SERVICE TAX by s.jaikumar advocate

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SERVICE TAXbys.jaikumaradvoca
te
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Basic Features

• Statutory provisions.

• Levy on service provider
• - Exceptions.

• Levy on realisation.

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Classification of Service

• Specific description than general description.

• Essential character.

• Which occurs first in the definition.

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Valuation

• Gross amount.

• Cum - tax.

• Abatements.

• Notification 12/2003.

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Valuation

• Services rendered free.

• Consideration in kind.

• Reimbursement of expenses.
• Upto 18.04.2006 No liability.
• Judgements and circulars.
• From 19.04.2006 Concept of pure
  agent.
• Malabar Management Services VS CCE
• 2008(9) STR 483

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Proceedings in Service Tax

• Issue of show cause notice.

• Adjudication.

• Appellate remedies.
• Commissioner (Appeals)
• CESTAT
• High Court / Supreme Court

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Procedures in Service Tax

• Registration Centralised Registration.

• Issue of invoice.

• Maintenance of records.

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Procedures in Service Tax.

• Payment of service tax.
• - Due date.
• - Advance payment.
• - e payment.
• - Self adjustment if service not
  rendered.
• - Provisional payment.
• - Self adjustment of excess payments.

• Filing of return ST 3.
• - Due date / Half yearly.
• - Revised return.
• - Fine for delayed return.

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Penalties in Service Tax.

• Sec. 76 Delayed payment of S.Tax.

• Sec. 77 General Penalty.

• Sec. 78 Suppression, etc.

• Sec. 80 Power of waiver.

• Rule 7 C Fine for delayed return.

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Certain important services.
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Business Auxiliary Service.

• Promotional activities.

• Customer care services.

• Procurement of goods or services.

• Production or processing.

• Provision of service on behalf of client.

• Manufacture excluded.

• Notification 8/2005.

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Commercial / Industrial construction Service.

• Exclusion for roads, airports, railways
• transport terminals, bridges, tunnels,
• dams and ports.

• 67 Abatement.

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Construction of Residential Complex Service.

• More than 12 units..

• Personal use - exempted.

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Consulting Engineering Service.

• Foreign Technological transfers.
• Novinon Ltd. VS CCE 2006 (3) STR 397

• To cover software too.

Customs House Agents Service.
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Erection, Commissioning and Installation Service.
Franchise Service.
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Intellectual Property Service.
Management Consultant Service.
Manpower recruitment / Supply agencies.
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Goods Transport Agency Service.

• Reverse Charge.

• Abatement.

• Exemption.

• Payment mode.

• No SSI exemption.

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Renting of immovable property.
Support Services for business.
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Works Contract Service.

• Re-classification.

• Composition Scheme.

• Vice of Notification 1/2006.

• Diebold Systems (P) Ltd Vs CCE
• 2008 (9) STR 546.
• Air Liquide Engg. India (P) Ltd. Vs CCE
• 2008 (9) STR 486.

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Sale Vs Service.
S.No Citation Decision
1 BSNL Vs UOI 2006 (2) STR 161 SC It has been held that the sale value of goods shall not be subjected to the levy of service tax.
2 Idea Mobile Communications Limited VS CCE 206 (4) STR 132 Tri Bang Levy of sales tax and service tax are constitutionally mutually exclusive.
3 BPL Mobile Communications Limited VS CCE 2007 (7) STR 440 Sale of SIM cards is sale and sales tax is paid. Hence service tax is not payable.
4 Imagic Creative (P) Limited Vs CCE 2008 (9) STR 337 SC Service tax and VAT are mutually exclusive.
5 Thermax Limited Vs CCE 2007 (8) STR 487 Service tax not leviable when sales tax is paid.
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Small Scale exemption.

• Threshold limit.

• Conditions.

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Commercial Concern VsAny person.
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Export of Service and Import of Service.
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THANKS