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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Service Tax »
 12 ways to avoid paying more for bank services
 I-T return filing: Income Tax offices, Ayakar Seva Kendras to remain open from March 29-31
 Top 5 money matters you must settle before March 31 From income tax returns to LTCG,
 Steep fines for missing March 31 income tax deadline
 CBEC clears some air on refunds under GST, central excise, service tax laws
 3 key tax changes for senior citizens which will come into effect from April 1, 2018
 Income tax returns (ITR) filing: Not filed returns for 2 years? Beware! Deadline nearing
 All you want to know about HRA: When you can claim and how it is calculated?
 Income Tax Saving: 6 ways to save tax without investing before March 31 tax deadline
 Unnable to file your tax return? Take help of these portals
 Do you know which 80C instruments can help you save tax and carry no future tax liability?

EPFO service tax issue
November, 23rd 2009

The finance and labour ministries have locked horns over the issue of bringing retirement fund manager EPFO under the service tax net. 

The central board of excise and customs has slapped a notice for recovery of service tax on Employees Provident Fund Organization (EPFO) but the labour ministry has opposed it saying the organization was not doing any commercial activity.

Our stand is very clear that EPFO is not doing any commercial activity so its services provided to employees cannot be brought under the service tax net, minister of state for labour Harish Rawat said. EPFO manages a corpus of about Rs 2.57 lakh crore with subscribers base of over 4.5 crore. According to the CBEC notice EPFO comes under the service tax net as it was providing fund management services.

However, CBEC thinks the otherway round. It pointed out in its notice that EPFO provides fund management service to employers and charges service tax from them. Thus, service tax should be levied.

Rawat said, we do not charge anything from employees. They get all services free of cost. Moreover, it is a mandatory social security scheme for the beneficiaries and a large number of those are low-paid workforce.
If you think that EPFO is earning something out of managing retirement fund. It is wrong.

It is true that we do (take) charge from employers. Besides, them government also contributes in this fund, he said. Managing retirement fund of the employees free of cost is under the directive of Parliament, Rawat added.

The CBEC claimed that epfo evaded service tax of Rs 461 crore during 2004-05 to 2007-08, excluding penalities.
The total tax demand could be around Rs 1,200 crore, including penalties for non-payment of tax and service tax for 2008-09 and 2009-10.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

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