Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: due date for vat payment :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: VAT RATES :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: articles on VAT and GST in India :: cpt :: TDS :: ACCOUNTING STANDARD :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
General »
 Shah gets notices over civic tax dues
 Tax revenue down in first six months after prohibition
 Post demonetisation, Income Tax department sends 30 cases of irregularities to Enforcement Directorate, CBI
 Don’t rush into a new tax without being prepared
 Can’t tax income from palace rent: Supreme Court
  Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on November 30, 2016)
 Cases for tax scrutiny will be selected by machines
 Time to revisit 1997 direct tax rates, says P Chidambaram
 Lok Sabha passes Bill to tax black money deposits post demonetisation
 Last day to pay property tax with old notes
 Income tax department asks IDS declarants to pay tax by 30 November

Labour ministry cries foul over health cover tax demand
October, 21st 2010

A service tax demand on the Employees State Insurance Corporation may bring the labour ministry and the finance ministry on collision course, less than a year after they locked horns over a similar demand on provident fund payments.

The revenue department has decided that ESIC, which promises health benefits through ones working life, is liable to pay service tax, a move that could increase cost for India Inc to provide mandatory health cover for workers.

Over the last couple of months, field formations of the central board of excise and Customs have been issuing service tax demands to ESICs 600-odd branch offices across the country.

We are not running a for-profit activity that can be taxed as a commercial service, said a senior ESIC official at the corporations headquarters in New Delhi. We are a social security scheme set up under an Act of Parliament, he said, requesting anonymity. He said it would be difficult to put a consolidated number on the tax demand at this stage.

ESIC has an annual income of around Rs 4,500 crore with 5.5 crore beneficiaries under its net. ESIC has alerted the labour ministry about the tax demands and sought a policy-level intervention from the government.

This is the second time in less than a year that the ministries of finance and labour are heading for a showdown over taxability of social security schemes. Last November, a service tax demand was raised on the countrys largest retirement fund -- the Employees Provident Fund Organisation (EPFO).

The demand, originally at around Rs 461 crore, has now been confirmed at over Rs 1,000 crore. While the EPFO is filing an appeal against the demand, it is also creating a contingency plan to shift the tax burden to employers if the demand is upheld.

Employers currently pay 1.1% of EPF contributions as administration charges, which would go up if service tax becomes applicable. The ESIC is also expected to hike administrative costs paid by employers to factor in service tax.

Applicable on workers earning up to Rs 15,000 a month, the state-run insurance scheme is financed by contributions from employers and employees. Employers pay 4.75% of wages and employees chip in 1.75%. The ESIC has a large network of hospitals, whose operational costs are shared by the Centre and the states.

The scheme is applicable to all factories with 10 or more workers and retail trade establishments with 20 workers or more. There scheme covers 1.43 crore families.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Enterprise Resource Planning Solutions ERP Solutions Enterprise Resource Planning Software Solutions ERP Software Solutions Supply Chain Management Solutions SCM Solutions Supply Chain Management Software Solutions SCM Software Solutions Enterprise Resource Planning Solutions India ERP Solutions India Enterprise Resource Planning Software Solutions India ERP Software Solutions India Supply Chain Management Solutions India SCM Solutions India Supply Chain Management Software Solutions India SCM Software Solutions India

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions