CA Amol Fegde Abatement means reduction or decrease of amount from taxable value of services. Service provider has to pay service tax after arriving at appropriate value of service as per section 67 of Finance Act, 1994 read with the Service Tax (Determination of Value) Rules, 2006. The Government can provide for reduction in the value of any … Read more
Section 83 of the Finance Act, 1994 makes certain provisions of the Central Excise Act, 1944 (CEA) applicable to service tax. Section 11B of CEA provides for refund which is also applicable to refunds of service tax. Claim of refund of service tax should be filed in the prescribed format; i.e. in Form R to … Read more
Legal Service has been defined in Notification No. 25/2012 dated 20th June 2012 as any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority. After reading this definition in detail, we can see that legal services include representational … Read more
Earlier, there was no definition for ‘export of service’ under Finance Act, 1994 or the related rules. It was then clarified that service tax is a destination based consumption tax and that it is not applicable on export of services. Then, Export of Services Rules, 2005 were issued for giving a clear idea on export of services. These rules went … Read more
Every service provider may also a service receiver. Whenever he receives any service, he pays service tax on it to the service provider. Similarly, if he purchases raw materials or capital goods, he pays excise duty on the said goods.This system of taking credit on the tax paid and using the credit for the tax payable … Read more
After the recent amendments in service tax laws, we have quite often come across the words “Negative List”. Simply put, a negative list of services means a list of services which will not be charged to service tax. This also means that, all other services, other than those mentioned in the negative list will be taxable. (For latest amendment of … Read more
Meaning As per Section 65B (25) of Finance Act,1994; “goods” means every kind of movable property other than actionable claim and money; and includes securities, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale; As per Section … Read more
All of us visit restaurants, hotels or eating houses. And many of us also notice that recently the bills issued by some restaurants have service tax mentioned in it. Let us try to understand the concept of service tax on restaurants. Prior to 1st July 2012, restaurants serving food & beverages and having a licence … Read more
1) What is Reverse Charge Mechanism (RCM) ? A) Service Tax is charged by the service provider to the service recipient. Service Provider collects Service Tax from the Service Recipient and pays it to the Government. However, under RCM, the service provider is not liable to pay service tax or is liable to pay service … Read more
Provision of service by an employee to an employer in the course of or in relation to employment has been excluded from the definition of service. Hence, as long as there is a relationship between an employee & employer & the employee is remunerated by the employer for his services, then such remuneration will not … Read more