This document discusses the changes to service tax laws in India that took effect on July 1, 2012, moving from a positive list system to a negative list system. Key points include:
1) Service tax coverage was expanded by defining "service" and taxing all services except those specified in a negative list of exemptions.
2) The number of taxable services was reduced and definitions were simplified compared to the previous system which had over 100 taxable services.
3) A works contract is taxable only on the service portion, with set valuations to determine this portion.
4) Certain services involve reverse charge mechanism where the liability shifts entirely or partially to the service recipient.
5)
Summary of changes in vat deduction at source sandra & associatesKhalid Iftekhar
Every year Bangladesh Government brings changes in the VAT law. In 2019, Bangladesh Government brought a new law called Value Added Tax and Supplementary Duty 2012.
This snapshot reflects the differences between the two laws in respect to withholding VAT regime. I hope the users will find this helpful
This material is for PGPSE / CSE students of AFTERSCHOOOL. PGPSE / CSE are free online programme - open for all - free for all - to promote entrepreneurship and social entrepreneurship PGPSE is for those who want to transform the world. It is different from MBA, BBA, CFA, CA,CS,ICWA and other traditional programmes. It is based on self certification and based on self learning and guidance by mentors. It is for those who want to be entrepreneurs and social changers. Let us work together. Our basic idea is that KNOWLEDGE IS FREE & AND SHARE IT WITH THE WORLD
Guidelines for vat deduction at source and vat rate for 2021 22-updated 02 ju...Masum Gazi
Guidelines for VAT Deduction at Source (VDS) and VAT & SD Rate for the FY 2021-2022 compared with the FY 2020-2021 updated as per SRO 240/2021; dated: 29 June 2021.
TDS u/s 52 for payment against contract/supply of goodsMasum Gazi
All about Tax Deduction at Source (TDS) under section 52 and rule 16 for the execution of a contract, supply of goods, manufacture, process or conversion, printing, packaging or binding, etc. applicable for Financial Year (FY) 2021-2022.
In a manufacturing and trading business, almost 50%-70% deduction falls under section 52 and rules 16. So if the deduction under section 52 complies, then 50%-70% deduction compliance has been made by the organization.
Regular requirements of income tax to be complied be companies branch office-...Masum Gazi
Regular requirements of Income Tax required to comply by a company/Branch office/Liaison office/Bank/Non-Banking Financial Institutions/Insurance company/NGOs etc. according to the Income Tax Ordinance and Income Tax Rules 1984
07. payment of tax before assessment ICAB, KL, Study Manual
07. payment of tax before assessment ICAB, KL, Study Manual
07. payment of tax before assessment ICAB, KL, Study Manual
07. payment of tax before assessment ICAB, KL, Study Manual
07. payment of tax before assessment ICAB, KL, Study Manual
TDS Rate for F.Y. 19-20 comparative with F.Y. 18-19 and other regular require...Masum Gazi
TDS Rate for F.Y. 19-20 comparative with F.Y. 18-19 and other regular requirements of Income Tax required to be complied by a company/Branch office/Liaison office/Bank/Non-Banking Financial Institutions/Insurance companies/NGOs etc. (where applicable)
Summary of changes in vat deduction at source sandra & associatesKhalid Iftekhar
Every year Bangladesh Government brings changes in the VAT law. In 2019, Bangladesh Government brought a new law called Value Added Tax and Supplementary Duty 2012.
This snapshot reflects the differences between the two laws in respect to withholding VAT regime. I hope the users will find this helpful
This material is for PGPSE / CSE students of AFTERSCHOOOL. PGPSE / CSE are free online programme - open for all - free for all - to promote entrepreneurship and social entrepreneurship PGPSE is for those who want to transform the world. It is different from MBA, BBA, CFA, CA,CS,ICWA and other traditional programmes. It is based on self certification and based on self learning and guidance by mentors. It is for those who want to be entrepreneurs and social changers. Let us work together. Our basic idea is that KNOWLEDGE IS FREE & AND SHARE IT WITH THE WORLD
Guidelines for vat deduction at source and vat rate for 2021 22-updated 02 ju...Masum Gazi
Guidelines for VAT Deduction at Source (VDS) and VAT & SD Rate for the FY 2021-2022 compared with the FY 2020-2021 updated as per SRO 240/2021; dated: 29 June 2021.
TDS u/s 52 for payment against contract/supply of goodsMasum Gazi
All about Tax Deduction at Source (TDS) under section 52 and rule 16 for the execution of a contract, supply of goods, manufacture, process or conversion, printing, packaging or binding, etc. applicable for Financial Year (FY) 2021-2022.
In a manufacturing and trading business, almost 50%-70% deduction falls under section 52 and rules 16. So if the deduction under section 52 complies, then 50%-70% deduction compliance has been made by the organization.
Regular requirements of income tax to be complied be companies branch office-...Masum Gazi
Regular requirements of Income Tax required to comply by a company/Branch office/Liaison office/Bank/Non-Banking Financial Institutions/Insurance company/NGOs etc. according to the Income Tax Ordinance and Income Tax Rules 1984
07. payment of tax before assessment ICAB, KL, Study Manual
07. payment of tax before assessment ICAB, KL, Study Manual
07. payment of tax before assessment ICAB, KL, Study Manual
07. payment of tax before assessment ICAB, KL, Study Manual
07. payment of tax before assessment ICAB, KL, Study Manual
TDS Rate for F.Y. 19-20 comparative with F.Y. 18-19 and other regular require...Masum Gazi
TDS Rate for F.Y. 19-20 comparative with F.Y. 18-19 and other regular requirements of Income Tax required to be complied by a company/Branch office/Liaison office/Bank/Non-Banking Financial Institutions/Insurance companies/NGOs etc. (where applicable)
VDS Guideline and VAT rate for the FY 2020-2021Masum Gazi
Guideline for VAT deduction/collection at source as per VDS Rules 2020 (SRO. No. 149-Law/2020/110-Mushak, dated 11 June 2020 & SRO. No. 180-Law/2020/120-Mushak, Dated: 30 June 2020) and VAT rate for all services for the FY 2020-2021 in comparison with FY 2019-2020 updated on 30 June 2020
Public notice regarding e-BIN and guidelines for filing information in online...Masum Gazi
Public notice for updating e-BIN information in IVAS system or taking new VAT registration/Turnover enlistment number by 31 July 2019 upon filing required information of Mushak-2.1. and guidelines for filling Mushak-2.1.
Rates of TDS or TCS and regular requirements under income tax ordinance and r...Masum Gazi
Tax Deducted at Source (TDS)/Collected at Source (TCS) in Bangladesh for the FY 2021-22 in comparison with the FY 2020-21 and regular requirements/compliance under Income Tax Ordinance and Rules 1984 in Bangladesh.
OBJECTIVE
The Direct Tax Vivad se Vishwas Bill, 2020 was introduced in the Parliament on 5th February, 2020 and subsequently amended. The webinar shall deal with the frequently asked questions relating to the scheme. It shall discuss the issues faced by the taxpayers in the dispute resolution scheme.
TDS rate in Bangladesh for the FY 20-21 in comparison with FY 19-20 and regul...Masum Gazi
Tax Deducted at Source (TDS)/Collected at Source (TCS) in Bangladesh for the FY 2020-21 in comparison with the FY 2019-20 and regular requirements/compliance under Income Tax Ordinance and Rules 1984 in Bangladesh.
OBJECTIVE
Under GST, the supplier of goods or services is liable to pay the tax to the Government. However, under the reverse charge mechanism (RCM), the liability to pay GST is cast on the recipient of the goods or services. Reverse charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply. In this webinar, we shall understand the applicability and provisions of RCM under GST.
VDS Guideline and VAT rate for the FY 2020-2021Masum Gazi
Guideline for VAT deduction/collection at source as per VDS Rules 2020 (SRO. No. 149-Law/2020/110-Mushak, dated 11 June 2020 & SRO. No. 180-Law/2020/120-Mushak, Dated: 30 June 2020) and VAT rate for all services for the FY 2020-2021 in comparison with FY 2019-2020 updated on 30 June 2020
Public notice regarding e-BIN and guidelines for filing information in online...Masum Gazi
Public notice for updating e-BIN information in IVAS system or taking new VAT registration/Turnover enlistment number by 31 July 2019 upon filing required information of Mushak-2.1. and guidelines for filling Mushak-2.1.
Rates of TDS or TCS and regular requirements under income tax ordinance and r...Masum Gazi
Tax Deducted at Source (TDS)/Collected at Source (TCS) in Bangladesh for the FY 2021-22 in comparison with the FY 2020-21 and regular requirements/compliance under Income Tax Ordinance and Rules 1984 in Bangladesh.
OBJECTIVE
The Direct Tax Vivad se Vishwas Bill, 2020 was introduced in the Parliament on 5th February, 2020 and subsequently amended. The webinar shall deal with the frequently asked questions relating to the scheme. It shall discuss the issues faced by the taxpayers in the dispute resolution scheme.
TDS rate in Bangladesh for the FY 20-21 in comparison with FY 19-20 and regul...Masum Gazi
Tax Deducted at Source (TDS)/Collected at Source (TCS) in Bangladesh for the FY 2020-21 in comparison with the FY 2019-20 and regular requirements/compliance under Income Tax Ordinance and Rules 1984 in Bangladesh.
OBJECTIVE
Under GST, the supplier of goods or services is liable to pay the tax to the Government. However, under the reverse charge mechanism (RCM), the liability to pay GST is cast on the recipient of the goods or services. Reverse charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply. In this webinar, we shall understand the applicability and provisions of RCM under GST.
In this you will find a detailed introduction about GST and its conceptual aspects.
1. What is GST.
2. benefit of GST.
3. Importance for different class of people.
4. Registration requiremnets.
5. Supply
6. Place of supply.
7. Value of supply.
8. Time of supply.
9. Returns
In this you will find a detailed introduction about GST and its conceptual aspects.
1. What is GST.
2. benefit of GST.
3. Importance for different class of people.
4. Registration requiremnets.
5. Supply
6. Place of supply.
7. Value of supply.
8. Time of supply.
9. Returns
Presentation on Model GST Law by CA. Juhin Ajmera CA Juhin Ajmera
With the ratification of the GST bill by more than half State Legislatures, GST is now a reality and is certainly round the corner more than ever before with even Prime Minister Modi pushing for the same. April 1, 2017 is the expected go live date however, it is mainly dependent on the outcome of the GST Coucil Meet. Nonetheless we should start educating ourselves about the Biggest Tax Reform since independence.
In this presentation, I have included the idea, framework and advantages of GST regime over current Indirect Tax Structure.
Presentation on Model GST Law by CA. Juhin Ajmera CA Juhin Ajmera
With the ratification of the GST Bill by more than half of the State Legislatures, it is now certain that GST is round the corner with even the Prime Misnister Modi endorsing April 1, 2017 as its go live date. Whether it will go live by then or will need couple of months more is a matter of time and depends on the outcome of the GST council meets. However, it is about time what we start educating ourselves about the Biggest Tax Reform of our times.
In this presentation, I have tried to present the basic idea, framework and advantages of GST regime over the present Indirect Tax Structure.
PPT on GST _ Goods & Service tax by top gst expertsCA Milin Shah
https://www.topgstexperts.com/ppt-on-gst_-prepared-presented-by-top-gst-experts/
Top GST Experts have taken a Small Seminar on GST on 9th April at Mumbai_ Please find the PPT attached herewith for your handy reference.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
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3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
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Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
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Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
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A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
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Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
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Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
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Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
2. G.LAKSHMINARAYAN. B.COM, ACA(LLB)
GMR GROUP – Corporate Legal & Indirect Taxation
ag.lakshminarayan@gmail.com
Mob:9880423839
Service Tax- Negative List concept
(CPE Study Circle meeting at Bangalore Branch of SIRC on 11.07.2012)
4. SERVICE TAX – NEGATIVE LIST CONCEPT
OBJECTIVE:
To appreciate as to
• What is service
• What is declared service
• What is Negative List
• What is works contract
• What are the exemptions available
• What is reverse charge and sharing of Service Tax
• What is new abatement scheme
• What is Point of Taxation
• What is Place of Provision of Services
5. UP TO 30.06.2012
No definition for the subject matter “service”
119 and above taxable services
100s of definitions of various taxable services
80 and above Exemption Notifications
Classification problems
100s of circulars to clarify the doubts(whos’?)
Amendment of Registration Certificate for every new and deletion of
services
Dispute on correlation of input vis-à-vis output services
ST-3 Return to cover the details for each category of taxable services
6. BUDGET 2012 - FM’S SPEECH
158.At the end of June this year, this tax will attain
adulthood by completing 18 years. It is therefore
time toshift gears and accelerate ahead. However,
service tax needs to confront two important challenges
to sustain the journey. These are:
– The share of services in taxes remains far below its
potential. There is a need to widen the tax base and strengthen its enforcement;
– Service Tax law is complex and sometimes avoidably different from Central Excise. We
need to bring the two as close as possible in the light of our eventual goal of transition
to GST.
I have attempted to address both these issues this year.
• 159. Last year, I had initiated a public debate on the desirability of moving towards
taxation of services based on a negative list. In the debate that continued for the better
part of the year, we received overwhelming support for this new concept.
• 160. Thus, I propose to tax all services except those in the negative list. The list comprises
17 heads and has been carefully drawn up, keeping in view the federal nature of our polity,
the best international practices and our socio-economic requirements.
7. ON OR AFTER 01.07.2012
Comprehensive approach
Service is defined for the first time
Definitions are minimized
Specific taxation to Negative list concept taxation
Certain activities open for litigation are
declared as services beyond the doubt
Burden of proof of taxability of services on Revenue is minimized
Composition scheme for works contract is done away
Export and Import of services are guided by Place of provision of Services
Rules read with ST Rules.
8. LEVY
Charging Section 66B:
There shall be levied a tax (hereinafter referred to as the service tax) at the
rate of twelve per cent on the value of all services, other than those services
specified in the negative list, provided or agreed to be provided in the taxable
territory by one person to another and collected in such manner as may be
prescribed.
What is Taxable?
All services (Except………………..)
Jurisdiction?
Provided or agreed to be provided in Taxable Territory
Service tax on?
The value of services
9. WHAT IS SERVICE?
Service means:
any activity
Carried out by a person for another person
For consideration and includes declared services but shall not include
(a) any activity which constitute merely
– (i) a transfer of title in goods or immovable property, by way of sale, gift or in
any other manner; or
– (ii) Deemed sale
Works Contract?
– (iii) a transaction in money or actionable claim;
Transaction in money shall not include any activity relating to the use of
money or its conversion by cash or by any other mode, from one form, currency
or denomination, to another form, currency or denomination for which a
separate consideration is charged.
Then can we consider the interest free loan, gift, donation or charity or financial
support as a transaction in money?
10. WHAT IS SERVICE?
(b) a provision of service by an employee to the employer in the course of or in
relation to his employment;
Reimbursement of expenses to employees?
(c) fees taken in any Court or tribunal established under any law for the time
being in force.
Exclusion by explanation
• Functions performed by MP/MLA/Members of Panchayat, Local authority
carrying of the functions of that office
• Duties performed by any person who holds any post in pursuance of provision
of constitution in that capacity
• Duties performed by chair person/Member/Director of a body established by
CG/SG/LA and who not deemed as employee
11. WHAT IS ACTIVITY?
Not defined and the Dictionary Meaning is”
The condition in which things are happening or being done: there has been a
sustained level of activity in the economy
A thing that a person or group does or has done: the firm’s marketing activities
• Origin:
late Middle English: from French activité or late Latin activitas, from Latin act- 'done',
from the verb agere
Carried out by a person:
Requires an action
Even inaction is considered as an action(PASSIVE)
Refrain from an act or to tolerate an act or a situation
12. WHAT IS SERVICE?
Person is defined now (Section 65B(37)
Person Includes:
An Indl, a HUF, a Company, a Society, an LLP, a Firm, an AOP or BOI incorporate or
not, Govt, Local authority,
Artificial juridical person not falling in any of the above categories
For Another Person:
Should be to a different person
Self services not taxable- Exception;
Unincorporated Assn or body of persons and members are treated as distinct
persons
An establishment in taxable territory and other establishment in a non taxable
territory are treated as distinct persons
13. WHAT IS CONSIDERATION?
Consideration:
Not Defined in the Act
65B(55) “words and expressions used but not defined in this Chapter and defined in
the Central Excise Act, 1944 or the rules made thereunder, shall apply, so far as may
be, in relation to service tax as they apply in relation to a duty of excise.'.
Explanation (a) to Section 67
Consideration includes any amount that is payable for the taxable services provided
or to be provided - Its an inclusive definition
Section 2(d) of The Indian Contract Act, 1872
Quid pro quo
Consideration may be in money or non monetary
14. DECLARED SERVICES
• Renting of Immovable Property
• Construction of complex, Building, Civil structure or part thereof and excludes
the building or complex sold after obtaining the completion certificate
• Temporary transfer or permitting use or enjoyment of IPRs
• Development, design, programming, customisation, adaptation, up gradation,
enhancement, implementation of information technology software;
• agreeing to the obligation to refrain from an act, or to tolerate an act or a
situation, or to do an act;
• transfer of goods by way of hiring, leasing, licensing or in any such manner
without transfer of right to use such goods;
• activities in relation to delivery of goods on hire purchase or any system of
payment by instalments;
• service portion in the execution of a works contract;
• service portion in an activity wherein goods, being food or any other article of
human consumption or any drink (whether or not intoxicating) is supplied in
any manner as a part of the activity.
Why declared services?
15. DECLARED SERVICES V/S DEEMED SALES
Deemed Sale Declared services Observations
(a) a tax on the transfer, otherwise
than in pursuance of a contract, of
property in any goods for cash,
deferred payment or other valuable
consideration; THE CONSTITUTION
OF INDIA 196
Not a declared services
(b) a tax on the transfer of property
in goods (whether as goods or in
some other form) involved in the
execution of a works contract;
(h) service portion in the
execution of a works
contract;
Only service portion is
taxed under service tax law
(c) a tax on the delivery of goods on
hire-purchase or any system of
payment by instalments;
(g) activities in relation to
delivery of goods on hire
purchase or any system of
payment by instalments;
Only activities in relation
to the delivery of goods is
taxed under service tax law
16. DECLARED SERVICES V/S DEEMED SALES
Deemed Sale Declared services Observations
(d) a tax on the transfer of the right to use any
goods for any purpose (whether or not for a
specified period) for cash, deferred payment
or other valuable consideration;
(f) transfer of goods by way of
hiring, leasing, licensing or in
any such manner without
transfer of right to use such
goods;
Transfer of goods
without transfer of
right to use them is
taxed under the
service tax law
(e) a tax on the supply of goods by any
unincorporated association or body of
persons to a member thereof for cash,
deferred payment or other valuable
consideration;
Not a Declared
service but a service
itself
(f) a tax on the supply, by way of or as part of
any service or in any other manner
whatsoever, of goods, being food or any other
article for human consumption or any drink
(whether or not intoxicating), where such
supply or service, is for cash, deferred
payment or other valuable consideration,
(i) service portion in an activity
wherein goods, being food or
any other article of human
consumption or any drink
(whether or not intoxicating) is
supplied in any manner as a
part of the activity.
Only service portion
is taxed under service
tax law
17. NEGATIVE LIST SERVICES
What is Negative List ?
65B (34) “Negative list" means the services which are listed in section 66D;
List of 66D:
18. WORKS CONTRACT
What is a works contract?
Means “a contract wherein transfer of property in goods involved in the execution
of such contract is leviable to tax as sale of goods and such contract is for the
purpose of carrying out construction, erection, commissioning, installation,
completion, fitting out, repair, maintenance, renovation, alteration of any
movable or immovable property or for carrying out any other similar activity or a
part thereof in relation to such property.
Service portion in the works contract is declared as a “service” in terms of section
66E of the Finance Act, 1994 (as amended in 2012).
Thus, service portion in works contract is liable to service tax.
Regular Method:
The value of service portion in the works contract is the Gross amount charged for
the execution of such works less the value of material supplied and the VAT/CST.
19. WORKS CONTRACT
Works Contract Valuation:
Regular Method (continued)
If the value added tax or sales tax has been paid or payable on the actual value of
property in goods transferred in the execution of the works contract, then, such
value adopted for the purposes of payment of value added tax or sales tax, shall be
taken as the value of property in goods transferred in the execution of the said
works contract for determination of the value of service portion in the execution
of works contract under regular method.
Abatement Method:
In a scenario where the actual value of material is not ascertainable, the service
portion of works contract needs to be ascertained as provided under the Service
Tax (Determination of Value) Rules, 2006. In terms of the above Valuation Rules,
the value of service portion in works contract is as explained
In the next slide
20. WORKS CONTRACT
Valuation:
Category of Service Service % in WC Remarks
New Construction
Additions, Alteration to
abandoned or damaged
structures on land to make
them workable
Erection, commissioning or
installation of plant,
machinery or equipment or
structures
40% of Total Value
charged for the
work excluding
VAT/CST
The value of freely issued material by the
contractee should be added to the Gross
amount charged. If the contractee
charges for the supply of any material
then the difference between the amount
charged and the Fair Market Value should
be added to the Gross Amount charged
by the Contractor.
CENVAT credit on Inputs is not available.
However, CENVAT credit on Capital goods
and Input Services is available
Maintenance or repair or
reconditioning or restoration
or servicing of any goods(not
immovable property)
70% of total value
charged for the
work excluding
VAT/CST
Same as above
21. WORKS CONTRACT
Valuation
Note:
The said abatement is not available, if the actual value of material is ascertainable.
With respect to the works contracts entered in to on or before 30.06.2012 and not yet
completed, the new tax position would be applicable for the uncompleted portion of
works contract if they are provided or deemed to be provided in terms of PoT Ruels,
2011 on or after 01.07.2012.
The new law does not provide for any transitional relief in such cases.
Category of Service Service % in WC Remarks
Other than above, including maintenance,
repair, completion and finishing services such as
glazing, plastering, floor and wall tiling,
installation of electrical fittings of an
immovable property
60% of total Value
charged for the work
excluding VAT/CST
Same as above
Determination of
Value Rules
22. IS IT NOT A WORKS CONTRACT?
Construction of Building/Complex, Civil Structure:
Definition:
“Construction of a complex, building, civil structure or a part thereof,
including a complex or building intended for sale to a buyer, wholly or
partly, except where the entire consideration is received after issuance of
completion certificate by the competent authority”.
Civil Structure may include vending plat forms on roads or railway stations
intended for sale to a buyer and money received before completion
certificate issued is whether a declared service
• However, wherever the construction of complex, building or civil structure includes
even the supply of material along with the land, then service tax shall be payable
on 25% of the total value and CENVAT credit cannot be availed on the inputs used
for provision of such services.
• Prior to 01.07.2012, construction of residential complex and industrial
establishment were liable to service tax if there was no supply of material for the
execution of such works. However, there was an abatement of 67% of the Gross
Amount charged provision of such services under Notification No.01/2006.
23. EXEMPT SERVICES
Rule 2(e) of CCR, 2004:
means a
1) Taxable service which is exempt from the whole of the service tax leviable
thereon; or(Notification No.25/2012 dated.20.06.2012)
2) Service, on which no service tax is leviable under section 66B of the Finance Act; or
3) taxable service whose part of value is exempted on the condition that no credit of
inputs and input services, used for providing such taxable service, shall be taken;
but shall not include
a service which is exported in terms of rule 6A of the Service Tax Rules, 1994.]
Exempt
ServicesRescinded
Notifications
24. REVERSE CHARGE MECHANISM
Following services have been specified under the new law, on which the recipient is
liable to service tax on reverse charge mechanism:
Uniquely, under the present law, the liability on certain services is shared between
the service provider and the recipient.
SL.
No
Nature of the service % of Tax payable
by the provider
% of Tax payable
by the receiver
1 In respect of service provided or agreed to be
provider by an insurance agent to any person
carrying on insurance business
Nil 100
2 In respect of service provided or agreed to be
provider by a goods transport agency in respect of
transport of goods by road.
Nil 100
3 In respect of services provided or agreed to be
provider by way of sponsorship Nil 100
4 In respect of service provided or agreed to be
provider by an arbitral tribunal Nil 100
Reverse
charge
25. REVERSE CHARGE MECHANISM
SL.
No
Nature of the service % of Tax
payable by
the provider
% of Tax
payable by
the receiver
5 In respect of services provided or agreed to be provided by
individual advocate or a firm of advocates by way of legal
services to any Business Entity located in Taxable territory.
Nil 100
6 In respect of services provided or agreed to be provided by
way of support services by Government or local authority,
excluding,- (1) Renting of Immovable property, and (2) service
specified in sub- Clauses (i),(ii) of Clause of section 66D of the
Finance Act, 1994 to any business Entity in the Taxable
territory.
Nil 100
7 In respect of any taxable services provided or agreed to be
provided by any person who is located in a non-taxable
territory and received by any person located in the taxable
territory
Nil 100
8 In respect or service provided or agreed to be provided by
way of works contract provided by individual, HUF,
partnership firm to any Business Entity registered as a Body
Corporate.
50 50
26. REVERSE CHARGE MECHANISM
SL.
No
Nature of the service % of Tax
payable by
the provider
% of Tax
payable by
the
receiver
9 In respect of services provided or agreed to be provided by
way of renting or hiring any motor vehicle designed to carry
passenger on abated value provided by individual, HUF,
partnership firm to any Business Entity registered as a Body
Corporate who is not engaged in the similar line of business.
Nil 100
In respect of services provided or agreed to be provided by
way of renting or hiring any motor vehicle designed to carry
passenger on non-abated value provided by individual, HUF,
partnership firm to any Business Entity registered as a Body
Corporate who is not engaged in the similar line of business.
60 40
10 In respect of services provided or agreed to be provided by
way of supply manpower for any purpose provided by
individual, HUF, partnership firm to any Business Entity
registered as a Body Corporate. (It shall not include the man
power recruitment services)
25 75
27. ABATEMENT
SL.
No.
Description of Taxable service Upto
30.6.12
From
01.07.12
Conditions
1 Financial leasing services including
equipment leasing and hire purchase
10 10 Nil.
2 Bundled service by way of supply of
food or any other article of human
consumption or any drink, in a
premises, including hotel, convention
center, club, pandal, shamiana or any
place specially arranged for organizing a
function, together with renting of such
premises
60 70 CENVAT credit on any goods
classifiable under chapter 1
to 22 of the Central Excise
Tariff Act, 1985 (5 of 1986)
used for providing the
taxable service has not been
taken
3 Transport of passengers by air, with or
without accompanied belongings
N.A. 40 CENVAT credit on inputs and
capital goods has not been
taken
4 Renting of hotels, inns, guest houses,
clubs, campsites or other commercial
places meant for residential or lodging
50 60 Same as above.
28. ABATEMENT
SL.
No.
Description of Taxable service Upto
30.6.12
From
01.07.12
Conditions
5 Transport of goods by road by Goods
Transport Agency
25 25 CENVAT credit on inputs,
capital goods and input
services, used for providing the
taxable service, has not been
taken.
6 Renting of any motor vehicle designed
to carry passengers
40 40 Same as above.
7 Transport of goods in a vessel N.A. 50 Same as above.
8 Construction of a complex, building,
civil structure or a part thereof,
intended for a sale to a buyer, wholly
or partly except where entire
consideration is received after issuance
of completion certificate by the
competent authority
33 25 (i) CENVAT credit on inputs
used for providing the taxable
service has not been taken
(ii)The value of land is included
in the amount charged from
the service receiver.
Abatement
29. POINT OF TAXATION RULES, 2011
Types of services that can be inferred
1.Continuous supply of services
2.Other than continuous supply of services
What is Continuous supply of service?
“Continuous Supply of service” (CSS) is defined to mean any service provided or to be
provided continuously or on recurrent basis, under a contract, for a period exceeding
three months with the obligation for payment periodically or from time to time or
those services which are notified by the Central Government”
Notified Continuous Supply of Services
(a)Telecommunication service
(b) Internet Telecommunication Service
(c) Construction of residential complex service
(d) Commercial or industrial construction service
(e) Works contract service
PoT Rules
30. POINT OF TAXATION RULES, 2011
PoT in the case of
Continuous & Non Continuous supply of Services
Earliest of the following
Date of Invoice
Date of completion of provision of service , where the invoice has not been issued
within 30 days of completion of provision of service
Date of receipt of advance or receipt of money before raising the invoices towards
the services provided
Note:
wherever the service provider receives a payment up to Rs.1000/- in excess of the
amount mentioned in the invoice, the POT to the extent of such excess amount, at the
option of the provider of taxable service, shall be the date of invoice. However, the
invoice should have been raised within time mentioned in Rule 4A of ST Rules,
otherwise, the date of completion of services shall be the POT
31. POINT OF TAXATION RULES, 2011
Tabulation
Situation Point of Taxation
Invoice issued, whether service provided or yet to be
provided
Invoice is raised within 30/45 days of completion
provision of services and payment not received
Invoice not raised within 30/45 days of completion of
provision of service
The date of invoice
Date of completion of
provision of service
Services provided and 30/45 days time to raise the
invoice is not elapsed and the amount is received after
completion of services but before issuance of invoice
Date of receipt of such
money
When the advance is received against the services to be
provided
Date of receipt of such
advance
Where an event, specified in the contract, determines
the stage of provision of service wholly or partly
Date of completion of such
event
32. POINT OF TAXATION RULES, 2011
Illustration for non CSS scenario
Service Provided Payment
Received
Due date
For issuing
Invoice
On or before
Invoice
issued on
Point of
Taxation
Due date for payment of
Service Tax
30.04.12
30.04.12
30.04.12
30.04.12
15.04.12(adv
ance)
01.06.2012
07.05.12
07.05.12
15.05.12
30.05.12
30.05.12
30.05.12
14.05.12
30.05.12
30.05.2012
06.06.12
15.04.12
30.05.12
07.05.12
30.04.12 or
07.05.2012
5th or 6th of May -2012
5
th
or 6
th
June-2012
5
th
or 6
th
of June-2012
5
th
or 6
th
May-2012 or 5
th
or
6
th
June -12
02.05.12 Nil 01.06.12 31.05.12 31.05.12 5
th
or 6
th
of June- 2012
02.05.12 Nil 01.06.12 01.06.12 01.06.12 5
th
or 6
th
of Jul- 2012
02.05.12 Nil 01.06.12 02.06.12 02.05.12 5
th
or 6
th
of June- 2012
Nil Nil 01.04.12 01.04.12 5
th
or 6
th
of May- 2012
30.04.12 Nil 30.05.12 Not issued 30.04.12 5
th
or 6
th
of May 2012
33. POINT OF TAXATION RULES, 2011
Illustration for CSS scenario
Expected DOC of
event, mentioned in
the contract
Actual Date of
completion of
Advance or
Payment
Received
due date for
issuing
Invoice
Invoice
issued on
Point of
Taxation
due date for
payment of ST
20.04.12 05.04.12 Nil 05.05.12 04.05.12 04.05.12 5th or 6th Jun-
2012
20.04.12 05.04.12 Nil 05.05.12 06.05.12 05.04.12 5th or 6th May -
2012
31.07.12 15.08.12 Nil 15.09.12 14.09.12 14.09.12 5th or 6th
October- 2012
31.07.12 15.08.12 Nil 15.09.12 16.09.12 15.08.12 5
th
or 6
th
Sept-
2012
Not mentioned 01.08.12 15.07.12 14.08.12 14.08.12 15.07.12 5th or 6th of
August- 2012
34. POINT OF TAXATION RULES, 2011
PoT in the case of Change in effective Rate of Tax ( Includes change in the
portion of value on which tax is payable in terms of an exemption notification or rules
made in this regard ).
Service
provided Invoice raised Payment received Point of taxation
Before After After
Date of Invoice or Payment which ever is
earlier
Before Before After Date of Invoice
Before After Before Date of payment
After Before After Date of payment
After Before Before
Date of Invoice or Payment which ever is
earlier
After After Before Date of Invoice
35. POINT OF TAXATION RULES, 2011
(Cont..)
PoT in the case of change in effective rate of tax
To Sum up:
If
• Two of the three events mentioned in the table have occurred before the change
in ERT, then the old rate would be applicable
• Two of the three events have occurred after ERT then the new rate be applicable
36. POINT OF TAXATION RULES, 2011
What is the date of payment? w.e.f. 01.04.2012
Generally Earliest of the dates on which
– The payment is entered in the books of account of the service provider
or
– The actual credit in the bank statement of person liable to pay service tax. (Not only a
service provider)
However,
In a scenario where there is a change in the rate of service tax or services are taxed for the
first time and if there is a “Time Difference” between the payment entry in the books of
account and the actual credit in the bank account of the service provider,
Date of payment is: The actual credit in the bank account should be the date of payment.
But,
If the time difference is not more than 4 days from the date of change in rate of tax or new levy, then
the date of entry in the books of account shall be the date of payment.
(Illustration follows )
37. POINT OF TAXATION RULES, 2011
(Date of Payment)
Change of rate of service tax from 10% to 12% w.e.f. 01.04.2012
The date of payment as per POT Rules and the applicable rate of
service tax shall be
EVENT DATE
Scenario 1
Date
Scenario 2
Date of invoice 15.03.2012 15.03.2012
Date of payment and entry in the books of
account of service provider
31.03.2012 31.03.2012
Credit in the Bank account of the service
provider
05.04.2012 07.04.2012
Scenario Payment
date
Point of
Taxation
Rate of Tax
1 31.03.2012 31.03.2012 10.30%
2 07.04.2012 07.04.2012 12.36%
38. POINT OF TAXATION RULES, 2011
New Services
Invoice Raised
Payment
Received
Point of Taxation
Before taxability Before taxability Not taxable
within 14 days from its taxability Before taxability Not taxable
After 14 days Before taxability Taxable
Before taxability After taxability ???? ( not taxable) Rule 3 is applicable
PoT Rules
39. POINT OF TAXATION RULES, 2011
In the case of Taxable Intellectual Property Rights Services
Notes:
POT Rules are w.e.f. 01.04.201.
However, where the provision of service is completed or invoices issued on or before 30.06.2012,
the point of taxation shall, at the option of the taxpayer, be the date on which the payment is
received or made as the case may be.”.
Situation Point of Taxation
When the whole consideration is determinable at the
time of transfer of rights
As applicable in the general situation
When the whole consideration is not determinable at
the time of transfer of rights and the payments received
in at several points of time thereafter
Such payment or issuance of invoice
which ever is earlier
40. POINT OF TAXATION RULES, 2011
In the case of specified services and persons
Specified
services/Persons
Nature of services Point of Taxation Remarks
Export of services Any Taxable Service
Normal Method
However, the payment is
received as per RBI regulations
or within such extended period
Individuals or Partnership
firms whose AVTS provided
in P.Y is Rs.50 Lakhs or less
Any Taxable services Normal Method
However service tax shall be
paid on or before 5th
or 6th
of
the month or quarter in which
payment is received
Associated Enterprises
situated outside India
Any Date of debit in
books or receipt
whichever is
earlier
Services on which liability
arises on reverse charge
mechanism
Specified services
under Rule 2(1)(d)
of Service Tax
Rules,1994
Date of payment
made
This facility will not be available,
if the payment is not made
within 6 months from the date
of invoice
41. POINT OF TAXATION RULES, 2011
Best judgment of POT:
if the
date of invoice or
date of payment or both are not available,
Procedure:
The office may call for production of such accounts, documents or other evidence
as may be deemed necessary and after taking into account such material and the
effective rate of tax prevalent at different points of time, by an order in writing,
after giving an opportunity of being heard, determine the point of taxation to the
best of his judgment.”.
42. POINT OF TAXATION RULES, 2011
Non-applicability of POT Rules:
If Invoice is raised
Before 01.04.2011
or
Service is provided
43. POINT OF TAXATION RULES, 2011
INVOICE/BILL/CHALLAN
An invoice, Bill or a Challan should be
• Serially numbered
• Name, Add & STC No. of SP
• Name, Add of SR
• Description, Classification and Value
• ST payable there on
Includes other documents
• Banking - Any document what ever name
• GTA - Consignment Note No. Gross weight
• Air Travel –Ticket
• ISD Challan
Invoice Not in this format is not Invoice as per POT
Whether Performa Invoice or RA Bills an appropriate invoice?
Rule 2(d) of PoT Rules encompasses wide variety of cases as it refers to “any
document”. Thus, issue of “Pro-forma” invoice / bill will also get covered leading to
creating the liability for payment of tax.??????
44. POINT OF TAXATION RULES, 2011
INVOICE/BILL/CHALLAN AND PAYMENT OF SERVICE TAX
What is the due date for issuing invoice/challan/bill?
Within 30/45 days from the date of completion of taxable service or receipt of
money
Whether u need to issue an invoice within 30 days if u provide exempt
services?
Yes
What do you do, If you have practical problems in issuing an
invoice/challan/bill?
CBEC Circular No.144/13/2012-ST Dated July 18, 2012 guides you
45. PLACE OF PROVISION OF SERVICES RULES 2012(PoPoS)
Objective:
To replace Export and Import of Services Rules
10 Rules to determine the Deemed PoPoS irrespective of actual PoP
46. CONDITIONS TO QUALIFY AS EXPORT OF SERVICES
• RULE 6A. Export of services:
• The provision of any service provided or agreed to be provided shall be treated as
export of service when,-
• (a) Provider of service is located in the taxable territory ,
• (b) Recipient of service is located outside India,
• (c) Service is not a service specified in the section 66D of the Act,
• (d) The place of provision of the service is outside India,
• (e) The payment for such service has been received by the provider of service in
convertible foreign exchange, and
• (f) The provider of service and recipient of service are not merely establishments
of a distinct person in accordance with item (b) of Explanation 2 of clause (44) of
section 65B of the Act
48. Avoidance of taxes is the only intellectual pursuit that still carries
reward
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The above content should neither be regarded as comprehensive nor sufficient for making decisions. No
one should act on the information or views provided in this presentation without appropriate
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