Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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: articles on VAT and GST in India :: VAT Audit :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: cpt :: empanelment :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: TDS :: form 3cd
News Headlines »
 5 Tax tasks you should complete before March 31
 March 31 deadline nears: Check out these last-minute tax-saving investment options
 How to file income tax returns online without having Form 16 in 10 simple steps
 Deadline For Filing Income Tax Return (ITR) Is Just 11 Days Away: 10 Latest Details To Know
  10 incomes you need not pay any tax on
 How To File Income Tax Returns In Three Steps By March 31, 2018
 10 things about income tax every taxpayer should know
 What to do if your TDS is not deposited with the government
 What if you forget to verify your Income Tax return?
 TDS on rent and other tax tasks to complete before March 31
 5 income tax changes which will come into effect from April 1, 2018

Too many circulars for service tax
May, 28th 2007

In one of the circulars issued on May 10, 2007 an important purpose has been achieved. Fortyeight circulars/clarifications/instructions have been deleted by this circular. This is in pursuance of a task force appointed for this purpose. It is too little because there is an innumerable number of circulars/clarifications/instructions, which are now in circulation and many of them deserve partial deletion. It is also too little, because only those circulars which have to be fully deleted have been identified but not those circulars needing partial deletion. 
The enormity of the problem can be understood only if we take into account the following five factors: 
(a) Enormity of the number of circulars: I have in front of me a book of circulars/clarifications/instructions and notifications published by a standard publishing house which runs into more than 800 pages. The following examples, which do not constitute an exhaustive list, will be revealing. There are 21 circulars for accounting codes, 14 for advertising agencies, 11 for banking & financial services, 9 for business auxiliary services, 6 for cable operators, 18 for caterers and catering, 11 for clearing and forwarding agents, 10 for consulting engineers, 10 for courier agencies, 10 for custom house agents and steamer agents, 120 for exemptions, 9 for foreign exchange and so on. So many circulars make it sure that at no point of time a taxpayer cannot be sure that he is doing the right thing. 
(b) There are so many types of circulars namely, instructions, clarifications and circulars. There are no differences between the three types. One really does not understand why there should be three varieties when only one would suffice. 
(c) Some general circulars too! It is not enough to see the circulars which are service specific. There are so many general circulars also applicable to the services. 
(d) There is a large number of notifications; and, 
(e) There is also a large number of exemptions. 
All the above situations have made it extremely difficult to form a definite opinion about any service in relation to its applicability and scope. It has become virtually a circular-driven service tax. 
Some economists have suggested that there should be a comprehensive service tax with a negative list. It is worthwhile devoting some thoughts to that end. But so long as any such comprehensive service tax is not introduced, the following should be done to make the existing service tax come out of the jungle of confusions and contradictions. 
(i) A new Task Force should be appointed to work out, in a time-bound manner, a concrete scheme of limited circulars. 
(ii) It should consist some existing officers dealing with the subject, some retired officers and an economist. 
(iii) They should review all circulars and redraft them on the following basis: 
(i) Distinction between circulars, clarifications and instructions should be abolished and only one set of circulars should be issued. 
(ii) There should be one, comprehensive circular for each service. This means it will deal with its scope, valuation, abetment, accounting code, and everything else. 
(iii) So there will be as many circulars as there are services. 
(iv) These circulars should bear numbers such as Courier Services/1/File No./Date. 
(v) Any subsequent amendments should be part of the original circular and the whole circular should be reissued. 
These ideas may be circulated by the Board in the website and opinion of the taxpayers and all others taken before launching the new task force. 

Sukumar Mukhopadhyay

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Contact Us

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