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: Central Excise rule to resale the machines to a new company :: cpt :: articles on VAT and GST in India :: due date for vat payment :: ACCOUNTING STANDARDS :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: VAT RATES :: form 3cd :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
News Headlines »
 5 Tax tasks you should complete before March 31
 March 31 deadline nears: Check out these last-minute tax-saving investment options
 How to file income tax returns online without having Form 16 in 10 simple steps
 Deadline For Filing Income Tax Return (ITR) Is Just 11 Days Away: 10 Latest Details To Know
  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

Telcos to face special service tax audits
December, 14th 2006

The finance ministry has decided to undertake special service tax audits of telecom companies paying lower amounts of service tax compared to their earnings, but fail to provide supporting evidence to justify the mismatch. The idea is to check for possible tax evasion.

Chief commissioners of various zones have received a formal communication to this effect from the Central Board of Excise and Customs (CBEC). Sources said letters have also been sent to industry associations such as the Cellular Operators Association of India seeking details on revenue earnings and service tax liability of their members.

An internal study conducted by the Directorate General of Service Tax (DGST), Mumbai, made out a case for special audits on telecom companies. There are over 250 service tax registrants, with a few state-owned companies registering as assessees in different locations.

Government officials made it clear that audits will be done only in cases where the companies fail to provide the supporting rationale for the wide mismatch between revenue earnings and service tax payments. If the audit is undertaken, it may cover telecom companies packages to lure consumers, such as free talk time and so on. A spurt in Cenvat credit is also being cited by the finance ministry as a reason for the slowdown in growth in service tax revenues from the telecom sector.

BSNL director (finance) SD Saxena said, With about a 40% share in the Centres service tax kitty, our tax compliance record has been impeccable. We have no problem facing an audit, even though we are a PSU, our books are anyway scrutinised by the CAG.

The telecom industry is witnessing an explosive growth. Revenues topped Rs 92,000 crore ($20 billion) in FY06, against Rs 78,200 crore ($17 billion) in FY05, marking an increase of around 17.6%. Telephone services account for over 93% of service tax revenues in the telecom sector.

The mobile subscriber base grew by a robust 78% in FY06 with the total number of subscribers touching 140 million. However, service tax revenues rose by a modest 4% to Rs 4,092.49 crore in FY06 compared with Rs 3,934.36 crore in FY05. A senior executive from a private telecom company said that the average per unit revenue of the industry was getting cheaper and cheaper due to the hyper-competition under the present regulatory regime.

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

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