Indirect Taxes

Service Tax Updates

42. Amendment under 
Exemption Notification 25/2012 dated 20.06.2012

Notification No. 17/2017-ST dated 04. 05. 2017

CBEC expanded the list of exemption granted life insurance
schemes so as to include “Pradhan Mantri Vaya Vandana Yojana” as a scheme
on which no service tax would be payable. 

Circular No. 206/4/2017-Service Tax dated

13.04.2017

CBEC has clarified on the issue of levy of service tax on the
services provided by a person located in non-taxable territory to a person
located in non-taxable territory by way of transportation of goods by a vessel
from a place outside India to the customs station in India. It has been
clarified that –

a.  Service tax @ 1.4% (alongwith applicable
Swachh Bharat Cess and Krishi kalyan Cess) on value of imported goods as
determined u/s. 14 of the Customs Act, 1962 and the rules made thereunder;

b.  The option of payment of service tax by
availing abatement benefit @ 70% value of services of transportation of goods
as specified under notification 26/2012 dated 20.06.2012 is not available as
the conditions cannot be fulfilled by the foreign shipping lines.

MVAT Updates

43. Distribution of GST Provisional Ids and Access Tokens of
Phase 4 dealers

Trade Circular 12T of 2017 dated 25. 04. 2017

GST Provisional Ids and Access Tokens for dealers who are
newly registered before 31.03.2017, dealers whose RCs are restored before
31.03.2017, dealers whose PANs amended in Mahavikas database before 31.03.2017  are made available. Details and steps are
explained in this Circular.

44. Amendments to Profession Tax Act, Rules and Notifications
issued thereunder

Trade Circular 13T of 2017 dated 26. 04. 2017

–   Employers who file returns along with payment
of tax for any of the periods upto the 31. 03. 2017 on or before 30. 09. 2017
are exempt from whole of late fees.

–  New Schedule Entry  1A is inserted for insurance company
registered under IRDA  and is liable to
deduct the profession tax of Rs.2,500/- per anum per person from the commission
payable to chief agents, principal agents, insurance agents  and surveyors 
and loss assessors registered  or
licensed under the Insurance Act,1938. 

–  Interest rate revised from 105 2017 is
prescribed.

45. Corrigendum to Trade Circular 9 T of 2017  dated 01. 04. 2017

Trade Circular 14T of 2017 dated 26. 04. 2017

Exemption from payment of late fees u/s. 20(6) of the MVAT
Act, 2002  :

New dates mentioned to file returns: For the month of March,
2017 upto 03. 05. 2017, For quarter Oct-2016 to Dec-2016 upto 29. 04. 2017
and  For quarter Jan-2017 to March-2017
upto 15. 05. 2017 without late fees.

46. Remission of Interest u/s. 30(1) for the dealers who have
failed to obtain registration within time

Notification VAT-1517/C.R43(C)/TAXATION 1 dated 19. 04. 2017
and

47. Conditional remission in interest payable as per section
30(1) by un-registered dealers 

Trade Circular 15T of 2017 dated 26. 04. 2017

Notification issued for Interest waiver for late payment of
tax due to technical problems in the MSTD’s automation system and the dealers
who have obtained registration late. Procedure explained in detail in the Trade
Circular.

48. Guidelines regarding Cross Checking of Input Tax Credit
(ITC)

Trade Circular 11A of 2017 dated 03. 05. 2017

Guidelines regarding cross checking of Input Tax Credit (ITC)
for FY 2013-14, 2014-15, 2015-16 issued and procedure explained in this
Circular.

49. Exemption  from
late fee for filing the returns for FY 2016-17

Trade Circular 16T of 2017 dated 17. 05. 2017