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 :: Central Excise rule to resale the machines to a new company :: VAT Audit :: articles on VAT and GST in India :: VAT RATES :: TDS :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: form 3cd :: cpt
« Service Tax »
 Service tax officials transferred for favouring realtor
 GST, a challenge and opportunity for accounting professionals’
 Service Tax On Hotels And Restaurants – Recent Delhi High Court Judgment
 GST Council discusses 4-tier tax rate, cess on demerit goods
 Why you shouldn’t miss these three simple tax saving options beyond Section 80C
 Determination of value for transactions between the Related parties under GST Laws.
 Higher collections can offset GST losses
 GST to subsume over a dozen Central, State taxes
 Incidence of indirect taxes won't go up under GST
 Advanced Budget date: Absence of a GST rate may present estimation challenges
  Tax queries answered by Dilip Lakhani, Senior Chartered Accountant

Entertainment, event marketing firms meet FM on service tax
March, 17th 2011

The Event and Entertainment Management Association (EEMA) today said its delegation met Finance Minister Pranab Mukherjee and asked for reversal of the new service tax norms affecting the sector.

According to the new Point of Taxation rules proposed in the Budget for 2011-12, service tax will be levied at the point of raising invoice to the client irrespective of collections made from rendering of service.

"There is no point in collecting service tax where the services have not actually been rendered. Since service tax is proposed to be charged on the basis of invoices raised, it will put most of the services providers in negative cash flows," EEMA said in a statement.

Under the proposed rule, the tax has to be paid even if there is delay in receipt of payment from client. "And there is no mention of remedy available to the assessee for non-receipt of payments against bills," it added.

The new rule is expected to come into affect from April 1 and EEMA is of the view that it will be detrimental to the sector.

"The Finance Minister gave the delegation a patient hearing and took a note of all the points discussed," the statement said.

Under the existing service tax rules advances received from clients are already taxed at full rate.

"This itself is creating hardship to genuine service providers and tax payers as in many cases advances have to be repaid and self adjustments can be done only to a limited extent," EEMA said.

According to EEMA -- which represents entities operating in the fields of event management, experiential marketing and brand activation -- the point of taxation cannot be decided simply on the basis of receipt of advance or raising of an invoice since in many cases rendering of services are deferred for a long time on the request of service recipient.

Some of the other proposals related to service tax made during the Budget like bringing treatment in hospitals with 25 or more beds have already come under criticism from various sections.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 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