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
Latest Expert Exchange
News Headlines »
 First Writ Petition In The General Interest Of CA Members From Northern India
 How much tax are you liable to pay on long-term capital gains on property?
 How To Save Tax Deductions Despite New Law
 Companies (Appointment and Qualification of Directors) Sixth Amendment Rules, 2018.
 Easier tax refund regime for exporters in the works
 Income tax on your gold and real estate investments
 Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 117(1A) of the Central Goods and Service Tax Rules, 2017 in certain cases
 How RBI dealt with the crisis amid tensions with FinMin
 Pay tax on this PF account withdrawal Income tax return (ITR) filinga
 Seeks to make amendments (Ninth Amendment, 2018) to the CGST Rules, 2017.
 How govt is dealing with tax evasion, corporate fraud

Banks under I-T scanner for service tax evasion
April, 16th 2008

Tax authorities are keeping a close eye on financial activities of banks in order to check service tax evasion by them. The Central Board of Excise and Customs (CBEC) has recently also written a letter to its field formations to monitor carefully financial transactions by banks in this regard.

The directive comes in the wake of an audit of the Treasury branch of the State Bank of Mysore (SBM), Mysore. The tax officials detected that service tax on agency commission received for government transactions was being deducted by its nodal bank in Bangalore. But it was not added to the banks total service tax bill by its currency chest branches. Simply put, SBM was paying the tax only on the net commission it earned and was not taking these commissions into account.

Banks typically receive commission on government transactions relating to revenue receipts and payments, including pensions on behalf of the Centre and state governments and payments to account holders under the compulsory Deposit Scheme and Special Deposit Scheme. Other activities such as relief and savings bonds transactions may also be eligible for agency commission based on provisions laid down by the Reserve Bank of India.

The case regarding SBM was first detected in December last year after which the CBEC felt that other banks too may be following a similar practice. It felt that banks either may not be registering their nodal banks with the department for the paying service tax, or alternatively may not be paying the tax on the commission earned by such nodal banks at all.

Sources said this directive is more in the nature of a precautionary measure as most banks do pay the tax wherever required. The case pertaining to SBM may just be a one off case, they added.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

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