Rema
10 July 2010 at 19:22
In a composite works contract executed in the year 2006-07, the Contractor, here the service provider has given the entire labour portion to a sub-contractor. To him his Taxable Service value is equal to the sub-contract labour paid plus Gross Profit. He computed the Turnover in that manner and submitted ST return. The VAT payment was made for the whole contract by Compounding method at concessional rate of tax under the state VAT Act. During the period, the Service Tax was paid under the head "Installation errection .... " at the relevent full rate of tax. The works contract compounding method under Service Tax was not introduced during 2006-07.
With respect to the Service portion, the entire labour has been given to one subcontrator. That means the service portion is known.
Now Show-cause notice has been given to pay service tax on the entire turnover on 33% of the total receipt at the rate applicable to the relevant years. Was he right when he paid tax on the Service portion only and VAT payment was made on the entire turnover?
One important point here is, in the Show cause notice hearins stage he could produce the Material transfer Invoices and service charge invoices for the contracts .If so, is he eligible for exemption on the material transfer value on the basis of Exemption circular under Service Tax?
Rema
Umesh
05 July 2010 at 17:58
Dear Sir/ Madam,
A property under redevelopment fetches Rs 100 per member.Of which Rs 30 is corpus and the balance is Rs 70 that is the rent component spread over 3 years for the rehabilitation that the flat owners will have to manage with.
a)Since the Rs 30 is given in lieu with a
vision that the tax rates/ maintenance
will be higher once the owners move
into the new construction, should it
be in the first place considered as a
source of income and taxed as it bound
to perish and hence is an estimated
expense?
b) Wrt Rs 70, why would this attract tax
if its a provision paid in advance and
will be distributed over the 3 years?
In any and both the cases mentioned,there is no gain at all and hence the capital tax gain or short term tax again should not be applicable as there is no sale of plot/propert at all.Its purely a trade-off and I will seek your expert advice in this case as we are undergoing a circustance quoted above.
Thanxking You'll in Advance
Narayanarao Murali
23 June 2010 at 16:24
In India though VAT has been introduced still aged old Sales Tax Acts/Rules are followed by and large. The Sales Tax department have not geared up understand the rapid technological development. Still they say organic manure is only Farm Compost. But by industrial process by fermentation method they are not considering the item as Organic manure and terming it as Organic fertilizer and claiming 4% VAT from Manufacturers, who are helping Govt.of India, to some extent in reducing Chemical Fertilizers draining out foreign exchange. At the same time the Indusries who manufacture Organic Manure through Indl.process (as per Tax authorities:Organic fertilizer) are not eligible for any subsidies from Central/State Government and only discouraging technogical development in India with age old knowledge. At the same time Department of Biotechnology, Ministry of Agriculture, Ministry of Chemicals and Fertilisers are also not taking any action to solve the problem of frequent harassment from respective Local Sales Tax authorities demanding Sales Tax and threatening to levy penalty,interest. Is there any way.If we have to approach Tribunals and Courts the industrialists are
asked to deposit 25% or 50% before going for appeal. There is again confusing in advance ruling and appellate authorities also.Please suggest a solution.
Ram
21 June 2010 at 21:54
dear sir,
my clients are dealers in sales and service of motor cars. in the case of painting of cars they adopt a method of adding 25% Gross profit to purchases to arrive at the taxable turnover. the officer claim the method is not acceptable.
i had gone through a case long back where it was held by court that such method of adding GP to purchases in works contract was acceptable. but i have not noted the citation. any body having the same pls post it at the earliest. with that decided case i can make my case stronger
regards
ram
Anonymous
15 June 2010 at 12:20
My quiry is in rescwept of claim u/s 80IB. Manufacturing unit in centraly notigfied backward area/ SURENDRANAGAR/ STATE OF GUJARAT. All conditions are fulfiled for elegibilty of claim except the "investment in Plant & Machinery with exceed Rs 1 crore. This was notified by notification no SO 857(E) dt. 10/12/1999 as per section 11B of Industries (Devcelopment and Regulation) Act 1951
Now after enactment of MICRO, SMALL AND MEDIUM ENTERPRISE ACT 2006 the unit are prescribed as small enterprise up to investment of rs 5 crore. The Central Government in excessice of powers conferred by sec.cl.(1) of sec 7 of MSMED Act 2006 notification no SO 1642(E) clarified the limits the considering SSI unit need to comply provision of MSMED Act 2006 only and had supersided the earlier requirement u/s 11B of Industries (Development and Regulation) Act 1951.
Please i solisite expert openion wheather the unit will eligible u/s 80IB of I T Act 1961 r/w (g) of cl.(14) of sec. 80IB.
vijay dhiman
14 June 2010 at 18:32
wht is the procedure of medical exemption granted to a hospital income tax act u/s 17(2)(ii)(b)
Anonymous
10 June 2010 at 13:24
Can Anybody tell me the rate of entry tax on WELDING ELECTRODES in Madhya Pradesh
Mitesh Agrawal
PRATEEK GOYAL
05 June 2010 at 15:35
Whether loan documentation and evaluation services provided by DSA/DMA of Banks falls under BAS or it falls under BSS. Also whether these services would not get benefit of basic exemption under notification 6/2005, being branded service. A quick response from Experts is eagerly awaited.
Also please quote the relevant citation, if any, on this matter.
Thanks in advance.
n v sudhakar
04 June 2010 at 11:58
Ours is a service industry registered under Service tax. While providing services to our clients we use some packing material. To save cost, we procured a corrugated manufacturing machine, and making corrugated cartons on our own by buying craft paper. While billing to our clients we do not show packing material cost separately i.e, our billing includes packing material cost. we are paying required service tax on these billings.
Now the query is whether the above comes under manufacturing and whether we need to take central excise licence and pay excise duty? If yes, how to calculate the assessable value. Again if yes, whether we need to pay both central excise and service tax on a single service?
N V SUDHAKAR
© 2024 LAWyersclubindia.com. Let us grow stronger by mutual exchange of knowledge.
Cess on Purchase (Navi Mumabi)
Dear Sir,
plz let me know about cess on purchase in navi mubai corporation ltd.