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
From the Courts »
 CIT vs. Shyam Telelink Ltd (Delhi High Court)
  Council of ICAI vs. Gurvinder Singh (Supreme Court)
 Shri Amar Nath Goenka, New Delhi – 110 070. vs. The ACIT, Circle-20(1), New Delhi.
 M/s KSD Charitable Trust, C/o Ganesh Cold, Storage, Meerut VS. Assistant Commissioner of Income Tax, Circle-1,
 Avaya India Pvt. Ltd. 202, Platina, 2nd Floor, Plot No. C-59, G-Block, Bandra Kurla Complex, Bandra (E), Mumbai, Maharashtra. vs. Addl. Cit Special Range-1 New Delhi.
 Sita Bhagi 83, Sukhdev Vihar, New Delhi. vs. ACIT Circle 65(1) New Delhi.
 ACIT vs. Janak Global Resources Pvt. Ltd (ITAT Chandigarh)
 DCIT vs. Rakesh Saraogi & Sons (HUF) (ITAT Raipur)
 FIS Global Business Solutions India Pvt. Ltd vs. PCIT (Delhi High Court)
 DCIT International Taxation, Circle-Noida, Aayakar Bhawan, Sector-24, Noida vs. Jaypee Sports International Ltd., Sector-128, Noida.
 Nokia India Pvt. Ltd., 1st Floor, Tower A, SP Infocity, Industrial Plot No. 243, Udyog Vihar, Phase-1, Dundahera, Gurgaon, Haryana vs. DCIT, Circle 13 (1) New Delhi

Justify the rationale behind rise in service tax: Delhi high court
April, 06th 2012

Wondering why customers going to city hotels and restaurants should pay such a high service tax on their bills, the Delhi high court has asked the government to respond.

During a recent hearing of a PIL filed by an association of hotels, a bench comprising acting Chief Justice A K Sikri and Justice Rajiv Sahai Endlaw asked standing counsel for Centre, Neeraj Chaudhari, to justify the rationale for increase in service tax.

"There has to be some rationale. We have observed that service tax component is quite large in hotel bills. service tax plus VAT becomes a very big amount," the bench remarked, giving last opportunity to the central government to file a response, failing which, the bench warned that it will proceed with the PIL without the government's reply. HC was hearing a PIL filed by federation of hotels and restaurants challenging the amendments made by the government to the Finance Act last year.

According to the amendments, the service tax net was widened to make hotels liable to pay enhanced tax. The PIL informs HC this has resulted in double liability for the hotels, restaurants, inns and guest house owners, because the Finance Act now includes "AC restaurants having license to sell liquor and food" under the VAT liability.

The petitioners argued that it is only the state government and its legislature that can decide on taxing sale of food and beverages and the Centre has no role to play. "Parliament has no role because as per the Constitution, this issue falls in the state list" the PIL claims, faulting the centre for broadening the service tax net that has resulted in customers paying much more than before.

Despite the PIL having been filed in November last year, the government has failed to come up with a response, the hotel federation pointed out. They have urged the court to stay the enhanced service tax or go ahead and decide the case without waiting for a reply as delay meant hotels were being burdened with liability of service tax.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multimedia Presentations Multimedia Solutions 3D Solutions Corporate Presentations Business Presentations Multimedia Presentation India M

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