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: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: cpt :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: VAT RATES :: VAT Audit :: list of goods taxed at 4% :: form 3cd :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment
« Service Tax »
 Income tax returns (ITR) filing: Not filed returns for 2 years? Beware! Deadline nearing
 All you want to know about HRA: When you can claim and how it is calculated?
 Income Tax Saving: 6 ways to save tax without investing before March 31 tax deadline
 Unnable to file your tax return? Take help of these portals
 Do you know which 80C instruments can help you save tax and carry no future tax liability?
 E-way relief, for now, to e-commerce, courier firms sending small orders
 Where to invest for saving more on taxes
 A simpler GST can become a registry of all invoices, says iSPIRT’s Sharad Sharma
  Income Tax department may defend CPC in returns fraud case
 One GST rate not possible, next reform after compliance improves,
  Communication to the Central Excise/Service Tax Taxpayers on migration to GST

Companies to pay service tax on insurance, phone and transport perks
August, 04th 2012

Firms providing insurance cover, phone or car for personal use to its staff as part of compensation package will have to pay service tax on the benefit extended.

Independent directors would also be liable to service tax on the remuneration paid to them, according to changes proposed by the finance ministry in the new negative list-based service tax regime.

Companies could pass on this burden to the employee, reducing his take home salary.

The Central Board of Excise and Customs, the apex indirect taxes body that reports to the finance ministry, has proposed changes in the draft circular on the new negative tax regime to provide clarity on taxability of various services, staff benefits and employment related transactions.

Under the new regime, any services not mentioned in the list will be levied service tax at the rate of 12%. If services are provided against a portion of the salary foregone by the staff, then they will be considered as having been made for a consideration and thus liable to tax.

In other words, if compensation packages of a senior executive who, for example, has a company provided car for which it deducts some amount from his salary, then employer will be required to pay service tax on the amount.

But, facilities like creche, gymnasium or a health club that are available to all employees without any charge or reduction from the salary will be outside the tax net.

Companies will be able to claim credit for such service tax paid.

Guest house accommodation will be liable to tax only if the tariff for such unit of accommodation is above Rs 1,000 per day.

Reimbursements to pensioners will also be treated at par with those of current employees when such reimbursements arise out of the initial job contract or are in relation to that employment.

However, experts rule out restructuring of compensations packages that are structured on the principle of cost to the company. "It may not trigger restructuring of compensation packages since companies will be able to claim credit for the service tax paid." said R Suresh, managing director, Stanton Chase.

The government had unveiled the negative list regime in the budget 2012-13 as a precursor to the goods and service tax.

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

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