Service tax negative concept icai final - Lakshminarayan.G

Your efforts may fail, but never fail to make an effort

1

G.LAKSHMINARAYAN. B.COM, ACA(LLB)

GMR GROUP – Corporate Legal & Indirect Taxation

[email protected]

Mob:9880423839

Service Tax- Negative List concept

(CPE Study Circle meeting at Bangalore Branch of SIRC on 11.07.2012)

SERVICE TAX

Coverage:

What was it up to 30.06.2012

What is it from 01.07.2012

3

SERVICE TAX – NEGATIVE LIST CONCEPT

OBJECTIVE:

To appreciate as to

• What is service

• What is declared service

• What is Negative List

• What is works contract

• What are the exemptions available

• What is reverse charge and sharing of Service Tax

• What is new abatement scheme

• What is Point of Taxation

• What is Place of Provision of Services

UP TO 30.06.2012

No definition for the subject matter “service”

119 and above taxable services

100s of definitions of various taxable services

80 and above Exemption Notifications

Classification problems

100s of circulars to clarify the doubts(whos’?)

Amendment of Registration Certificate for every new and deletion of

services

Dispute on correlation of input vis-à-vis output services

ST-3 Return to cover the details for each category of taxable services

BUDGET 2012 - FM’S SPEECH

158.At the end of June this year, this tax will attain

adulthood by completing 18 years. It is therefore

time toshift gears and accelerate ahead. However,

service tax needs to confront two important challenges

to sustain the journey. These are:

– The share of services in taxes remains far below its

potential. There is a need to widen the tax base and strengthen its enforcement;

– Service Tax law is complex and sometimes avoidably different from Central Excise. We need to bring the two as close as possible in the light of our eventual goal of transition to GST.

I have attempted to address both these issues this year.

• 159. Last year, I had initiated a public debate on the desirability of moving towards taxation of services based on a negative list. In the debate that continued for the better part of the year, we received overwhelming support for this new concept.

• 160. Thus, I propose to tax all services except those in the negative list. The list comprises 17 heads and has been carefully drawn up, keeping in view the federal nature of our polity, the best international practices and our socio-economic requirements.

ON OR AFTER 01.07.2012

Comprehensive approach

Service is defined for the first time

Definitions are minimized

Specific taxation to Negative list concept taxation

Certain activities open for litigation are

declared as services beyond the doubt

Burden of proof of taxability of services on Revenue is minimized

Composition scheme for works contract is done away

Export and Import of services are guided by Place of provision of Services

Rules read with ST Rules.

LEVY

Charging Section 66B:

There shall be levied a tax (hereinafter referred to as the service tax) at the rate of twelve per cent on the value of all services, other than those services specified in the negative list, provided or agreed to be provided in the taxable territory by one person to another and collected in such manner as may be prescribed.

What is Taxable?

All services (Except………………..)

Jurisdiction?

Provided or agreed to be provided in Taxable Territory

Service tax on?

The value of services

WHAT IS SERVICE?

Service means:

any activity

Carried out by a person for another person

For consideration and includes declared services but shall not include

(a) any activity which constitute merely – (i) a transfer of title in goods or immovable property, by way of sale, gift or in

any other manner; or

– (ii) Deemed sale

Works Contract?

– (iii) a transaction in money or actionable claim;

Transaction in money shall not include any activity relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged.

Then can we consider the interest free loan, gift, donation or charity or financial support as a transaction in money?

WHAT IS SERVICE? (b) a provision of service by an employee to the employer in the course of or in relation to his employment;

Reimbursement of expenses to employees?

(c) fees taken in any Court or tribunal established under any law for the time being in force.

Exclusion by explanation

• Functions performed by MP/MLA/Members of Panchayat, Local authority

carrying of the functions of that office

• Duties performed by any person who holds any post in pursuance of provision

of constitution in that capacity

• Duties performed by chair person/Member/Director of a body established by

CG/SG/LA and who not deemed as employee

WHAT IS ACTIVITY?

Not defined and the Dictionary Meaning is”

The condition in which things are happening or being done: there has been a

sustained level of activity in the economy

A thing that a person or group does or has done: the firm’s marketing activities

• Origin:

late Middle English: from French activité or late Latin activitas, from Latin act- 'done', from the verb agere

Carried out by a person:

Requires an action

Even inaction is considered as an action(PASSIVE)

Refrain from an act or to tolerate an act or a situation

WHAT IS SERVICE?

Person is defined now (Section 65B(37)

Person Includes: An Indl, a HUF, a Company, a Society, an LLP, a Firm, an AOP or BOI incorporate or not, Govt, Local authority,

Artificial juridical person not falling in any of the above categories

For Another Person: Should be to a different person

Self services not taxable- Exception;

Unincorporated Assn or body of persons and members are treated as distinct persons

An establishment in taxable territory and other establishment in a non taxable territory are treated as distinct persons

WHAT IS CONSIDERATION?

Consideration: Not Defined in the Act

65B(55) “words and expressions used but not defined in this Chapter and defined in the Central Excise Act, 1944 or the rules made thereunder, shall apply, so far as may be, in relation to service tax as they apply in relation to a duty of excise.'.

Explanation (a) to Section 67

Consideration includes any amount that is payable for the taxable services provided or to be provided - Its an inclusive definition

Section 2(d) of The Indian Contract Act, 1872

Quid pro quo

Consideration may be in money or non monetary

DECLARED SERVICES

• Renting of Immovable Property

• Construction of complex, Building, Civil structure or part thereof and excludes the building or complex sold after obtaining the completion certificate

• Temporary transfer or permitting use or enjoyment of IPRs

• Development, design, programming, customisation, adaptation, up gradation, enhancement, implementation of information technology software;

• agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act;

• transfer of goods by way of hiring, leasing, licensing or in any such manner without transfer of right to use such goods;

• activities in relation to delivery of goods on hire purchase or any system of payment by instalments;

• service portion in the execution of a works contract;

• service portion in an activity wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of the activity.

Why declared services?

DECLARED SERVICES V/S DEEMED SALES

Deemed Sale Declared services Observations

(a) a tax on the transfer, otherwise

than in pursuance of a contract, of

property in any goods for cash,

deferred payment or other valuable

consideration; THE CONSTITUTION

OF INDIA 196

Not a declared services

(b) a tax on the transfer of property

in goods (whether as goods or in

some other form) involved in the

execution of a works contract;

(h) service portion in the

execution of a works

contract;

Only service portion is

taxed under service tax law

(c) a tax on the delivery of goods on

hire-purchase or any system of

payment by instalments;

(g) activities in relation to

delivery of goods on hire

purchase or any system of

payment by instalments;

Only activities in relation

to the delivery of goods is

taxed under service tax law

DECLARED SERVICES V/S DEEMED SALES

Deemed Sale Declared services Observations

(d) a tax on the transfer of the right to use any

goods for any purpose (whether or not for a

specified period) for cash, deferred payment

or other valuable consideration;

(f) transfer of goods by way of

hiring, leasing, licensing or in

any such manner without

transfer of right to use such

goods;

Transfer of goods

without transfer of

right to use them is

taxed under the

service tax law

(e) a tax on the supply of goods by any

unincorporated association or body of

persons to a member thereof for cash,

deferred payment or other valuable

consideration;

Not a Declared

service but a service

itself

(f) a tax on the supply, by way of or as part of

any service or in any other manner

whatsoever, of goods, being food or any other

article for human consumption or any drink

(whether or not intoxicating), where such

supply or service, is for cash, deferred

payment or other valuable consideration,

(i) service portion in an activity

wherein goods, being food or

any other article of human

consumption or any drink

(whether or not intoxicating) is

supplied in any manner as a

part of the activity.

Only service portion

is taxed under service

tax law

NEGATIVE LIST SERVICES

What is Negative List ? 65B (34) “Negative list" means the services which are listed in section 66D;

List of 66D:

WORKS CONTRACT

What is a works contract? Means “a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration of any movable or immovable property or for carrying out any other similar activity or a part thereof in relation to such property.

Service portion in the works contract is declared as a “service” in terms of section 66E of the Finance Act, 1994 (as amended in 2012).

Thus, service portion in works contract is liable to service tax.

Regular Method:

The value of service portion in the works contract is the Gross amount charged for the execution of such works less the value of material supplied and the VAT/CST.

WORKS CONTRACT

Works Contract Valuation: Regular Method (continued)

If the value added tax or sales tax has been paid or payable on the actual value of property in goods transferred in the execution of the works contract, then, such value adopted for the purposes of payment of value added tax or sales tax, shall be taken as the value of property in goods transferred in the execution of the said works contract for determination of the value of service portion in the execution of works contract under regular method.

Abatement Method:

In a scenario where the actual value of material is not ascertainable, the service portion of works contract needs to be ascertained as provided under the Service Tax (Determination of Value) Rules, 2006. In terms of the above Valuation Rules, the value of service portion in works contract is as explained

In the next slide

WORKS CONTRACT

Valuation:

Category of Service Service % in WC Remarks

New Construction

Additions, Alteration to

abandoned or damaged

structures on land to make

them workable

Erection, commissioning or

installation of plant,

machinery or equipment or

structures

40% of Total Value

charged for the

work excluding

VAT/CST

The value of freely issued material by the

contractee should be added to the Gross

amount charged. If the contractee

charges for the supply of any material

then the difference between the amount

charged and the Fair Market Value should

be added to the Gross Amount charged

by the Contractor.

CENVAT credit on Inputs is not available.

However, CENVAT credit on Capital goods

and Input Services is available

Maintenance or repair or

reconditioning or restoration

or servicing of any goods(not

immovable property)

70% of total value

charged for the

work excluding

VAT/CST

Same as above

WORKS CONTRACT

Valuation

Note:

The said abatement is not available, if the actual value of material is ascertainable.

With respect to the works contracts entered in to on or before 30.06.2012 and not yet completed, the new tax position would be applicable for the uncompleted portion of works contract if they are provided or deemed to be provided in terms of PoT Ruels, 2011 on or after 01.07.2012.

The new law does not provide for any transitional relief in such cases.

Category of Service Service % in WC Remarks

Other than above, including maintenance,

repair, completion and finishing services such as

glazing, plastering, floor and wall tiling,

installation of electrical fittings of an

immovable property

60% of total Value

charged for the work

excluding VAT/CST

Same as above

Determination of Value Rules

IS IT NOT A WORKS CONTRACT?

Construction of Building/Complex, Civil Structure: Definition:

“Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration is received after issuance of completion certificate by the competent authority”.

Civil Structure may include vending plat forms on roads or railway stations intended for sale to a buyer and money received before completion certificate issued is whether a declared service

• However, wherever the construction of complex, building or civil structure includes even the supply of material along with the land, then service tax shall be payable on 25% of the total value and CENVAT credit cannot be availed on the inputs used for provision of such services.

• Prior to 01.07.2012, construction of residential complex and industrial establishment were liable to service tax if there was no supply of material for the execution of such works. However, there was an abatement of 67% of the Gross Amount charged provision of such services under Notification No.01/2006.

EXEMPT SERVICES

Rule 2(e) of CCR, 2004:

means a 1) Taxable service which is exempt from the whole of the service tax leviable

thereon; or(Notification No.25/2012 dated.20.06.2012)

2) Service, on which no service tax is leviable under section 66B of the Finance Act; or

3) taxable service whose part of value is exempted on the condition that no credit of inputs and input services, used for providing such taxable service, shall be taken;

but shall not include

a service which is exported in terms of rule 6A of the Service Tax Rules, 1994.]

Exempt Services Rescinded

Notifications

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REVERSE CHARGE MECHANISM

Following services have been specified under the new law, on which the recipient is liable to service tax on reverse charge mechanism:

Uniquely, under the present law, the liability on certain services is shared between the service provider and the recipient.

SL.No

Nature of the service % of Tax payable by the provider

% of Tax payable by the receiver

1 In respect of service provided or agreed to be provider by an insurance agent to any person carrying on insurance business

Nil 100

2 In respect of service provided or agreed to be provider by a goods transport agency in respect of transport of goods by road.

Nil 100

3 In respect of services provided or agreed to be provider by way of sponsorship Nil 100

4 In respect of service provided or agreed to be provider by an arbitral tribunal Nil 100

Reverse charge

REVERSE CHARGE MECHANISM SL.No



5 In respect of services provided or agreed to be provided by individual advocate or a firm of advocates by way of legal services to any Business Entity located in Taxable territory.

Nil 100

6 In respect of services provided or agreed to be provided by way of support services by Government or local authority, excluding,- (1) Renting of Immovable property, and (2) service specified in sub- Clauses (i),(ii) of Clause of section 66D of the Finance Act, 1994 to any business Entity in the Taxable territory.

Nil 100

7 In respect of any taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory

Nil 100

8 In respect or service provided or agreed to be provided by way of works contract provided by individual, HUF, partnership firm to any Business Entity registered as a Body Corporate.

50 50

REVERSE CHARGE MECHANISM

SL.No



9 In respect of services provided or agreed to be provided by

way of renting or hiring any motor vehicle designed to carry

passenger on abated value provided by individual, HUF,

partnership firm to any Business Entity registered as a Body

Corporate who is not engaged in the similar line of business.

Nil 100

In respect of services provided or agreed to be provided by

way of renting or hiring any motor vehicle designed to carry

passenger on non-abated value provided by individual, HUF,

partnership firm to any Business Entity registered as a Body

Corporate who is not engaged in the similar line of business.

60 40

10 In respect of services provided or agreed to be provided by way of supply manpower for any purpose provided by individual, HUF, partnership firm to any Business Entity registered as a Body Corporate. (It shall not include the man power recruitment services)

25 75

ABATEMENT

SL.

No.

Description of Taxable service Upto

30.6.12

From

01.07.12

Conditions

1 Financial leasing services including

equipment leasing and hire purchase

10 10 Nil.

2 Bundled service by way of supply of

food or any other article of human

consumption or any drink, in a

premises, including hotel, convention

center, club, pandal, shamiana or any

place specially arranged for organizing a

function, together with renting of such

premises

60 70 CENVAT credit on any goods

classifiable under chapter 1

to 22 of the Central Excise

Tariff Act, 1985 (5 of 1986)

used for providing the

taxable service has not been

taken

3 Transport of passengers by air, with or

without accompanied belongings

N.A. 40 CENVAT credit on inputs and

capital goods has not been

taken

4 Renting of hotels, inns, guest houses,

clubs, campsites or other commercial

places meant for residential or lodging

purposes.

50 60 Same as above.

ABATEMENT

SL.

No.

Description of Taxable service Upto

30.6.12

From

01.07.12

Conditions

5 Transport of goods by road by Goods

Transport Agency

25 25 CENVAT credit on inputs,

capital goods and input

services, used for providing the

taxable service, has not been

taken.

6 Renting of any motor vehicle designed

to carry passengers

40 40 Same as above.

7 Transport of goods in a vessel N.A. 50 Same as above.

8 Construction of a complex, building,

civil structure or a part thereof,

intended for a sale to a buyer, wholly

or partly except where entire

consideration is received after issuance

of completion certificate by the

competent authority

33 25 (i) CENVAT credit on inputs

used for providing the taxable

service has not been taken

(ii)The value of land is included

in the amount charged from

the service receiver.

Abatement

POINT OF TAXATION RULES, 2011

Types of services that can be inferred 1.Continuous supply of services

2.Other than continuous supply of services

What is Continuous supply of service?

“Continuous Supply of service” (CSS) is defined to mean any service provided or to be

provided continuously or on recurrent basis, under a contract, for a period exceeding

three months with the obligation for payment periodically or from time to time or

those services which are notified by the Central Government”

Notified Continuous Supply of Services (a)Telecommunication service

(b) Internet Telecommunication Service

(c) Construction of residential complex service (d) Commercial or industrial construction service (e) Works contract service

PoT Rules


PoT in the case of

Continuous & Non Continuous supply of Services

Earliest of the following

Date of Invoice

Date of completion of provision of service , where the invoice has not been issued within 30 days of completion of provision of service

Date of receipt of advance or receipt of money before raising the invoices towards the services provided

Note:

wherever the service provider receives a payment up to Rs.1000/- in excess of the amount mentioned in the invoice, the POT to the extent of such excess amount, at the option of the provider of taxable service, shall be the date of invoice. However, the invoice should have been raised within time mentioned in Rule 4A of ST Rules, otherwise, the date of completion of services shall be the POT

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Tabulation

Situation Point of Taxation

Invoice issued, whether service provided or yet to be provided Invoice is raised within 30/45 days of completion

provision of services and payment not received

Invoice not raised within 30/45 days of completion of provision of service

The date of invoice Date of completion of provision of service

Services provided and 30/45 days time to raise the invoice is not elapsed and the amount is received after completion of services but before issuance of invoice

Date of receipt of such money

When the advance is received against the services to be provided

Date of receipt of such advance

Where an event, specified in the contract, determines the stage of provision of service wholly or partly

Date of completion of such event


Illustration for non CSS scenario

Service Provided Payment

Received Due date For issuing Invoice On or before

Invoice issued on

Point of Taxation

Due date for payment of Service Tax

30.04.12 30.04.12 30.04.12 30.04.12

15.04.12(advance) 01.06.2012 07.05.12 07.05.12

15.05.12 30.05.12 30.05.12 30.05.12

14.05.12 30.05.12 30.05.2012 06.06.12

15.04.12 30.05.12 07.05.12 30.04.12 or 07.05.2012

5th or 6th of May -2012 5

th or 6

th June-2012

5

th or 6

th of June-2012

5

th or 6

th May-2012 or 5

th or

6th

June -12

02.05.12 Nil 01.06.12 31.05.12 31.05.12 5th

or 6th

of June- 2012

02.05.12 Nil 01.06.12 01.06.12 01.06.12 5th

or 6th

of Jul- 2012

02.05.12 Nil 01.06.12 02.06.12 02.05.12 5th

or 6th

of June- 2012

Nil Nil 01.04.12 01.04.12 5th

or 6th

of May- 2012

30.04.12 Nil 30.05.12 Not issued 30.04.12 5th

or 6th

of May 2012


Illustration for CSS scenario

Expected DOC of

event, mentioned in the contract

Actual Date of completion of

Advance or Payment Received

due date for issuing Invoice

Invoice issued on

Point of Taxation

due date for payment of ST

20.04.12 05.04.12 Nil 05.05.12 04.05.12 04.05.12 5th or 6th Jun-2012

20.04.12 05.04.12 Nil 05.05.12 06.05.12 05.04.12 5th or 6th May -2012

31.07.12 15.08.12 Nil 15.09.12 14.09.12 14.09.12 5th or 6th October- 2012

31.07.12 15.08.12 Nil 15.09.12 16.09.12 15.08.12 5th

or 6th

Sept-2012

Not mentioned 01.08.12 15.07.12 14.08.12 14.08.12 15.07.12 5th or 6th of August- 2012


PoT in the case of Change in effective Rate of Tax ( Includes change in the

portion of value on which tax is payable in terms of an exemption notification or rules made in this regard ).

Service

provided Invoice raised Payment received Point of taxation

Before After After Date of Invoice or Payment which ever is earlier

Before Before After Date of Invoice

Before After Before Date of payment

After Before After Date of payment

After Before Before Date of Invoice or Payment which ever is earlier

After After Before Date of Invoice


(Cont..)

PoT in the case of change in effective rate of tax

To Sum up:

If • Two of the three events mentioned in the table have occurred before the change

in ERT, then the old rate would be applicable

• Two of the three events have occurred after ERT then the new rate be applicable


What is the date of payment? w.e.f. 01.04.2012 Generally Earliest of the dates on which

– The payment is entered in the books of account of the service provider

or – The actual credit in the bank statement of person liable to pay service tax. (Not only a

service provider)

However, In a scenario where there is a change in the rate of service tax or services are taxed for the first time and if there is a “Time Difference” between the payment entry in the books of account and the actual credit in the bank account of the service provider, Date of payment is: The actual credit in the bank account should be the date of payment.

But, If the time difference is not more than 4 days from the date of change in rate of tax or new levy, then the date of entry in the books of account shall be the date of payment.

(Illustration follows )


(Date of Payment)

Change of rate of service tax from 10% to 12% w.e.f. 01.04.2012

The date of payment as per POT Rules and the applicable rate of service tax shall be

EVENT DATE Scenario 1

Date Scenario 2

Date of invoice 15.03.2012 15.03.2012

Date of payment and entry in the books of account of service provider

31.03.2012 31.03.2012

Credit in the Bank account of the service provider

05.04.2012 07.04.2012

Scenario Payment date

Point of Taxation

Rate of Tax

1 31.03.2012

31.03.2012 10.30%

2 07.04.2012 07.04.2012 12.36%


New Services

Invoice Raised Payment

Received Point of Taxation

Before taxability Before taxability Not taxable

within 14 days from its taxability Before taxability Not taxable

After 14 days Before taxability Taxable

Before taxability After taxability ???? ( not taxable) Rule 3 is applicable

PoT Rules


In the case of Taxable Intellectual Property Rights Services

Notes:

POT Rules are w.e.f. 01.04.201.

However, where the provision of service is completed or invoices issued on or before 30.06.2012, the point of taxation shall, at the option of the taxpayer, be the date on which the payment is received or made as the case may be.”.

Situation Point of Taxation

When the whole consideration is determinable at the time of transfer of rights

As applicable in the general situation

When the whole consideration is not determinable at the time of transfer of rights and the payments received in at several points of time thereafter

Such payment or issuance of invoice which ever is earlier

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In the case of specified services and persons

Specified

services/Persons

Nature of services Point of Taxation Remarks

Export of services

Any Taxable Service

Normal Method However, the payment is received as per RBI regulations or within such extended period

Individuals or Partnership firms whose AVTS provided in P.Y is Rs.50 Lakhs or less

Any Taxable services Normal Method

However service tax shall be paid on or before 5th or 6th of the month or quarter in which payment is received

Associated Enterprises situated outside India

Any Date of debit in books or receipt whichever is earlier

Services on which liability arises on reverse charge mechanism

Specified services under Rule 2(1)(d) of Service Tax Rules,1994

Date of payment made

This facility will not be available, if the payment is not made within 6 months from the date of invoice


Best judgment of POT: if the

date of invoice or

date of payment or both are not available,

Procedure: The office may call for production of such accounts, documents or other evidence as may be deemed necessary and after taking into account such material and the effective rate of tax prevalent at different points of time, by an order in writing, after giving an opportunity of being heard, determine the point of taxation to the best of his judgment.”.


Non-applicability of POT Rules:

If Invoice is raised Before 01.04.2011

or

Service is provided

POINT OF TAXATION RULES, 2011 INVOICE/BILL/CHALLAN An invoice, Bill or a Challan should be

• Serially numbered

• Name, Add & STC No. of SP

• Name, Add of SR

• Description, Classification and Value

• ST payable there on

Includes other documents

• Banking - Any document what ever name

• GTA - Consignment Note No. Gross weight

• Air Travel –Ticket

• ISD Challan

Invoice Not in this format is not Invoice as per POT

Whether Performa Invoice or RA Bills an appropriate invoice?

Rule 2(d) of PoT Rules encompasses wide variety of cases as it refers to “any document”. Thus, issue of “Pro-forma” invoice / bill will also get covered leading to creating the liability for payment of tax.??????


INVOICE/BILL/CHALLAN AND PAYMENT OF SERVICE TAX

What is the due date for issuing invoice/challan/bill?

Within 30/45 days from the date of completion of taxable service or receipt of money

Whether u need to issue an invoice within 30 days if u provide exempt services?

Yes

What do you do, If you have practical problems in issuing an invoice/challan/bill?

CBEC Circular No.144/13/2012-ST Dated July 18, 2012 guides you

PLACE OF PROVISION OF SERVICES RULES 2012(PoPoS)

Objective:

To replace Export and Import of Services Rules

10 Rules to determine the Deemed PoPoS irrespective of actual PoP

CONDITIONS TO QUALIFY AS EXPORT OF SERVICES

• RULE 6A. Export of services: • The provision of any service provided or agreed to be provided shall be treated as

export of service when,-

• (a) Provider of service is located in the taxable territory ,

• (b) Recipient of service is located outside India,

• (c) Service is not a service specified in the section 66D of the Act,

• (d) The place of provision of the service is outside India,

• (e) The payment for such service has been received by the provider of service in convertible foreign exchange, and

• (f) The provider of service and recipient of service are not merely establishments of a distinct person in accordance with item (b) of Explanation 2 of clause (44) of section 65B of the Act

Open for

Avoidance of taxes is the only intellectual pursuit that still carries reward

The views expressed and the information provided in this presentation are of general nature and not

intended to address the circumstances of any particular individual or entity. The content, symbols or the photos used in this presentation are only for the purpose of explaining the subject without any commercial benefit out of them and does not amount to any infringement nor used with such intention. The above content should neither be regarded as comprehensive nor sufficient for making decisions. No one should act on the information or views provided in this presentation without appropriate professional advise from the author of the presentation. It should be noted that no assurance is given for any loss arising from any actions taken or to be taken or not taken by anyone based on this publication.

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Service tax negative concept icai final - Lakshminarayan.G

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