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CA. Bimal Jain: CA Final Paper 8 Indirect Tax Laws Section B: Service Tax and VAT, Chapter 1
CA. Bimal Jain: CA Final Paper 8 Indirect Tax Laws Section B: Service Tax and VAT, Chapter 1
CA. Bimal Jain: CA Final Paper 8 Indirect Tax Laws Section B: Service Tax and VAT, Chapter 1
CA Final Paper 8 Indirect Tax Laws Section B: Service Tax and VAT, Chapter 1
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The content of this video lecture has not been specifically discussed
by the Council of the Institute or any of its Committees and the views
expressed herein may not be taken to necessarily represent the views
of the Council or any of its committees
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Definition of Service
Service Tax and its applicability
Role of Chartered Accountants
Paradigm shift in Service Tax from Selective to Comprehensive Approach
Introduction of Negative List
Declared Services
Classification of Service
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Agriculture 2.8%;
Industry 3.8%;
Service 8.8%;
Contribution of Service Sector to GDP 60%;
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a) List I:
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Selective Approach
July 1, 1994
Comprehensive Approach
July 1,2012
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Services Taxable
under Negative List
Existing Taxable
Services
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Charging Section
Service
Declared Services
Negative List
Mega Exemption
39 categories of Services
Interpretation
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Service
Services Under
Negative List
Services under Exempted List
Other Exemptions/Abatements
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If Registration obtained under Positive list RegimeService specific accounting codes continue
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Ministry of Finance
Department of Revenue
Additional Commissioner
Joint Commissioner
Assistant Commissioner/Deputy
Commissioner
Superintendent
Inspector
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To structure the
transactions
Procedural
Compliances
Personal
Representations
Advisory &
Certifications
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S. 66
S. 65(105)
Association of Leasing & Financial Service Companies vs. UOI 2010 (20)
STR 417 SC Taxable Event Rendering of Service
S.65B (51)
S. 66B
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S. 65B (44) Service" means Any Activity carried out by a Person for
another for Consideration, and includes a Declared service, but shall not
include
(a) an activity which constitutes merely, (i) a transfer of title in goods or immovable property, by way of sale, gift or
in any other manner; or
(ii) such transfer, delivery or supply of any goods which is deemed to be
sale within Article 366 (29A) of the Constitution; or
(iii) a transaction in money or actionable claim;
(b) a provision of service by an employee to the employer in the course of or in
relation to his employment; - Employer-Employee / Secondment/ Jt
Employment/ Director
(c) fees taken in any Court or tribunal established under any law for the time
being in force.
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Activity Economic
Person 65B(37) Service Provider Service Recipient
Consideration S. 67/ Determination of Valuation Rules
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e. Trading of goods;
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(a) if various elements of such service are naturally bundled in the ordinary
course of business, it shall be treated as provision of the single service which
gives such bundle its essential character;
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1.
2.
Allowing erection of
communication tower on a
building for consideration.
3.
4.
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If..
Then
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If..
Then
(iv) Government department allots houses such service would be covered in the
to its employees and charges a license fee negative list entry relating to services
provided by government and hence nontaxable.
(v) Furnished flats given on rent for these are in the nature of lodges or guest
temporary stay
houses and hence not treatable as a
residential dwelling
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S. 66E(b)
S. 66E(h)
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Patents
Trademarks
Designs
Registration of
intellectual right is not
required in India.
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Temporary transfer of
a patent registered
outside India would be
declared service if the
place of provision of
service of temporary
transfer of IPR is in
taxable territory.
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Reference shall not draw same status quo, which is used for providing
main service.
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Both, the services under negative list and exempted are not liable to service tax but there
exist a difference.
Negative list covered under Section 66D, enlist 17 services not liable to service tax since July
1, 2012 while 39 exempted services are effective from 1-7-2012 as stated under Mega
Exemption Notification No. 25/2012- Service Tax, dated the 20th June, 2012, as amended
by in N/N no. 3/2013-ST dated. 1-3-2013.
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i.
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