This ppt gives a glimpse of service tax payment in india as applicable to works contractors before the negative list. This is very relevant to builders and developers. Service Tax posers and illustrations were also covered by the speaker during the presentation.
Service tax on Works Contract (Post Negative List)sandesh mundra
This article briefly explains the basics of service tax on works contract after the negative list regime. Also covering some of the old disputed issues in the service tax regime. It also touches upon the basic aspects of Cenvat Credit moreso in an environment, where both taxable and exempt services are being rendered.
This presentation discusses the intricacies involved and the modifications in the taxation of works contract in various VAT Regimes. It highlights the critical issues to be asked when a project company enters into any state for its operations.
This document provides an overview of work contract service under Indian tax law, including:
1. It defines a works contract as a contract involving the transfer of goods that is taxable as sale of goods, for purposes like construction, installation, repair, etc. of movable or immovable property.
2. It outlines two methods for determining the taxable service portion of a works contract: by subtracting the value of goods transferred from the total amount, or by applying a percentage to the total amount.
3. It discusses CENVAT credit eligibility and the partial reverse charge mechanism for works contracts.
4. It lists certain works contracts that are exempt from service tax, such as those provided to government
The document discusses service tax on works contracts in India. It defines key terms like works contract, service, and original works. Works contracts are taxable for the service portion. There are two options for calculating the service portion - the actual method which involves subtracting input taxes and value of goods from the gross contract value, and the composition method which takes a percentage of the total contract value depending on the type of works contract. Certain construction services provided to government are exempt from service tax.
This document discusses the partial reverse charge mechanism for works contracts under Indian service tax law. Key points:
1) For certain works contracts, the liability to pay service tax is shared between the service provider and service recipient. For service portions of works contracts, the recipient must pay 50% of the service tax and the provider pays the remaining 50%.
2) The value of the service portion of a works contract is determined by subtracting the value of transferred goods from the total contract value. For certain types of works contracts, the service portion is deemed to be 40-70% of the total contract value.
3) The introduction of partial reverse charge for works contracts increases the tax burden on service recipients while aiming
This presentation takes you through the basic provisions of Reverse Charge / Joint Charge mechanism introduced w.e.f 1-7-2012. The provisions have wide ramifications as now very few businesses would be able to avoid taking registration with the service tax department.
This document provides an overview of service tax on work contracts under Indian law. It defines what constitutes a work contract and declared services. A work contract is a single contract for material and labor to carry out works like construction, installation, etc. It discusses how work contracts are taxed, with the labor portion taxed under service tax and the goods portion taxed under VAT/Sales tax. There is a reverse charge mechanism for service tax on certain work contracts. The place of provision of service for work contracts is where the immovable property is located.
This document summarizes a Supreme Court judgement regarding the classification of contracts for the supply and installation of elevators as either works contracts or sales contracts.
The majority view of the Supreme Court bench overruled a previous judgement that had classified such contracts as sales. The majority held that contracts for the supply and installation of elevators should be treated as works contracts, not sales, as they satisfy the characteristics of works contracts under the Constitution.
A minority view dissented, stating that the installation work in such contracts was insignificant and it was akin to incidental work like installing a fan, therefore it should be considered a sale. However, the majority view held that once a contract meets the characteristics of a works contract, additional obligations
Service tax on Works Contract (Post Negative List)sandesh mundra
This article briefly explains the basics of service tax on works contract after the negative list regime. Also covering some of the old disputed issues in the service tax regime. It also touches upon the basic aspects of Cenvat Credit moreso in an environment, where both taxable and exempt services are being rendered.
This presentation discusses the intricacies involved and the modifications in the taxation of works contract in various VAT Regimes. It highlights the critical issues to be asked when a project company enters into any state for its operations.
This document provides an overview of work contract service under Indian tax law, including:
1. It defines a works contract as a contract involving the transfer of goods that is taxable as sale of goods, for purposes like construction, installation, repair, etc. of movable or immovable property.
2. It outlines two methods for determining the taxable service portion of a works contract: by subtracting the value of goods transferred from the total amount, or by applying a percentage to the total amount.
3. It discusses CENVAT credit eligibility and the partial reverse charge mechanism for works contracts.
4. It lists certain works contracts that are exempt from service tax, such as those provided to government
The document discusses service tax on works contracts in India. It defines key terms like works contract, service, and original works. Works contracts are taxable for the service portion. There are two options for calculating the service portion - the actual method which involves subtracting input taxes and value of goods from the gross contract value, and the composition method which takes a percentage of the total contract value depending on the type of works contract. Certain construction services provided to government are exempt from service tax.
This document discusses the partial reverse charge mechanism for works contracts under Indian service tax law. Key points:
1) For certain works contracts, the liability to pay service tax is shared between the service provider and service recipient. For service portions of works contracts, the recipient must pay 50% of the service tax and the provider pays the remaining 50%.
2) The value of the service portion of a works contract is determined by subtracting the value of transferred goods from the total contract value. For certain types of works contracts, the service portion is deemed to be 40-70% of the total contract value.
3) The introduction of partial reverse charge for works contracts increases the tax burden on service recipients while aiming
This presentation takes you through the basic provisions of Reverse Charge / Joint Charge mechanism introduced w.e.f 1-7-2012. The provisions have wide ramifications as now very few businesses would be able to avoid taking registration with the service tax department.
This document provides an overview of service tax on work contracts under Indian law. It defines what constitutes a work contract and declared services. A work contract is a single contract for material and labor to carry out works like construction, installation, etc. It discusses how work contracts are taxed, with the labor portion taxed under service tax and the goods portion taxed under VAT/Sales tax. There is a reverse charge mechanism for service tax on certain work contracts. The place of provision of service for work contracts is where the immovable property is located.
This document summarizes a Supreme Court judgement regarding the classification of contracts for the supply and installation of elevators as either works contracts or sales contracts.
The majority view of the Supreme Court bench overruled a previous judgement that had classified such contracts as sales. The majority held that contracts for the supply and installation of elevators should be treated as works contracts, not sales, as they satisfy the characteristics of works contracts under the Constitution.
A minority view dissented, stating that the installation work in such contracts was insignificant and it was akin to incidental work like installing a fan, therefore it should be considered a sale. However, the majority view held that once a contract meets the characteristics of a works contract, additional obligations
This document summarizes key judgements related to indirect taxes in the Indian construction sector. It discusses two Supreme Court cases - Bharat Sanchar Nigam Ltd. v. Union of India regarding the tax treatment of telecom products with both goods and service components, and State of Andhra Pradesh v. Kone Elevators (India) Ltd regarding whether an elevator installation contract constitutes a works contract or supply of goods. It also discusses factors to consider regarding incidental installation services and interstate works contracts. Overall, the document analyzes how different transactions involving both goods and services have been treated for indirect tax purposes.
This document discusses works contracts under Indian tax law. It begins by defining works contracts and distinguishing between divisible and indivisible works contracts. It then discusses a key Supreme Court case that determined works contracts do not constitute a "sale of goods" and thus are not subject to sales tax. The document outlines the types of expenses that can be deducted from the contractual transfer price to determine the taxable amount. It provides examples of how tax is calculated for works contracts in two case studies. Finally, it briefly discusses the composition scheme option for works contracts to pay a compounded 2% tax rate instead of the standard rates.
Case Laws on Construction and Works contractsandesh mundra
A compilation of various Judgments of Service Tax and VAT on relevant issues in works contract and construction sector is made. Stands of High court is highlighted on complex issues arising in Constructions and taxation of works contract. A brief description of matter, appellant and petitioner's contemplation and order passed by authorities is also included to add more value.
The document provides details of an internal controls training seminar at a construction site, including the agenda, topics to be covered, and presentations. The seminar will cover an overview of internal controls and the project manager's role, statutory compliance requirements, controls for equipment and procurement, HR and stores controls, MIS preparation, and the site accounts role. Presentation topics include tendering, budgeting, mobilization, material reconciliation, and project completion. The seminar aims to explain the importance of internal controls at construction sites and various control points that must be established.
1) Under the Delhi VAT Act, any person making payments for a works contract must deduct a tax (WCT) at rates of 4-6% from the contractor.
2) The person making the payment (contractee) and any sub-contractors must apply for a Tax Deduction Account Number and deduct WCT from payments, depositing it within 15 days.
3) Contractees must provide WCT certificates to contractors within 7 days of depositing the tax and file quarterly returns, otherwise penalties may apply for non-compliance.
The document discusses taxation on works contracts in India. It provides an overview of how works contracts were historically considered service contracts but a constitutional amendment allowed them to be taxed as deemed sales. It discusses various court cases that shaped the principles of works contract taxation under state VAT and central service tax. Key points covered include the definition of works contracts, methods of valuing works contracts for different taxes, and debates around classifying certain contracts as works contracts or sales.
This document provides information about works contracts under VAT. It defines works contracts and provides examples. It explains the two methods to compute tax - determining sale price of goods or composition scheme. It provides details on calculating sale price of goods, fixed percentage deductions, and composition rates. It also discusses ongoing works contracts, set off rules, tax invoices, interstate contracts, TDS requirements, and important court judgements.
This presentations discusses the finer aspects of how VAT was being levied on Works contract. And the controversies related to the judgement of Gannon Dunkerly, options available for deductions under VAT for composite contracts
Embargo on levy of service tax on flats under composite contracts - Dr Sanjiv...D Murali ☆
Embargo on levy of service tax on flats under composite contracts - Dr Sanjiv Agarwal - Article published in Business Advisor, dated June 25, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Tweeted on www.twitter.com/BusinessAdvDM
The builder has the option to value the works contract service as per Rule 2A or as per Section 67 read with Rule 5 of Service Tax (Determination of Value) Rules, 2006. Rule 2A provides the specific method of valuation for works contract service but it is not mandatory. The service provider can choose to value its works contract service as per any other method prescribed under the Valuation Rules.
So in this case, the builder engaging sub-contractors is not mandatorily required to value the works contract service as per Rule 2A. It can choose any other valuation method prescribed under the Valuation Rules.
The document discusses service tax implications in the real estate sector in India. It defines key terms like services, renting of immovable property, and works contracts. It outlines that renting is taxable, with exemptions for residential use. Construction is taxable with abatements, while sale after completion certificate is exempt. Works contracts are taxable based on segregation of material and labor costs. The document also provides case studies on applicability of taxes to construction of hospitals, roads, and renting arrangements with mixed-use properties.
The document provides an overview of service tax in India. Some key points:
- Service tax is imposed on specified services at 12.36% rate and is levied on the date of invoice or payment, whichever is earlier.
- Registration is required if annual turnover exceeds Rs. 10 lakhs. Invoices must contain specified details and be issued within 30 days of services.
- Records like invoices and payment details must be maintained for 5 years.
- Works contracts are taxed based on the service portion valued using composition rates of 25-70%. Cenvat credit can be claimed on inputs.
This document discusses various aspects of the Value Added Tax (VAT) and CENVAT credit rules in India. It provides details on features of VAT, cascading effects under the current tax system, concept of credit, steps taken towards tax integration, eligibility for credit, inputs and input services eligible for credit, and some case studies related to input services. The key information conveyed is that VAT aims to be a multi-stage indirect tax without cascading effects, while the current tax system leads to inefficiencies due to cascading of taxes. It also explains the concept and importance of cenvat credit for businesses.
Meaning of the term "Service" in Service tax as per Finance Act, 1994Abhinav Chhabra
A comprehensive analysis of the definition of the term "Service" as per Finance Act, 1994. This presentation will guide about what all are the services that can be liable to service tax subject to other provisions of the Finance Act, 1994.
This document provides an overview of practical discussion on Cenvat Credit Rules in India. It discusses key rules regarding input service distributors and their ability to distribute Cenvat credit received to manufacturing or output service units. The manner of distribution includes distributing no more credit than received, not distributing credit for exempted goods/services, and distributing common credit proportionately based on unit turnovers. The document also discusses rules around reversal of Cenvat credit for written off inputs/capital goods, conditions for credit on input services, and refund of Cenvat credit.
This document provides an overview of Cenvat credit in India. Some key points:
- Cenvat credit allows manufacturers and service providers to claim a credit for excise duties and service taxes paid on inputs. This avoids cascading of taxes.
- Credit can be claimed for duties paid on inputs, capital goods, and input services. The credit is maintained in a common pool and can be used to pay duties on final products or services.
- To claim credit, valid duty payment documents like invoices must be held. Credit can be distributed through mechanisms like input service distributors.
- Only inputs and capital goods directly used for manufacturing taxable final products or providing taxable services are eligible for credit
Indirect Taxes is a significant area of professional practice with limited number of professionals well conversant of the law. One such Tax is Service Tax. In India it is a complicated affair and shall remain so till at least GST is introduced. Negative list has brought in a new tax regime. The Cenvat Credit Rules, Place of Provision of Service Rules and the Point of Taxation Rules are important components to understand this law.
Renting of immovable property is a declared taxable service under service tax. Some key points about the taxation of renting of immovable property under service tax include:
1) Service tax is applicable on the rent amount received for renting of immovable property. Security amounts and electricity charges are exempt if they are refundable or charged on actual basis. Maintenance services are taxed separately.
2) The place of provision of renting service depends on the location of the property and service provider/receiver. If both are in India, the recipient's location applies. If the property is in India, the property location applies.
3) The taxable value is the gross rent amount less property taxes
This document provides an analysis of Rule 6 of the Cenvat Credit Rules, 2004 regarding restrictions on cenvat credit for manufacturers and output service providers. It summarizes the key aspects of Rule 6(3) including the two options for reversing common cenvat credit pertaining to exempted goods and services - paying a fixed percentage of value or determining it based on a formula. The document also includes case studies to illustrate the application of Rule 6(3)(i) for different scenarios.
This presentation takes one through the impact of budget 2014 on the direct tax provisions. Efforts have been made to simplify the amendments in the best way
This ppt explains in very brief the facts about GST implementation in India. The taxes which shall be subsumed within GST and the present taxes which shall remain out of GST ambit.
This document summarizes key judgements related to indirect taxes in the Indian construction sector. It discusses two Supreme Court cases - Bharat Sanchar Nigam Ltd. v. Union of India regarding the tax treatment of telecom products with both goods and service components, and State of Andhra Pradesh v. Kone Elevators (India) Ltd regarding whether an elevator installation contract constitutes a works contract or supply of goods. It also discusses factors to consider regarding incidental installation services and interstate works contracts. Overall, the document analyzes how different transactions involving both goods and services have been treated for indirect tax purposes.
This document discusses works contracts under Indian tax law. It begins by defining works contracts and distinguishing between divisible and indivisible works contracts. It then discusses a key Supreme Court case that determined works contracts do not constitute a "sale of goods" and thus are not subject to sales tax. The document outlines the types of expenses that can be deducted from the contractual transfer price to determine the taxable amount. It provides examples of how tax is calculated for works contracts in two case studies. Finally, it briefly discusses the composition scheme option for works contracts to pay a compounded 2% tax rate instead of the standard rates.
Case Laws on Construction and Works contractsandesh mundra
A compilation of various Judgments of Service Tax and VAT on relevant issues in works contract and construction sector is made. Stands of High court is highlighted on complex issues arising in Constructions and taxation of works contract. A brief description of matter, appellant and petitioner's contemplation and order passed by authorities is also included to add more value.
The document provides details of an internal controls training seminar at a construction site, including the agenda, topics to be covered, and presentations. The seminar will cover an overview of internal controls and the project manager's role, statutory compliance requirements, controls for equipment and procurement, HR and stores controls, MIS preparation, and the site accounts role. Presentation topics include tendering, budgeting, mobilization, material reconciliation, and project completion. The seminar aims to explain the importance of internal controls at construction sites and various control points that must be established.
1) Under the Delhi VAT Act, any person making payments for a works contract must deduct a tax (WCT) at rates of 4-6% from the contractor.
2) The person making the payment (contractee) and any sub-contractors must apply for a Tax Deduction Account Number and deduct WCT from payments, depositing it within 15 days.
3) Contractees must provide WCT certificates to contractors within 7 days of depositing the tax and file quarterly returns, otherwise penalties may apply for non-compliance.
The document discusses taxation on works contracts in India. It provides an overview of how works contracts were historically considered service contracts but a constitutional amendment allowed them to be taxed as deemed sales. It discusses various court cases that shaped the principles of works contract taxation under state VAT and central service tax. Key points covered include the definition of works contracts, methods of valuing works contracts for different taxes, and debates around classifying certain contracts as works contracts or sales.
This document provides information about works contracts under VAT. It defines works contracts and provides examples. It explains the two methods to compute tax - determining sale price of goods or composition scheme. It provides details on calculating sale price of goods, fixed percentage deductions, and composition rates. It also discusses ongoing works contracts, set off rules, tax invoices, interstate contracts, TDS requirements, and important court judgements.
This presentations discusses the finer aspects of how VAT was being levied on Works contract. And the controversies related to the judgement of Gannon Dunkerly, options available for deductions under VAT for composite contracts
Embargo on levy of service tax on flats under composite contracts - Dr Sanjiv...D Murali ☆
Embargo on levy of service tax on flats under composite contracts - Dr Sanjiv Agarwal - Article published in Business Advisor, dated June 25, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Tweeted on www.twitter.com/BusinessAdvDM
The builder has the option to value the works contract service as per Rule 2A or as per Section 67 read with Rule 5 of Service Tax (Determination of Value) Rules, 2006. Rule 2A provides the specific method of valuation for works contract service but it is not mandatory. The service provider can choose to value its works contract service as per any other method prescribed under the Valuation Rules.
So in this case, the builder engaging sub-contractors is not mandatorily required to value the works contract service as per Rule 2A. It can choose any other valuation method prescribed under the Valuation Rules.
The document discusses service tax implications in the real estate sector in India. It defines key terms like services, renting of immovable property, and works contracts. It outlines that renting is taxable, with exemptions for residential use. Construction is taxable with abatements, while sale after completion certificate is exempt. Works contracts are taxable based on segregation of material and labor costs. The document also provides case studies on applicability of taxes to construction of hospitals, roads, and renting arrangements with mixed-use properties.
The document provides an overview of service tax in India. Some key points:
- Service tax is imposed on specified services at 12.36% rate and is levied on the date of invoice or payment, whichever is earlier.
- Registration is required if annual turnover exceeds Rs. 10 lakhs. Invoices must contain specified details and be issued within 30 days of services.
- Records like invoices and payment details must be maintained for 5 years.
- Works contracts are taxed based on the service portion valued using composition rates of 25-70%. Cenvat credit can be claimed on inputs.
This document discusses various aspects of the Value Added Tax (VAT) and CENVAT credit rules in India. It provides details on features of VAT, cascading effects under the current tax system, concept of credit, steps taken towards tax integration, eligibility for credit, inputs and input services eligible for credit, and some case studies related to input services. The key information conveyed is that VAT aims to be a multi-stage indirect tax without cascading effects, while the current tax system leads to inefficiencies due to cascading of taxes. It also explains the concept and importance of cenvat credit for businesses.
Meaning of the term "Service" in Service tax as per Finance Act, 1994Abhinav Chhabra
A comprehensive analysis of the definition of the term "Service" as per Finance Act, 1994. This presentation will guide about what all are the services that can be liable to service tax subject to other provisions of the Finance Act, 1994.
This document provides an overview of practical discussion on Cenvat Credit Rules in India. It discusses key rules regarding input service distributors and their ability to distribute Cenvat credit received to manufacturing or output service units. The manner of distribution includes distributing no more credit than received, not distributing credit for exempted goods/services, and distributing common credit proportionately based on unit turnovers. The document also discusses rules around reversal of Cenvat credit for written off inputs/capital goods, conditions for credit on input services, and refund of Cenvat credit.
This document provides an overview of Cenvat credit in India. Some key points:
- Cenvat credit allows manufacturers and service providers to claim a credit for excise duties and service taxes paid on inputs. This avoids cascading of taxes.
- Credit can be claimed for duties paid on inputs, capital goods, and input services. The credit is maintained in a common pool and can be used to pay duties on final products or services.
- To claim credit, valid duty payment documents like invoices must be held. Credit can be distributed through mechanisms like input service distributors.
- Only inputs and capital goods directly used for manufacturing taxable final products or providing taxable services are eligible for credit
Indirect Taxes is a significant area of professional practice with limited number of professionals well conversant of the law. One such Tax is Service Tax. In India it is a complicated affair and shall remain so till at least GST is introduced. Negative list has brought in a new tax regime. The Cenvat Credit Rules, Place of Provision of Service Rules and the Point of Taxation Rules are important components to understand this law.
Renting of immovable property is a declared taxable service under service tax. Some key points about the taxation of renting of immovable property under service tax include:
1) Service tax is applicable on the rent amount received for renting of immovable property. Security amounts and electricity charges are exempt if they are refundable or charged on actual basis. Maintenance services are taxed separately.
2) The place of provision of renting service depends on the location of the property and service provider/receiver. If both are in India, the recipient's location applies. If the property is in India, the property location applies.
3) The taxable value is the gross rent amount less property taxes
This document provides an analysis of Rule 6 of the Cenvat Credit Rules, 2004 regarding restrictions on cenvat credit for manufacturers and output service providers. It summarizes the key aspects of Rule 6(3) including the two options for reversing common cenvat credit pertaining to exempted goods and services - paying a fixed percentage of value or determining it based on a formula. The document also includes case studies to illustrate the application of Rule 6(3)(i) for different scenarios.
This presentation takes one through the impact of budget 2014 on the direct tax provisions. Efforts have been made to simplify the amendments in the best way
This ppt explains in very brief the facts about GST implementation in India. The taxes which shall be subsumed within GST and the present taxes which shall remain out of GST ambit.
The document discusses how PEST analysis is used to analyze the external factors in a company's political, economic, social, and technological environment that could affect its success. It provides examples of factors in each category that should be considered, such as legislation, economic conditions, social trends, and emerging technologies. Specifically, it analyzes McDonald's use of PEST factors like emphasizing food safety and streamlining processes in response to health concerns and changing consumer preferences. It also discusses McDonald's expansion in Asia by tailoring its menu to local tastes.
The document discusses various concepts related to organizing and staffing in nursing management. It covers organizing principles like unity of command and span of control. It also discusses types of organizational structures and factors that affect staffing levels like patient acuity, staff mix and budgets. The document provides details on patient classification systems, formulas for computing nursing personnel needs, and considerations for scheduling, placement and developing job descriptions.
The document discusses different leadership styles in nursing management including:
1. Autocratic style where the manager makes all decisions without input from staff.
2. Bureaucratic style where all tasks are done according to procedures and policies.
3. Democratic style where the leader encourages staff participation in decision making and problem solving.
Presentation delivered to staff at Bangkok Patana School on 2nd May 2011, based on the findings of a group of staff who met several times in the academic year 2010-11 to explore the importance of intercultural issues in education. Visit http://interculturalism.blogspot.com for more of our findings.
This document discusses perioperative care and defines the three phases as preoperative, intraoperative, and postoperative. It outlines nursing responsibilities and goals in each phase, including assessment, monitoring for complications, education, and promoting patient well-being and recovery.
This report brings together a selection of key digital statistics and data points from around the world, including internet users, active social media accounts, and mobile usage. This month, we're very excited to report that global internet users have now passed the 3 billion mark. You'll find more in-depth numbers in our complete Social, Digital and Mobile reports at http://wearesocial.sg
Case Study | Etisalat UAE Brand Campaign #EtisalatChallenge Fiasco on Social ...Digital Boom
The document summarizes a marketing campaign by Etisalat in the UAE called the #EtisalatChallenge that backfired and resulted in significant negative customer feedback online. The campaign began with teasers featuring celebrities but provided no information about what the challenge entailed. When Etisalat revealed that the challenge was to find a better mobile tariff, customers criticized Etisalat for not addressing service issues. Negative articles about the campaign were reportedly removed from news sites, fueling more criticism. The document analyzes customer sentiment and provides verbatim comments reflecting their disappointment.
27 28 105 fa13 transcription and translation skelAfton Chase
The document summarizes transcription and translation in bacteria and eukaryotes. It describes the central dogma where DNA is transcribed into mRNA which is translated into protein. Transcription involves initiation, elongation, and termination. Translation involves initiator tRNAs bringing amino acids to the ribosome where they are linked together into a polypeptide chain. Eukaryotic transcription and translation are more complex than prokaryotes with mRNA processing and separate transcription/translation.
Venus Williams, a 32-year-old African American female professional tennis player, presented with symptoms of dry eyes, dry mouth, dry skin, and enlarged parotid glands. Laboratory tests confirmed Sjogren's syndrome with a high ESR, positive biopsy and antibody results, and abnormal salivary gland function tests. Sjogren's syndrome is an autoimmune disease characterized by lymphocytic infiltration of exocrine glands causing sicca symptoms. Treatment focuses on symptom management with artificial tears, moisturizers, NSAIDs, and immunosuppressants for major organ involvement.
How to Use Outstanding Visual Language in a Presentation – Part IISOAP Presentations
http://soappresentations.com/how_to_use_outstanding_visual_language_ii/
Download the second part of our e-Book, “How to Use Outstanding Visual Language in a Presentation”, and create beautifull presentations from now on.
http://soappresentations.com/how_to_use_outstanding_visual_language_ii/
Persian architecture has a history dating back to 5000 BC and reflects Iranian culture through different periods. It can be divided into four periods: prehistoric architecture before 700 BC; the Medes and Achaemenid Empires from 700 BC to 600 AD; Islamic architecture until 1500 AD; and contemporary architecture. Some notable structures from these periods include the ruins at Choga Zanbil from 1250 BC, palaces and temples from the Achaemenid Empire like at Pasargadae and Persepolis, and the refined architecture of the Safavid period exemplified by buildings in Isfahan. Key elements of Persian architecture that developed for hot climates include gardens, underground aqueducts known as qanats,
The document discusses weightlifting and provides an assessment of Victoria Cisneros, an 18-year-old female weightlifter. It includes her anthropometric measurements, results from flexibility, power, and strength tests, and compares her lifts to world champion Tatiana Kashirina. Areas for improvement include increasing her lean body mass ratio and focusing on overall strength gains.
Fantasy Football Info 2009 Cbs Sportline Football Cheat SheetFantasy-Info
This document provides rankings for fantasy football positions including quarterbacks, running backs, wide receivers, tight ends, kickers, and defenses based on standard CBS Sportsline scoring for the upcoming NFL season. Players are ranked from 1 to around 150 for each position, with their team, projected points total for the season, and bye week listed. This cheat sheet is intended to help fantasy football players evaluate player values and make draft picks.
ETL stands for Extraction, Transformation, and Loading. The document describes an example ETL process to load master customer data from an Excel file into an SAP BI platform. First, the data is extracted from the Excel file into the BI data warehouse using a data source and info package. Next, the data in the persistent staging area is transformed by defining the customer ID and name fields as characteristic info objects. Finally, a data transfer process loads the mapped data from the source into the appropriate info objects, completing the ETL process.
Este documento trata sobre ecuaciones exponenciales del caso II. Explica cómo resolver ecuaciones exponenciales donde la variable aparece en el exponente de la función exponencial. Se detalla el procedimiento para eliminar la variable del exponente y así poder resolver la ecuación obteniendo una o más soluciones.
Hemoptysis refers to coughing up blood from the respiratory tract. It can range from a small amount of blood-tinged mucus to life-threatening massive hemorrhage. Common causes include infections, lung cancer, and vascular conditions. Evaluation involves assessing the type and amount of bleeding along with diagnostic tests like chest imaging, sputum analysis, and bronchoscopy. Treatment focuses on stabilizing the patient, stopping the bleeding, and addressing the underlying cause through techniques such as bronchial artery embolization, surgery, or medications. Complications can include asphyxiation, shock, and infection if not properly managed.
The document summarizes key changes to India's service tax laws effective July 1, 2012. Key points include:
1) The service tax rate increased from 10% to 12% and the system shifted from a positive to a negative list.
2) Many services were exempted from tax and new sections were introduced to define taxable services and the place of provision.
3) A reverse charge mechanism was introduced for three specified services and the abatement scheme was modified.
4) Procedural amendments included changes to invoicing rules, cenvat credit, and limitations periods.
Indirect Tax_Latest Judicial Precedents_ October 2016Ashish Chaudhary
The document provides a summary of 10 indirect tax judicial precedents from October 2016.
1. Subscription money collected from shareholders for membership to a club was considered consideration for taxable services and liable to service tax, even if part was treated as share capital.
2. A job worker was not eligible for service tax exemption when the principal manufacturer availed central excise exemption on manufacture, as per the terms of the exemption notification.
3. Construction of a pipeline within a factory could not be considered construction of a building or civil structure, so credit for the related work contract service was admissible.
Penalties after 14.5.2015 under service taxMyGstMyTax
The document discusses various aspects of valuation of services under Indian service tax law such as the charging provision, principles of valuation under section 67, and penalties. It provides details on valuation in cases of monetary and non-monetary consideration as well as for composite contracts involving works contracts and food supply. The penalties under the law and the procedure for lev
This document provides an overview of service tax law in India. Some key points:
- Service tax was first introduced in 1994 and now covers all services except those in the negative list.
- It is levied on the value addition from the provision of services within India.
- Various rules determine the taxable person, valuation of services, point of taxation, and place of provision of services.
- There are nine types of declared taxable services and 17 services exempted under the negative list.
- The document outlines some of the major provisions and rules under the service tax laws.
Optitax's presentation on critical changes in gst law 01 feb 19Nilesh Mahajan
The Government has brought some key changes in GST law in an attempt to simplify GST further.
We have tried to capture these changes and also explained some of the changes in flow chart form for better understanding.
In this regard, please find attached Optitax’s presentation on ‘CRITICAL CHANGES IN GST LAW’
Further, the said presentation also explains levy of security services under reverse charge mechanism
This document discusses various service tax issues and recent developments. It summarizes key points around exemption for small service providers, valuation and payment of service tax, export of services, and liability of service tax payment. It also touches on topics like advertisements, air travel services, and practicing company secretary services versus consulting services.
The document discusses India's Reverse Charge Mechanism for service tax. Key points:
- Under reverse charge, the service receiver is liable to pay service tax instead of the service provider for certain specified services. This was introduced in 2012 to improve tax compliance.
- Reverse charge applies to several services like legal, insurance, and transportation services. For these services, 100% of the tax is payable by the service receiver.
- The document provides details on tax rates and calculations for different services under reverse charge. It also discusses abatements or exemptions available for some services.
- Determining the taxable value of works contracts involves separating the goods and services portion of the contract and applying the appropriate
The document summarizes key proposals from the Union Budget 2014-15 in India. Some highlights include:
- The budget aims for 7-8% economic growth over the next 3-4 years while keeping the fiscal deficit target at 4.1%.
- Increased FDI limits in sectors like insurance and defense. Uniform KYC norms for the financial sector.
- No changes to corporate or indirect tax rates but some personal income tax exemption limits were increased.
- Customs duty rates were largely unchanged with some minor changes to baggage allowance limits. Service tax exemptions were removed for some sectors.
This document provides an overview and discussion of key Cenvat Credit rules in India. It begins with definitions of key terms like input service distributor. It then examines various rules around taking and distributing Cenvat credit, including rules around reversal of credit for write-offs, conditions for credit on input services, and refund of Cenvat credit. Examples are provided to illustrate the application of rules around distributing credit as an input service distributor. Case studies and clarifications related to various rules are also discussed.
This document provides an overview and discussion of key Cenvat Credit rules in India. It begins with definitions of key terms like input service distributor. It then examines various rules around taking and distributing Cenvat credit, including rules around reversal of credit for write-offs, conditions for credit on input services, and refund of Cenvat credit. Examples are provided to illustrate the application of rules around distributing credit as an input service distributor. Case studies and clarifications on various issues under the different rules are also presented.
The document discusses key aspects of CENVAT Credit Rules and Place of Provision of Service Rules under Indian tax law. Some key points:
- It defines eligible inputs, capital goods, and input services for which CENVAT credit can be claimed. Certain goods/services like those used for personal purposes are excluded.
- There are restrictions on claiming credit for inputs/services used for exempted goods/services or if threshold exemption is claimed. Credit on capital goods is restricted if depreciation is claimed.
- It provides examples of taxable services under service tax and the applicable percentage of abatement if any input credit can be claimed.
- In summary, the document outlines the framework for
Cenvat credit is a scheme that allows manufacturers and service providers to claim a credit for taxes paid on inputs and input services against the tax payable on the final product or service. It aims to avoid double taxation and ensure smooth flow of duties. Under Cenvat credit rules, eligible duties include excise duty, customs duty, and service tax. Credit can be claimed by maintaining proper records and filing periodic returns. Credit wrongly taken can be recovered along with interest and penalties. Key cases discuss eligibility of capital goods and input services for credit claiming.
The petitioners challenged the levy of service tax on construction of residential complexes, arguing that it amounts to taxation of immovable property, which is not within the legislative competence of Parliament. The Revenue argued that construction involves various taxable services. The court held that while construction involves both goods and services, the dominant nature is transfer of immovable property and hence service tax cannot be levied. It ruled the levy was beyond Parliament's legislative competence.
Reverse Charge Mechanism Under Service Tax Laws Syed Irshad Ali
The document discusses various aspects of the reverse charge mechanism under service tax in India. It defines reverse charge mechanism and explains when it came into effect. It lists 12 services to which reverse charge applies and whether it is full or partial reverse charge. It addresses issues around point of taxation, CENVAT credit, valuation, exemptions and compliance requirements. It provides an example of the accounting treatment and invoice format under reverse charge mechanism.
The document discusses proposed amendments to India's service tax laws presented in the Union Budget. Key points include:
1) The negative list and exemptions under service tax were proposed to be pruned to widen the tax base. Radio taxi services were brought into the service tax ambit.
2) Mandatory pre-deposit requirements for appeals were increased. Interest rates on delayed tax payments were substantially enhanced.
3) The point of taxation and valuation rules saw some amendments. The scope of the reverse charge mechanism and exemptions list were modified.
4) CENVAT credit rules were amended to disallow credit beyond 6 months and restrict unit to unit transfers within large taxpayer units.
This ppt is a comprehensive presentation on various aspects for the entities working in the construction domain. Starting from Tendering to Budgeting and going on to indirect tax aspects like VAT and service Tax.
The document provides an overview and summary of key proposals from the Union Budget 2014-15 in India. Some of the key points include:
- The budget aims to achieve 7-8% economic growth over the next 3-4 years while maintaining the fiscal deficit target of 4.1%.
- There are various regulatory proposals related to direct taxes, indirect taxes, customs duty, central excise duty, and service tax. Some rates are increased while others are decreased or exempted.
- Personal income tax exemption limits are increased, as are deductions for housing loans, PPF contributions, and section 80C. New accounting standards will become compulsory from FY2016-17.
This document provides a detailed definition and analysis of "input services" under the CENVAT Credit Rules, 2004. It begins by defining input services as any service used in manufacturing or providing an output service. It then analyzes the definition in three parts - the main definition, an inclusive list of additional services, and exclusions. The analysis examines each part in depth, providing examples and exceptions. It aims to comprehensively explain the scope and coverage of input services eligible for CENVAT credit.
The document discusses the valuation of taxable services under the Service Tax regime in India. It explains how the gross amount charged is considered the value of taxable services as per Section 67 of the Finance Act. Reimbursements are included in the value unless the service provider acts as a pure agent for the recipient. The valuation rules and recent case laws regarding composite contracts, reimbursements, and works contracts are also summarized.
Similar to Service tax on works contract (Pre-Negative List) (20)
With the introduction of the concept of GST Audit, it is important to know and taken int consideration various facts that is needed before we conduct GST Audit. In this presentation, we have covered the concept of filing of GSTR 9C, its applicability and various other topics that one should take care of. The presentation also covers an example of GSTR 9C based upon a hypothetical case. The PPT is a one shot compilation of various topics associated with GSTR 9C - GST Audit.
With the introduction of the concept of GST Audit, it is important to know and taken int consideration various facts that is needed before we conduct GST Audit. In this presentation, we have covered the concept of filing of GSTR 9C, its applicability and various other topics that one should take care of. The presentation also covers an example of GSTR 9C based upon a hypothetical case. The PPT is a one shot compilation of various topics associated with GSTR 9C - GST Audit.
This document contains financial statements and additional notes related to income, expenses, input tax credit, and sales for a business. It includes a balance sheet, input tax credit ledger, and profit and loss statement for the period of April 2017 to March 2018. The additional notes provide clarifications on revenue and expense amounts, import of services, credit notes, discounts, sales booking and billing dates, annual return details, blocked and reversed input tax credits, and taxable rates.
With the introduction of the concept of GST Audit, it is important to know and taken int consideration various facts that is needed before we conduct GST Audit. In this presentation, we have covered the concept of filing of GSTR 9C, its applicability and various other topics that one should take care of. The presentation also covers an example of GSTR 9C based upon a hypothetical case. The PPT is a one shot compilation of various topics associated with GSTR 9C - GST Audit.
In this presentation, the concept of Affordable Housing is discussed from various angles such as income tax and GST. The PPT also analyses various components of Affordable housing scheme. It also takes into consideration various practical scenarios which are discussed in the form of case studies. The affordability as per public lending institution has also been covered. The presentation also covers various policies and programmes undertaken by the government for promotion of the same.Lastly, it also covers the impact of anti profiteering under the scheme.
After introduction of RERA, West Bengal has come up with its own legislation West Bengal Housing Industry Regulatory Act, 2017. There are various critical issues in this emerging law which can be addressed with the help of decisions and orders of numerous states.
The document discusses various notices issued by the GST department for non-compliance and how they can be handled. It mentions notices for differences in GSTR 1 and 2A, ITC claims, default in returns, and anti-profiteering issues. It advises that notices can be challenged on technical or jurisdictional grounds or by requesting more time. The document also discusses the need for businesses to have proper tax governance and ERP systems to avoid issues with the tax authorities. It provides guidance on handling summons and show cause notices issued under GST.
Complications of GST for Real-Estate and Developerssandesh mundra
This presentation contains the categories of units available with the developer as on the appointed day and the controversy attached with each category of unit. The presentation precisely covers all the controversies that could come up for the given category of unit.
An attempt to summarize the crucial aspects of maintaining records under GST is made. Apart from this, the presentation includes all types of audits proposed under GST regime. The system of return filling that the Group of Ministers are finalising together with GSTN officials and stakeholders is also included in the presentation. It also includes issues that may arise during filling of annual return and reconciliation statement.
An attempt to compile relevance of contractual clauses, technique of claiming back lost exemptions through doctrine of promissory estoppel, effect of repeals and omission and related judgments, is made. An overview of legal aspects for ongoing contracts is included.
Issues faced by Realtors and works contractorssandesh mundra
We have listed down several issues faced by Real estate and construction sector. A long list of issues are included separately for builders and works contractor for transition and post GST period.
Presentation contains cases and judgements delivered by courts pre-GST regime. A brief summary of all caselaws is made and an attempt is made to provide a bird's eye view of litigations arising in GST.
Presentation is prepared with the object of simplifying the interpretation issues and providing guidelines to read the rate schedules. Methods and mechanism of claiming tax free exports is also explained.
Goods and Service Tax in India is one of the biggest tax reform in Indirect Tax Regime. It is a destination bases tax levied on supply of Goods and Services. It includes impact of GST on several sectors. It also includes development of GST by way of notifications, circulars, press releases and other other compliances under GST.
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1. [Service Tax] pptPlex Section Divider The slides after this divider will be grouped into a section and given the label you type above. Feel free to move this slide to any position in the deck.
2. Basics Service Tax Applies to whole of India except J&K. Normal rate of Service Tax is 10.3% Service Provider is normally the person liable to pay service tax upon crossing the turnover of Rs. 10 Lacs p.a. Service tax is to be deposited only when payment is received. Export of services is exempted for payment of service tax.
3. Applicable rates Period Rate Upto 13.05.2003 5% 14.05.2003 to 09.09.2004 8% 10.09.2004 to 17.04.2006 10.20% 18.04.2006 to 10.05.2007 12.24% 11.05.2007 to 23.02.2009 12.36% 24.02.2009 onwards 10.30%
4. Centralised Registration Object – Several Premises for rendering services. Optional CCE grants the registration Centralised Billing / Centralised Accounting Zonal Centralised Registration Modification Concept of Input Service Distributor Advantages Time No information to any other jurisdiction Audit / Correspondence at one place
6. Classification of Service Section 65A Most specific description Composite services as per Essential character Sub clause which occurs first - Poser 2
7. Valuation of service Rule 5 – Exclusion and Inclusion Exclusion of costs incurred as Pure Agent Rule 5(2) provides various conditions which need to be satisfied Whether services rendered free of cost, chargeable to service tax? Whether service tax to be paid on property tax paid for immovable property? How is valuation derived if consideration is received in kind?
10. Introduction of Works Contract service from 2007…… Tax on service portion of works contract Specified work contracts covered Erection / commissioning / Installation Industrial / commercial construction New residential complex Completion, finishing services, repair, alteration, renovation in relation of (b) and ( c) Turnkey Projects including EPC
11. Issues in Work Contract Service Contractors not paying service tax prior to 1-6-2007 Daelim Industrial Co. Ltd – Tribunal ruled in the favour of the assessee, Dept appeal to SC was rejected by SC Diebold Systems (P) Ltd URC Construction (P) Ltd CCE vsShapoorjiPollamji & Co. Ltd. Petrofac International Ltd vs CCE
12. vs B Rama Rao & Co. – Bang CESTAT CCE vs BSBK – Delhi CESTAT (overruled Daelim) Instrumentation Ltd – Delhi CESTAT
13. Rate of service tax applicable under Work Contract service is always 4.12%. Is this statement correct?
14. Rule 2A of the Valuation Rules under Work Contact Service As per Rule 2A(1) of Valuation Rules, the value of the works contract services is equivalent to the gross amount charged for works contract less the value of transfer of property in goods involved in the execution of works contract For this purpose Gross amount shall not include VAT or Sales Tax Value shall include the following:- Labour Charges for the execution of the works Amount paid to the sub contractors for labour and services Charges for planning designing and architect’s Charges for obtaining machinery, tools etc whether on hire or otherwise for the execution of the works contract Cost of consumables such water electricity fuel etc used in theexecution of works contract Cost of establishment of the contractor relatable to supply of labour and services Other similar expenses relatable to supply of labour and services and Profit earned by the service provider relatable to supply of labour and services
15. Issues in Work Contract Service Ongoing Works Contract as on 01-06-2007 Contract for construction entered prior to 01-06-2007 and service tax is already paid for the payments received till date Whether it is possible to change the classification to Works Contract service
16. Availment of Cenvat Credit under different schemes 10.3% on total value 4.12% on total value Abatement of 67% Concept of Sold vs Consumed
17. Cenvat Credit - Budget Amendments 2011 New Term “wasteful expenditure” as per the revised definition of input service Denial of Cenvat Credit for services related to Construction of Factory and office building Motor vehicle is a luxury even if used to transport employees or for business purposes [Sales and purchase people can either go by bus or by air since air travel can be allowable input service] All employee benefits line transport, canteen facility, health care, insurance, welfare expenditure is a pure waste [Company should employ only casual labour at minimum wages with no benefits].
18. Cenvat Credit and Related Budget Amendments 2011 Definition of Input Service “Input service” means any service, - Used for providing an output service / manufacture of final product and includes services used in relation to modernisation, renovation or repairs of a factory, premises of provider of output service and ………. but excludes services, - used for- (a) construction of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or services are used primarily for personal use or consumption of any employee. Poser - 4
19. 3.1 Services specifically excluded under clause (A) If used for construction of a building or a civil structure or a part thereof, or laying of foundation or making of structures for support of capital goods * Architect Services [Section 65(105)(p)] * Port Services [Section 65(105)(zn)] * Other Port Services [Section 65(105)(zzl)] * Airport Services [Section 65(105)(zzm)] * Commercial or Industrial Construction [Section 65(105)(zzq)] * Construction of Residential Complex [Section 65(105)(zzzh)] * Works Contract Service [Section 65(105)(zzzza)] These ‘specified services’ will be eligible for Cenvat credit only if used for any of these ‘Specified Services’. e.g. Architect Service will be eligible as input service if used for Port Service or Construction Service or Works Contract Service.
20. 3.2 Services specifically excluded under clause only so far as they relate to a motor vehicle – * General Insurance Services [Section 65(105)(d)] * Renting of a cab [Section 65(105)(o)] * Motor vehicle related service (earlier termed as Authorised Service Station service) [Section 65(105)(zo)] * Supply of tangible goods [Section 65(105)(zzzzj)] Eligible if used for provision of taxable services for which Cenvat credit of motor vehicle is available as capital goods. Some vehicles (e.g. fork lift truck, excavators) require registration under Motor Vehicles Act, but insurance, repair services, renting etc. in respect of such vehicles should be eligible for Cenvat credit.
21. 3.3 Services specifically excluded under clause (C) Certain services like outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession have been specifically excluded. Poser - 5
22. However, this exclusion is only when such services are used primarily for personal use or consumption of any employee.
23. Giving both taxable and exempt services – In such cases, the manufacturer/service provider has following four options w.e.f. 1-4-2011 – (a) Maintain separate inventory and accounts of receipt and use of inputs and input services – Rule 6(2) of Cenvat Credit Rules . (b) Pay amount equal to 5% of value of exempted goods/services – Rule 6(3)(i). (c) Pay an ‘amount’ equal to proportionate Cenvat credit attributable to exempted goods / services as per Rule 6(3A) – Rule 6(3)(ii) (d) Maintain separate accounts for inputs and pay ‘amount’ as determined under rule 6(3A) in respect of input services - – Rule 6(3)(iii)
24. Option has to be exercised in respect of all exempted goods manufactured and all exempted output services provided. The option once exercised shall not be changed in remaining part of financial year – Explanation I to Rule 6(3) - reiterated in para 2 of CBE&C Circular No. 868/6/2008-CX dated 9-5-2008.
25. Rule 6(5) that allowed full credit of 17 specified services has been deleted. These services were construction service, management service etc…
26. Meaning of ‘exempted services’ As per rule 2(e) of Cenvat Credit Rules, “exempted services” means taxable services which are exempt from the whole of the service tax leviable thereon, and includes services on which no service tax is leviable under section 66 of Finance Act and taxable services 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. Explanation – For removal of doubts, it is hereby clarified that ‘exempted services’ includes trading [Words in italics inserted w.e.f. 1-4-2011] Services on which no tax is payable are also ‘exempt services’ unlike goods. It has been clarified that export of service will not be treated as exempted service - para 6 of CBE&C Circular No. 868/6/2008-CX dated 9-5-2008.
27. Calculation of 'value' for purposes of rule 6(3) and 6(3A) (a) in the case of a taxable service, when the option available under the Works Contract (Composition Scheme for payment of Service Tax) Rules, 2007 has been availed, shall be the value …………… (b) in case of trading, shall be the difference between the sale price and the purchase price of the goods traded or 10% of CGOS which is higher.
28. Total amount of Cenvat credit attributable to exempted goods and exempted services for the financial year Cenvat on Inputs used for exempted final products Cenvat Credit on Inputs used for exempted services (On proportionate basis, based on actual ratio of financial year) Cenvat Credit on input services used for exempted final products and exempted services (On proportionate basis based on actual ratio of financial year). Cenvat credit on services specified in rule 6(5), which are exclusively used for exempted goods or exempted services = Total amount attributable to exempted final products and exempted services - Poser 6
30. Answers – Poser 6 Payment of ‘amount’ or reversal of Cenvat credit is not required in case the taxable service is provided to SEZ Unit or SEZ developer for their authorised operations. These are overriding provisions irrespective of any provision in rule 6(1), 6(2), 6(3) and 6(4) [Rule 6(6A) of Cenvat Credit Rules inserted w.e.f. 1-4-2011].
31. Answers – Poser 6 Cenvat credit on capital goods – If capital goods are partly used for exempted goods and party for dutiable final products, entire Cenvat credit of duty paid on capital goods is available. Cenvat credit of duty on capital goods is not allowable only when it is exclusively used for manufacture of final products [rule 6(4)]
32. Exceptions to Rule of Proportionate Disallowance :- Dis-allowance of Cenvat of capital goods only if used exclusively for exempted final product/services. Some manufacturers are entitled to exemption based on turnover or quantity (e.g. SSI units). They will be entitled to Cenvat on capital goods. They can take Cenvat on capital goods and utilise it for payment of duty when their exemption limit is crossed. Supply to EOU/SEZ, export of goods, deemed exports or gold manufacture
33. Budget Amendments 2011 The Works Contract Rules, 2007 have been amended To provide for restriction in availment of CENVAT credit to 40% of service tax paid on services relating to erection, commissioning and installation services, commercial or industrial construction services and construction of residential complex services in case service tax has been paid, without availing the abatement benefit under notification 1/2006.
34. 38.1 A tariff rate of 5% excise duty is being prescribed on Ready-mix concrete (RMC). However these goods would attract the concessional 1% duty without CENVAT credit facility. Budget Amendments 2011
35. Point of Taxation Background Currently payment of service tax is linked to receipt of money from the service receiver which is odds with regime in force in Central Excise and VAT laws prevailing in the state. In both these laws payment is required to be paid on accrual basis. The GST regime is also likely to follow the same practise and it is thus felt necessary to align the service tax regime with the same rule so that transition to GST is smooth. The change shall simplify the accounting for the taxpayers. Also to give proper clarity in situations where there is a) Change of rate of service tax b) Imposition of service tax on new services
36. Point of Taxation Can issue of invoice be a taxable event? – Really, issue of invoice is only a procedural aspect. Not issuing invoice in time can at the most be a procedural lapse. Relevant date for rate of tax - As per rule 5B of Service Tax Rules (as inserted w.e.f. 1-4-2011), the rate of tax in case of service provided or to be provided shall be the rate prevailing at the time when the service is deemed to have been provided. Due date for payment of service tax - Rule 6(1) of Service Tax Rules (as amended w.e.f. 1-4-2011) states that service tax shall be paid to the credit of Government by 5th /6th of the month/quarter immediately following the month/quarter in which service is deemed to be provided (except in month of March) as per rules framed in this regard. Rules to determine ‘date when service is deemed to be provided’ - ‘Point of Taxation Rules, 2011’ have been issued (which are effective from 1-4-2011) to make provisions in respect of date when a service shall be ‘deemed to provided’. These rules will be applicable for purposes of rule 5B and 6(1) of Service Tax Rules.
37. Meaning of ‘point of taxation’ – ‘Point of taxation’ means the point in time when a service shall be ‘deemed to have been provided’ [Rule 2(e) of Point of Taxation Rules, 2011]. This point will determine rate of service tax and due date of payment of service tax.
38. Pain of Taxation Rules Rule 3 , POT Rules says, Point of Taxation shall be as follows: (a) Date of invoice or payment, whichever is earlier, if the invoice is issued within the prescribed period of 14 days from the date of completion of the provision of service. (b) Date of completion of the provision of service or payment, if the invoice is not issued within the prescribed period as above.
42. Continous Supply of Service Continuous supply of service’ means any service provided or to be provided for a period exceeding three months [Rule 2(c) of Point of Taxation Rules, 2011]. Following services have been notified as “continuous supply of services” in terms of clause 2(c) of the rules vide notification No. 28/ST-2011 dated 01.04.2011: (a) Telecommunication service [65(105)(zzzx)] (b) Commercial or industrial construction [65(105)(zzq)] (c) Construction of residential complex [65(105)(zzzh)] (d) Internet Telecommunication Service [65(105)(zzzu)] (e) Works contract service [65(105)(zzzza)]
44. For e.g. As per the contract the milestone for payment is 30th of every month provided 5 slabs are completed. The work was allotted on 1st April and only two slabs were completed by 30th April. Will the POT arise for work done till 30th April, 2011.
45. Suggested Milestone:- 90% of the Contract Price along with Service Tax shall be paid on pro-rata basis against monthly progressive Quantity Abstract within 21 days after receipt of certified Qty Abstract from the company’s engineer subject to the following:- The abstract shall be prepared on the basis of the cumulative Works/ Facilities completed till the end of the particular month (on 100% Contract Value basis). Payment shall be made after certification of abstract upon submission of the following documents: i) Invoice (clearly indicating cross referencing the Contract Item no.). Invoice should contain the Service Tax Number and Income Tax PAN number. ii) Inspection release note. iii) Measurement sheets duly certified by Employer's Project Manager. iv) Free issue material reconciliation statement.
46. Circular Dated 18th July, 2011 Clarification on “Completion of service”- Service is complete not only upon providing the same but also the completion of all other auxiliary activities that enable the service provider to be in a position to issue the invoice. Such auxiliary activities could include activities like measurement, quality testing etc which may be essential pre-requisites for identification of completion of service. However such activities do not include flimsy or irrelevant grounds for delay in issuance of invoice.
47. What will happen to Retention Monies? Is there any way out to prevent payment of service tax on the same?
48. Non-receipt of Payment X Pvt Ltd completed the services to the client on 30th Sept, 2011. Final RA bill of Rs.50 Lacs has been raised. Due to some dispute, payment of only Rs. 10 Lacs was made. The chances of getting the balance amount is very less.
49. Bad Debts Letter No. 341/34/2011 dt. 31st March, 2011 categorically states that bad debts can-not be claimed as adjustments. “If the invoice is renegotiated due to deficient provision or as per change in terms, the tax will be payable on revised amount. However no concession is available for bad debts” Rule 6(3) of Service Tax Rules.
50. Pain of Taxation Rules Cenvat Credit shall be allowed on booking basis, provided payment is made in 90 days. Associated Enterprise – Date of Credit in books of service receiver / Date of Payment, whichever is earlier. Existing contracts to be covered under POT Rules from 1st July, 2011.
53. Chronology of Judgements Karnataka High Court - K Raheja - 2006 Allahabad HC - Assotech Reality – 2008 (Set Aside by SC) Advance Ruling – Hare Krishna - 2008 Guwahati HC – Magus Construction Pvt Ltd – 2008 CBEC Circular Dated 29.1.2009
54. Well, it all began with verdict of Hon' Karnataka High Court in the matter of K Raheja Corporation wherein the facts were as follows:- Builder entered into two separate agreements with the customers, one for construction and the other for sale of undivided share of land. The words used in the Agreement for Construction were that the agreement is for construction as a developer on behalf of the allottee. Section 2(1)(v-i) of Karnataka Sales Tax Act stated that 'works contract' includes any agreement for ………….carrying out the building, construction……of any movable or immovable property. It was thus interpreted by court that the property in the goods passed by accession during the construction. Hence it was held as "Works Contract" and not a contract of sale. It may be noted that under a Contract of sale the property is transferred after the construction.
55.
56. Service tax levied on consideration earned by developer • Prior to amendment in 2010, concept of ‘self-service’ existed “construction of a complex (a new building) - intended for sale, -before, during or after construction (except in cases for which no sum is received from or on behalf of the prospective buyer by the builder before the grant of completion certificate by the competetent authority) shall be deemed to be service provided by the builder to the buyer” Abatement scheme for builders also introduced. Option to pay Service tax at the applicable rate on 25% of the Agreement value, provided no deduction of land is availed and no CENVAT credit is claimed
57. IV – Transitional Provisions on 1-7-2010 Date of booking is not relevant. Date of provision of service is relevant as provision of service is the taxable event. Hence, if construction service is provided after 1-7-2010, service tax will be payable. If construction is complete before 1-7-2010 even if completion certificate is not received, no tax is payable, as service tax is on provision of service, provided the facts can be made clear from books of accounts. In case of payments received prior to 1-7-2010, as per Notification No. 36/2010-ST dated 28-6-2010, if any advance payment was received prior to 1-7-2010, for service to be provided after 1-7-2010, service tax was made fully exempt.
58. IX – Challenging the constitutional Validity The amendment in Finance Act, 2010 which brought the deeming fiction with regard to service tax on construction of residential complex was stayed by the high court of Mumbai in case of Maharashtra Chamber of Housing Industry. An interim stay was granted on the grounds of constitutional validity. The judges ruled that “ No coercive steps will be taken against the developers for recovery of service tax in relation to the provisions in question”. Similar order were passed in writ petetions filed by DB Reality Ltd vs UOI (2011) 30 STT 110 (Bom HC DB) / Mighty Construction vs UOI and May fair Housing. It may be noted that the stay is limited only for the coercive action for recovery. However in GS Promoters v. UOI (2011) 8 taxmann.com 271 = 30 STT 268 = 37 VST 272 (P&H HC DB), validity of the amendment has been upheld.
59.
60.
61. Other points – Con. Of Complex Parking Slots or Garage of Properties - Along with the apartment or flat, builders also sell parking slots to buyers. No service tax would be applicable for the amount paid for such parking slots. Preferential Location Services - Builders many times will build internal roads, pavements, or maintain gardens for the development of the property complex. Such services would attract a service tax. Also any additional amount paid for a floor rise, an apartment with a specific number or a specific direction, apartment facing either a park, pool or sea , would cost the buyer a service tax. Poser No. 8
62. Exemptions under Service tax for the construction sector SEZ Export of services Road (Repair?) Airport Port Bridges, Tunnels, Railways Services to government
63. Exemptions… Construction service is taxable only if it is ‘commercial or industrial’. Non-commercial construction like construction for Government, non-profit organisations like Educational Institutions, religious places etc. is not taxable. Construction services provided in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams have been excluded from definition of construction service itself. Construction services provided within SEZ to SEZ unit or SEZ developer are exempt vide Notification No. 17/2011-ST dated 1-3-2011 (Earlier Notification No. 9/2009-ST dated 3-3-2009). Construction of residential complex service provided to Jawaharlal Nehru National Urban Renewal Mission and Rajiv AwaasYojana is fully exempt from service tax [Notification No. 28/2010-ST dated 22-6-2010].
64. Construction vs Repair of Road 16/6/2005 - Services relating to maintenance or management of immovable property have also been covered under the purview of service tax. Several demands were raised on contractors involved in road repair work. In the latest Circular - No. 110/4/2009-ST Dated: February 23, 2009, the Board had clarified that repair of roads' is taxable.
65. Judgement from Vizag APPEAL NO.5/2008(V-I) S.Tax Dated: 16.03.2009 ORDER-IN-APPEAL NO.27/2009(V- I) ST PASSED BY Shri P.J.R. SEKHAR, I.R.S., COMMISSIONER (Appeals), VISAKHAPATNAM ] Construction vs Repair of Road
66. Construction vs Repair of Road Commercial and Industrial construction - includes a)construction, b) completion and c) finishing and d) repair, alteration, renovation or restoration The definition itself specifically excludes such services provided in respect of roads. From the above it is evident that not only construction services but also repair services provided in respect of roads are exempted from tax. Though the same may also fall under management, maintenance or repair service in terms of Section 65(64) of the Finance Act, 1994, In view of specific exclusion of repair services provided in respect of roads under Section 65(25b) of the Finance Act, 1994 the same can not be subjected to any tax.
67. Construction vs Repair of Road EXEMPTION TO MAINTENANCE OF ROADS NOTIFICATION NO. 24/2009 - SERVICE TAX, DATED 27-7-2009 Exemption of taxable services provided to any person by any other person in relation to management, maintenance or repair of roads However from 2005 – 2009 the disputes are still going on?
70. Earlier, Department had clarified that a service provided to person in same category is not taxable e.g. service provided by architect to another architect, as the principal person providing service is liable to pay tax. However, service tax would be required to be paid in case of sub-contracting to a different service category e.g. architect providing service to consulting engineer. These circulars have been withdrawn vide Para 6 of CBE&C Circular No. 96/7/2007-ST dated 23-8-2007.
71. Subsequent view of department In supercession of the earlier circulars, CBE&C, vide circular dated 23-8-2007 has clarified that a sub-contractor is also a taxable service provider. Circular dated 23-8-2007 stated as follows - In a case where the builder engages a contractor for construction , the contractor in his capacity as a taxable service provider (to the builder / promoter / developer / any such person) shall be liable to pay service tax on the gross amount charged for the construction services under ‘construction of complex’ service [section 65(105)(zzzh)].
72. Also recent circular in response to an application made by Jaiprakash Associates issued in May, 2011 Issues :- a) Applicability of ST on sub-contracts of various nature , when main contract is exempted /excluded from preview of services. b) Can a principal contractor take responsibility of tax payment and ask sub contractors not to charge ST ? Service tax is, therefore, leviable on any taxable services provided, whether or not the services are provided by a person in his capacity as a sub-contractor and whether or not such services are used as input services. The fact that a given taxable service is intended for use as an input service by another service provider does not alter the taxability of the service provided.
73. No clarification about situation where sub-contractor providing construction service itself – The aforesaid circular does not talk about a situation where the sub-contractor provides construction service itself. However, it is possible that at lower level, over zealous officers may take a stand (by misinterpreting the circular), that sub-contractor is liable to service tax even in cases where he provides construction service. This will indeed open a Pandora’s box.
74. Poser M/s ABC has got a road contract of Rs. 100 Lacs from Govt of Goa. The work is subletted to M/s CBA. M/s CBA does not charge service tax on the presumption that work done by sub-contractor still continues to be ‘road or bridge construction service’ and hence should be outside the service tax net. Service Tax department has levied service tax demand stating that the relationship between the contractor and that of sub-contractor is commercial in nature. Will Service tax be levied on the same?
75. Construction of Government or educational building continues to be construction of Government or educational building whether done by contractor or sub-contractor. In fact, para 4 of the CBE&C circular No. 138/7/2011-ST dated 6-5-2011 specifically states that service provided by the sub-contractors/consultants and other service providers are classifiable as per section 65A of the Finance Act under respective clause of sub-clause (105) of section 65 of Finance Act, 1994.
76. Services provided in SEZ by sub-contractor to main contractor Issue relating to construction service provided sub-contractor in SEZ is more complicated. Exemption Notification No. 17/2011-ST dated 1-3-2011 (relating to SEZ) reads as follows – In exercise of the powers – the Central Government, - - , hereby exempts the taxable services specified in clause (105) of section 65 of the Finance Act, chargeable to tax under section 66 or section 66A of the Finance Act, received by a Unit located in a Special Economic Zone (hereinafter referred to as SEZ) or Developer of SEZ for the authorised operations, from the whole of the service tax, education cess and secondary and higher education cessleviable thereon.
77. As per second proviso to rule 10 of SEZ Rules amended w.e.f. 3-2-2009, the exemptions, drawbacks and concessions on goods and services allowed to developer or co-developer will also be available to contractor or sub-contractor appointed by such developer or co-developer. All documents shall bear name of developer or co-developer along with contractor or sub-contractor and shall be filed jointly. Thus, services provided to contractors for ultimate use of developer should also be exempt. However, this proviso applies only in respect of SEZ Developer and co-developer and not in respect of SEZ units manufacturing or providing services.
78. Meaning of ‘received by SEZ Unit or SEZ Developer’ The SEZ Exemption notification uses the term ‘received by SEZ Unit or SEZ Developer’. The notification does not use the words ‘directly received by SEZ Unit or SEZ Developer’. Thus, even if the service is provided by sub-contractor, ultimately it is ‘received by SEZ Unit or SEZ Developer’. 4.3 Only one deemed sale and one taxable event even when work is done by sub-contractor In Larsen & Toubro Ltd. v. State of Andhra Pradesh (2006) 148 STC 616 (AP HC DB), L&T were main contractors. L&T had given various work to others on sub-contract basis. Contractee (Principal) had no agreement with sub-contractors and there was no legal relationship between contractee (Principal) and sub
79. Conclusion If the main contractor providing construction service which is not subject to service tax (as construction is non commercial or is relating to roads, bridges etc.) the sub-contractor providing construction service itself would not be liable but other service providers would be liable. If main contractor is providing construction service within SEZ, sub-contractor can claim exemption on the basis that (a) service is eventually received by SEZ Unit or Developer (b) SEZ Rules have overriding effect (c) Rule of purposive construction. If the construction service is a taxable service, sub-contractor is liable to service tax even if service tax has been paid on entire contract value by main contractor. If contract is given on sub-contract basis, and the service is taxable, it is not advisable for main contractor to pay service tax under 33% abatement scheme, as he cannot avail any Cenvat credit. It is advisable to make disclosure to department to avoid charge of suppression of facts and wilfulmis-statement.
80. At this Point in time, the question is whether the charge of VAT and service tax shall be overlapping. The matter to a certain extent has been settled by the SC Judgement in IMAGIC CREATIVE PVT LTD Vs COMMISSIONER OF COMMERCIAL TAXES Appeal (civil) 252 of 2008 wherein it has been held “28. Payments of service tax as also the VAT are mutually exclusive. Therefore, they should be held to be applicable having regard to the respective parameters of service tax and the sales tax as envisaged in a composite contract. It may consist of different elements providing for attracting different nature of levy. It is, therefore, difficult to hold that in a case of this nature, sales tax would be payable on the value of the entire contract; irrespective of the element of service provided.“ Poser No. 10