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: TDS :: empanelment :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: VAT Audit :: VAT RATES :: list of goods taxed at 4% :: cpt :: articles on VAT and GST in India :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4%
 
 
Service 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
 GST rollout will reduce disparity among states
 GST: E-tailers oppose tax laws
 Service Tax Act Chapter V Of The Finance Act, 1994
 Delhi government unlikely to achieve VAT target
  National Goods And Services Tax Appellate Tribunal
 Service Of Notice Under Model Gst Act

Govt likely to harmonise excise, service tax laws in Budget
February, 14th 2013

As a prelude to the Goods & Services Tax (GST), the finance ministry might harmonise service tax and excise duty laws in Budget 2013-14. Also, it is likely to simplify Cenvat credit rules that allow set-off of excise duty or service tax paid on inputs against tax liability on the final product. It is also considering bringing some health and education categories in the negative list for taxation of services.

At present, excise duty and service tax are levied under two Acts. The ministry has shown its intent to merge the laws as a step towards GST. To begin with, it might harmonise essential processes like registration, return and assessment compliance. Cenvat credit and provisions related to the settlement commission and appellate matters are common for service tax and excise duty.

A finance ministry official said the Central Board of Excise & Customs was also trying to address the issues related to input tax credit. It was in the process of simplifying the existing Cenvat credit scheme.

“If Cenvat credit rules are simplified, it will be a good reform. They should also address the concerns with regard to inverted duty structure, where raw material duty is higher than the finished product,” said Pratik Jain, partner, KPMG. He added wherever there was a difference between the provisions of central excise and service tax, rules should be aligned. If a refund was allowed on export of excise-exempt goods, that should be allowed for export of services, too.

In last Budget, too, Cenvat credit rules were amended to simplify the procedure for refund of unutilised credit on account of exports. Credit was allowed on sale, supply, repair, rent and insurance of motor vehicles. The amendments allowed credit on delivery of goods and payment of service tax by the service receiver on a reverse-charge basis. However, experts say it has not helped much.

Officials also said some education and health categories might be brought under the negative list, which keeps 17 services outside the tax net. Currently, education is kept under the negative list at the pre-school level, up to higher secondary school, as part of a curriculum to obtain a qualification, and as part of an approved vocational course.

Auxiliary educational services and renting of immovable property by educational institutions in respect of education have been exempted from service tax. Healthcare services provided by clinical establishments, authorised medical practitioners or para-medics are also exempt. Budget might move some of these services, as well as bring in some more services taxed currently, to the negative list.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

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