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: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: TDS :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: VAT Audit :: articles on VAT and GST in India :: cpt :: ACCOUNTING STANDARDS :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: ACCOUNTING STANDARD
 
 
« News Headlines »
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act

IITs, IIMs not to face service tax for placements
November, 02nd 2006

Educational institutes like IIMs and IITs have got a bitter-sweet pill on service tax. The Central Board of Excise and Customs (CBEC) have given them a breather from any retrospective tax liability on the placement services they provide to their students, reports Our Bureau.

CBEC, which examined the matter in detail, issued a circular on Wednesday stating that these academic bodies were not liable to pay service tax prior to May 1, 06 under the category of manpower recruitment or supply service.

The definition of the manpower recruitment or supply of service, prior to May 1, 06 was any commercial concern engaged in providing any service, directly or indirectly, in any manner for recruitment or supply of manpower, temporarily or otherwise to a client.

The department has concluded that these institutes cannot be clubbed as commercial concerns and hence no service tax would apply on them, for the period before May 1, 06. It has now replaced the word commercial concern by substituting it with any person.

The changes were made in the service tax rules that came into effect from May 1, 06. It was meant to expand the scope of service providers. The circular added that for the period after May 1, 06, the decision to charge a service tax or not on these educational bodies, would be taken on a case-to-case basis after taking into account all relevant facts.

The issue came to light after IIM-A and IIM-B were issued show-cause notices in March this year, by the service tax department. Both the IIMs had strongly disputed the claim and contested the notices. The claims raised by the department were for last fiscal.

While IIMs and other such institutes pay service tax to the department for the management or other consultancy service provided by them, they were not paying any service tax on recruitment fees so far.

IIMs get close to $5,000 per student from a multinational recruiter while a domestic company pays a fixed fee depending on the day they are slotted, ranging from Rs 40,000 to Rs 1.80 lakh. The fees differ for different IIMs.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

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