Nov 152015
 

Swachh Bharat Cess (SBC) is effective from today (Nov 15, 2015).

Please Note the following :-

  1. SBC to be shown and charged Separately in the Service Invoice.
  2. Service Tax will be @ 14% & SBC  will @ 0.5%. Both needs to be shown separately in the Invoice. Do not show the Service Tax as 14.5%.
  3. As of now, there is no amendment passed in the CENVAT Credit rules. Hence, SBC Cannot be taken credit for payment of Service tax using CENVAT Credit.
  4. The Accounting Codes Notified are are follows in respect of SBC

i) Swacch Bharat Cess  – 0044-00-506 (Minor Head)

ii) Tax Collection – 00441493

iii) Other Receipts – 00441494

iv) Penalties – 00441496

 

Feb 102014
 

We would like to bring to the attention of the Service Tax assessees that vide Notification No 16/2013 dtd 22nd Nov 2013, the e payment of Service Taxes has been made mandatory in case of asseesees with Service Tax liability of more than Rs. 1 Lakh. Previously the limit was fixed at Rs. 10 Lakhs.  From 1st Day of January 2014, all service tax assessees in respect of whom the service tax liability during the year is more than Rs. 1 Lakh , shall make e-payment of taxes only.

The link for e-payment of service tax is provided below :-

Click here for e-payment of Service Tax.

the relevant notification is reproduced below :-

Download (PDF, Unknown)

 

Nov 282013
 

The Service Tax Department has issued a new Circular No 174/9/2013 – ST dtd 25th November 2013 , regarding the new Voluntary Compliance Encouragement Scheme 2013 (VCES 2013). The unresolved issues raised by assessees have been clarified in this circular.

The Circular is reproduced below :-

Download (PDF, Unknown)

 

Mar 072013
 

The Central Board of Excise & Customs vide its order No :- 1/2013-Service Tax dtd 06th March 2013 has extended the due date for filing the Service Tax returns for the period from July 2012 – Sep 2012.

As per the earlier order, the due date was 25th March 2013. Now , this time limit has been extended upto 15th April 2013.

This is in view of the fact that the Department is yet to Notify the E form ST 3 Utility.

The relevant Circular is reproduced below :-

Download (PDF, Unknown)

Jul 072012
 

The Central Board of Excise and Customs has released a handbook on “Taxation of Services” under the new Service Tax regime. This hand book covers the entire provisions and important notifications with regard to new Service tax provisions under “Negative List” approach of taxation of services.

For the benefit of our readers, we provide below the link for the download of the ebook.

Link 1

 

Source :- www.cbec.gov.in

Jul 062012
 

The service tax department has issued new circular spefifying new accounting codes under the Negative List approach to taxation of services.

As per this circular, the Accounting Codes to be used for payment of service tax under Negative List approach, w.e.f 1st July 2012 has been specified.

The relevant circular is reproduced below :-

Download (PDF, Unknown)

 

Jun 082012
 

The value for the purpose of arriving at the Service portion in the amount charged at the restaurants (or) by outdoor caterers in their service provided will be determined as under :-

Sl.

No.

Description

Percentage of  the total amount

(1)

(2)

(3)

1.

Service portion in an activity wherein goods, being food or any other article of human consumption or any drink(whether or not intoxicating) is supplied in any manner as a part of the activity,  at a restaurant

40

2.

Service portion in outdoor catering wherein goods, being food or any other article of human consumption or any drink(whether or not intoxicating) is supplied in any manner as a part of such outdoor catering

60


 

For the purposes of this rule, “total amount” means the sum total of the gross amount charged and the fair market value of all goods and services supplied in or in relation to the supply of  food or any other article of human consumption or any drink(whether or not intoxicating), whether  or not  supplied under the same contract or any other contract, after deducting-

(i) the amount charged for such goods or services,  if any; and

(ii)  the value added tax or sales tax, if any, levied thereon:

Provided that the fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.

The provider of taxable service shall not take CENVAT credit of duties or cess paid on any goods classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986).”.

Click the link here to download the relevant Notification 

Jun 082012
 

The Ministry of Finance vide its Notification No 24/2012 dtd 6th June 2012 has notified the rules for Determination of Value of Service Portion in the execution of the Works Contract.

These rules are notified through Service Tax (Determination of Value) Second Amendment Rules, 2012 which will be applicable from 1st July 2012.

According to this new rule 2A , the value of service portion in the execution of a works contract will be determined as under :-

Option 1 :-

The Value of the service portion in a works contract shall be the Gross amount charged for the contract after deducting the value of the property in goods transferred in the execution of the said works contract.

Other related Points :-

a)     The Gross amount charged shall not include the taxes

b)     Value of Services will include :-

i)                    Labour Charges for execution of the works contract,

ii)                  Sub-contract payment for labour & services,

iii)                Plan,Design and architecht fees,

iv)                Hire charges in respect of tools/machinery used in the contract

v)                  Cost of water,fuel,electricity in the execution of the contract

vi)                Cost of establishment of the contractor for supply of labour and services

vii)              Other similar expenses relating to the supply of labour and services

viii)            Profit earned by the service provider relating to the supply of labour and services.

c)      Where VAT/Sales tax has been paid for the goods/property relating to the works contract, the value adopted for such purpose shall be deemed to be the value of goods/property for determination of the value of the Service portion of the service being rendered.

Option 2 :-

Where the value could not be determined under option 1, the value of service portion in a works contract shall be determined and the service tax shall be payable as under :-

A)  in case of  works contracts entered into for execution of original works, service tax shall be payable on forty per cent. of the total amount charged for the works contract;

(B) in case of works contract 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;

(C) 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 shall be payable on sixty per cent. of the total amount charged for the works contract;

Other related Points :-

a)     Original works means ,

i)              all new constructions

ii)                  all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable.

iii)                erection, commissioning or installation of plant, machinery or equipment or structures, whether pre-fabricated or otherwise;

b)     Total amount means, the sum total of the gross amount charged for the works contract and the fair market value of all goods and services supplied in or in relation to the execution of the works contract, whether or not supplied under the same contract or any other contract, after deducting-

(i) the amount charged for such goods or services, if any; and

(ii) the value added tax or sales tax, if any, levied thereon:

Provided that the fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.

The service provider will not be eligible to take CENVAT credit of duties or cess paid on any inputs , used in the said works contract.

Click this link to download the relevant notification. 

Mar 292012
 

As per the Finance bill 2012, the rate of Service Tax has been increased from 10% to 12%.

The effective rate of Service Tax to be charged has been increased from 10.3% to 12.36%.

This will be effective from 1st April 2012.

Jan 112012
 

The Last date for filing the Half Yearly Service Tax returns in respect of Half year ended 30th September 2011 has been extended again from 06.01.2012 to 20.01.2012. The relevant Circular is reproduced below. Those assessees who have not filed their returns can make use of this opportunity. Cick here to send your enquiry for filing your Service Tax Half Yearly returns.

F. No. 137/99/2011 – Service Tax

Government of India 
Ministry of Finance 
Department of Revenue 
Central Board of Excise and Customs,
**********

New Delhi, the 9th January 2012

 

 

ORDER NO 1 /2012 – Service Tax

 

In exercise of the powers conferred by Rule 7(4) of the Service Tax Rules 1994 read with notification No. 48/2011-Service Tax dated 19th October 2011, Central Board of Excise and Customs hereby extends the date of submission of half yearly return for the period April 2011 to September 2011, from 6th January 2012 to 20th January 2012.

 

This is being done in view of the fact that assessees are facing problems in electronic filing of returns due to various reasons.

(Deepankar Aron)

Director (Service Tax) 
CBEC, New Delhi

 

To

 

Chief Commissioners of Central Excise & Customs (All)

Chief Commissioners of Central Excise (All)

Director General of Systems

Director General of Service Tax

Commissioners of Service Tax (All)

Commissioner (DPPR),Delhi

 

–x–

 

Contact us @ 91-44-45540180 / 91-91505 75680. 

For Quick Response email :- sridharca@gmail.com

LinkedIn Auto Publish Powered By : XYZScripts.com

Subscribe to our Email alerts for getting regular updates on GST, Income-tax, Corporate Law, Tax Planning, ,Investments, RBI Guidelines, VAT Laws , etc.,

Enter your email address: Delivered by FeedBurner 
Call Us Now
Directions