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• Residential properties having a carpet area above 2000 sq. ft. and where the amount charged is equal to or more than Rs. 1 crore,
• Commercial properties. This notification is applicable from 1st March, 2013.
All the PTRC and PTEC holders are requested to fill the details in “Profession Tax Information Form” and upload the form on website www.mahavat.gov. in . Detailed procedure is explained in the circular.
Remaining processes of obtaining registration/ enrolment such as verification of documents, etc. will remain the same. Manually filled forms will not be accepted on or after 1st April 2012 except for non-resident employer/person and Government departments. Procedure for online application has been explained in the Circular.
The Committee has been instructed, as a part of the review, to
(a) evolve a scientific approach for the fixation of rates in the schedule of rates for service tax refund; and
(b) propose a revised schedule of rates for service tax refund, taking into account the revision of rate of service tax from 10 to 12% and also movement towards ‘Negative List’ approach to taxation of services. The Committee will submit its report before 20-6-2012. Views and suggestions may be posted at the e-mail address: feedbackonestr@gmail.com.
Thus the service tax shall be charged @10% subject to applicable exemptions plus cesses in case of tickets issued before 1-4-2012 when the payment is received before 1-4-2012. In case of sales through agents (IATA or otherwise including online sales and sales through GSA), when the relationship between the airlines and such agents is that of principal and agent in terms of the Indian Contract Act, 1872, the payment to the agent is considered as payment to the principal.
Accordingly, as per Rule 4(b)(ii), the point of taxation shall be the date of receipt of payment or date of issuance of invoice, whichever is earlier. However, to the extent airlines have already collected extra amount as service tax and do not refund the same to the customers, such amount will be required to be paid to the credit of the Central Government u/s.73A of the Finance Act 1994 (as amended).
It is also provided that where registrations have already been obtained under the description ‘All Taxable Services’, the taxpayer is required to file amendment application online in ACES and opt for relevant description/s from the list of 120 descriptions of services given in the Annexure.
It is further clarified that for a transaction to be regarded as “transfer of right to use goods”, the transfer has to be coupled with possession. Court rulings have upheld that when the effective control and possession is with the supplier, there is no transfer of right to use. It is a service of preparation of a place to hold a function or event & effective possession and control over the pandal or shamiana remains with the service provider, even after the erection is complete. Accordingly, services provided by way of erection of pandal or shamiana would attract the levy of service tax.
Trade Cir. No 1T of 2013 dated 4-1-2013 It has been clarified that the developers who have obtained registrations up to 15th October 2012, filed returns and paid taxes due up to 31st October 2012 and who file the audit reports in Form 704 on or before 15th January 2013 for all the past periods i.e. from 2006-07 to 31-3-2012 shall not be subjected to penalty u/s 61(2) of MVAT Act, 2002. It has also been clarified that the audit report u/s. 61 in Form no. 704 for all periods up to 2011-12 is to be filed electronically.
Circular No.166/1 /2013 –
ST It is clarified that reminder letters/notices being issued to the life insurance policyholders to pay renewal premiums are not invoices within the meaning of Rule 4A of the Service Tax Rules, 1994 and consequently, no tax point arises on account of issuance of such reminders and hence, it would not invite levy of Service Tax.
With reference to a complex where air -onditioned as well as non-air conditioned restaurants are operational but food is sourced from the common kitchen, it is clarified that services provided in relation to serving of food or beverages by a restaurant, eating joint or mess, having the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year attracts service tax. In a complex, if there is more than one restaurant, which are clearly demarcated and separately named but food is sourced from a common kitchen, only the service provided in the specified restaurant is liable to service tax and service provided in a non air-conditioned or non-centrally air- heated restaurant will not be liable to service tax. In such cases, service provided in the non air-conditioned /non-centrally air-heated restaurant will be treated as exempted service and credit entitlement will be as per the Cenvat Credit Rules.
With reference to a hotel, if services are provided by a specified restaurant in other areas e.g. swimming pool or an open area attached to the restaurant, it is clarified that services provided by specified (i.e. only which are covered as taxable) restaurant in other areas of the hotel are liable to service tax.
With reference to whether service tax is leviable on goods sold on MRP basis across the counter as part of the bill/invoice, it is clarified that if goods are sold on MRP basis (fixed under the Legal Metrology Act), they have to be excluded from total amount for the determination of value of service portion.
Tax Research Unit of CBEC has issued clarification circular in respect of taxability of services provided to educational institutions. The Circular is broadly based on the clause (I) of section 66D of the Finance Act and the Mega Exemption Notification No.25/2012-ST dated 20th June, 2012. Circular notes that there are many services provided to an educational institution which are described as auxiliary education services and they have been defined in the exemption itself. It is clarified that such services provided to an educational institution are exempt from service tax. For example, if a school or a college hires a bus from a transport operator in order to ferry students to and from school or college, the transport services provided by the transport operator to the school are exempt by virtue of the specific notification. Similarly, services in relation to hostels, house–keeping, security services, canteen etc shall be exempt from levy of service tax.
Exemption for Uttarakhand Viewing recent natural calamities occurred in the State of Uttarakhand, the Central Govt. vide this Exemption Order has exempted the taxable services namely (a) Renting of a rooms in a hotel, inn, guest house, club, camp site or other commercial place meant for residential or lodging purposes ; and (b) Services provided in relation to serving of food or beverages by a restaurant, eating joint or mess from the whole of the Service Tax leviable thereon during the period from 17th September, 2013 to 31st March, 2014.
(1) Every person who wishes to make a declaration under the Scheme shall take the registration, if not already registered;
(2) The declaration shall be made in respect of Tax Dues under the Scheme in Form VCES-1;
(3) Designated Authority shall issue an acknowledgment in Form VCES-2 within a period of seven working days;
(4) The tax dues shall be paid to the credit of Central Government. However, CENVAT Credit cannot be utilised for payment of service tax under this Scheme;
(5) Designated Authority shall issue an acknowledgment of discharge in Form VCES-3, within a period of seven days from the date of furnishing of details of payment of tax dues in full along with interest, if any.
(6) Beside interest and penalty, immunity would also be available from any other proceeding under the Finance Act, 1994 and Rules made thereunder.
(7) Tax dues in respect of which any show cause notice or order of determination u/s. 72, section 73 or section 73A has been issued or which pertains to the same issue for the subsequent period are excluded from the ambit of this Scheme.
VAT UPDATE
Furnishing Cloth exempted in the course of intere state sale :
CST Notification No. CST /1413/CR 48/Taxation -1 . Dated 30.03.2013
By this notification, sale of furnishing cloth notified under Schedule Entry C-101 of MVAT Act, 2002 , made exempt in the course of interstate sale from CST with effect from 01-04-2013.
By this Notification the existing Notification No. 26/2012 ST dated 20-06-2012 has been amended to remove the ambiguity prevailing on the rate of abatement of service tax on construction of residential units, to provide the rate of abatement in the case of construction of a complex, building, civil structure or a part thereof in the following manner:
(a) Service tax has to be paid on 25% value of a residential unit if the following two conditions are fulfilled cumulatively : (i) the carpet area of the unit is less than 2,000 sq. ft.; and (ii) the amount charged for the unit is less than Rs. 1 crore;
(b) In other cases, service tax will be paid on 30% of the value of a complex, building, or civil structure.
It is also reconfirmed that the above abatement would be available only if the (1) CENVAT credit on inputs used for providing the service has not been availed & (2) the value of land is included in the amount charged to the Service recipient.
The above referred date has been extended from 25th April, 2013 to 31st August, 2013.
To promote exports from India, the Government of India had announced certain schemes like Focus Market Scheme, Focus Product Scheme and Vishesh Krishi and Gram Udyog Yojana under the Foreign Trade Policy. Under these schemes, export incentives are allowed to eligible exporters in the form of duty credit scrip at prescribed percentage of the value of goods and services exported.
Vide these notifications, exemption has been provided to services provided or agreed to be provided against duty credit scrip by a person located in taxable territory to a scrip holder subject to certain conditions specified therein.
These duty credit scrips were earlier used only for procuring duty free goods from overseas or domestic market subject to available duty credit. However, now these duty credit scrips can be used for payment of service tax on procurement of services within the legal framework of the aforesaid service tax exemption notifications. Further, a holder of the scrip shall be entitled to avail of drawback or CENVAT credit of the service tax debited in the scrips as per the rules specified in the aforesaid notifications.
MVAT UPDATE
Mvat Notifications
Notification No. VAT-1513/CR-46(1)/Taxation-1 dated 30-03-2013
Vide this notification various amendments have been effected in Schedules A, B, C and D with effect from 01-04-2013.
Notification No VAT.1513/CR 46(7)/Taxation -1 dated 04-04-2013
By this notification, MVAT rate has been increased from 1% to 1.1% for sale of diamonds, articles made of precious metals and precious metal for the financial year 2013-2014. For pearls, precious stones and semiprecious stones, the MVAT rate continues to remain at 1%.
LA BILL XI OF 2013
Introduction of Maharashtra Tax Laws [Levy and Amendment] Bill, 2013, thereby providing amendments to the Maharashtra Stamp Act, the Maharashtra Value Added Tax Act, 2002 and the Maharashtra Tax on Lotteries Act, 2006.
Accordingly, COS would not just mean physical completion of work, but would also include completion of some other auxiliary activities and basic formalities like quality testing, etc. which are pre-requisites to arrive at the invoiceable figure.
For the year 2011-12, due date for payment of Profession Tax has been extended from 30th June, 2011 to 31st August, 2011 for the tax payable by an enrolled person who has already enrolled on or before 31st May, 2011.
By this Notification, three more banks, namely, Oriental Bank of Commerce, Vijaya Bank and Andhra Bank have been added to collect MVAT & CST w.e.f. 22-7-2011.
By this Circular it is clarified that Profession Tax is not applicable to Mathadi Mandal, Mathadi Kamdar and Hamal.
