Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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
Popular Search: due date for vat payment :: VAT RATES :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: list of goods taxed at 4% :: cpt :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: VAT Audit
« News Headlines »
  10 incomes you need not pay any tax on
 How To File Income Tax Returns In Three Steps By March 31, 2018
 10 things about income tax every taxpayer should know
 What to do if your TDS is not deposited with the government
 What if you forget to verify your Income Tax return?
 TDS on rent and other tax tasks to complete before March 31
 5 income tax changes which will come into effect from April 1, 2018
 Why you shouldn't be a last-minute tax filer
 How to calculate income tax for this assessment year on Moneycontrol
 6 Tax notices you may get and how to cope with them Income Tax Notice
 Deadline to pay advance tax ends tomorrow: Here is a step-by-step guide

EPFO slapped with tax notice; faces Rs 1,200-crore demand
November, 20th 2009

Its not clear if dipping tax collections have anything to do with it, but the countrys largest retirement fund just got a shocker from the revenue authorities.

The Central Board of Excise & Customs has slapped a penalty notice on the Employees Provident Fund Organisation (EPFO) for evading service tax, arguing that it provides employers fund management services. Fund management falls under the definition of banking & financial services, which are taxable.

In its notice, CBEC argued that the organisation evaded service tax of Rs 461 crore from 2004-05 to 2007-08, on which penalties would be levied.

The total tax demand is expected to be around Rs 1,200 crore, factoring in those penalties along with tax dues for 2008-09 and 2009-10. CBEC has also asked why EPFO shouldnt be penalised for not registering as a service taxpayer and not submitting quarterly returns for tax payments.

The tax demand originated from an inquiry initiated by the CBECs Bangalore office that asked EPFO why it should not be liable to pay service tax on the administration charges collected from employers.

We replied with the legal opinion we obtained and believed that the chapter was over. But internally, CBEC transferred the case to Delhi and without any show-cause notices, the board sent us a penalty notice, a senior EPFO official told FE.

The labour & employment ministry, under which EPFO functions, has sent off a strong missive to the finance ministry protesting the move. The EPFO runs social welfare schemes mandated by an Act of Parliament. It does not provide any commercial service, a senior labour ministry official insisted.

Experts, however, differ. Service tax has been levied on banking & financial services since 2001, under which pension fund management was explicitly included.

In the absence of any exemption granted to a public body like EPFO for providing social security, the tax authorities seem to have a valid case, said PwC ED Sachin Menon.

Even as it gears up to appeal against the CBEC notice, EPF officials are expecting a long-drawn battle, which throws up other issues. One, the EPFOs balance sheet is based on actuals, so it cant possibly create a provision for the service tax liability.

Secondly, it is mulling passing on the liability, if upheld, to employers. We cant absorb it, so the only option may be to revise the administration charges paid by employers to EPFO, presently.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Publishing Management System PMS News Management System Publishing Management System Development Online News Management System for media company custom Publishing management system development Survey management system Market Res

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