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: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: VAT RATES :: empanelment :: TDS :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: articles on VAT and GST in India :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: form 3cd
 
 
« Service Tax »
 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
 Goods done, GST Council seals tax rate on services
 Respite likely for businesses on e-way under GST
 Govt to strengthen agency under GST to check tax evasion
 1% tax at source under GST likely for online sellers

Ficci infrastructure panel takes consultant service tax issue to PMO
February, 19th 2016

Industry body Ficci's National Committee on Infrastructure has taken the matter of service tax collection for consultants right up to the Prime Minister's Office, calling for a review and suggesting that the onus should be on the client to deposit the same.

"The Ficci Infra Committee on various occasions has written to Union Minister of Finance, but to no avail. Our request to the Prime Minister is the service tax payable by the employer of a consultant should be collected by the government directly from the employer," the panel said in a statement.

Under the current set-up, the consulting community pays service tax on behalf of the employer even before it receives its remuneration.

"In case there is any difficulty in accepting our request for direct payment of service tax by the service receiver, Ficci urges the Prime Minister to restore provision of paying service tax within 30 days of receipt of payment," said K K Kapila, Co-Chairperson, Ficci Infra Committee.

The consultant is supposed to pay service tax within 30 days of raising an invoice with the employer.

"The employer, which in most cases is a government department, usually responds with a payment after a considerable delay ranging from 3-6 months. In the interim, the consultant who is technically not liable for service tax is expected to make the same within 30 days regardless of whether he has received the payment or not," the statement said.

Also, in the case of payment delay, the consultant is "liable for penalties at 18 per cent for the first six months, 24 per cent for further six months and thereafter, 30 per cent, it said, adding that such a payment is linked to the value of invoice whereas actual payment by the employer to the consultant may be less than the value of the invoice raised.

Ficci went further, saying the current procedure of collecting service tax has also posed cash flow difficulty for consultants as their role is merely that of a collector on behalf of the government.

"We seek intervention of the Prime Minister... to ensure this long-standing demand of the consulting community is addressed in the forthcoming Budget. Such a step will be a genuine step in ensuring the ease of doing business," the statement said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Customer relationship management software CRM software Operational CRM Collaborative CRM

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