#servicetax

[aceadvisory]

Is Service Tax Legal? Unveiling the Truth

In the realm of taxation, the legality of service tax is a topic that frequently raises eyebrows. With this article, we delve deep into the matter, leaving no stone unturned. Let's explore the intricacies of service tax and its legal standing.

What is Service Tax?

Before we can discuss its legality, let's get a clear understanding of what service tax entails. Service tax is a consumption tax levied on services provided in a particular country. It's not a new concept; countries worldwide use it to generate revenue for public services. Essentially, service tax is a financial contribution from those who use various services.

The Legal Framework

Service Tax Acts and Regulations

In most countries, service tax has a solid legal foundation. Legislation and regulations govern its imposition and collection. These statutes specify the rates, exemptions, and procedures for service tax. Typically, the legal framework ensures that service tax collection is transparent and fair.

Compliance Requirements

Service providers are legally obligated to register for service tax and adhere to compliance requirements. This includes maintaining accurate records and filing regular returns. Failure to comply can result in legal consequences, including fines and penalties.

The Controversy

Debate Over Necessity

One of the primary reasons behind the controversy surrounding service tax's legality is the ongoing debate over its necessity. Some argue that service tax can be a burden on the average citizen, while others believe it's crucial for funding public services.

Jurisdictional Differences

Service tax laws can vary significantly from one jurisdiction to another. What's legal in one place might not be in another, adding a layer of complexity to the issue.

Service Tax Evasion

Unfortunately, service tax evasion is a harsh reality. Some individuals and businesses attempt to circumvent service tax obligations, leading to questions about its legality. Governments worldwide are continually working to combat tax evasion and ensure that service tax is collected fairly.

The Bottom Line

In conclusion, service tax, in most countries, is indeed legal. It serves as an essential source of revenue for governments, allowing them to provide necessary public services. However, its legality can be a subject of debate and varies from one jurisdiction to another. To ensure a legal and compliant stance, it is imperative for service providers and individuals to adhere to the tax laws in their respective regions.

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Retail Sale can claim assessment benefits u/s 4A of Central Excise Act

Commissioner of Central Excise Service Tax Kanpur v. M/s a r Polymers Pvt Ltd. etc.

ISSUE/Conflict of Interests: Whether the goods sold by the respondent are eligible to claim tax benefits within the purview of the notification no. 12/2012-CE dated 17/03/12 & Section 4(A) of the Central Excise Act?

Facts: Present Respondent/M/s A R Polymers Pvt. Ltd was printing and attaching MRP stickers on the insole of the shoes, to avail the benefits of the notification No. 12/2012-CE dated 17/03/12 and Section 4(A) of the Central Excise Act 1944(herein after will be referred as Act.)

The said notification wholly exempts the payment of Central Excise Duty for retail sale of footwear under Rs. 500/- and limits Central Excise Duty to 6% where the rate of the footwear is between Rs. 501/- to Rs. 1000/-.

Dispute arose when an information was received by Directorate General of Central Excise Intelligence (DGCEI) that respondent is availing benefit of notification & Section 4(A) of the Act.

Wherefore an inquiry was conducted in the Factory Premise of the Respondent and it was found that Respondent was manufacturing and supplying footwear under the contract to Millitary and paramilitary institutions and was attaching MRP on the insole only to attain benefit of Section 4(A) of the Act.

A demand #showcausenotice was issued to the respondent by the Central Excise Department. #Adjudication #proceeding was initiated. #Adjudicating #authority held that the benefit of the aforesaid notification does not extend to the footwear sold by the respondent & directed the Respondent to #pay the #differenceamount between the tax #alreadypaid and the tax which was #liabletobepaid. A #penalty was also #imposed.

Respondent filed an #appeal in the #CustomsExcise& ServiceTax #AppellateTribunal (CESTAT & CESTAT vide its order dt. 09.01.2019, #overturned the #judgment of the adjudicating authority and held that the benefit of the abovementioned notification extends to the respondent herein.

Ruling of Supreme Court: The Division Bench of the Apex Court comprising Hon’ble Justice Krishna Murari J & Hon’ble Justive Sudhanshu Dhulia Ji vide their order dt. 21.03.2023 held that #Tribunal has #committed a #graveerror in law, and hence the impugned #judgment is liable to be #setaside.

Mere #affixation of #MRP does not make goods eligible to find refuge under Section 4(A) of the Act, and what is required along with such affixation is a mandate of law that directs the seller to affix such MRP.

Thus the Respondent is under an obligation and is directed to pay the differential amount to the relevant tax authority.

Similar issue was dealt earlier by the Apex Court in the case of Jayanti Food Processing Pvt. Ltd. v. Commissioner of Central Excise, Rajasthan, for goods to be #included under the #assessment of Sec. #4(A) must #comply with #fivefactors namely:-

 Essential five factors

(i) The goods should be excisable goods;

(ii) They should be such as are sold in the package;

(iii) There should be requirement in the SWM Act or the Rules made there under or any other law to declare the price of such goods relating to their retail price on the package;

(iv) The Central Government must have specified such goods by notification in the Official Gazette;

(v) The valuation of such goods would be as per the declared retail sale price on the packages less the amount of abatement. If all these factors are applicable to any goods, then alone the valuation of the goods and the assessment of duty would be under Section 4-A of the Act.

Observation of Apex Court:

Here, respondent entered into a sale with the paramilitary and military as per the terms of agreement signed.

While the goods in the impugned sale were notified under Rule 3(b) of the Legal Metrology (Packaged Commodities) Rules,2011 which exempts the sale to institutional consumers from its purview.

For a sale of goods to take assessment benefits under Section 4(A) of the Act, it must be an retail sale, and there must be a requirement of law that directs the seller to affix a retail price on the goods.

Here, the purchasers is institutional consumer, and was exempted from the Legal Metrology (Packaged Commodities) Rules, 2011.

A consumer, is the final consumer of the product, and not the intermediary who after the purchase of the said goods, distribute it further to the final consumer.

Section 4(A) of the Act requires the applicability of the above said rules, the transaction automatically becomes ineligible to claim refuge under Section 4(A) of the Act.

Seema Bhatnagar

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31 दिसंबर के पहले जरूर निपटा लें ये चार काम, वरना नए साल में करना पड़ेगा परेशानियों का सामना

चैतन्य भारत न्यूज नई दिल्ली. साल 2019 के खत्म होने में अब कुछ ही दिन रह गए हैं। ऐसे कई काम हैं जो आपको साल के खत्म होने से पहले पूरे करने होंगे। यदि आप यह काम 31 दिसंबर से पहले नहीं निपटाएंगे तो परेशानी में भी पड़ सकते हैं। ये जरुरी काम बैंक, आयकर, एटीएम, पैन कार्ड से जुड़े हैं। आइए जानते हैं वो कौन-से ऐसे जरुरी काम है जो आपको 31 दिसंबर से पहले निपटाना जरुरी है। (adsbygoogle = window.adsbygoogle || ).push({}); SBI का ATM डेबिट कार्ड यदि आपका अकाउंट स्टेट बैंक ऑफ इंडिया (SBI) में है और आप भी एटीएम-डेबिट कार्ड का इस्तेमाल करते हैं तो आपको सतर्क रहने की जरुरत है। एसबीआई बैंक ने अपने आधिकारिक ट्वीटर अकाउंट पर पोस्ट कर कहा है कि, 'ग्राहक अपने पुराने मैग्नेटिक एटीएम-डेबिट कार्ड को बदलवा लें। ग्राहकों को यह काम 31 दिसंबर 2019 तक करना है क्योंकि वह नए साल से अपने पुराने एटीएम-डेबिट कार्ड से पैसे नहीं निकाल पाएंगे।' PAN कार्ड हो सकता है रद्द यदि आपने अब तक अपने स्थायी खाता संख्��ा (पैन कार्ड) को आधार से नहीं जोड़ा है तो आपके पास 31 दिसंबर तक का समय है। आयकर विभाग ने आधिकारिक सूचना जारी कर यह जानकारी दी है। विभाग ने कहा है कि, 'बेहतर कल के लिए इनकम टैक्स से जुड़ी सेवाओं का लाभ लेने को पैन को आधार से जोड़ने का काम 31 दिसंबर, 2019 तक पूरा कर लें।' साथ ही सूचना में यह भी कहा गया है कि पैन कार्ड को आधार कार्ड से जोड़ना अनिवार्य है। अगर आपने ऐसा नहीं किया तो आपका पैन कार्ड रद्द हो जाएगा। साथ ही 1 जनवरी 2020 से आप आयकर, निवेश या लोन आदि से जुड़ा कोई भी काम नहीं कर पाएंगे, जब तक आप पैन को आधार से लिंक नहीं करते। ITR फाइल करने का आखि��ी मौका यदि आपने अब तक 2018-2019 की इनकम टैक्स रिटर्न फाइल नहीं की है तो आपके पास 31 दिसंबर तक का मौका है। 31 दिसंबर तक लेट फीस के साथ आप एक बार फिर इसे फाइल कर सकते हैं। अभी लेट फीस की राशि 5,000 रुपए तक है, लेकिन यदि 31 दिसंबर तक भी आप आईटीआर फाइल करने से चूक गए तो इसके बाद और 31 मार्च, 2020 से पहले इनकम टैक्स रिटर्न फाइल करने पर आपको 10,000 रुपए जुर्माना देना होगा। निपटा लें ये विवाद यदि आप किसी सर्विस टैक्स या एक्साइज ड्यूटी से संबंधित विवाद से जुड़े हैं तो बेहतर होगा कि 31 दिसंबर 2019 से पहले इसके समाधान के लिए आप रजिस्ट्रेशन करा लें। बता दें ऐसे विवादों का निपटारा करने के लिए वित्त मंत्रालय ने इस स्कीम को शुरू किया था, जिसकी अंतिम तारीख 31 दिसंबर 2019 है। ये भी पढ़े... अगर नहीं किया ITR फाइल तो आपके पास 31 दिसंबर तक है मौका, वरना 10 हजार देना होगा जुर्माना 31 मार्च 2019 से पहले आधार से लिंक कराएं पैन कार्ड, नहीं तो आएंगी ये दिक्कतें आपके नजदीकी कौन से ATM में है पैसा? इस मोबाइल ऐप के जरिए 2 मिनट में लगा सकते हैं पता Read the full article

[birdiejourney-blog]

Effective September 01, 2019, the Minister under S. 34(3), Service Tax Act 2018 (#Act807) exempted the following services prescriped under First Schedule, the Service Tax Regulations 2018, as below. 1. Freight forwarder - logistics management services; 2. Inbound tour packages by travel agents - tourism management services; 3. Amusement park services; 4. Coin Operated Laundry Machine (#COLM) - cleaning services. #taxation #tax #servicetax #custom #sst #servicetaxact #malaysiatax #logistics #tourism #cleaning Ref.: Service Tax Policy No. 1/2019 https://mysst.customs.gov.my/assets/document/Annoucement/ServiceTaxPolicy_12019.pdf (at Royal Malaysia Customs Putrajaya) https://www.instagram.com/p/B2F9eiQngPA/?igshid=1ewv30mq47mve

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