Service Tax
Showing posts with label Service Tax. Show all posts
Showing posts with label Service Tax. Show all posts
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11:58 PM Add Comment

China's bad loan conundrum

Abheek Barua & Bidisha Ganguly

Non-performing loans in the Chinese banking system stood at RMB 1.27 trillion at the end of 2015. This 'official' figure, however, gives little indication of banks' exposure to the shadow financing sector

Source: business-standard
Govt exempts taxable services provided to SEZ

Govt exempts taxable services provided to SEZ

4:04 PM Add Comment
Govt exempts taxable services provided to Special Economic Zone, and received by a developer or units of a Special Economic Zone

NOTIFICATION NO 9/2009-SERVICE TAX

Dated: March 3, 2009


In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), and in supersession of the notification of the Government of India, Ministry of Finance ( Department of Revenue), No. 4/2004-ServiceTax, dated the 31st March, 2004, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section ( i ) dated the 31st March, 2004, vide, G.S.R.248(E), dated the 31st March, 2004, except as respects things done or omitted to be done before such supersession, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services specified in clause (105) of section 65 of the said Finance Act, which are provided in relation to the authorised operations in a Special Economic Zone, and received by a developer or units of a Special Economic Zone, whether or not the said taxable services are provided inside the Special Economic Zone, from the whole of the service tax leviable thereon under section 66 of the said Finance Act:

Provided that

(a) the developer or units of Special Economic Zone shall get the list of services specified in clause (105) of section 65 of the said Finance Act as are required in relation to the authorised operations in the Special Economic Zone, approved from the Approval Committee (hereinafter referred to as the specified services);

(b) the developer or units of Special Economic Zone claiming the exemption actually uses the specified services in relation to the authorised operations in the Special Economic Zone;

(c) the exemption claimed by the developer or units of Special Economic Zone shall be provided by way of refund of service tax paid on the specified services used in relation to the authorised operations in the Special Economic Zone;

(d) the developer or units of Special Economic Zone claiming the exemption has actually paid the service tax on the specified services;

(e) no CENVAT credit of service tax paid on the specified services used in relation to the authorised operations in the Special Economic Zone has been taken under the CENVAT Credit Rules, 2004;

(f) exemption or refund of service tax paid on the specified services used in relation to the authorised operations in the Special Economic Zone shall not be claimed except under this notification.

2. The exemption contained in this notification shall be subject to the following conditions, namely:-

(a) the person liable to pay service tax under sub-section (1) or sub-section (2) of section 68 of the said Finance Act shall pay service tax as applicable on the specified services provided to the developer or units of Special Economic Zone and used in relation to the authorised operations in the Special Economic Zone, and such person shall not be eligible to claim exemption for the specified services:
Provided that where the developer or units of Special Economic Zone and the person liable to pay service tax under sub-section (2) of section 68 for the said services are the same person, then in such cases exemption for the specified services shall be claimed by that person;

(b) the developer or units of Special Economic Zone shall claim the exemption by filing a claim for refund of service tax paid on specified services;

(c) the developer or units of Special Economic Zone shall file the claim for refund to the jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be;

(d) the developer or units of Special Economic Zone who is not registered as an assessee under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder, or the said Finance Act or the rules made thereunder, shall, prior to filing a claim for refund of service tax under this notification, file a declaration in the Form annexed hereto with the respective jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be;

(e) the jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after due verification, allot a service tax code (STC) number to the developer or units of Special Economic Zone within seven days from the date of receipt of the said Form;

(f) the claim for refund shall be filed, within six months or such extended period as the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall permit, from the date of actual payment of service tax by such developer or unit to service provider;

(g) the refund claim shall be accompanied by the following documents, namely:-
(i) a copy of the list of specified services required in relation to the authorised operations in the Special Economic Zone, as approved by the Approval Committee;
(ii) documents for having paid service tax;
(iii) a declaration by the Special Economic Zone developer or unit, claiming such exemption, to the effect that such service is received by him in relation to authorised operation in Special Economic Zone.

(h) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after satisfying himself that the said services have been actually used in relation to the authorised operations in the Special Economic Zone, refund the service tax paid on the specified services used in relation to the authorised operations in the Special Economic Zone;

(i) where any refund of service tax paid on specified services is erroneously refunded for any reasons whatsoever, such service tax refunded shall be recoverable under the provisions of the said Finance Act and the rules made thereunder, as if it is a recovery of service tax erroneously refunded.

3. The exemption contained in this notification shall apply only in respect of service tax paid on the specified services on or after the date of publication of this notification in the Official Gazette.

4. Words and expressions used in this notification and defined in the Special Economic Zones Act, 2005 (28 of 2005) or the rules made thereunder, shall apply, so far as may be, in relation to refund of service tax under this notification as they apply in relation to a Special Economic Zone.
Form

1. Name of the developer or unit of Special Economic Zone:

2. Address of the registered office or head office:

3. Permanent Account Number (PAN):

4. Details of Bank Account:
(a) Name of the Bank:
(b) Name of the Branch:
(c) Account Number:

5. (a) Constitution of developer or unit of Special Economic Zone [Proprietorship /Partnership /Registered Private Limited Company /Registered Public Limited Company /Others (specify)]

(b) Name, address, telephone number and Email ID of proprietor /partner /director

6. Description of authorized operations as approved by the Approval Committee:

S. No.
Description of goods
Classification in case of excisable goods

(1)
(2)
(3)






7. Description of taxable services received by the exporter for use in relation to the authorised operations in the Special Economic Zone:

S. No.
Description of taxable service
Classification under the Finance Act, 1994
Name, STC and address of service provider
Invoice number and date

(1)
(2)
(3)
(4)
(5)








8. Name, designation and address of the authorized signatory / signatories:

9. I / We hereby declare that-

(i) the information given in this application form is true, correct and complete in every respect and that I am authorized to sign on behalf of the developer or units of Special Economic Zone;

(ii) no CENVAT credit of service tax paid on the specified services used in relation to the authorised operations in the Special Economic Zone shall be taken under the CENVAT Credit Rules, 2004;

(iii) I / we shall maintain records pertaining to the specified services used in relation to the authorised operations in the Special Economic Zone and shall make available, at the declared premises, at all reasonable time, such records for inspection and examination by the Central Excise Officer authorised in writing by the jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be.

(Signature of the applicant / authorized person with stamp)

Date:

Place:

[F.No.354/163/2006-TRU]





(Unmesh Sharad Wagh)
Under Secretary to the Government of India



in the said notification, in the Table, for serial number 21 and the entries relating thereto, the following shall be substituted :-

"21
(1) Chief Commissioner of Central Excise, Shillong
Dibrugarh


(2) Chief Commissioner of Central Excise, Kolkata
Shillong
Guwahati"


F. No. 275/100/2006-CX.8A

(Manpreet Arya)
Under Secretary to the Government of India

Note:-The principal Notification Number 18/2007-Service Tax, dated the 12th May, 2007 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 353(E), dated the 12th May, 2007, and was amended vide notification number 46/2008- Service Tax, dated the 18th January, 2008 vide number G.S.R. 38(E) renumbered as 1/2008- Service Tax vide Corrigendum dated the 18th January, 2008 vide number G.S.R. 49(E) and vide notification number 25/2008- Service Tax, dated the 21st May, 2008 vide number G.S.R. 393 (E),
Taxable event is rendering of taxable service., not raising of invoice or payment: Gujarat HC

Taxable event is rendering of taxable service., not raising of invoice or payment: Gujarat HC

12:17 AM Add Comment
*Service Tax – Taxable event is rendering of taxable service., not raising
of invoice or payment: Gujarat HC*
*By TIOL News Service *
*AHMEDABAD, FEB 19, 2009: CAN* you imagine Revenue raising a demand of
service tax for the period when there was no tax was payable, simply for the
reason that payment was received when it was taxable? It not only happened,
but they went in appeal to the High Court after they lost it CESTAT.
Revenue is in appeal with the questions,

"Whether or not, in Service Tax, the taxable event is realization of payment
for taxable services rendered and not the time of rendering of the taxable
service"

"Whether or not, at the time of realization of payment for the taxable
service provided, the provisions of Rule 2(i)(d)(iv) had come into force,
making the service receiver liable for payment of service tax in respect of
taxable services provided by a non-resident or a person who is from outside
India and who does not have any office/establishmen t in India"
It was submitted that the impugned order dated 03.08.2007 made by
CESTAT [*2007-TIOL-1813-
CESTAT-AHM
*] overlooks the fact that by virtue of amendment of relevant Rule of the
Service Tax Rules, the liability to pay Service Tax has been shifted to the
recipient of the service w.e.f. 16.08.2002 by virtue of Rule 2(1)(d)(iv) of
the Rules. That in the circumstances, the respondent-assessee was required
to pay the Service Tax on the services received from a sister company
located in Germany.
CESTAT has found that admittedly, the services were received by respondent
between November 2001 and March 2002 while the invoice has been raised and
settled in September 2003. It is also an accepted position that at the point
of time when the services were rendered by the service provider and received
by the respondent the liability was not cast on the recipient of the
services. The liability to pay Service Tax has been cast on the recipient of
the service only w.e.f. 16.08.2002.
The High Court observed,
1.The taxable event is providing all taxable services which has been defined
by Section 65(105) of the Act.
2.The taxable event in relation to Service Tax is admittedly the rendering
of taxable service.
3.The said taxable services were rendered between November 2001 and March
2002.
4.In the circumstances, merely because the invoice is raised and payment
made subsequently viz. after 16.05.2002 the liability cannot be fastened on
the recipient of the services as the taxable event had already occurred past
and raising of invoices and/or making of payment cannot be considered to be
a taxable event.
5.Nor is it possible to hold that the provision of Rule 2(1)(d)(iv) of the
Rules is retrospectively applicable to services rendered prior to
16.08.2002.
6.Thus, neither the Section nor the Rule even suggests that the taxable
event is the raising of an invoice for making of payment.
7.It is well settled in law that a taxing statute has to be read and plain
meaning assigned to the provisions without importing any extraneous
consideration on a presumption.
8.The Tribunal has decided the matter in accordance with law and based on
the facts and material available on record.
9.In absence of any legal infirmity in the impugned order of the Tribunal,
no interference is called for.
10. Accordingly, in absence of any substantial question of law, the appeal
is dismissed.
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