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: articles on VAT and GST in India :: VAT Audit :: ACCOUNTING STANDARDS :: VAT RATES :: list of goods taxed at 4% :: cpt :: form 3cd :: due date for vat payment :: ACCOUNTING STANDARD :: empanelment :: Central Excise rule to resale the machines to a new company :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4%
 
 
« Service Tax »
 Revised GST legislation may pinch working capital of industries
 GST to result in price reduction for consumers: Hasmukh Adhia
 Bill gives free hand to CAG to audit GST operation
 Lok Sabha to discuss GST bills on Wednesday
 GST to strengthen organised logistics companies
 No need for Parliament nod to waive property tax in Delhi
 CBEC to be renamed, reorganised for GST regime
  GST debate now continues on categorisation of products
 GST coming soon, but don’t expect quick benefits; rich valuation to stall stocks
 FM Arun Jaitley underlines urgency to pass GST bills in this Parliament session
 Government may table 4 GST bills in Parliament today

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 2017 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