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: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: VAT Audit :: VAT RATES :: form 3cd :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: list of goods taxed at 4% :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT
Service Tax »
 GST tax structure ready; how will it impact economy and various sectors
 Service tax department doles out advice on migration to GST
 IT infrastructure firm of GST under scrutiny for tax evasion
 GST council OKs draft law on relief to states
 GST Network gets notice for avoiding service tax
 GSTN contract may attract tax
 GST Council may discuss tax rate on gold at Udaipur meet
 Govt may rework indirect tax estimates mid-way after GST
 GST Council meeting: States allowed to tweak taxpayer division after consulting Centre
 Government may rework indirect tax maths mid-way after GST entry
 Govt may rework indirect tax mid-way after GST entry

IIA seeks reduction of service tax in key segments
February, 04th 2011

IIA an apex body of Micro, small and medium enterprises has sought reverse charge on Goods transport Services and demanded it should be abolished and should be levied on Service Providers as in case of all other services.

Here are ten key demands:

1. The general rate of tax has been reduced from 12% to 10% w.e.f. 24/02/2009. Historically the rate of service tax has always been less than the Central rate of excise duty. Keeping this in view, IIA has suggested that the rate of service tax should be reduced from 10% to 8%.

2. As per service tax notification no. 33/2004 dated 3rd December 2004, there is no laibility of service tax on transportation of Milk, Eggs, Vegetables. This list had been further extended to Pulses also subsequently.

3. The criteria for exemption appears the perishable nature of foods products being transported. Bread also falls in the same category hence Service tax on transportation of Bread should be exempted.

4. Service tax was levied on Industry Associations in 2005. Industry associations representing the cause of Micro Small and Medium Enterprises (MSME) are like Farmers Association/Trade Unions and they work for the public cause and clubbing them with entertainment clubs is unjust and unfair. Hence the liability of Service Tax on MSME Industry Association membership fee should be exempted.

5. All kinds of surcharges and Cess should be merged with basic Service tax rates.

6. Any entity registered under Service Tax Act / Rules should be allowed to render any other service which is taxable under Service Tax Act without requirement of any additional registration or modification in the existing registration.

7. Threshold for applicability of Service Tax should be enhanced from Rs 10 Lacs to 15 Lacs. There should be a threshold limit of Rs 10.00 Lacs for Service recipients also which at present is nil . The cost of compliance for this is relatively very high for all such assesses who are otherwise not subject to any other service tax /cenvat compliance obligations. Putting a threshold will facilitate taking out the small ticket Service Tax payers under this head.

8. Entrepreneurs in Micro & Small Sector do not have any social security from Government, so we take Life Insurance, Medical Insurance, General Insurance. Service Tax is applicable on Insurance Premiums also, and recovered from insured. Insurance Premiums should be taken out from Service Tax net.

9. Service Tax on rent of immovable property should be abolished, because by no stretch of logic "rent" can be construed as "service". The case of service apartments run on commercial basis may however be different. Treating rent as a service and applying service tax to it has increased the cost of infrastructure for many SME units. Besides, the very jurisdiction of central govt. to impose tax on immovable property which is a State subject raises a debatable constitutional issue.

10. Service tax payable under works contract category for compounding scheme should be brought down to 2 % from 4%.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

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