Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Forum Articles Highlights TMI Notes SMS News What's New Calendar Imp. Links Database More...
Extracts
Home List
← Previous Next →

Nihilent Technologies Pvt Ltd. Versus The Commissioner of Service Tax, Pune

Denial of refund claim - Rule 5 of CCR, 2004 – input services – export of services – export turnover – should the turnover of branches of assesse located in South Africa and UK be treated as export turnover? - Section 65B(44) - services – POPOS rules, 2012 - Rule 2 (6A) - Export of Services – Held that: - As per explanation 3(b) of Section 65B(44), if a person is having two establishment one in taxable territory and other in non taxable territory both shall be treated as distinct persons. The br .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

assesse - Held that: - Once it is held that branches’ turnover is not export being branches are distinct person, the same principle will apply for the purpose of total turnover of the assessee. Department cannot take contrary stand that in one hand the branches turnover is not export turnover and in other hand it is addable in total turnover of the assesse - branches turnover neither included in export turnover nor in the total turnover of the assesse – appeal disposed off – denial of refund ju .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

overseas clients. For these services invoices are raised by the branch offices of South Africa and UK and payment thereagainst were also received by the branches. A part amount was repatriated to India out of the proceed received by branches for the service provided by the South Africa and UK based branches. The assessee claimed refund under Rule 5 of CCR, 2004 in respect of service tax paid on the input service used for export of services. The Adjudicating authority in adjudication sanctioned r .....

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 by the branches located in South Africa and UK is not part of the assessee s export turnover, however, interpreting the term total turnover held that the total turnover comes to ₹ 18,87,82,265/-(Rs. 17,73,46,004 towards the export turnover plus ₹ 1,14,36,261/- towards other services). Thus, the turnover of overseas branch offices were not considered in the total turnover. Accordingly, the Ld. Commissioner further sanctioned the refund claim of ₹ 7,68,757/-. However, refund cl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rt of assessee. He submits that as per the explanation 4 to Section 65 B(44) of the Finance Act, 1994, the branch of the assessee is treated as having an establishment in that territory, the turnover of the branches has to be included in the assessee s turnover. He submits that the commissioner has overlooked the definition of Location of Service Provider in as much as Rule 2(4)(b)(iii), where services are provided from more than one establishment. The establishment most directly concerned with .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ver. 3. On the other hand, Shri. V.K. Shastri, Ld. Asstt. Commissioner( A.R.) appearing on behalf of the Revenue, in respect of assessee s appeal, reiterates the findings of the impugned order. As regard the departmental appeal he submits that the Ld. Commissioner has wrongly reduced the value of services provided by the overseas branches of the assessee from total turnover for the reason that as regard total turnover a company s overall turnover of all the locations is considered, turnover of 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

ated as export turnover of the assessee. (b) Whether the value of service provided by the overseas branches of the assessee should be included in the total turnover of the assessee. As regard the first issue, as per the fact of the present case the service was provided by the branches of the assessee located in South Africa and UK, the invoices for such services were raised by the respective branches to the foreign based service recipients. The service charges in respect of the service provided .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eproduced below: Section 65B - Interpretations [In this Chapter, unless the context otherwise requires,- (44) service means any activity carried out by a person for another for consideration, and includes a declared service, but shall not include- (a) an activity which constitutes merely,- (i) a transfer of title in goods or immovable property, by way of sale, gift or in any other manner; or (ii) such transfer, delivery or supply of any goods which is deemed to be sale within the meaning of clau .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

islature, Members of Panchayats, Members of Municipalities and Members of other local authorities who receive any consideration in performing the functions of that office as such member; or (B) the duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity; or (C) the duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or State Governments or local authority and who is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of, a transaction in money or actionable claim, including the activity carried out- (a) by a lottery distributor or selling agent on behalf of the State Government, in relation to promotion, marketing, organising, selling of lottery or facilitating in organising lottery of any kind, in any other manner, in accordance with the provisions of the Lotteries (Regulation) Act, 1998; (b) by a foreman of chit fund for conducting or organising a chit in any manner. Explanation 3.- For the purposes of thi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ory; Place of Provision of Services Rules, 2012 [ 28/2012-Service Tax dated 20.06.2012 ] In exercise of the powers conferred by sub-section (1) of section 66C and clause (hhh) of sub-section (2) of section 94 of the Finance Act, 1994 and in supersession of the notification of the Government of India in the Ministry of Finance, Department of Revenue, number 9/2005-ST, dated the 3rd March, 2005 published in the Gazette of India Extraordinary, Part II, Section 3, Sub-Section (i) vide number G.S.R. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ovision of services, namely:- 1. Short title, extent and commencement. - (1) These rules may be called the Place of Provision of Services Rules, 2012. (2) They shall come into force on 1st day of July, 2012. 2. Definitions.- In these rules, unless the context otherwise requires,- (h) "location of the service provider" means- (a) where the service provider has obtained a single registration, whether centralized or otherwise, the premises for which such registration has been obtained; (b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s, the usual place of residence of the service provider 3. Place of provision generally - The place of provision of a service shall be the location of the recipient of service: Provided that in case the location of the service receiver is not available in the ordinary course of business, the place of provision shall be the location of the provider of service. Rule 2 [6A Export of Services. - (1) The provision of any service provided or agreed to be provided shall be treated as export of service .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

with item (b) of Explanation 3 of clause (44) of section 65B of the Act. (2) Where any service is exported, the Central Government may, by notification, grant rebate of service tax or duty paid on input services or inputs, as the case may be, used in providing such service and the rebate shall be allowed subject to such safeguards, conditions and limitations, as may be specified, by the Central Government, by notification.] As per explanation 3(b) of Section 65B(44), if a person is having two es .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is located in non taxable territory, he will be treated as distinct person and this definition of location of Service provider will not apply. As per Rule 3 of Provision of Services Rules, 2012 place of service in normal course, shall be location of service recipient. In case location of service receiver is not available, the place of provision shall be the location of the provider of services. In the present case the provision of service is by the branches in South Africa and UK and recipients .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

  ↓     Latest Happening     ↓  

Circular: Constitution of National Anti-profiteering Authority (NAA) under GST-reg.

Forum: import purchase

Highlight: Sharing of expenses - BAS - promotion of business of group companies - sharing of expenditure for common facilities cannot be treated as service by one to another in such arrangement.

Forum: Cess paid instead of SGST

News: RBI Reference Rate for US $

Forum: 3B mistake

Forum: Input credit of gst paid on urd

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector – reg.

Forum: transfer of shares

Forum: Input tax credit

News: Anti-dumping duty on import of bus/truck tyres from China

News: Fast-track GST refund, else ₹ 65K cr may be stuck: Exporters

Highlight: It is open to the Settlement Commission to use best judgment in arrival of the figure. Nonetheless it has to explain the manner in which the best judgment figure has been arrived at by the Settlement Commission - HC

Highlight: Deemed dividend u/s 2(22)(e) - advances given to societies - in the absence of legal right of the assessee in the said society the amount advanced cannot be treated as deemed income.

Highlight: When electrical installations are treated as plant and machinery the depreciation has to be allowed @ 25% as per provisions contained u/s 32

Forum: GST return filing software online | Easy GST compliance management

TMI Note: Capital Gain - transfer of right in the land or transfer of land itself - addition u/s 50C - Harassment to the honest tax payers

Highlight: Option to avail composition scheme under GST by electronically filing an intimation in FORM GST CMP-02 and FORM GST ITC-03 upto 30-9-2017 - See Rule 3(3A)

TMI Note: Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

Highlight: Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification

TMI Note: Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents would prevail over ICDS.

Highlight: Provisions of ICDS shall prevail w.e.f. AY 2017-18 to the transactional issues dealt therein over earlier judicial pronouncements.

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

News: Voluntary Reporting of Estimated Current Income and Advance Tax Liability

TMI Note: In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governing taxation of income like rules 9A, 9B etc. of the Rules, which provisions shall prevail.

TMI Note: Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Minimum Tax (AMT) u/s 115JC of the Act.

TMI Note: Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

TMI Note: Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation avoidance agreement (DTAA).

TMI Note: In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, which would prevail over the other.

TMI Note: ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific disclosures. Where is the taxpayer required to make such disclosures specified in ICDS.

Notification: Income Computation and Disclosure Standards (ICDS) - New ICDS to be effective from AY 2017-18

News: RBI Reference Rate for US $

Highlight: GST - Detention of goods under transport - discrepancy in documents - the statutory provisions provide a mechanism for adjudication following detention of goods including for the provisional release thereof pending adjudication - HC

Highlight: Reassessment - first few paragraphs of the assessment order dealt with objections and disposed of accordingly - Unfortunately, the manner in which the AO has decided the issue is wholly unsustainable in law - HC

Highlight: Business expenditure u/s 37 - liquidated damage - breach of contract terms - Expenditure was not incurred for any purpose which is an offence or which is prohibited by law - cannot be disallowed - HC

Highlight: Valuation - inclusion of reimbursement of expenses - managing participation of clients in certain mela, fairs, promotional activities etc. - They are liable to service tax on the gross amount received - They cannot restrict their tax liability to only agency commission

Highlight: TDS liability - ITAT confirmed the liability - We do not see how it is possible for us to uphold the order of the Tribunal and when it purports to decide two Appeals of the Revenue by single paragraph conclusion - HC

Highlight: Reopening of assessment - sufficiency of material available with the AO to form a belief that income chargeable to tax had escaped assessment - bogus purchases - seller refused to respond - notice would not be interfered with - HC

Highlight: Exemption u/s 11 - education activities - transport and hostel facilities surplus cannot be considered as business income of the assessee society

News: Draft Notification for insertion of new rule 39A in the Income-tax Rules, 1962 – comments and suggestions-reg.

Highlight: Genuineness of labour wages expenses, embroidery charges, fabrication expenses etc. - getting work done through small workmen who do not have any permanent place of residence - disallowance of ad hoc expenditure deleted.

Highlight: Project import - Since the goods were never used for the purpose for which it was imported, the actual user condition has been violated - Redemption fine and penalty imposed.

Highlight: Penalty u/s 112 (a) - CHA - Lack of due diligence and failure to take more precautions can not, by itself, bring in penal consequences

Highlight: Import of services - GST - The fact that those services were received outside India will not change the fact that the services have been paid for by the beneficiary appellant, who is located in India. - Demand confirmed.

Notification: SEZ for IT/ITES at Madhurwada Village, Visakhapatnam District in the State of Andhra Pradesh - denotified.

Highlight: Merely because payment is received in Indian rupee, it cannot be said that payment against export has not been received in convertible foreign exchange.

Highlight: Merely vehicle numbers was not mentioned on the invoices cannot be the reason to deny Cenvat Credit

Highlight: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017 - Circular

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017



|| 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