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: due date for vat payment :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: VAT Audit :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: Central Excise rule to resale the machines to a new company :: empanelment :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: VAT RATES
« Service Tax »
 Service tax officials transferred for favouring realtor
 GST, a challenge and opportunity for accounting professionals’
 Service Tax On Hotels And Restaurants – Recent Delhi High Court Judgment
 GST Council discusses 4-tier tax rate, cess on demerit goods
 Why you shouldn’t miss these three simple tax saving options beyond Section 80C
 Determination of value for transactions between the Related parties under GST Laws.
 Higher collections can offset GST losses
 GST to subsume over a dozen Central, State taxes
 Incidence of indirect taxes won't go up under GST
 Advanced Budget date: Absence of a GST rate may present estimation challenges
  Tax queries answered by Dilip Lakhani, Senior Chartered Accountant

New service tax refund system soon for software exports: CBEC
May, 21st 2012

The Central Board of Excise and Custom (CBEC) is set to issue a new methodology to ease refund of service tax for software exports.

Meanwhile, the Board is also readying the introduction of a negative list for service tax from July 1, 2012.

The Chairman, CBEC, Mr. S.K. Goel, told Business Line, The new mechanism will give the method for calculation.

Since software sales are happening in domestic as well as international markets, proportionate value (domestic sales and export sales) will be determined for inputs. On the basis of this, we will facilitate refunds of service tax.

According to industry estimates, service tax accounts for almost three per cent of total costs for software.

This is considered to be high considering competitiveness in the international market.

Industry says that since refund is getting delayed, it is better to provide a simplified mechanism similar to Cenvat, whereby, exemption will be provided to exporters in the proportion of their exports to total sales.

Meanwhile, the Finance Ministry still feels simplifying refund is a better idea.

With this intention, the Department of Revenue explained in a post budget Demi Official (D.O.) letter that, A simplified scheme for refund is being introduced substituting the entire rule 5 of CCR 2004.

The new scheme does not require the kind of correlation that is needed at present between exports and input services used in such export.

Duties or taxes paid on any goods or services that qualify as input or input services will be entitled to be refunded in the ratio of export turnover to total turnover.


Meanwhile, with the Finance Bill passed in both Houses of the Parliament and awaiting the Presidential assent, the Indirect Tax Department is giving final shape to the procedures. The negative list of services clearly says that any service not mentioned in such a list or in the list of exemption will be taxable.

Mr Goel claimed that the Centre has taken the States' concerns in the mind while preparing the final list.

For example, the definition of work contract has been expanded to include repair, maintenance, renovation or alteration of any movable or immovable property.

Similarly, entry to entertainment events and access to amusement facility would not attract service tax.

This clearly means that any one will not have to pay service tax, if he is buying a cinema ticket. This was one of the apprehensions of the states.

Mr Goel also explained that any one collecting service tax more than as prescribed under rate of abatements will face problem once his turnover is assessed.

For example a restaurant can charge service tax only on the 40 per cent of the bill amount.

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