Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: ACCOUNTING STANDARDS :: cpt :: TDS :: due date for vat payment :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: form 3cd :: articles on VAT and GST in India
 
 
Service Tax »
 Payment made in revenue sharing deal exempt from service tax
 India seen posting stronger growth as businesses adjust to new tax
 GST High Powered Committee On Return Filing - Representation by GST Research Foundation
  Changes In Central Goods And Services Tax Rules, 2017
 GST return filing to be a breeze for small businesses
 Changes In Central Goods And Services Tax Rules, 2017
 Simple tax made complex
 Govt may review monthly GST return filing process
 Central Goods and Services Tax (Eleventh Amendment) Rules, 2017
 Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017
 Composition Scheme - the Central Goods and Services Tax (Removal of Difficulties) Order, 2017

Service tax refund rejections choking IT cos' cash flow
September, 30th 2013

The high rejection rate of service tax refund claims by the income tax department has placed Indian IT firms firmly on the backfoot. According to a wide cross section of top IT officials and industry consultants, service tax refunds to the tune of Rs 4,000-5,000 crore are pending on various grounds, largely flimsy.

The IT industry is eligible for refund on the service tax inputs for units operating under the ambit of Software Technology Park (STP) regulations but over the last couple of years their claims have seen a high rejection rate. Of this, Bangalore accounts for the lion’s share given that the city is the sector’s hub.

Infosys board member and former CFO V Balakrishnan admitted that service tax refunds have become a huge concern for the industry and the delay in settling of claims has a bearing on the cash flow.

According to executives, the provision of refund on service tax was introduced during 2005-06 but since then it has been an uphill task for the companies to get approval on their claims. For many, though, the reasons for delay are not very clear.

“Nothing much has changed in the last two-three years and even the refund one receives is not 100%,” a senior executive said on the condition of anonymity. The delay or rejection in refund of service tax has been attributed to high internal revenue targets to be met by the I-T department.

The alternative route for getting the claims through litigation is a lengthy and costly process.

Manipal Global Education chairman and former Infosys board member TV Mohandas Pai said, “Even if a company goes on appeal there is no guarantee that there would be any refund and the entire process would take a very long time.”

PricewaterhouseCoopers executive director Pramod Banthia said, “There has been outright rejection of claims in most of the cases with many of them on untenable grounds.” The delay in refund has a higher impact on smaller companies, given the size of their profitability, while larger entities are able to offset this delay due to their deeper pockets.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Article Management Solutions System Article Management Software S

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