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 :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: due date for vat payment :: cpt :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: TDS :: empanelment :: Central Excise rule to resale the machines to a new company
 
 
« Service Tax »
 6 reasons you need not fear the GST regime
 Tax return filing extension on GST may not be enough
 GST: ‘Tech readiness, tax administration key challenges’
 GST return filing rules relaxed for Jul-Aug, July 1 rollout
 GST Council gives return filing breather to India Inc for 2 months
 All eyes on 18 June as GST Council meets to iron out niggling issues
 GST Council's June18 meet to finalise e-way bill, anti-profiteering rules
 Valuation of Tax liabilities Under GST Regime
 Govt to go soft on GST monitoring for a few months, let traders settle down
 GST to have negative impact on oil and gas industry
 GST and You: How are free samples treated under the new tax regime?

MP to challenge GST concept
January, 04th 2012

List of services attracting levy of service tax is wide and most of them are already under the state tax domain.

State finance minister through another spanner to Union governments tax reform exercise, particularly GST (goods and service tax) will challenge its service tax concept as, It is not only violation of the constitutional provisions but, also an encroachment in state tax domain. Bhopal will host the show on 9 and 10 January.

The long-delayed goods and service tax (GST) has already left state-central relations sour. The fresh bid to take on Union government on service tax issues is likely to add more bitterness to it.
According to a state government official, The list of services attracting the levy of service tax is wide and covers 125 services and most of them are already under state tax domain.

According to a draft on Taxation of services based on negative list of services under residuary powers for the proposed two-day meeting, the states are likely to refer to a Supreme Court order in civil appeal (No 6319 of 2011) in which the Apex court has prescribed domain position of transaction test for deciding whether any activity is a sale of goods or supply of services.

The draft prepared for the discussion reads, All activities in which the dominant element is an event or activity taxable by the states should be considered to be outside the scope of residuary power as Constitution (eighty-eighth) amendment Act 2004 has yet not come into force that provides Union list providing for levy of service tax by the Union.

Central government has encroached a number of activities by putting them under service tax net which actually comes under state tax domain. For example, hotel or restaurant is a part of service industry but, once the activity of a restaurant is supply of food and drink is included in entry 54 list-II that provides for taxation of events with relation to goods by the states, it cannot be taxed under residuary power even if it is supplied in an air-conditioned restaurant having license to service alcoholic beverages, a governement official told Business Standard.

The empowered committee had considered a revised concept paper in its last meeting on 28 November 2011 and decided that states officials for taxation should examine it. Some transactions are being considered services by the Central government, in fact, these are considered goods or luxury or entertainment by some state governments, too. As a result taxation of such activities may not provide any additional tax-base to states as proposed in GST, it is mere encroachment into taxation fields assigned to states by the Constitution, he further added. The states are likely to raise objections under certain activities which are under state tax domain but, subject to levy of service tax by the Union government.

These are transport of goods by road, through inland waterways, steamer agents, rent-a-cab operator. Secondly, personal services like beauty parlours, health and fitness centers, dry-cleaning, outdoor caterers, pandal and shamiyana services, membership of clubs and associations, services of providing accommodation in hotels, inns, clubs, guesthouses; etc. Thirdly, land buildings, construction services related to commercial or industrial buildings, residential complexes, services provided by builders in relation to preferential location, internal development, work contract service.

Fouthly, advertisement, promotion, marketing or organising of games of chance (including lottery, etc), sale of space for advertisement, cable operators, advertisement agencies, broadcasting of entertainment agencies and broadcasting of programmes.

Lastly, sale of goods, services of air-conditioned restaurant having license to service alcoholic beverages in relation to service of food or beverages, lease of goods, right to use immovable property, construction of complexes, building, civil structure or a part thereof including a complex or building intended for sale of buyer, wholly or partly, etc.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Bath SEO Company Birmingham SEO Company Bradford SEO Company Brighton and Hove SEO Company Bristol SEO Company Cambridge SEO Company Canterbury SEO Company Carlisle SEO Company Chester SEO Company Chichester SEO Company Coventry SEO Compan

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