SERVICE TAX by s.jaikumar advocate

Basic Features Statutory provisions. Levy on service provider - Exceptions. Levy on realisation.

Classification of Service Specific description than general description. Essential character. Which occurs first in the definition.

Valuation… Gross amount. Cum - tax. Abatements. Notification 12/2003.

Valuation… Services rendered free. Consideration in kind. Reimbursement of expenses. Upto 18.04.2006 – No liability. Judgements and circulars. From 19.04.2006 – Concept of pure agent. Malabar Management Services VS CCE 2008(9) STR 483

Proceedings in Service Tax Issue of show cause notice. Adjudication. Appellate remedies. Commissioner (Appeals) CESTAT High Court / Supreme Court

Procedures in Service Tax… Registration – Centralised Registration. Issue of invoice. Maintenance of records.

Procedures in Service Tax. Payment of service tax. - Due date. - Advance payment. - e payment. - Self adjustment – if service not rendered. - Provisional payment. - Self adjustment of excess payments. Filing of return – ST 3. - Due date / Half yearly. - Revised return. - Fine for delayed return.

Penalties in Service Tax. Sec. 76 – Delayed payment of S.Tax. Sec. 77 – General Penalty. Sec. 78 – Suppression, etc. Sec. 80 – Power of waiver. Rule 7 C – Fine for delayed return.

Certain important services.

Business Auxiliary Service. Promotional activities. Customer care services. Procurement of goods or services. Production or processing. Provision of service on behalf of client. Manufacture – excluded. Notification 8/2005.

Commercial / Industrial construction Service. Exclusion for roads, airports, railways transport terminals, bridges, tunnels, dams and ports. 67 % Abatement.

Construction of Residential Complex Service. More than 12 units.. Personal use - exempted.

Consulting Engineering Service. Foreign Technological transfers. Novinon Ltd. VS CCE 2006 (3) STR 397 To cover software too. Customs House Agents Service.

Erection, Commissioning and Installation Service. Franchise Service.

Intellectual Property Service. Management Consultant Service. Manpower recruitment / Supply agencies.

Goods Transport Agency Service. Reverse Charge. Abatement. Exemption. Payment mode. No SSI exemption.

Renting of immovable property. Support Services for business.

Works Contract Service. Re-classification. Composition Scheme. Vice of Notification 1/2006. Diebold Systems (P) Ltd Vs CCE 2008 (9) STR 546. Air Liquide Engg. India (P) Ltd. Vs CCE 2008 (9) STR 486.

Sale Vs Service. S.No Citation Decision 1 BSNL Vs UOI – 2006 (2) STR 161 SC It has been held that the sale value of goods shall not be subjected to the levy of service tax. 2 Idea Mobile Communications Limited VS CCE – 206 (4) STR 132 Tri – Bang Levy of sales tax and service tax are constitutionally mutually exclusive. 3 BPL Mobile Communications Limited VS CCE – 2007 (7) STR 440 Sale of SIM cards is sale and sales tax is paid. Hence service tax is not payable. 4 Imagic Creative (P) Limited Vs CCE – 2008 (9) STR 337 SC Service tax and VAT are mutually exclusive. 5 Thermax Limited Vs CCE – 2007 (8) STR 487 Service tax not leviable when sales tax is paid.

Small Scale exemption. Threshold limit. Conditions.

Commercial Concern Vs Any person.

Export of Service and Import of Service.

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