Posts Tagged ‘Service Tax’


Circular No.165/16/2012 –ST, F.No.341/21/2012-TRU, dated 20th November, 2012

Negative List based comprehensive approach to taxation of services came into effect from the first day of July, 2012. Accounting code for the purpose of payment of service tax under the Negative List approach [“All Taxable Services” – 00441089] was prescribed vide Circular 161/12/2012 dated 6th July, 2012.

2. Subsequent to the issuance of the Circular, suggestions were received from the field formations that the service specific old accounting codes should be restored, for the purpose of statistical analysis; also it was suggested that list of descriptions of services should be provided to the taxpayers for obtaining registration. These suggestions were examined and a decision has been taken to restore the service specific accounting codes. Accordingly, a list of 120 descriptions of services for the purpose of registration and accounting codes corresponding to each description of service for payment of tax is provided in the annexure to this Circular.

3. Descriptions of taxable services given in the annexure are solely for the purpose of statistical analysis. On the advice of the office of the C & AG, a specific sub-head has been created for payment of “penalty” under various descriptions of services. Henceforth, the sub-head “other receipts” is meant only for payment of interest payable on delayed payment of service tax. Accounting Codes under the sub-head “deduct refunds” is not to be used by the taxpayers, as it is meant for use by the field formations while allowing refund of tax.

4. Registrations obtained under the positive list approach continue to be valid. New taxpayers can obtain registrations by selecting the relevant description/s from among the list of 120 descriptions of services given in the Annexure. Where registrations have been obtained under the description ‘All Taxable Services’, the taxpayer should file amendment application online in ACES and opt for relevant description/s from the list of 120 descriptions of services given in the Annexure. If any applications for amendment of ST-1 are pending with field formations, seeking the description ‘all taxable services’, such amendment may not be necessary and the officers in the field formations may provide necessary guidance to the taxpayers in this regard. Directorate General of Systems will be making necessary arrangements for display of the list of 120 descriptions of services and their corresponding Accounting Codes in Form ST-1 and Form ST-2 as may be necessary.

5. Officers in the field formations are instructed to extend necessary guidance to the tax payers regarding the selection of appropriate description of taxable service and facilitate the payment of service tax/cess due under the appropriate accounting code. Trade Notice/Public Notice may be issued to the field formations and tax payers. Please acknowledge receipt of this Circular. Hindi version follows.

Click here > Annexure (nine pages)

Source: Directorate of Service Tax.


ORDER NO: 3/2012, F.No.137/99/2011-Service Tax, dated 15th  October, 2012

In exercise of the powers conferred by sub-rule(4) of rule 7 of the Service Tax Rules, 1994, the Central Board of Excise & Customs hereby extends the date of submission of the  return for the period 1st April 2012 to 30th June 2012, from 25th October, 2012 to 25th November,2012.

The circumstances of a special nature which have given rise to this extension of time are as follows:

a) ACES will start releasing the return in Form ST3 in a quarterly format, shortly before the due date of 25th October, 2012.

b) This will result in all the assesses attempting to file their returns in a short time period, which may result in problems in the computer network and delay and inconvenience to the assesses.

Source: Directorate of Service Tax.


Notification No.  47/2012-Service Tax, F.No 341/21/2012-TRU, dated 28th September, 2012

In exercise of the powers conferred by sub-section(1) read with sub-section (2) of section 94 of the Finance Act 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994, namely:-

1. (1) These rules may be called the Service Tax(Fourth Amendment) Rules, 2012.

    (2)  They shall come into force on the date of their publication in the Official Gazette.

2. In the Service Tax Rules, 1994, in rule 7, in sub-rule(2), the following proviso shall be inserted, namely:-

“Provided that the Form ‘ST-3’ required to be submitted by the 25th day of October, 2012 shall cover the period between 1st April to 30th June, 2012 only.”

Source: Directorate of Service Tax.

 

 

 


Further Clarification – Non-Applicability of Taxable Services in IPCE-Paper 4: Taxation for November, 2012 Examinations

We have received large number of queries from the students with regard to the BoS’ announcement dated 07.07.2012 relating to the non-applicability of taxable services in IPCE-Paper 4: Taxation for November 2012 examinations. In this regard, it is reiterated that the Examination Committee at its 497th meeting held in September, 2012 has decided that students appearing in November 2012 examinations will not be examined with respect to specific services in the area of service tax laws in Part-II Service Tax and VAT of Paper 4: Taxation (IPCE).

Therefore, it is clarified that ALL the taxable services (including the eight (8) services notified earlier by the BOS through its announcement dated 14.09.2011) will not be relevant for November 2012 exams.

It is further clarified that Unit 2 of Chapter 2 : Taxable Services of Part II: Service tax and VAT of Study Material and Practice Manual for Paper 4: Taxation will NOT be relevant for November, 2012 examinations. However, it may be noted that all other chapters of the Study Material and Practice Manual are relevant for November 2012 examination.

Based on the queries received from the students, the following are further clarified:

(i) Negative list of services and other amendments made vide the Finance Act, 2012 are not relevant for Nov 2012 exams.

(ii) Marks distribution between the two parts namely, Part I : Income Tax (50 marks) and Part II: Service Tax and VAT (25 for Service Tax and 25 for VAT) has not changed.

(iii) All the Chapters on VAT including Chapter 5: Input Tax Credit and Composition Scheme for Small Dealers and Chapter 6 : VAT Procedures given in Part II: Service tax and VAT of Study Material and Practice Manual for Paper 4: Taxation (IPCC) are applicable for November 2012 exams.

Director Board of Studies

Click here to download the above Clarification in PDF Format.

Source: The Institute of Chartered Accountants of India.

 

 

 


Further Clarification – Non-Applicability of Taxable Services in Final-Paper 8: Indirect Tax Laws for November, 2012 Examinations

We have received large number of queries from the students with regard to the BoS’ announcement dated 07.07.2012 relating to the non-applicability of taxable services in Final – Paper 8: Indirect Tax laws for November 2012 examinations. In this regard, it is reiterated that the Examination Committee at its 497th meeting held in September, 2012 has decided that students appearing in November 2012 examinations will not be examined with respect to specific services in the area of service tax laws in Paper 8: Indirect Tax Laws (Final Examination).

Therefore, it is clarified that ALL the taxable services (including the thirty two (32) services notified earlier by the BOS through its announcement dated 14.09.2011) will not be relevant for November 2012 exams.

It is further clarified that Chapter 4 : Gamut and Coverage of Taxable Services of Study Material and Practice Manual for Paper 8: Indirect Tax Laws will NOT be applicable for November 2012 exams. However, it may be noted that all other chapters of the Study Material and Practice Manual are relevant for November 2012 examination.

Based on the queries received from the students, the following are further clarified:

(i) Negative list of services and other amendments made vide the Finance Act, 2012 are not relevant for Nov 2012 exams.

(ii) Marks distribution between the three sections viz. Central Excise (40 marks), Service Tax and VAT (40 marks) and Customs (20 marks) has not changed.

Director Board of Studies

Click here to download the above Clarification in PDF Format.

Source: The Institute of Chartered Accountants of India.