Service Tax Ppt

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Service Tax
Finance Act,1994 (As amended by Finance Act 2009) Act 1994 Act,2009)

The things to be considered for interpretation considered….for Trade Notices

Circulars / Court Orders




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Particulars P ti l Finance Act,1994 , Chapter V (Finance Act) Chapter VA (Finance Act) Chapter VI (Finance Act) Implication I li ti Applicable Law for Service Tax pp Act for Service Tax provisions Advance Ruling on Service Tax •Education Cess on Service Tax •S & H Ed. Cess on Service Tax 3

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Administration of Service Tax
Particulars Service Tax Rules Who can make it The Central Government Implication •To carry out the provisions of the Act •They cannot be contradictory, there-fore, cannot over-ride the Act •Providing rules for service tax •Making amendments in them, •Providing or withdrawing exemptions from service tax •Dealing with any other matter that th t would f ilit t ld facilitate smooth th operation of service tax 4


The Central Government

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Administration of Service Tax
Particulars P ti l Circulars or Letters on service tax/ Orders of Service Tax Trade Notices Who Wh can make it I li ti k Implication The Central Government and Central Board of Excise and Customs (CBEC) C t Central Excise/Service / Tax Commissionrates •Define the scope of taxable services and administration of service tax- It interpretes the law but never defines the law. •Issue of trade notice on receiving instruction g from Finance Ministry or CBEC for effective implementation and administration of service tax law 5

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Person liable to Service tax

Who is Liable to pay tax? py
Person liable to pay tax

Service Provider

Specified persons as per Rule 2(1) (d) of Service Tax Rules, 1994 Recipient of p Services

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Person covered in Rule 2(1)(d)
Person Who is liable to tax

General insurance business

Insurer / Re-insurer

Insurance auxiliary service provided Person carrying on general by an insurance agent insurance/ life insurance business b i Any taxable service provided by any Recipient of such service p person from a country other than y India and received by any person in India

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Person covered in Rule 2(1)(d)
Person Who is liable to tax

Goods transport agency

The consignor or consignee of goods Sponsorship service provided to any Recipient of such sponsorship corporate or firm Business auxiliary service of The mutual fund or asset distribution of mutual fund by a management company mutual fund distributor or an agent Telecommunication Services •Director General of posts and Telegrams •MD of MTNL Delhi MTNL, •Licensee (authorised by CG) 9

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Specific Exemptions
Services provided to United Nations or an International p Organization Services provided to a developer or Units of Special Economic Zone Goods and materials sold by service provider to recipient of service Small service providers below limit of Rs.10 Lacs in 2008-09. [If in 2008-09, the gross receipts is not exceeding Rs.10 Lacs, no service tax i payable i F Y2009 10 till the value of services i is bl in F.Y.2009-10, ill h l f i exceeds Rs.10 Lacs, once, it crosses the threshold limit, service tax is leviable on excess above Rs.10 Lacs]. Services provided by Reserve Bank of India (RBI) Pinnacle Education


Specific Exemptions
Service provider being Technology Business Incubator (TBI), Science and Technology Entrepreneurship Park (STEP) and incubates i b Services provided by a digital cinema service provider Services provided by Resident Welfare Associations p y Technical Testing and Analysis Services (like clinical research) Service provided by a person for inter-state or intra-state transportation of passengers in a vehicle bearing “Contract Contract Carriage Permit” with specified conditions. Services provided by...
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