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: cpt :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: empanelment :: articles on VAT and GST in India :: form 3cd :: due date for vat payment :: VAT RATES :: list of goods taxed at 4% :: TDS :: VAT Audit
 
 
« Service Tax »
 If GST not rolled out by Sept, there won't be taxation in country, warns Jaitley
 India’s E-Service Tax Will Add To Foreign Content Providers’ Woes
 GST Council to discuss model laws, tax jurisdiction today
 Tax Invoice Under GST
 Insurance may fall under 12% tax slab in GST, from 14% service tax currently
 GST draft makes it must for companies to pass tax benefit to consumers
 To speed passage, Government plans GST Bills as money Bills
 No service tax on train tickets booked through IRCTC till December 31
 GST Council meet postponed to December
 Banks integrating systems with RBI, GST Network to collect tax: Arun Jaitleya
 Service tax waived for online train ticket booking till Dec 31

Activities taxed by state govts to be exempted from service tax levy
May, 08th 2012

The government today agreed to make changes in the definition of services in the Negative List to address states concern on the levy of service tax on activities already taxed by states. The move can also be seen as a strategy to secure the support of states for introduction of the Goods & Services Tax (GST).

Some states, through the empowered committee of state finance ministers, have expressed concern. I have decided to address their concern by making changes in the definition of service, which would exclude activities specified in the Constitution as deemed sale of goods, Finance Minister Pranab Mukherjee said, while initiating a discussion on the Finance Bill.

The definition of works contract has been enlarged to include movable properties. Exemption for specified services relating to agriculture in the Negative List has been extended to agricultural produce, enlarging the scope of the entry.

A negative list for taxation of services was announced in the Budget in March as a step towards the proposed GST. It contained a list of 17 services to be exempted from service tax, while everything else was proposed to be taxed. This was a shift from the current system, in which only 119 services are taxed.

States had expressed concern that some activities listed under the States List in the Constitution were proposed to be taxed by the Centre under its residuary powers, and this could lead to double taxation. These had asked the government to include those items in the Negative List till the GST was introduced.

These activities included the transportation of goods by a goods transportation, or courier, agency; renting of immovable property or construction of complexes; sales through hire-purchase or an installment-payment basis, supply of food or drink as part of service; provision of entertainment through cable network or DTH or by means of downloadable entertainments like games, videos, audios and the provision of accommodation in hotels or guest houses.

Currently, states dont have the power to tax services, while the Centre cant tax goods under the States List. The Constitution would be amended to give powers to both the Centre and the states to share a common taxpayer base.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

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