* A Service Tax – Already come
into effect, negative list of Service are only released & applicable from
July 2012
* Negative List- Means only
Negative Listed people only excluded from SERVICE TAX, ALL OTHERS PEOPLE ARE
COMING UNDER SERVICE TAX NET, FOR THAT PURPOSE ONLY NEGATIVE LIST HAS BEEN
ISSUED, THIS HAS COME INTO EFFECT FROM JULY 2012.
* RATE OF TAX FOR WORKS CONTRACT
WORKS OUT TO 4.8% PLUS 3% EC , SO TOTALLY 4.95 %.
 |
| Mr. S. Satheesh Kumar, CA |
* IT HAS BEEN INCREASED FROM 5
% to 12.36% WITHIN THE SPAN OF 9 YEARS ( FROM 2003 to 2012 ) FROM 1994 JULY to
2003 JUNE IT WAS ONLY 5%. In 1994 it was only 3 Taxable services ,In 2011 – 123 Taxable services ,
now 2012 all services except funeral and auto rickshaw services are included in
service tax net .
From Service tax , government has collected around Rs. 58,336 crores ,
so cat has got the taste,so it will not leave this. In 2004 and 2005 service
tax for commercial complex introduced and residential complex followed thereon.
It has gained more prominence after Budget 2010.
Earlier it was taxable only
above 12 units of flats , now irrespective of units , service tax is
applicable, except single kitchen.
* Stamp duty varies from state to state between 5% to 17 % ,developers
adopted two methods, one a) single sale and construction agreement b) sale and
construction agreement separately This stamp duty model is used Karnataka,
Maharashtra, New Delhi, where stamp duty is less.
* Second model is used in
Tamil Nadu, Keral, AP,WB where stamp duty is high.
* Tamil Nadu government can do
like that of Delhi, Karnataka, their state revenue will increase instead of
giving this amount to central government .
* SERVICE TAX ON RECEIPT BASIS IS WITHDRAWN, ON ISSUE OF BILL IT HAS
TO BE PAID.
* SERVICE TAX CAN BE COLLECTED BY SERVICE PROVIDER FROM SERVICE RECEIVER, BUT LIABILITY TO PAY
ONLY BY THE SERVICE PROVIDER.
* FREE FLAT GIVEN BY BUILDER TO
LAND LORD OWNER CAN ALSO BE SUBJECT TO SERVICE TAX , IT NEED NOT BE PAID BY MONEY, MONEY OR MONIES WORTH, SERVICE
TAX IS CHARGEABLE.
* DECLARED SERVICES
A) RENTING OF IMMOVABLE PROPERTY
B) CONSTRUCTION OF A COMPLEX BUILDING, CIVIL STRUCTURE , INTENDED FOR
SALE TO A BUYER,EXCEPT WHERE THE ENTIRE CONSIDERATION IS RECEIVED AFTER
ISSUANCE OF COMPLETION CERTIFICATE FROM SUCH AUTHORITY FROM ANY OF THE
FOLLOWING
A) AUTHORISED TO ISSUE COMPLETION CERTIFICATE
UNDER ANY LAW FOR THE TIME BEING IN FORCE
AND IN CASE OF NON – REQUIREMENT OF SUCH CERTIFICATE FROM SUCH
AUTHORITY , FROM ANY OF THE FOLLOWING
NAMELY
B) ARCHITECT REGISTERED WITH THE COUNCIL OR
ARCHITECTURE CONSTITUTED UNDER THE ARCHITECTS ACT 1972.
C) CHARTERED ENGINEER REGISTERED WITH THE
INSTITUTIONS OF ENGINEERS (INDIA) OR
D) LICENSED SURVEYOR OF THE RESPECTIVE LOCAL BODY
OF THE CITY OR TOWN OR VILLAGE OR DEVELOPMENT OR PLANNING AUTHORITY.
* RENTING FOR RESIDENTIAL PURPOSE IS EXCLUDED
FROM SERVICE TAX NET- FUNERAL ,BURIAL, CREMATORIUM OR MORTUARY SERVICES
INCLUDING TRANSPORTATION OF THE DECEASED ARE EXEMPTED.
* THANKS TO CENTRAL
GOVT , FOR SMALL MERCY AFTER DEATH THERE
IS NO SERVICE TAX.
* CONSTRUCTION OF RESIDENTIAL COMPLEX FOR SELF
USE OR USE OF EMPLOYEES .
* ONCE ABATEMENT
i.e PARTIAL EXEMPTION IS AVAILED i.e., 4.95 % CAPITAL GOODS SERVICE And CENVAT
CREDIT FOR INPUT SERVICES TAX IF ANY CAN BE DEDUCTED BUT NOT DUTY PAID ON INPUT
GOODS.
* INDIVIDUALS AND
FIRMS WITH LESS THAN RS 50 LAKHS
TURNOVER CAN PAY SERVICE TAX ON RECEIPT BASIS.
* Issue of Invoice
/ Bill is mandatory . It should be
issued within 30 days from the date of completion of taxable service or receipt
of payment towards the service whichever is earlier.This invoice should contain
Serial No, Name and Address and Registration No of service provider, Name and
address of service receiver, description and classification and value of
taxable service being provided, amount of service tax ( mention separately
service tax and education cess)
* Amount collected
to be deposited monthly before 5th of next succeeding month, half yearly
return to be filed, before 25th of Oct and before 25th April.
* Service tax is
not paid before due date , interest at 18% p.a from 1.4.2011 from due date to
date of payment.
* Service tax is collected and deposited
for advance received from customers, after that it is cancelled, paid
service tax can be adjusted against future payments.
* Residential building comprising of a single dwelling unit is not
liable for service tax, homeless, shelter, orphanage, de addiction centre,
child day care home or place of worship ,construction , ams, canals, works for
roads, transport railways, bridges, tunnels, irrigation flood control water
works, building owned by govt, other than meant for industrial or commercial
use including govt hospitals, institutions.
Contact:
Mr. S. Satheesh
Kumar, Bsc, FCA,
Company: S.
Satheesh Kumar & Co.,
Office: Flat Number
AF2, Anirutha Apartments,
New Number 805,
Velachery Main Raod, Camp Raod Junction,
Selaiyur, Chennai - 600 073
Office : 044 - 2227
6611
Mobile: 95000
06521, 94443 85844
Email:
satheesh_ss@bsnl.in
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