Finance Minister P Chidambaram to address industry bodies on service tax amnesty scheme

Aiming to garner higher revenue from indirect taxes, Finance Minister P Chidambaram will address industry bodies at Chennai, Delhi and Mumbai on Voluntary Compliance Encouragement Scheme 2013.

VCES had been introduced with effect from May 10, 2013 as a one time amnesty scheme for paying service tax dues for the period October 1, 2007 to December 31, 2012 without interest and penalty.

"The Union Finance Minister P Chidambaram will address trade/industry/service associations and Chambers of Commerce &Industry at Chennai, Delhi and Mumbai on Voluntary Compliance Encouragement Scheme (VCES) 2013," the Finance Ministry said in a statement today.

The minister will address the representatives of various trade associations and Chambers on VCES in Chennai on November 9, in Delhi on November 11 and in Mumbai on November 14.

The services sector contributes about 65 per cent to the Gross Domestic Product ( GDP) of country but the number of service tax payers is quite less.

Recently, Chidambaram had said that out of the 17 lakh registered assesses under Service tax, only seven lakh were filing returns.

"Many have simply stopped filing returns. We cannot go after each of them. I have to motivate them to file returns and pay the tax dues. Hence, I propose to introduce a one-time scheme called 'Voluntary Compliance Encouragement Scheme'," the Finance Minister had said in his Budget speech.

Government has set indirect tax collection target of Rs 5.65 lakh crore for 2013-14, up from Rs 4.73 lakh crore in the last fiscal.

Official: only 30 per cent of registered pay Service Tax

Only 30 per cent of those registered from the Service Industry pay the tax while the remaining 70 per cent do not pay either because they are not aware of their responsibility or are registered despite being out of its ambit.

Making an elaborate presentation on the need to deregister from the Central Excise, Customs and Service Tax with regard to Service Tax if the service provider was below the threshold of Rs.10 lakh, Guntur Central Excise and Customs Commissioner C.P. Rao wanted everyone to make use of the VCES before December 31.

At a programme organised by the Confederation of Indian Industry Vijayawada Chapter at The Gateway Hotel recently, Mr. C.P. Rao said that people need to find out if they were in the ambit of Service Tax and register themselves and take advantage of the one-time scheme. The Service Tax had been existing for the past 18 years and people should understand it better now, he added.

Additional Commissioner S. Khader Rehman clarified the doubts of some of the corporate houses and also small entrepreneurs about the exemptions available to them. “The thumb rule now is to find out if you are in the Negative List of Service Tax and if you are not in that list and you are a service provider, you must register and pay the tax,” he observed.

One of the common complaints about service tax in starred-hotels, the Commissioner said that 40 per cent of the bill usually comprises cost of the food and remaining service on which tax had to be paid. “We do not know if the hotels were showing us the same bills they give you,” but he opined that they needed to be more transparent. The CII Vijayawada chapter chairman M. Lakshmi Prasad and Vice-Chairman V.V.M. Krishna were also present.

Link between TDS and actually saving tax on investments

Arnav Pandya There is often a lot of confusion in the minds of the investor about savings of tax and the way to go about it. One area where this leads to a lot of problems is that of Tax Deducted at Source (TDS) and it needs to be clarified so that the individual does not end up being a defaulter on the final amount of tax that he has to actually pay. Here is a closer look at the nature of the tax deducted at source and its link to the actual taxation.

Tax deducted at source The TDS represents the amount that is actually deducted by the person making a payment to someone else and then making the net payment. The amount that is deducted is paid to the government as the tax. For example take a situation where there is a fixed deposit kept with a bank.

If the bank pays an interest of say Rs 20,000 then it would have to deduct tax on the payment and assuming that 10 percent is deducted (without considering cess for ease of understanding) then the bank will pay the net interest of Rs 18,000 to the individual. The Rs 2,000 that it has deducted from this figure will be deposited with the government against the name of the depositor so it will reflect as it the person has paid the required amount of tax on the earnings made. Conditions

There are certain conditions that need to be fulfilled for the TDS to come into action so for example the base would start with the fact that the income crosses a certain limit. This is done to ensure that the TDS is done only for certain items where the income is high. Continuing with the previous example, the limit for enacting TDS in fixed deposits is Rs 10,000 per bank per branch. Hence, the bank will deduct the figure only when the income of the individual has crossed this figure. Often individuals undertake a lot of effort to ensure that they fall outside the TDS net but in effect this is a pointless exercise unless the person has a zero rate of tax to be paid.

Actual liability The reason why trying to save oneself from TDS is pointless is due to the fact that this does not alter the actual nature of taxation on the individual. This means that the actual taxability of the income of the individual is a separate matter and has no link with the TDS so saving some amounts on TDS will not reduce the overall tax liability for the individual.

The only exception is where the final rate of tax is zero so saving TDS will not have any net impact. The final tax liability remains and the TDS has to be seen as a means of fulfilling the total tax liability. In the case of the fixed deposits the income earned from the deposit is taxed right from the first rupee. The rate applicable for the tax would be the rate under which the income will fall for the individual. So if the person is already in the 30 per cent slab then the added income from the fixed deposit will be taxed at that particular rate.

The good thing in the case of the total tax liability and the TDS is that the latter is counted as part of the tax paid. When the final calculation is made, it is only the net figure that remains to be paid. The individual thus has to be very careful when they look at the position and they must ensure that their total tax obligation is met. Not suffering any TDS does not mean that the actual liability goes away as this will remain till it is fulfilled.

Realtor arrested for evading service tax

Service tax officers of Hyderabad-II commissionerate arrested D. Vijaysen Reddy, a realtor, on the charge of evading payment to the tune of Rs 2 crore on renting of immovable property service. In a statement, CBEC commissioner M K Singh said Reddy committed a non-cognizable offence attracting the provisions of Section 89 (1) (a) of the Finance Act, 1994. He was arrested and subsequently released on bail bond and surety by the assistant commissioner, service tax (evasion), on Wednesday.

Tax Administration Reform Commission (TARC)

PRESS INFORMATION BUREAU GOVERNMENT OF INDIA *** Tax Administration Reform Commission (TARC) New Delhi, October 21, 2013 Asvina 29, 1935 Pursuant to the announcement made by the Hon'ble Finance Minister in his Budget Speech 2013-14, the government set-up Tax Administration Reform Commission (TARC) with a view to reviewing the application of Tax Policies and Tax Laws in India in the context of global best practices and to recommend measures for reforms required in Tax Administration to enhance its effectiveness and efficiency. The term of the Commission is 18 months and it will work as an advisory body to the Ministry of Finance. The Commission will give its first report within six months and thereafter submit periodic reports after every three months. The Chairman of the Commission is Dr. Parthasarathi Shome, in the rank of Minister of State. The Members of the Commission are as follows: Full-Time Members: Shri Y.G. Parande Ms. Sunita Kaila Part-Time Members: Shri M.K. Zutshi Shri S.S.N. Moorthy Shri M.R. Diwakar Shri S. Mahalingam The Terms of Reference of the Commission are as follows:- To review the existing mechanism and recommend appropriate organizational structure for tax governance with special reference to deployment of workforce commensurate with functional requirements, capacity building, vigilance administration, responsibility and accountability of human resources, key performance indicators, assessment, grading and promotion systems, and structures to promote quality decision making at the highest policy levels. To review the existing business processes of tax governance including the use of information and communication technology and recommend measures for tax governance best suited to Indian context. To review the existing mechanism of dispute resolution covering time and compliance cost and recommend measures for strengthening the same. This includes domestic and international taxation. To review the existing mechanism and recommend capacity building measures for preparing impact assessment statements on taxpayers compliance cost of new policy and administrative measures of the tax departments. To review the existing mechanism and recommend measures for deepening and widening of tax base and taxpayer base. To review the existing mechanism and recommend a system to enforce better tax compliance ­ by size, segment and nature of taxes and taxpayers, that should cover methods to encourage voluntary tax compliance. To review the existing mechanism and recommend measures for improved taxpayer services and taxpayers education programme. This includes mechanism for grievance redressal, simplified and timely disbursal of duty drawback, export incentives, rectification procedures, tax refunds etc. To review the existing mechanism and recommend measures for "Capacity building" in emerging areas of Customs administration relating to Border Control, National Security, International Data Exchange and securing of supply chains. To review the existing mechanism and recommend measures for strengthening of Database and Inter-agency information sharing, not only between Central Board of Direct Taxes(CBDT) and Central Board of Excise and Customs(CBEC) but also with the banking and financial sector, Central Economic Intelligence Bureau (CEIB), Financial Intelligence Unit (FIU), Enforcement Directorate etc. and use of tools for utilization of such information to ensure compliance. To review the existing mechanism and recommend appropriate means including staff resources for forecasting, analysis and monitoring of revenue targets. To review the existing policy and recommend measures for research inputs to tax governance. To review the existing mechanism and recommend measures to enhance predictive analysis to detect and prevent tax/economic offences. Any other issue which the government may specify during the tenure of the Commission. The Commission will be supported by a Secretariat and have its head quarters at Delhi. It will be provided information and quantitative data of Central Board of Direct Taxes / Central Board of Excise and Customs to do statistical analysis for making recommendations. The first meeting of the Commission was held on 21st October 2013. ******

Owner of security firms held for evading Rs 5 cr service tax

The Service Tax Department has arrested an owner of security firms for evading tax amounting to more than Rs 5 crore, a top official said.

The accused, identified as Mohammed Aslam Choudhary, who was arrested yesterday, has been found guilty of not paying service tax amounting to more than Rs 5 crore, which was collected but not paid to the government.

Choudhary was running security service firm called M/S Honest Securities. He used to keep on creating new firms and closing down the old ones, Mumbai Service Tax Commissioner, S K Solanki, said.

Choudhary has been providing security services to many prominent builders in Mumbai. These builders have also been asked to pay the service tax out of the amount payable to the firm, Solanki added.

"As per the Service Tax law, recovery can be made even from the client of the defaulting firms, if they have to pay some money to the defaulting firms", added Solanki.

Satish Dhavale, Additional Commissioner of Service Tax, said that Choudhary was produced in court today and he has been remanded to judicial custody. "We will be questioning him in jail," Dhavale added.

Sources said that the department had recently sought some information from him, which he did not provide and then went absconding. He also changed the office premises from time to time to avoid action by the service tax officers.

Choudhary had also manipulated the balance sheet and the profit & loss account to show lower turnover to evade service tax, they said.

A case has been registered against a house keeping and facility management firm, for evasion of service tax, officials said.

Sources said that two directors of the company, a CEO and a CFO were granted anticipatory bail by the court. However they have been directed to attend the service tax office every Wednesday and Friday.

Hyderabad businessman held for evading Rs 1.5-cr service tax

Hyderabad: In a first, a city-based entrepreneur was arrested on Tuesday for alleged service tax evasion to the tune of Rs 1.5 crore.

Rajasekhar Buggaveeti, managing director and chief executive officer of Creative Multimedia, was apprehended for collecting service tax but not depositing it with the government.

1st arrest for service tax default

In a first, a city-based entrepreneur was arrested on Tuesday for alleged service tax evasion to the tune of Rs 1.5 crore.

Rajasekhar Buggaveeti, managing director and CEO of Creative Multimedia, was arrested for collecting service tax but not depositing the same with the government. This is the first arrest for service tax evasion in the city. Buggaveeti was arrested and produced in a local court.

Buggaveeti’s firm, Creative Multimedia, also known as Dilsukhnagar Arena, is famous for digital media education in the city and has been training students in animation, VFZ and other areas through vocational courses.

Sources said that Buggaveeti was collecting service tax at 12.36 per cent from the students of his academy, but not depositing the amount with the Central Board of Excise and Customs despite the fact that he was registered with the Board and was liable to pay service tax.

He defaulted on service tax of about Rs 1.5 crore, payable over the past year. A provision for arrest on evasion of service tax has now been made available through an amendment in the Finance Act 1994. This is the first time a businessman has been apprehended.

Surprisingly, Creative Multimedia is a well-known company and has a sound foothold. Buggaveeti was also awarded the Best Digital Media Academy in India award in the Education Excellence Awards category for 2012 by a private entity.

Minister of state for HRD Shashi Tharoor presented Buggaveeti with the award last year. An official release from M.K. Singh, commissioner (Customs, Central Excise and Service Tax) Hyderabad II, said, “Rajasekhar has committed the cognisable offence of collecting service tax and not depositing the same with the government, an offence under Section 89(1) (d) of the Finance Act, 1994.”

Buggaveeti was arrested and produced before the Court of the Special Judge for Economic Offences in Nampally court complex on Tuesday. He was remanded by the court to judicial custody.

Only 2,900 service tax payers in Bihar, Jharkhand

If you are a service provider but yet to shell out your service tax, then paying at least half of the total tariff before December 31 under the Voluntary Compliance Encouragement Scheme (VCES), 2013 would save you from any interest or penalty. In fact, with a 12% service tax levied on all services having over Rs 10 lakh annual turnover, except the few mentioned in the negative list, the central excise and service tax commissionerate, Patna, is trying to net in potential defaulters. Taxmen are eyeing services such as coaching institutions, restaurants and hotels, construction services, security and other manpower supplying agencies, those renting property for commercial purposes, tent and catering services etc and urging them to take advantage of the VCES to avoid prosecution. Till now, only 109 persons in Bihar and Jharkhand have come forward to register for paying service tax under the scheme. "Starting this year, the provision of arresting service tax defaulters has also been made. In fact, those who fail to avail the VCES would have to pay 100% tax amount as penalty and there are provisions for prosecution," said Lipika Majumdar Roy Choudhury, member (service tax) and zonal member, Central Board of Excise and Customs, at a seminar on 'Service tax' here on Thursday. Citing communication gap as one of the major reasons for the lukewarm response to the VCES in Bihar and Jharkhand, Choudhury said, "If you have any query or troubles relating to service tax, do not hesitate to approach the commissionerate." Choudhury, who was on her maiden visit to the state capital, interacted with a select group of businessmen and representatives of various associations of service providers at Bihar Chamber of Commerce and Industries (Bpremises. Zonal chief commissioner, Central Excise and Service tax, M D Singh, also urged service providers to voluntarily register themselves to avoid facing statutory action. "In total, there are only 36,000 assessees in Bihar and Jharkhand who are registered for central excise payment while the corresponding figure for service taxpayers stands at 2,900," said Singh. During the interaction, taxpayers raised issues troubling them. A major trouble in construction sector was availing completion certificates of apartments while queries relating to nitty-gritty of the tax provisions also surfaced on the occasion, to which the officials assured to look into the matter. The BCCI members presented a three-point memorandum to Choudhury listing problems and suggestion relating to service tax payment. Increase in the threshold limit of exemption from Rs 10 lakh to Rs 25 lakh. Compounding service tax liability in case of small service providers and exempting them from filing multiple returns. Authorizing architects, chartered engineers or licence surveyors to issue completion certificates in construction related activity.

Customs, Excise and Service Tax Appellate Tribunal to have six new benches

After six cities, Chandigarh, Allahabad and Hyderabad will also now have CESTAT benches, a move aimed at speedy disposal of cases related to Customs, Excise and Service Tax.

The Union Cabinet today gave its approval for setting up six additional benches of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), including three at the existing locations in New Delhi, Mumbai and Chennai and three new benches in Chandigarh, Allahabad and Hyderabad.

Kolkata, Bangalore and Ahmedabad already have one CESTAT bench each.

With these additions, nine major cities in the country now have the benches of the appellate tribunal of the three revenue departments.

The creation of additional/new benches of CESTAT would amount to a one-time expenditure of Rs 3.45 crore while the recurring expenditure would be Rs 10 crore per annum.

Official sources said after the expansion, disposal of cases will increase and pendency will decrease benefiting the government and tax payers. This would help reduce travel time and expenditure, they added.

The CESTAT benches would need creation of twelve posts of Members of the Tribunal (6 Technical and Judicial Members each) in the Higher Administrative Grade (HAG+) in addition to 98 posts of supporting staff including Deputy and Assistant Registrars.

CESTAT was set up in 1982 to provide an independent and impartial forum to hear the appeal against orders and decisions passed by the Commissioners of Customs and Excise under the Customs Act 1962, Central Excise at 1944 and Gold (Control) Act, 1968.

After coming into operation of the Service Tax vide Chapter V of the Finance Act, 1994, Service Tax Appeals have been included in the jurisdiction of the tribunal.

The tribunal is also empowered to hear the appeals against the orders passed by designated authority with regard to anti-dumping duties under the Customs Tariff Act, 1975.

At present, CESTAT has three benches each in Delhi and Mumbai and one bench each at Kolkata, Chennai, Bangalore and Ahmedabad. The headquarters as well as Principal Bench of the tribunal are in Delhi.

Finland hopeful of amicable settlement of Nokia’s tax dispute

Finland has expressed hope that its telecom major Nokia’s tax dispute with the Indian Government will be settled amicably.

Finnish Foreign Trade Minister Alexander Stubb, who is in India with a 30-member strong business delegation, discussed Nokia’s taxation woes with his counterpart Anand Sharma on Tuesday.

Nokia, which sold its handset business to US-based Microsoft last month, is embroiled in a dispute with the Indian Government on a retrospective tax demand of Rs 2,080 crore from the Finance Ministry.

“It was very good to get the arguments on both sides. I am quite confident that the issue will be resolved positively,” Stubb told reporters after the meeting.

It is probably not for me or Sharma to decide on those issues that is being dealt with in normal rule of law in the Indian courts, Stubb added.

The Finnish Foreign Trade Minister’s delegation represents diverse sectors such as energy & environmental technology, mining, metals, construction, information technology, health & well-being and financing. ONGC and Finland’s clean technology firm Chempolis have signed an agreement to produce ethanol, bio chemicals and bio-coal from biomass residual matters that would reduce India’s dependence on imports.

The agreement was signed by Stubb and Minister of State for Petroleum and Natural Gas Panabaka Lakshmi.

“We have signed an MoU with a Finnish company called Chempolis. It is for conversion of cellulose into ethanol. We have developed a technology by which all cellulose-based waste products can be converted into ethanol,” ONGC Chairman Sudhir Vasudeva said.

I-T Department conducts searches at brokerage firm's offices

conducted searches at the premises of a leading city-based brokerage firm with a high exposure to crisis-hit NSEL, for suspected tax evasion.

Searches were conducted in over 15 offices of the firm for tax evasion, an Income-Tax Department official said.

The Department had earlier carried out a survey on the brokerage firm and the searches were conducted after it got some clear leads, Income-Tax Department sources said.

National Spot Exchange Ltd (NSEL) is grappling with a payment crisis for settling dues worth Rs 5,500-crore and had to on July 31 suspend trading activities following a Government directive.

About Rs 600 cr service tax evasion detected by Finance Ministry

In its effort to check any leakage of indirect tax revenue, the Finance Ministry has detected service tax evasion of about Rs 600 crore between January and July this year.

As many as 569 cases were detected by various central excise and service tax formations across the country during the period. The amount of evasion involved in theses cases is Rs 589.40 crore, a Finance Ministry official said.

An analysis of these cases finds that renting of immovable property, work contract, general insurance, banking and other financial services are prone to service tax evasion.

Besides, business auxiliary services and construction of commercial and residential complex services were also prone to evasion of the indirect levy, he said.

The modus operandi being followed in these cases was wrongly availing cenvat credit, non-registration, short payment of service tax, wrong classification and undervaluation of services, the official said.

The Finance Ministry officials have termed service tax evasion as new focus area and decided to target about 12 lakh assesses who had stopped filing returns. There are 17 lakh registered assesses under the service tax.

The Ministry is also implementing a first-of-its-kind amnesty scheme for service tax defaulters. The Voluntary Compliance Encouragement Scheme (VCES), announced by Finance Minister P Chidambaram, has come into effect from May 10, this year.

It allows a service tax defaulter to pay due without any penalty or late payment charges. Under the scheme, a person may make a declaration to the designated authority on or before December 31, 2013.

As many as 1,400 declarations have been filed under the scheme so far by defaulters liable to pay Rs 650 crore to the government, according to a latest official data.

The Finance Ministry has set indirect tax collection target, comprising customs, excise and service tax, of Rs 5.65 lakh crore for 2013-14, up from Rs 4.73 lakh crore in the last fiscal.

There are over 100 services including restaurant, hotels, stock broking, mandap keepers, beauty treatment and outdoor catering which entails service tax.

Appointing Common Adjudicating Authority ORDER 6/2013- Service Tax

F.No 137/42/2013-Service Tax Government of India Ministry of Finance Department of Revenue Service Tax Wing *** New Delhi dated the 4th October, 2013 ORDER 6/2013- Service Tax In exercise of the powers conferred by section 83 A of the Finance Act 1994, as amended read with notification 30/2005-Service Tax dated 10th August 2005, as amended and notification 16/2007- Service Tax dated 19th April, 2007, the Central Board of Excise and Customs hereby assigns to the Commissioner of Central Excise Hyderabad II , the adjudication of the show cause notices at S.Nos 1 and 2 of the following Table, answerable to the Commissioner of Central Excise Guntur and Commissioner of Central Excise Hyderabad III respectively, issued to the assessee indicated in column(2) of the said Table and the details of which are indicated in columns ( 3) and (4) of the said Table Table S.No Name of the assessee File number of Show cause notice Date of Show cause notice (1) (2) (3) (4) 1 M.R.K.R Construction and INV/DGCEI/CHZU/ST/61/2011 18-10-2011 Industries Private Ltd, 8-2- 268/1/D/A, Plot no 7, Aurora Colony, Road No 3, Banjara Hills, Hyderabad 2 M.R.K.R Construction and INV/DGCEI/CHZU/ST/60/2011 27-2-2012 Industries Private Ltd, 8-2- 268/1/D/A, Plot no 7, Aurora Colony, Road No 3, Banjara Hills, Hyderabad -sd- ( Rajeev Yadav) Director ( Service Tax) Central Board of Excise and Customs To Chief Commissioner of Central Excise Hyderabad/ Guntur Commissioner of Central Excise Hyderabad-II/ Hyderabad-III/ Guntur Additional Director General DGCEI, ( Headquarters), New Delhi

Appointing Common Adjudicating Authority ORDER 5/2013- Service Tax

F.No 137/42/2013-Service Tax Government of India Ministry of Finance Department of Revenue Service Tax Wing *** New Delhi dated the 4th October, 2013 ORDER 5/2013- Service Tax In exercise of the powers conferred by section 83 A of the Finance Act 1994, as amended read with notification 30/2005-Service Tax dated 10th August 2005, as amended and notification 16/2007-Service Tax dated 19th April, 2007, the Central Board of Excise and Customs hereby assigns to Dr. Ram Niwas, Commissioner of Central Excise, Mumbai II , the adjudication of the show cause notices,- a) at S.Nos 1 to 40 of the following Table, answerable to the Commissioner of Service Tax-I Mumbai, issued to the assessees indicated in column(2) of the said Table and the details of which are indicated in columns ( 3) and (4) of the said Table, and b) at S.Nos 41 to 100 of the said Table, answerable to the Commissioner of Service Tax-II Mumbai, issued to the assessees indicated in column(2) of the said Table and the details of which are indicated in columns ( 3) and (4) of the said Table. Table S.No Name of the assessee File number of Show cause notice Date of Show cause notice (1) (2) (3) (4) 1 DHL Express India Pvt Ltd V/ST/HQ/AE/E/213/12 22.10.2012 2 DHL Lemuir Logistics Pvt. Ltd. ST/MUM/DIVIII/GII/DHL/10 13.09.2011 3 DHL Lemuir Logistics Pvt. Ltd. V/ST/HQ(Adj)/DHL-743/08 21.10.2008 4 DHL Worldwide Express MIV/ST/CERA/Gr.VI/04 02.04.2004 5 DHL Worldwide Express (AFL M-IV/ST/CERA/Gr.VI/04 02.04.2004 Pvt.Ltd.) 6 DHL Worldwide Express (I) P. Ltd. MIV/ST/CERA/Gr.VI/04/3436 08.11.2004 7 DHL Worldwide Express (COU) V/ST/M-IV/DHL/R-11/03 dt 23/4/03 23.04.2003 8 Idea Cellular Ltd DGCEI/MZU/I&IS'C'/30-77/09/8834 20.10.2011 9 Idea Cellular Ltd ST/MUM/DN-III/GR-I/IDEA/133/2011 09.10.2012 10 Idea Cellular Ltd ST/HQ/EA-2000/(CAAP)Gr-03/Idea 06.09.2012 Cellular/10-11 11 Idea Cellular Ltd ST/DIV-III/GR-I/SCN/IDEA/166/2012 01.10.2012 12 Idea Cellular Ltd ST/MUM/DN-III/GR-I/IDEA/133/2011 25.09.2012 13 Idea Cellular Ltd. ST/Div-III/Gr-I/SCN/Idea/CERA/37/2012 18.05.2012 14 Idea Cellular Ltd. ST/MUM/Dn-III/Gr-I/Idea/129/2011 01.10.2012 15 Idea Cellular Ltd. ST/MUM/Div-III/Gr-I/Idea/Lucknow/12/09 26.03.2013 16 Idea Cellular Ltd. ST/Div.III/Gr.I/SCN/Idea/(Spice)Dn/93/10 19.10.2010 17 Idea Cellular Ltd. ST/Dn-III/Gr-I/SCN/Idea/T& S/09 28.02.2013 18 Idea Cellular Ltd. (Erstwhile Spice C.No.V/(STC)15/CE/Adj/61/2008/ 17.10.2008 Communication Pvt. Ltd.) 19 Idea Cellular Ltd. (Erstwhile Spice C.No.V/(STC)15/CE/Adj/13/2009/ 23.03.2009 Communication Pvt. Ltd.) 20 Idea Cellular Ltd. (Erstwhile Spice C.No.V/(STC)15/CE/Adj/63/2009/4374-75 22.09.2009 Communication Pvt. Ltd.) 21 Idea Cellular Ltd. (Erstwhile Spice C.No.V/(STC)15/CE/Adj/72/2009/ 16.07.2009 Communication Pvt. Ltd.) 22 Mahyco Monsanto Biotech (India) ST/MUM/DNIII/GRI/SCN/MMBI/2009 20.09.2011 Ltd. 23 Mahyco Monsanto Biotech (India) DGCEI/MZU/I&IS'C'/12(2)51/06 24.10.2008 Ltd. 24 Mahyco Monsanto Biotech (India) ST/MUM/Dn.III/GR.I/SCN/MMBI/2009 14.10.2010 Ltd. 25 Mahyco Monsanto Biotech (India) ST/MUM/DN-III/GR-I/SCN/MMBI/2009 22.04.2013 Ltd. 26 Mahyco Monsanto Biotech (India) ST/MUM/Dn.III/GR.I/SCN/MMBI/2009 20.10.2009 Ltd. 27 Mahyco Monsanto Biotech (India) ST/MUM/Dn-III/Gr-I/SCN/MMBI/2009 12.04.2012 Pvt. Ltd. 28 Mahyco Monsanto Biotech (India) ST/MUM/Div-III/Gr-I/SCN 19.08.2011 Ltd. (Interest)/MMBL/161/10 29 UPS Jetair Express Pvt. Ltd. V/ST/HQ/AE/E/145/12 23.10.2012 30 Vodafone Essar South Ltd. ST/HQ/EA-2000/Gr-03/Vodafone-NLD/11-12 19.10.2012 31 Vodafone Essar Ltd V/ST/Dn-II/Gr IX/vodafone/inbounbd/2012 18.09.2012 32 Vodafone Essar Ltd. V/ST/Dn-II/GrIX/SCN/Vodafone/CG/2010 12.10.2012 33 Vodafone Essar Ltd. V/STC/Gr.IX/Tel/HMT/SCN/2004 25.09.2009 34 Vodafone Essar Ltd. V/ST/Div.II/Tech-II/Review/VEL/102/07 10.05.2011 35 Vodafone Essar Ltd.(formerly V/STC/Gr.IX/Tel/HMT/SCN/2004 15.10.2008 known as Hutchison Max Telecom Pvt.Ltd. ) 36 Vodafone Essar Ltd.(formerly V/STC/Gr.IX/Tel/HMT/SCN/2004 17.10.2008 known as Hutchison Max Telecom Pvt.Ltd. ) 37 Vodafone Essar Ltd.(formerly V/STC/GR.VI/Tele/HMT/SIM/2005 20.03.2006 known as Hutchison Max Telecom Pvt.Ltd. ) 38 Vodafone Essar Ltd.(formerly V/STC/Gr-IX/Tel/HMT/SIM/2006 11.10.2006 known as Hutchison Max Telecom Pvt.Ltd. ) 39 Vodafone Essar Ltd.(formerly V/STC/GR.VI/Tele/HMT/SCN/221/2004 16.03.2005 known as Hutchison Max Telecom Pvt.Ltd. ) 40 Vodafone Essar South Ltd. ST/HQ/EA-2000/Gr-03/Vodafone-NLD/11-12 20.09.2012 41 A B Corp Ltd V-Adj/ST-II/abcorp/15-42/2012 12.04.2012 42 A B Corp. Ltd. ST/Div.IV/SCN/AA/774/05 dt.4.2.2005 04.02.2005 43 Acculist Reseach Laboratories (I) P ST/DnV/Gr.V/AR-Acculist/10-11/1931 11.10.2010 Ltd 44 Aditya Birla Minacr World Wide ST/Div/Aditya Birla/courier/SCN-2/2010 20.10.2011 Ltd 45 Aditya Birla Minues World Wide ST-Div-V/ABM/SCN-5/2010 16.04.2012 Ltd 46 Aditya Birla Minues World Wide ST/Div.V/ABMWWL/SCN/2010/404 18.04.2013 Ltd 47 Advance Construction ST/Div-V/ST-II/scrutiny/09-10/704 19.10.2011 48 Advance Construction Co. Pvt. Ltd., ST/Dn-V/ST-3/Scrutiny/09-10 17.10.2012 49 Advance Construction Co. Pvt. Ltd., ST/Div/V/ST-3/Scrutiny/09-10/1966 21.10.2010 50 Advance Construction Co. Pvt. Ltd., V-Adj/ST-II/ACC/15-198/2010 22.04.2010 51 Almech Enterprises V-Adj/ST-II/Almech/15-218/2010 10.05.2010 52 Baker Hughes Asia Pacific Ltd V-Adj/ST-II/BHA/15-211/2010 23.04.2010 53 Baker Hughes Singapore Pte V/Adj/ST-I/BHJ/15-44/2012 13.04.2012 54 Balaji Telefilms Ltd. Adj/ST-II/BTL/15-302/2010 DT. 15.10.10 15.10.2010 55 BASF V/STC/BASF/69/Bel/03 dt 23.06.03 23.06.2003 56 BASF V/STC/BASF/69/Bel/03 dt 19.04.04 19.04.2004 57 BASF(I) Ltd V/ST/Div-V(Bel)/SCN/BASF/2003 15.06.2006 58 Bayer Material Science Pvt. Ltd. ST/Div.VI/Gr.IV/Bayer/2011 07.10.2011 59 Bharat Petroleum Corporation ST/SC-V/CERA/BPCL/-06 dt. 29.08.2008 29.08.2008 60 Bharat Petroleum Corporation ST/SC-V/CERA/BPCL/06/3387 29.08.2008 61 Bitcon India Infrastructure V/ST-I/HQ/AE/Gr.I/133/2008 19.10.2011 Development P. Ltd. 62 Godrej Industries ST/DN.V/GR.II/GIL-CRA/09-10/3947 05.10.2011 63 Hydroair Tectonics (PC) Ltd V/ST/HQ/AE/Enq/Gr.3/94/M-II/2011 11.04.2012 64 Hydroair Tectonics (PCD) Ltd V/ST/Dn-V/Bel/Gr.VI/HT Ltd/2012 20.12.2012 65 Infrasoft Tech India Ltd. V/ST/Div.VI/Gr.VI/ITIL/SCN/2010-11 03.10.2011 66 Infrasoft Tech India Ltd. V/ST/Div.VI/ITIL/SCN/2010-11 06.03.2012 67 Ipca Laboratories Ltd. DGCEI/MZU/I&IS'C'30-57/07 dtd.22.10.08 22.10.2008 68 L & T Ltd ST-II/HQRS Audit/Gr-4A/09/10/Part-I 18.03.2013 69 L&T Limited (HED) ST/Div.V/Gr.II/L&T(HED)/SCN/2013 18.04.2013 70 Larsen & Toubro Ltd. ST-II/Dn-V/Gr.II/FAR/L&T(SSC)/2011 24.10.2011 71 Larsen & Toubro Ltd. ST/Div-V/Gr-II/L&T(Finance)/2010 09.10.2012 72 Larsen & Toubro Ltd. V/ST/Div-VI/Gr.II/L&T Grahak/17/2012 18.10.2012 73 Larsen & Toubro Ltd. ST-II/Div-V/Gr-II/L&T Finance/2009/Para4 09.10.2012 74 Larson & Toubro ST-II/Audit/EA2k/Gr.II/L&T/79/2010/1817 23.04.2013 75 Mayfair Housing Pvt Ltd V-Adj/ST-II/MHPL/15-74/2012 10.10.2011 76 Mayfair Housing Pvt Ltd V-Adj/ST-II/MH/15-73/2011 11.10.2011 77 Meru Cab Company Pvt. Ltd DGCEI/MZU/I&IS"B"/12(4)70/09 20.10.2010 78 Meru Cab Company Pvt. Ltd V-Adj/ST-II/Meru/15-65/2011 03.10.2011 79 Meru Cab Company Pvt. Ltd ST-II/DN.IV/GR.IV/MERU CAB/SCN/2011 20.10.2012 80 Modern Cargo Services Pvt. Ltd ST/Dn.V/Gr.III/19/09-10 07.09.2011 81 Modern Cargo Services Pvt. Ltd V-Adj/ST-II/Modern/15- /10 02.10.2012 82 Modern Cargo Services Pvt. Ltd ST-II/Div-V/Gr.III/19/09-10 01.10.2012 83 Oglivy & Mather Pvt. Ltd. V/ST/Div/IV/Gr/I/CERA-2000/OMPL/08 02.04.2009 84 Pearl Logistics Services V-Adj/ST-II/PLS/15-146/2010 22.04.2010 85 Pearl Logistics Services DGCEI/MZU/I&IS'D'/12(4)198/08 20.04.2009 86 Petron Civil Engg. Pvt. Ltd. ST/Dn.V/Gr.III/7/2010 18.10.2012 87 Pfizer Ltd. ST/MUM/IV/CERA/PFIZER/TTA/08 11.09.2008 88 Ratiopharma India Pvt. Ltd. V/ST/MUM/Div-VI/Gr-II/Ratiopharm-26/08- 17.10.2008 09 89 S P Fabricators Pvt. Ltd. V/ST/Dn V/Bel/DAR/S.P.Fab/2010 24.10.2011 90 S P Fabricators Pvt. Ltd. V/ST-II/Div.V(Bel)/DAR/S P Fab/2010 14.01.2013 91 Sai Star Distributors ST/MUM/Dn.IV/SCN/CBL/08 dtd.22.10.08 22.10.2008 92 Schlumberger Asia Services Ltd. STC/MV/SCN/SAS/498/02 dt 10.06.02 10.06.2002 93 Schlumberger Asia Services Ltd. STC/MV/SCN/Schlumber/611/02 31.01.2003 94 Schlumberger Asia Services Ltd. STC/MV/SCN/SAS/487/02 dt 06.06.02 06.06.2002 95 Schlumberger Asia Services Ltd. STC/MV/SCN/SASL/456/04 dt 06.05.04 06.05.2004 96 Schlumberger Asia Services Ltd. STC/MV//SCN/Schlumber/48/03 18.08.2003 97 Sitel India Ltd ST-II/Dn.V/Gr.IV/SCN/Sitel/94/Pt.2/2011 21.10.2011 98 Sitel India Ltd ST-II/Dn.V/Gr.IV/SCN/STEL/94/11 19.10.2011 99 Sitel India Ltd ST-II/Dn.V/Gr.IV/Sitel/94/Pt.1/2011 19.10.2011 100 Sitel India Ltd ST-II/Dn.V/Gr.IV/Sitel/33/2012 12.10.2012 -sd- (Rajeev Yadav) Director (Service Tax) Central Board of Excise and Customs To Chief Commissioner of Central Excise Mumbai-I/Mumbai-II Commissioner of Service Tax Mumbai-I/Mumbai-II Commissioner of Central Excise Mumbai-II

Service tax applicable on food, beverages served at pool side

Food and beverages served at swimming pool side in a hotel will attract service tax, the Finance Ministry has said.

"Services provided by specified restaurant in other areas of the hotel are liable for service tax," said the Central Board of Excise and Customs (CBEC) while clarifying doubts regarding the applicability of the levy on restaurant service.

In a hotel, if services are provided by a restaurant in other areas like swimming pool or an open area attached to the restaurant will attract the service tax, it said.

The CBEC, responsible for administration of indirect taxes, further said that service tax is not applicable on goods sold on MRP (maximum retail price), like water bottles, in restaurants.

"If goods are sold on MRP basis...they have to be excluded from total amount for the determination of value of service portion," it said.

It further 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, attracts service tax.

However, services provided in non-air conditioned restaurants are treated as "exempted service".

In restaurants, service tax is charged at the rate of 12 per cent plus cess on 40 per cent of the food bill.

Customs clear gold at Mumbai airport: officials

The customs department has cleared more than a tonne of gold, part of which was owned by Bank of Nova Scotia(BNS.TO), the biggest gold importing bank, at the Mumbai airport after rule clarifications at a high-level meeting held last month, industry and bank officials said on Saturday.

Gold imports into India, the world's biggest buyer of the metal, had virtually stopped after a July 22 circular which tied domestic consumption to exports.

"More than one tonne of gold was stuck at Mumbai airport and everything has been released. People have taken delivery of gold and the festival season has started with a good news for exporters," Pankaj Kumar Parekh, vice chairman of the Gems and Jewellery Export Promotion Council told Reuters.

The resumption of imports after a two month gap is positive for exporters like Rajesh Exports(REXP.NS) and Shree Ganesh Jewellery(SHRG.NS) ahead of the peak Christmas season.

It is also positive for domestic jewellers in the run up to the festival season, which peaks with Dhanteras in November, the biggest gold buying festival.

"We were after the customs since two months and finally our consignment has been cleared. We will start processing our orders from Monday," said an official with a private bullion importing bank in Mumbai, who wished not to be named due to company policy.

India, battling with a record high trade deficit and a weak currency, is trying to curb imports of dollar-denominated gold, the most expensive non-essential item in its import bill.

India may import a total of 30 tonnes in October, half of the normal average, out of which 6 tonnes might go for exporters and 24 tonnes for the domestic market, Parekh said on October 1.

India imported 393.68 tonnes of the yellow metal from April to September 25, slightly higher than the normal average of 60 tonnes per month.

A finance ministry official estimated gold imports at between 750 and 800 tonnes in the fiscal year through March 2014.

Construction firms top service tax amnesty charts

If the applications for availing of the government’s service tax amnesty scheme are any indication, companies involved in construction and works contracts might well be among the biggest evaders of service tax. According to preliminary information with the finance ministry, these two sectors account for the bulk of the application; transportation and supply of manpower follow. The Service Tax Voluntary Compliance Encouragement Scheme (VCES), announced in Budget 2013-14, had drawn 3,681 applications declaring tax to the tune Rs 897 crore as on September 30. Of this, tax of Rs 58 crore had already been paid, while the rest was to be paid by December 31, when the scheme would close. The scheme is likely to bring to the exchequer about Rs 1,500 crore this year — 50 per cent more than the initial internal estimate of Rs 1,000 crore. A finance ministry official said some of these applications that didn’t meet the eligibility criteria might be rejected. But the exchequer might still get about Rs 1,500 crore. The worry, however, is that many taxpayers have stopped making regular payments and are applying under the scheme to avoid interest, penalty and prosecution on evasions since 2007. Moreover, under VCES, service tax defaulters can pay half their dues by December 2013 and the rest by June 2014. Generally, the service tax collected has to be paid to the government in a month. Payment defaults in tax collections exceeding Rs 50 lakh become non-bailable offence only after six months from the due date. The underreporting of services would be even higher. Services tax is levied at 12 per cent and at that rate the undisclosed amount would be Rs 7,475 crore. However, as abatement is allowed on many services, the value of total business that goes unreported would be higher. In case of flats, abatement is 70 per cent and the rate varies in other categories of construction, works contract, etc. Now, assuming an abatement rate of 70 per cent, this would mean services worth Rs 24,917 crore were not reported. “The trend emerging as of now is that a lot of taxpayers from the construction and works contracts are applying for the scheme,” said another finance ministry official. An addition of Rs 1,500 crore would be a major boost to service tax collections this year, pegged at Rs 1,80,141 crore; and, declaration of service tax dues could add only a bit to the country’s GDP. The underreporting of business worth Rs 24,917 crore would account for only 0.24 per cent of India’s GDP in 2012-13. However, the exercise would bring new taxpayers to the government and add to GDP in subsequent years. At present, the services sector contributes about 65 per cent to GDP, while service tax constitutes less than a third of total indirect tax collections. At present, of the 1.7 million registered assesses under service tax, only 700,00 are filing returns; some are exempted and some have turnovers of less than Rs 10 lakh. According to government estimates, service tax evaders deprived the exchequer of over Rs 9,872 crore during April-December 2012. During this period, 4,133 cases of service tax defaults were detected; over Rs 1,969 crore has been realised from these defaulters. A defaulter can avail of the one-time scheme on the condition that he files a truthful declaration of service tax dues since October 2007 and makes the payment in one or two instalments. This is for the first time that an amnesty scheme has been announced for service tax evaders. A Voluntary disclosure of income scheme had been launched by the finance ministry in 1997 and it had helped increase income-tax collections dramatically that year.

No financial impact as service tax is pass on: SREI Infra

The Central Board of Excise and Customs has said that tower companies cannot avail of central value added tax (CENVAT) credit on goods and services used in the construction of towers. This may in turn impact tower companies. However, Sunil Kanoria, Director of SREI Infrastructure says there is no impact per se because the service tax is a pass on. Also Read: Service tax dept slaps Rs 150 cr tax order on GTL Infra The tower owning companies used the taxes that they have paid as a set off against taxes they have to pay and hence got some bit of relief on taxes. But now with the department saying that such credit cannot be taken, notices have been sent to some of the tower companies. SREI Infrastructure owns 18 percent stake in Viom Networks although the Tatas hold the larger stake. Kanoria says the net off in the last two years has been negligible because new tower rollouts have been very few. He says the sector has clearly slowed down, besides his own approach has been fairly conservative for close to two years now. Therefore, he expects to see slow growth in AUM in this current financial year. Below is the verbatim transcript of Sunil Kanoria's interview on CNBC-TV18 Q: Have you spoken to your own tax department or the tax authorities, are you likely to pay more taxes for your tower unit? A: The matter is subjudice and it is in different courts for the last couple of years now, relating to the CENVAT. However, if you see the impact on us per se it is not there because the service tax is a pass on. So whatever service tax is leviable, we get paid by the customer and the CENVAT is a credit to net off whatever we have paid but if we don’t get that, it is not that you are out of pocket. It is just that you get a net off if you are allowed. So per se there is no financial impact as such but yes, as a policy, the process is on and the matter is within the various appeals. Q: How much did you get net off in the last financial year? A: Hardly anything because in the last two years, new tower rollouts have been very negligible. Therefore, you do not have it is basically an issue which has been there from 2008-2009 - maybe when the tower growth was happening. So last two years it is virtually very negligible. Q: It is not as if you will see any prospective fall or a rise in taxes, could there be some deferred impact if at all, the tower companies were to lose this case? A: It will be in a deferred cash flow impact but ultimately the service tax is all VATable and pass on. Q: Would you expect that you will be able to increase your assets under management (AUM) at all this year? One hears that there is hardly any demand for loans especially in this space, infrastructure? A: We are very clearly seeing a slow growth in the last one and a half years now. What we used to see in 2009-2010 and even up to 2011, the sector has very clearly slowed down and we have also been fairly conservative in our approach for the last almost close to two years now and therefore, we will see a slow growth in our AUM in this current financial year.

GST will not subsume entry tax: Sumit Kumar Chakraborty

Two recent judgments on entry tax by the single and Division Bench of the Calcutta High Court have divided lawyers on the constitutional validity of the tax. In an interview with Namrata Acharya, president of West Bengal Taxation Tribunal Bar Association, Sumit Kumar Chakraborty, talks about the legal implications of the judgments and the constitutional provisions pertaining to entry tax. Edited excerpts:

What is your contention with the entry tax in West Bengal?

The West Bengal Entry of Goods into Local Areas Act, 2012 was challenged by various dealers before the Calcutta High Court on the ground that it violates the Constitution of India. The government can restrict the movement of goods from one state to another but for that there is a need for the President's assent. West Bengal did not take President's assent before imposing the entry tax.

Second, the government had said entry tax was introduced for some purposes or end use. They could not show any purpose of use for the money collected through entry tax. Thus, the single judge Bench had held the Act as ultra vires.

The matter went to the Division Bench of the Calcutta High Court, which directed the dealers not to seek refund on taxes already paid. At the same time, the government was allowed to continue with the assessment for entry tax.

Are the judgments of the single and division Bench in contradiction with each other?

No, they are not. The next hearing is in November. We are of the view the Act is still ultra vires, as the earlier judgment of the single Bench has not been stayed by the division Bench. Hence, the Act is still invalid. So, how can I pay tax?

The commercial tax department is asking how the court can ask for assessment when the Act is invalid.

What is assessment? It is the quantification of the liability to pay the tax. Realisation is a different thing. The court did not ask for realisation.

Assessment is determination of tax. In the case of entry tax disputes, some courts have held that the tax has to be paid. But our court has not said so, so the realisation of tax is invalid.

So, why are the dealers not filing a contempt of court case against the state?

The government is using coercive methods. It is issuing notices for assessment, not realisation. Only if they issue realisation notices does the question of contempt arise.

What are your views on the justification of entry tax?

Entry tax can be levied by state governments. Article 301 says a state can impose tax on the entry of goods into another state. However, for that restriction, you have to have the consent of the President. Several other states are also fighting cases pertaining to entry tax. In case President's assent is obtained, there are several other grounds under which the entry tax can be called unconstitutional.

For example, it is to be seen if the tax violates Article 14, 19, 304 of the Constitution. I've the fundamental right to bring any goods from any state to my state. Suppose, if a person is transferred from Chennai to Kolkata, he will be bringing his goods for use of consumption and use in West Bengal. So, is he liable to pay entry tax? The Act violates the law of equality as some states have imposed entry tax and some have not.

Recently, Punjab changed the name of entry tax as advanced tax on import of goods. Can the tax be retained by changing its name?

Advance tax is equated with self assessment of income tax. It is to be seen how they adjust the entry tax with self assessment.