stretch of imagination, it being SALE and NOT SERVICE. - Reply By KASTURI SETHI - The Reply = I would like to add that 'sale of tender form' is not a service. Why should we ponder over classifying the same under the category of 'Business Support Service' ? Govt. has inserted 'Tra .....

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eviously, services provided by Government or a local authority, excluding certain services specified under clause (a) of section 66D, were covered in the Negative List. An enabling provision was made, by amending section 66D (a) (iv), to exclude all services provided by the Government or local authority to a business entity from the Negative List [section 109(1) of Finance Act, 2015]. Consequently, the definition of support service [section 65 B (49)] was also omitted [section 107(h) of Finance .....

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ct on all the businesses, as such service tax has to be paid by the businesses directly to the service tax department out of their pocket.Because of this, the following services come into service tax impact:1. Tender Fees2. Licence Fees paid to government for operating in a particular industry Eg. Liquor, 2G / 3G licences3. Fees paid under the Various Laws - Reply By Mahir S - The Reply = Dear all,In view of my above submissions, I am strongly of the view that service tax department demanding se .....

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iews of experts backing the contention that purchase of tender form is not subject to service tax. - Reply By Mahir S - The Reply = Supplying of tenders is a part of the whold operation for carrying out auctions and therefore a service provided by Govt.Supply of tender cannot be termed as a trading activity, till the same is clarified and backed by legal opinions and rules framed therein, as quoted in above 03 replies dated 24.11.2015. - Reply By Ganeshan Kalyani - The Reply = Suppose I gave a p .....

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te the support service has been provided. I am of the view that Vat should be applicable and service tax. - Reply By KASTURI SETHI - The Reply = Sh.Ganeshan Kalyani Ji, When you get your vehicle serviced from any authorised service station ( registered with the department for payment of service as taxable Service Provider), the service provider raises the bill indicating sale of material, parts and accessories and labour charges separately. The dealer/Service Provider charges sale tax/VAT for ma .....

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provides study material i.e. competitive books,textbooks, and other printed material/ notes etc., the cost price of such study material is excluded from the gross receipt while arriving at taxable value. Notification No.12/2003-ST dated 20.6.2003 (now rescinded vide Notification No.34/2012-ST dated 20.6.2012). It is my opinion. - Reply By Ganeshan Kalyani - The Reply = A moral of the story is Vat is applicable on supply part and service tax on service element. both stand separate in the platform .....

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