Entries from December 2011 ↓

Documents required for Registration of Service Tax

 

F. No. 137/120/2011 – Service Tax

Government of India Ministry of Finance Department of Revenue (Central Board of Excise & Customs)

New Delhi dated the 13th December 2011

ORDER NO. 2 /2011 – Service Tax

In exercise of the powers conferred by Rule 4(1A) of the Service Tax Rules 1994, Central Board of Excise and Customs hereby specifies the following documents that are required to be submitted by the person who has made an application for registration under Rule 4(1) of the Rules ibid:

(a) Copy of Permanent Account Number (PAN)

(b) Proof of Residence

(c) Constitution of the Applicant.

(d) Power of Attorney in respect of authorised person (s).

2. It is further stated that the above documents must be submitted to the concerned authority within a period of 15 days from the date of filing of the application for registration. Failure to do so would lead to rejection of the registration application.

3. It is also clarified that the time limit of seven days from date of receipt of application or intimation under Rule 4(5A), within which the registration is to be granted by the Superintendent of Central Excise or Service Tax, as referred to in Rule 4(5) shall be reckoned from the date the application for registration is complete in all respects.

(Deepankar Aron) Director (Service Tax)

 

For more detail visit our website: http://www.mukeshraj.com/service-tax.html

Correction in TDS Challan

 Correction in TDS Challan

 NSDL receives tax collection data as uploaded by the bank. NSDL is not authorized to carry out any changes in the data sent by the bank to TIN.

The fields that can be corrected by the Taxpayer through Bank are tabulated below:

Sl. No.              Type of Correction on Challan              Period for correction request (in days)

1                        PAN/TAN                                      Within 7 days from challan deposit date

2                        Assessment Year                          Within 7 days from challan deposit date

3                        Total Amount                                 Within 7 days from challan deposit date

4                        Major Head                                      Within 3 months from challan deposit date

5                        Minor Head                                      Within 3 months from challan deposit date

6                        Nature of Payment                         Within 3 months from challan deposit date

 

Note :

1.   Above correction mechanism is applicable only for physical challans with deposit date greater than equal to September 1,2011.

2.   Any correction request initiated by the taxpayer after the time limit specified above shall be rejected by Bank.

3.   For challans with challan deposit date from September 1, 2011 to September 30, 2011, the time limit for correction in TAN/PAN,       Assessment Year and Amount will be within 45 days from challan deposit date.
4.  The fields that can be corrected and the entity authorized to carry out corrections on challan with deposit date less than       September 1, 2011 are as below:

 

Sl. No.              Type of Correction on Challan              Performed By

1                        PAN/TAN                                                          Assessing Officer

2                        Assessment Year                                             Assessing Officer

3                        Major Head                                                       Assessing Officer /Bank

4                        Minor Head                                                       Assessing Officer

5                        Nature of Payment                                          Assessing Officer

6                        Total Amount                                                   Bank

7                        Name                                                                 Bank

For more detail visit our website: http://www.mukeshraj.com

Service Tax on Sale of SIM Cards

The disputes over the chargeability of Service Tax or Vat on the sale of SIM Cards have come to an end by virtue of the judgment by “Honorable Supreme court in case of Idea Mobile Communication Ltd. versus C.C.E & C., Cochin”.
Earlier, the Department of Sales Tax, State of Kerala, claims the activation charges as part of the sale consideration of SIM cards on the grounds that activation is nothing but a value addition to the goods and thus levied sales tax on activation charges. However, the Department of Central Excise, Ernakulum observed that a mere SIM Card without the activation is of no use and held that the appellant is liable to pay service tax on the value of SIM cards also.
Later on, the Honorable Kerala High Court in its judgment concluded that, Service Tax shall be payable on the value of SIM Cards in as much SIM cards has no intrinsic sale value and it is supplied to the customer for providing mobile services. Further, on remanding back the matter by the Honorable Supreme Court, the Assessing Authorities under the Kerala General Sales Tax also dropped the proceeding after conceding the position that SIM cards has no intrinsic sale value an it is supplied to the customer for providing the telephone services which finally & practically put an end to the matter and signifies the conclusion of the matter under dispute.
The position in law is therefore clear that the amount received by the Cellular Telephone Company from its subscriber towards SIM Cards will form part of the Taxable Value for the levy of Service Tax in as much SIM Cards are never sold as goods independent from service provided and considered as part & parcel of the services provided and dominant position is not to sell the material.
Finally, the “Honorable Supreme Court” affirmed the finding and reasoning in the judgment and order passed by the “Honorable Kerala High Court regarding the leviability of service tax on the value of SIM Cards sold by the Service provider”.
Further, it is also established that payment of Sales Tax whether wrongly or in order would not absolve assessee from the responsibility of the payment of Service Tax. Hence, Service Tax shall be levied on the value of SIM cards.

For more detail visit our website: http://www.mukeshraj.com/service-tax.html