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: TDS :: VAT RATES :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: cpt :: ACCOUNTING STANDARDS :: form 3cd :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT
« Indirect Tax »
 Indirect tax receipts to see small, brief hit’
 There is no tax on interest income of up to Rs3 lakh a year for senior citizens
 Chidambaram favours change in direct tax rates
  Further rationalization of revised simplified procedure for fixation of brand rates
 Kerala to accept demonetised banknotes for payment of state tax till Nov 24
 Centre-state gridlock over GST jurisdiction remains, could threaten tax rollout
 India to levy tax on investments from Cyprus from April 2017
 Why tax radar may detect your cash deposits after Nov 8
 Income tax notices to religious, charitable trusts
 ICAI starts course on accounting technicians
 More trouble ahead as Tata Trusts get I-T summons for tax avoidance

No service tax on user charges or licence fee paid in 2015-16
April, 15th 2016

Ahead of the telecom spectrum auctions later this year, the Finance Ministry has said that telecom companies will not have to pay service tax on payments made for licence fee or spectrum user charges during the previous fiscal (2015-16).

“The government has ensured that there is no new tax liability on the telecom service providers in respect of the services provided in the past,” it said on Thursday.

The Central Board of Excise and Customs (CBEC) has, however, clarified that while one time user charges on the assignment of the right to use any natural resource before April 1, 2016, will be exempt from service tax, companies will still have to pay service tax on any periodic payments such as spectrum user charges and license fee for spectrum.

Finance Minister Arun Jaitley had in the Union Budget 2015-16 announced that assignment by the government of the right to use the radio-frequency spectrum and its subsequent transfers as well as assignment of right to use the spectrum would be a service. The spectrum auctions that are likely to take place in June or July are expected to raise at least ?5 lakh crore and telecom players may have to cough up at least ?75,000 crore as service tax.

Similarly, periodic payments and royalty for extraction of coal will also attract service tax, said the CBEC circular. The clarification comes in the wake of the Budget decision to levy service tax on any service provided by the government or a local authority to a business entity. The levy came into effect from April 1 at the rate of 14.5 per cent.

The CBEC has also clarified that the liability to pay service tax on the assignment of the right to use natural resource will be decided on the date on which the invoice for any part of the payment for the service was issued or the payment was made – whichever is earlier.

The government has amended the Cenvat Credit Rules and allowed the credit of service tax paid on one time charges for the auction price, to be taken evenly over a period of three years. The credit of service tax paid on spectrum user charges, licence fee, and transfer fee charged by the government on trading of spectrum would be fully available in the year in which the it is paid.

“The government has de-mystified the issues in service tax of applicability, point of taxation and Cenvat Credit mechanism,” said Anita Rastogi, Partner (Indirect Tax), PwC.

10 services exempted

The CBEC has also clarified that in all 10 services provided by the government will be exempt from service tax. These include services provided by a government or a local authority to another government or local authority, services for issuance of passport, visa, driving licence, birth certificate or death certificate, services where the gross amount charges is less than ?5,000 and legally mandated services for registration, calibration or testing.

Further, services by a local body or government for assignment of right to use natural resources to an individual farmer for the purposes of agriculture, services to a gram panchayat and deputing officers after office hours or on holidays for inspection or container stuffing or such other duties in relation to import export cargo on payment of Merchant Overtime charges will also be exempt from service tax.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Organic SEO Outsourcing Organic Search Engine Optimization Outsourcing Organic Website SEO Organic SEO India Website SEO India Organic Search Engine Optimization India Organic Internet SEO India Organic Web

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