Hi friends...I completed B.Com. (Hons.) with 2nd Rank in the University in 1997.
I completed CA Articleship from M/s C.C. Chokshi & Co., Mumbai a partner firm of M/s Deloitte Haskins & Sells, Mumbai where I got the opportunity of learning and working with elite clients like Mafatlal Industries Ltd., Standard Industries Ltd., Asian Paints India Ltd., Precision Fasteners Ltd, Saurashtra Cement Ltd., AFCONS Infrastructures Ltd, Indian Distillers India Ltd., etc. Now, I am providing consultancy on Service Tax matters as a freelancer consultant.
My Article titled 'Service Tax on GTA - A Guide' has been published by CENTAX Publications (P) Ltd., New Delhi in the fortnightly journal R.K. Jain's Service Tax Review (S.T.R.) issue dated 15-01-2014 (Vol. 33: Part 2). It has also been published by the All India Transporters Welfare Association - AITWA in their New Year issue of monthly magazine 'Parivahan Pragati for January - 2014'. They have found the article very very informative, useful and a practical guide greatly relevant for there members.
My Article titled 'Service Tax on Rent-A-Cab Service - A Guide' was published in R.K. Jain's STR issue dated 01-06-2014 (Vol. 34: Part 5.
My Article titled 'Whether Rule 5 of Point of Taxation Rules, 2011 is Ultra Vires?' was published in R.K. Jain's STR issue dated 15-12-2014 (Vol. 36: Part 6). This article was also published in the souvenir of ICAI during All India CA Conference - 2014 hosted by Bhubaneswar Branch of EIRC.
Kindly contact and/or recommend me for opinion, second opinion, consultancy, reply to SCN and queries, cenvat credit issues, litigation and compliance services relating to service tax. I do charge reasonable fee for my services.
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Reverse charge exemption for small inward supplies preserves relief where daily aggregate remains below the statutory threshold for intra State purchases.
Exemption Notification No. 8/2017 CT(Rate) exempts Central GST under the reverse charge in respect of intra State supplies received by a registered person from unregistered suppliers where the aggregate value of such supplies received in a single day does not exceed a prescribed threshold; the threshold is applied to the aggregate of all unregistered suppliers' supplies in the day, exempt supplies are ignored in the calculation, and intra State exemption does not extend to inter State supplies. (AI Summary)
Goods and Services Tax - GST
Undisclosed income disclosure scheme imposes heavy combined tax, surcharge and compulsory deposit before declaration, with exclusions for tainted funds.
The proposal creates a voluntary disclosure scheme for undisclosed income in cash or deposits requiring advance payment of tax, surcharge, penalty and a locked interest free deposit before declaration; disclosed amounts are excluded from assessable income but declarations are inadmissible in most proceedings except certain criminal statutes. The scheme excludes tainted funds and specified persons, and links non compliance to higher taxation, additional penalties, potential prosecution and benami confiscation where lawful ownership cannot be proved. (AI Summary)
Income Tax
TCS on services uncertain due to mismatch between seller and buyer definitions, creating collection and liability ambiguity.
The amendment to Section 206C(1D) extends TCS to cash receipts for services but expands the definition of seller to include service providers while the buyer definition remains limited to acquisitions of goods, creating a drafting mismatch. This leads to uncertainty whether a service recipient qualifies as the person from whom TCS must be collected and whether the term "sale consideration" properly applies to service receipts, rendering the service-provider TCS obligation doubtful and in need of legislative correction. (AI Summary)
Income Tax
Charging provision ambiguity in cess law risks challenge where the taxable services scope remains unnotified and uncertain.
Section 119(2) of the Finance Act, 2015 levies the Swachh Bharat Cess on "all or any of the taxable services," language that creates uncertainty because no notification has specified which services are within the levy; instead the government issued an exemption notification, leaving exempted services unentered within a clearly defined charging scope and inviting challenge under strict construction principles for taxation statutes. (AI Summary)
Service Tax
Exemplary costs for pressing appeals on settled issues warn personal liability for commissioners and require pre-filing review.
Revenue authorities must not press appeals on issues conclusively settled by the jurisdictional High Court and accepted by the Revenue; officers instructing counsel must review whether to press an appeal and obtain the Commissioner's instructions. If an appeal is pressed despite precedent, the appeal memo must aver distinguishability or a further appeal to the Apex Court, or be supported by a subsequent affidavit explaining reasons. Absent such steps, the Court indicated it will impose exemplary costs personally on the responsible Commissioner and urged withdrawal of appeals where the issue is settled. (AI Summary)
Service Tax
GST return obligations require a unified e-return, specified return types, reconciliation and automated enforcement measures.
A single electronic return will cover central, state and integrated taxes and mandates periodic filing by all registrants, including nil returns. Regular taxpayers must file GSTR-1, GSTR-2 and GSTR-3 monthly, compounding taxpayers file quarterly GSTR-4, and all regular taxpayers file an annual reconciliation (GSTR-8) based on financial records with a 31 December cut-off; audited taxpayers must submit a CA-certified reconciliation. (AI Summary)
Goods and Services Tax - GST
Cenvat credit utilization restricted by date of receipt rule, leaving pre March CESS balances unavailable for excise duty payment.
The amendment to Rule 3(7)(b) CCR allows CESS cenvat credit to be used for excise duty only for inputs, capital goods and input services received in the manufacturer's factory on or after 1 March 2015 (with a fifty percent transitional rule for certain capital goods in 2014 15). Consequently, CESS balances attributable to items received on or before 28 February 2015 remain unusable for payment of duty; marginal exceptions exist for goods invoiced before 1 March but received later and for input services received on or after 1 March 2015 while service tax CESS persists. Unutilized CESS credits may nevertheless be carried forward and used in specific limited situations. (AI Summary)
Central Excise
Transit sale invoice requirements allow registered dealers to enable cenvat credit for consignees via dealer-listed invoices.
The proviso to Rule 11(2) allows an invoice, when goods are sent on the direction of a registered dealer, to show that dealer as buyer and the recipient as consignee so the consignee may take CENVAT credit on the registered dealer's invoice; it is limited to registered dealers and does not nullify the consignee's entitlement to credit on a manufacturer's invoice naming the consignee, though the proviso's final phrase may be open to legal challenge and calls for governmental clarification. (AI Summary)
Central Excise
Service tax rate increase takes effect only after enactment and notification; consolidated rate replaces education cesses, cleanliness cess possible.
The Finance Bill proposes to substitute the statutory service tax charging rate with a consolidated 14% rate that will come into effect only after enactment and notification by the Central Government; upon effectiveness the education cesses on service tax will cease to apply. The Bill separately empowers levy of a Swachh Bharat Cess on the value of all or specified taxable services, to be notified after enactment, which will operate in addition to the consolidated service tax and affect overall tax incidence. (AI Summary)
Service Tax
Pre-deposit requirement for appeals: second-stage deposit computed on the appealed order's amount, not automatically adjusted.
Section 35F mandates stage-wise pre-deposits for appeals: a first-stage deposit tied to the Order-in-Original or Commissioner adjudication, and a second-stage deposit tied to the Commissioner (Appeal) order. CBEC clarified that the second-stage deposit must be calculated on the amount determined by the Commissioner (Appeal). The author contends the second-stage deposit is additional to the first-stage payment; commentators differ, some saying only the differential is payable, leaving practical ambiguity. (AI Summary)
Central Excise
Point of Taxation rules treating invoice or payment as decisive conflicts with the taxable event principle for services.
Rule 5 of the Point of Taxation Rules, 2011 makes invoice issuance and receipt of payment the determinative events for tax liability on newly taxable services, thereby shifting the operative date away from the taxable event of provision or completion of service established by the charging section of the Finance Act. The article argues this exceeds the rule making powers under section 94, which permit rules for collection, recovery and related matters but do not authorize recharacterising the date of levy. (AI Summary)
Service Tax
Reverse charge on GTA service shifts tax liability to service recipients, with abatement reducing the effective tax burden.
The taxability of road transport services depends on classification as a Goods Transport Agency (requiring issuance of a consignment note) or courier agency; under the negative-list regime only GTAs or courier agencies render transportation by road taxable. For specified categories of recipients, liability is shifted to the recipient under the Reverse Charge Mechanism, with place of provision generally the location of the person liable to pay. A statutory abatement reduces the taxable value subject to non availment of CENVAT by the provider, exemptions apply for low value consignments and specified goods, and CENVAT, registration and payment rules prescribe compliance mechanisms. (AI Summary)
Service Tax
Rent-a-cab service taxable with abatement, exemptions, and reverse charge affecting providers and receivers and cenvat credit limits.
Renting motor vehicles designed to carry passengers is taxable unless covered by the negative list or specific exemptions; ownership is not required for the operator to qualify. A 60% abatement applies where Cenvat credit has not been taken (tax on 40% of value); if Cenvat credit is availed, abatement is disallowed and full value is taxable. Reverse Charge Mechanism applies when notified, making the service recipient liable. Cenvat credit on rent-a-cab services is largely restricted except where the vehicle is a capital good used in specified output services. (AI Summary)
Service Tax
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