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: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: due date for vat payment :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: cpt :: empanelment :: TDS :: VAT RATES
 
 
« Service Tax »
 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
 Key challenges in implementation of Goods and Services Tax

Service Tax Dues Proving Nightmarish for Municipality
June, 25th 2008

The central excise department had levied a service tax of 12.5% on various earnings including rentals received by the urban local bodies. The bodies which were either not aware of the tax provision or did not wake up to the seriousness of the move, are in a soup now.

Municipal council receives an average of Rs 44 lac annually as rentals on various shops and buildings it has rented out to people and institutions. As it failed to remit service tax as per rules, the superintendent of central excise department had served a notice on the municipality, reminding it of its obligation. In the general session of the council held on Friday June 20, it was decided to approach the central excise department with a request to exempt the municipality from service tax, as it has been renting out buildings primarily as a social service and not as a commercial opportunity. The chances of the excise department extending the exemption are almost nil.

The municipality is faced with the predicament of collecting the service tax pertaining to the previous year now. Not only is the municipality short of funds, but even those who have taken municipal premises on rent might resist the move. As the relevant clauses embedded in the rent agreements entered into with the lessees enables the municipality to recover taxes from tenants, it will be difficult for it to recover the previous year's taxes now in a lump sum.

As it is difficult to convince the tenants to cough up the entire emount due at one go, the municipality may be forced to find out some source from which the pending service tax can be paid to the department, and to recover the same in easy instalments from the shop keepers.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System development CMS development Content Management Solutions CMS Solutions Content Management Services CMS Services CMS Software

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