TaxTMI 
TaxTMI 
Exemptions.
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....edule to the said Act apply. Illustrative list of specified international organisations are as follows: 1. International Civil Aviation Organisation 2. World Health Organisation 3. International Labor Organisation 4. Food and Agriculture Organisation of the United Nations 5. UN Educational, Scientific and Cultural Organisation (UNESCO) 6. International Monetary Fund (IMF) 7. International Bank for Reconstruction and Development 8. Universal Postal Union 9. International Telecommunication Union 10. World Meteorological Organisation 11. Permanent Central Opium Board 12. International Hydrographic Bureau 13. Commissioner for Indus Waters, Government of Pakistan and his advisers and assistants 14. Asian African Legal Consultative Committee 15. Commonwealth Asia Pacific Youth Development Centre, Chandigarh 16. Delegation of Commission of European Community 17. Customs Co-operation Council 18. Asia Pacific Telecommunity 19. International Centre of Public Enterprises in Developing Countries, Ljubljana (Yugoslavia) 20. International Centre for Genetic Engineering and Biotechnology 21. Asian Development Bank 22. South Asian Association for Regional Co-operatio....
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....ain provisions for the devolution of powers and responsibilities upon Municipalities, subject to such conditions as may be specified therein, with respect to-- (i) the preparation of plans for economic development and social justice; (ii) the performance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Twelfth Schedule; (b) the Committees with such powers and authority as may be necessary to enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule.' Matters listed in twelfth schedule are: 1. Urban planning including town planning. 2. Regulation of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally re....
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....ance such as narcotics drugs or alcohol; or (II) public awareness of preventive health, family planning or prevention of HIV infection; (b) advancement of religion or spirituality; (c) advancement of educational programmes or skill development relating to,- (I) abandoned, orphaned or homeless children; (II) physically or mentally abused and traumatized persons; (III) prisoners; or (IV) persons over the age of 65 years residing in a rural area; (d) preservation of environment including watershed, forests and wildlife; or (e) advancement of any other object of general public utility up to a value of twenty five lakh rupees in a financial year subject to the condition that total value of such activities had not exceeded twenty five lakh rupees during the preceding financial year. 7.4.2 What is the tax liability of a registered charity on their activities? If a registered charity is doing any activity falling in negative list of services or is otherwise exempt, it is not required to pay service tax on that activity. In case, where its activity is covered explicitly in any of the specified charitable activities at 'a' to 'd' of the answer to 7.4.1, it is ex....
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....includes sole proprietors as well. The business entity can, however, take input tax credit of such tax paid in terms of Cenvat Credit Rules, 2004, if otherwise eligible. The provisions relating to arbitral tribunal are also on similar lines. 7.6.2 I am serving as a member of an arbitral tribunal comprising many arbitrators and receiving an amount from the arbitral tribunal. Am I providing a service and required to pay service tax on such amount received? Arbitral tribunal comprising more than one arbitrator will constitute an entity by itself. Thus services of individual arbitrator when represented on such an arbitral tribunal will also constitute service by one person to another. However such service is exempt under sr. no. 6(c) of the mega notification. 7.7 Recreational coaching or training (Details at Sr. No. 8 of Exhibit A3) 7.7.1 What is the scope of exemption to coaching or training in recreational activities? There is exemption from service tax to training or coaching in recreational activities relating to arts, culture or sports. The benefit is available to coaching or training relating to all forms of dance, music, painting, sculpture making, theatre and sports etc. ....
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....predominantly is that benefit of exemption will not be denied if the building is also incidentally used for some other purposes if it is used primarily for commerce, industry, or any other business or profession. 7.9.3 I am a contractor in number of projects for constructing roads. What is my tax liability on construction of roads under different types of projects? Construction of roads for use by general public is exempt from service tax. Construction of roads which are not for general public use e.g. construction of roads in a factory, residential complex would be taxable. 7.9.4 I am engaged in construction of hospitals and educational institutes. Am I required to pay service tax? If you are constructing such structures for the government, a local authority or a governmental authority, you are not required to pay service tax. If you are constructing for others, you are required to pay tax. 7.9.5 What is the service tax liability on construction of a religious building? Service tax is exempt on construction of a building owned by an entity registered under section 12 AA of the Income tax Act, 1961 and meant predominantly for religious use by general public. 7.9.6 I am const....
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....e taxable for his activity of distributing music? Temporary transfer of a copyright relating to original literary, dramatic, musical, artistic work or cinematographic film falling under clause (a) and (b) of sub-section (1) of section 13 of the Indian Copyright Act, 1957 is exempt. A music company would be required to pay service tax as the copyright relating to sound recording falls under clause (c) of sub-section (1) of section 13 of the Indian Copyright Act, 1957. 7.10.2 I am a composer of a song having the copyright for my song. When I allow the recording of the song on payment of some royalty by a music company for further distribution, am I required to pay service tax on the royalty amount received from a music company? No, as the copyright relating to original work of composing song falls under clause (a) of subsection (1) of section 13 of the Indian Copyright Act, 1957 which is exempt from service tax. Similarly an author having copy right of a book written by him would not be required to pay service tax on royalty amount received from the publisher for publishing the book. A person having the copyright of a cinematographic film would also not be required to pay service ....
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....ly charged i.e. declared tariff minus any discount offered. Thus if the declared tariff is Rs 1100/-, but actual room rent charged is Rs 800/-, tax will be required to be paid on Rs 800/-. When the declared tariff is revised as per the tourist season, the liability to pay tax shall be only on the declared tariff for the accommodation where the published/printed tariff is above Rupees 1000/-. However, the revision in tariff should be made uniformly applicable to all customers and declared when such change takes place. 7.11.4 I am running a hotel having the facility of central air-conditioning. There are number of restaurants in the hotel. Am I liable to pay service tax on to serving of food or beverages in these restaurants? Serving of food or beverages in a centrally air-conditioned premise will be taxed if its restaurant has a license to serve alcoholic beverages. However, those restaurants which do not have license to serve alcoholic beverages will be exempt from service tax. Serving of food or beverages outside the restaurant, say near the swimming pool, will be taxed if service is from a restaurant having license to serve alcoholic beverages. 7.11.5 Is giving of a bus on h....
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.... tax. If contribution is for carrying out an activity which is taxable, you are required to pay service tax. 7.11.10 What is the tax liability on services by the intermediaries to entities those are liable to pay tax on their final output services? (Details at Sr. No 29 of Exhibit A3) Services by following intermediaries are exempt from service tax: A. sub-broker or an authorised person to a stock broker; B. authorised person to a member of a commodity exchange; C. mutual fund agent to a mutual fund or asset management company; D. distributor to a mutual fund or asset management company; E. selling or marketing agent of lottery tickets to a distributer or a selling agent; F. selling agent or a distributer of SIM cards or recharge coupon vouchers; G. business facilitator or a business correspondent to a banking company or an insurance company in a rural area; or H. sub-contractor providing services by way of works contract to another contractor providing works contract services which are exempt; 7.11.11 Whether the exemption provided in the mega -exemption to services by way of construction of roads, airports, railways, transport terminals, bridges, tunnels, dams ....
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....departmentally run telephones'? As per Sl. No. 32 of the mega-exemption Notification in addition to exemption to 'departmentally run telephones' there is exemption for 'Guaranteed Public Telephone operating only for local calls' also. Village Public Telephones (VPTs) with facility of local calls (without 9 dialing facility or STD facility) run by BSNL would fall under the category of 'Guaranteed Public Telephone operating only for local calls'. 7.11.14 I am in the business of running a chain of restaurants. I intend to sell my business. Am I required to pay service tax? Services by way of transfer of a going concern, as a whole or an independent part thereof, are exempt from service tax. Therefore, you are not required to pay service tax on such sale of your business. Sale of assets of a business that has closed will be outside the definition of "service" 7.11.15 What does the term 'transfer of a going concern' mean? Transfer of a going concern means transfer of a running business which is capable of being carried on by the purchaser as an independent business, but shall not cover mere or predominant transfer of an activity compris....