Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
Don't have an account? Register Here
<h1>Clarification Issued: No Service Tax on Centrally Sponsored Scheme Transactions Between Central and State Governments.</h1> The circular addresses concerns about the improper demand for service tax from state governments or their departments/agencies involved in implementing Centrally Sponsored Schemes (CSS). It clarifies that the relationship between the central and state governments under CSS is not akin to a principal-agent relationship. The central government's grants to state agencies should not be considered as payment for taxable services, and thus, service tax should not be levied on these transactions. The circular instructs relevant authorities to refrain from demanding service tax in such cases and to disseminate this clarification through trade or public notices.