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: due date for vat payment :: TDS :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: list of goods taxed at 4% :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: VAT RATES :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD
 
 
« Service Tax »
 Rules not ready, key e-way bill for GST may be delayed, says top official
 How Goods and Service tax will benefit the nation
 GST implementation may increase expense ratio of fund houses
 GST structure: an unfortunate compromise
 Extension Of Provisional Attachment Under Service Tax Provisins
 How favourable will GST be for Karnataka?
 GST rate impact: Here’s how the new tax can carry a greater punch
 E-way Bill - movement of goods under GST
 How the GST rates will affect your money
 GST: The coming disruption in the wholesale trade
  Ways In Which GST Will Impact The Average Indian’s Wallet

ESIC faces Rs 7,300 crore service tax demand
January, 30th 2014

The tax authorities have slapped a service tax demand of around Rs 7,300 crore on a social security body that provides healthcare benefits to employees by taking the view that it is running a general insurance business, prompting labour and employment minister Oscar Fernandes to seek an urgent intervention from Finance Minister P Chidambaram to resolve the tangle.

The Service Tax Commissionerate has asked the government-run Employees' State Insurance Corporation or ESIC to pay up nearly Rs 3400 crore in tax dues and interest for its activities between 2005-06 and 2009-10, in an order passed late last month. It has also imposed a penalty of around Rs 1950 crore on ESIC for "suppression of facts" and "intent to evade payment of service tax."

The taxmen have also raised a Rs 1900 crore demand on ESIC, separately, as service tax dues from the period between 2010-11 and June 2012. The finance ministry had, incidentally, granted an exemption from service tax for ESIC's operations in a decision notified on July 1, 2012, a senior government official pointed out.

The labour ministry had sought the exemption from the finance ministry in 2012 by stressing that ESIC is not a corporate body carrying on an insurance business, but an organisation constituted by an act of Parliament to discharge social security benefits to workers.

The finance ministry had accepted this argument, but the service tax authorities consider ESIC liable for paying dues for the period prior to the exemption.

The labour ministry's efforts to convince revenue authorities to close the demand notice has drawn a blank so far, so labour and highway minister Oscar Fernandes will take up the issue directly with Chidambaram, said an official aware of the development.

ESIC is filing an appeal with the concerned tribunal against the Service Tax authorities' December 2013 order that requires it to pay around Rs 5400 crore in service tax dues, including the Rs 1950 crore penalty.

Simultaneously, Fernandes will take up the matter with the finance minister for granting the corporation an exemption with 'retrospective effect' as has been done for the Indian Railways, the official said.

In an official missive sent to Chidambaram in October 2013, Fernandes' predecessor in charge of the labour ministry, the late Sis Ram Ola, had stressed that "the grounds for exempting ESIC from service tax from July 2012, existed even during the earlier period" Labour Secretary Gauri Kumar had also written to Finance Secretary Sumit Bose last month to issue "necessary directions" for closure of the demand-cum-show cause notices of Service Tax against ESIC.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

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