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: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: VAT RATES :: TDS :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: due date for vat payment :: empanelment
 
 
« Service Tax »
 Indian GST is significantly unique, but is it better?
 GST example of national integration
 6 reasons you need not fear the GST regime
 Tax return filing extension on GST may not be enough
 GST: ‘Tech readiness, tax administration key challenges’
 GST return filing rules relaxed for Jul-Aug, July 1 rollout
 GST Council gives return filing breather to India Inc for 2 months
 All eyes on 18 June as GST Council meets to iron out niggling issues
 GST Council's June18 meet to finalise e-way bill, anti-profiteering rules
 Valuation of Tax liabilities Under GST Regime
 Govt to go soft on GST monitoring for a few months, let traders settle down

Service tax on online order for eatables is illegal
September, 16th 2014

Service tax is supposed to be levied when someone uses the services while eating or drinking in a restaurant or hotel.

But what if you order eatables online? Do you still have to pay the service tax?

No, say tax experts, but most of the companies charge 4.94% service tax every time you order food or beverages online -- in violation of the rules.

According to tax lawyer Ajay Jagga, who has written to finance minister Arun Jaitley in this regard, the ministry of finance in 2012 had amended the Service Tax (Determination of Value) Rules, 2006, making charging of service tax where no service is involved unlawful.

"As per rules, the service tax should be imposed if there is a service like furniture, cutlery, among others, involved in a restaurant or hotel. But when you order something to eat or drink online, no service is involved and so charging service tax becomes completely illegal," said Jagga.

In his letter, Jagga has requested the FM to order chief commissioners and commissioners of service tax to issue public notices clarifying the rules in the larger public interest and for consumer protection.

"The Union government has although clarified the whole issue, but people are still being charged 4.94% as service tax for ordering food and beverages online," said Jagga.

He has further written to the FM that "the charging of service tax on online orders for home delivery or pick up of foods/beverages must be stopped at once and strict guidelines in this regard should be issued to online retailers."

Jagga had added in the letter that "the already sky-high inflation demands immediate stopping of the charging and collecting of service tax on online purchases of foods and beverages."

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multi-level Marketing MLM India Affiliate Marketing Affiliate Marketing Software MLM Software MLM Solutions Multi level marketing solutions MLM Servi

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