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: VAT RATES :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: ACCOUNTING STANDARD :: cpt :: due date for vat payment :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India
 
 
Service Tax »
 Interpretation Of Central Goods And Services Tax (Cgst) Act (Part-7)(Meaning Of Important Terms)
 GST Council may clarify on tax rate for solar modules at 3 June meeting
 Rules not ready, key e-way bill for GST may be delayed, says top official
 How Goods and Service tax will benefit the nation
 GST implementation may increase expense ratio of fund houses
 GST structure: an unfortunate compromise
 Extension Of Provisional Attachment Under Service Tax Provisins
 How favourable will GST be for Karnataka?
 GST rate impact: Here’s how the new tax can carry a greater punch
 E-way Bill - movement of goods under GST
 How the GST rates will affect your money

Reimburse service tax, banks tell RBI
September, 02nd 2008

Commercial banks have sought reimbursements from the Reserve Bank of India (RBI) for the service tax paid on government businesses, claiming that it was a service rendered to the central bank.

The 28 public sector banks, Axis Bank, Jammu & Kashmir Bank and HDFC Bank earn substantial income through government businesses though estimates of the service tax paid by them are unavailable.

Banks handle many government transactions for which they are eligible for agency commission. They earn commission on revenue receipts and payments, pension payments of the Centre and state governments and also on special deposit schemes. Except the task of collecting direct and indirect taxes, banks have to pay service tax on all other government businesses.

This is quite a sensitive issue for us. The government, which levies tax on us, is also our owner and RBI for whom we render services is the regulator. We are in a bind, said the senior executive of a public sector bank. Service tax officials, conducting tax audits, have been raising demands for tax on agency commission received by banks.

During a recent meeting with the Central Board of Excise and Customs (CBEC), it was pointed out that irrespective of whether it is the government or the central bank, the service provider has to pay tax, which can then be passed on to the recipient.

Since RBI is acting as an agent for the Centre and the states for government transactions, banks have been advised to approach the central bank for any reimbursement, an executive at a private bank said.

 

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Development Software Programming Software Engineering Custom Software Development Requirement Based Software Development Software Solutions Software Serv

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