Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: list of goods taxed at 4% :: due date for vat payment :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: VAT Audit :: ACCOUNTING STANDARD :: form 3cd :: articles on VAT and GST in India :: empanelment :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: Central Excise rule to resale the machines to a new company
 
 
Service Tax »
 A 5-Point Guide For Buyers To Understand The Effect Of GST On Real Estate
 Stalled unsorted diamond imports to resume after GST rate revision
 TDS, TCS deductors can apply for GST registration from 18 September
 E-commerce companies face tax heat as I-T department says discounts should be treated as capital spend
 Central Goods and Services Tax (Sixth Amendment) Rules, 2017
 GST will also impact direct tax collection
 Seeks to extend time period for filing of details in FORM GSTR-6 for months of July & August
 GST: Is input tax credit available for tax paid on mobiles given to staff?
 GST filing, reconciliation solution launched
  Finance Ministry asks taxmen to submit note on high-pitched assessments
 Step by Step Guide for GST Enrolment for existing Central Excise / Service Tax Assessees

Rs 3,000 crore service tax refund stuck in red tape for indian tech companies
March, 06th 2013

Software companies are miffed that the government is dragging its feet on refunding at least Rs3,000 crore in service tax despite promises to do so. While on one hand the government has said it will crack down on tax dodgers, it is unwilling to return the money it owes to information technology companies, industry experts said. The money has been stuck with the tax authorities for at least three years for most companies, and sometimes up to nine years.

Large IT companies such as Tata Consultancy ServicesBSE 0.71 %, Infosys, WiproBSE 1.82 % and HCL TechnologiesBSE 1.10 % alone are awaiting someRs1,000 crore in refunds. "A majority of (refund) requests are either rejected by the department on grounds of inadequate paperwork, ineligibility or are simply lying on some table waiting for approval," said Pramod Banthia, executive director at audit and advisory PricewaterhouseCoopers. Tax consultants including Banthia believe that overall refunds pending with the service tax department for more than 3-4 years, would be at leastRs

5,000 crore with at least 60% belonging to the IT sector. IT services companies whose revenues are mostly from exports are entitled to service tax exemption thanks to government incentives to boost exports. These companies, however, still have to pay the tax and then claim a refund. The lack of clear definition of the legal provisions relating to the IT services sector has led to many rejections and avoidable litigation. The Department of Service tax did not reply to calls or emailed queries from ET.

The large IT companies including, TCSBSE 0.71 %, Infosys, Wipro and HCL Technologies declined to comment. Typically, IT services companies pay 4-5% of their total revenues on service tax every year. The pending refunds sit on companies' account book as receivables and impact the working capital of the company.

"In the past, I have dealt with almost 40 countries, given the vast operation of the business, but never came across a case where the company is denied a refund which it is legally entitled to," said TV Mohandas Pai, who served as chief financial officer at InfosysBSE 1.39 % between 1994 and 2006. Industry body Nasscom has been working with the government but progress has been hard to come by.

"Time and again, we have talked to the government representatives but, issues of service tax refund still exist and are creating a burden for the industry," said Bishakha Bhattacharya, director for government relations at Nasscom. "Tax authorities reject the entire application consisting of thousands of forms if they spot even one discrepancy." Last year, the commissionerate of service tax in New Delhi assured companies of faster resolution, raising hopes of quicker refunds.

The promise was that claims pending for more than one year as on June 30, 2012 would be resolved latest by the end of last year and that in future no claim would remain pending for more than three months.

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

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