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Service Tax on Health Check and Treatment Withdrawn

Service Tax on health services was imposed for the Union Budget for the year 2010-2011. Pranab Mukherjee, the honorable Finance Minister of India, proposed in his budget speech of 2010 that all hospitals having twenty-five or more beds with centralized air conditioner are bound to pay tax under this system. According to him, he proposed it as an indirect tax which can generate revenue for the government. He said that the tax paid by the .....

Service Tax Rates From Year 2001 to Up to Date

Service Tax Rates From Year 2001 to Up to Date; Most of the reader ask for the service tax rates for previous years and current years. The table will describe all the service tax rates from the year 2001 with period applicability. Effective Dates Service Tax Rate Education Cess Secondary and Higher Education Cess Total 16-07-2001 to 13-05-2003 5% – - 5% 14-05-2003 to 09-09-2004 8% – - 8% 10-09-2004 to 17-04-2006 10% 2% – .....

Input Service Credit – The Epicenter of Controversy

Input service credit an integral part of the service Tax came into force along with the service tax in the Finance Act, 1994. The day when it came into force there have been a series of controversies surrounding as a result of which there have been a constant rise of problems in the sector. This was generally due to the frequency of the amendments that were taking place in the CENVAT (Central Value Added Tax) .....

Frequency Norms Of Audit For Service Tax Assessees

Service tax refers to a tax on the services provided or that are going to be provided by a person. There are certain characteristics of this tax like there must be two parties involved in the process namely service provider and service recipients. The administration of the tax is done by the central Excise Department and the governance of the tax is done by the Finance Act, 1994. The liability of service Tax arises on .....

Service Tax Notifications From No.51 to 58

New Service Tax Notification No 51-58 has been given as below. go to the link to see the detail notifications of service tax. Service Tax Notification No 51/2010 – Service Tax, dated 27th February, 2010 – Seeks to exempt the right to use packaged or canned software from whole of service tax subject to certain conditions Service Tax Notification No 52/2010 – Service Tax, dated 27th February, 2010 – Seeks to exempt the right to .....

Union Budget 2010: Construction Services Tax to Raise Cost of Apartments

The Union Budget has brought about many changes in the world of economic activities to improve the efficiency and collection of tax as well. But it has certainly hurt many areas in its operation and one of such area is the housing industry.  The Union Budget 2010 has expressly put the housing industry under the realm of service tax which has certainly lifted up the cost of apartments which are still under going through the .....

Service Tax Second Amendment Rules 2010 – Notification No. 50/2010

Service Tax Second Amendment Rules 2010 – Exempts persons marketing the lottery tickets other than the distributors or selling agents appointed or authorised by the lottery organising State. NOTIFICATION NO 50/2010-Service Tax, Dated : October 8, 2010 In exercise of the powers conferred by section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest .....

Service Tax – A Dummy Guide for Service Tax in India

Service tax is a new area of taxation in India, first introduced by the then Honorable Finance Minister Dr. Manmohan Singh by inserting chapter V in the Finance Act, 1994. It is the form of indirect tax and levied on the value of taxable services. There is no service tax act. The provisions relating to levy, collection administration of service tax are laid down in the Finance Act, 1994 as amended from time to time. .....

A Must for Every Service Provider: Know your Taxability

Generally, service-provider is liable to pay service tax but there are certain exceptions which are discussed below: Recipient of service liable to pay service tax: in the following cases,  recipient of service will be liable to pay service tax; In relation to insurance auxiliary service by an insurance agent, the insurance company i.e. general insurance business or life insurance business will be liable to pay tax. The insurance agent will not be liable to pay .....

New Provisions of Service Tax on Sale and Construction of Residential Property

The news relating to imposition of service tax on sale and construction of residential property has come as a shock for all the prospective buyers of real estates and the construction industry. The issue has become an area of major discussion and has gained great eminence after the Budget 2010 due to noteworthy modifications made therein in direction of taxability on the basis of service tax on the sale of flats. With effect from 1st .....

Service Tax on Commercial Training and Coaching – Whether ‘Donation’ is ‘Consideration’

Circular No. 127/9/2010-ST, dated 16-8-2010 A representation has been received seeking clarification whether donations and grants-in-aid received from different sources by a charitable Foundation imparting free livelihood training to the poor and marginalized youth, will be treated as ‘consideration’ received for such training and subjected to service tax under ‘commercial training or coaching service’. 2. The matter has been examined. The important point here is regarding the presence or absence of a link between ‘consideration’ .....

Sale of Under Construction Houses to Attract Service Tax from July 1:

The 2010 budget issued by the government has come as a big shock for prospective buyers of house property. The budget flashed the highlight that now sale of under construction houses will come under the purview of service tax. The under construction of house will be in respect of any kind of immovable property which may be in form of apartments, flats, rows etc. As it is, the prices of real estate are raising everyday .....

Service Tax Registration Procedure in India

There are many formalities we have to follow for registering Service Tax in India. All the formalities of Section 69 of the finance act, 1994 must fulfill to get service tax registration. For registration we have to submit an application for service tax in form ST-1 to superintendent within 30 days from service tax due date. Normally for a new business which is liable for service tax must apply for service tax within 30 days .....

Rule 5 of The Cenvat Credit Rules – Refund of Cenvat Credit – Amendment to Notification No. 42/2001-CE (NT), dated 26-6-2001

Rule 5 of the Cenvat Credit Rules, 2004 – Refund of Cenvat Credit – Amendment to Notification No. 42/2001-CE (NT), dated 26-6-2001 – Circular No. 928/18/2010-CX, dated 28-6-2010 It has been brought to the notice of the Board that some of the manufacturers of exempted goods are exporting such goods under bond. Subsequently, they claim refund of accumulated input credit under Rule 5 of the CENVAT Credit Rules, 2004. The department had objected to this .....

Service Tax Latest Notifications

Service Tax Notifications – Latest Notifications of Service Tax posted in etaxindia.org/forums ‘Tax India Forum‘. Click to see the full service tax notification. Service Tax (Removal of Difficulty) Order, 2010 – M.F.(D.R.) Order No. 1/2010, dated 22-6-2010 Date notified for enforcement of Finance Act, 2010 – Notification No. 24/2010-Service Tax, dated 22-6-2010 Section 65(105)(zzzo) of the Finance Act, 1994 – Transport of passengers embarking in India for international journey by air services – Exemption to .....

Service Tax on Goods Transport Agency

The Finance Act of 2004 has imposed the levy of service tax on the goods transporters w.e.f 10-09-2004. Any commercial company which deals in services pertaining to transport of goods by road and issues consignment note is known as a goods transport agency, as stated in section 65 (50b) of the Finance Act of 1994. As mentioned in the Finance Act of 1994, a goods transport service provider must be a commercial concern. The legislature .....

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