Saturday, April 10, 2010

Latest Amendments and Recent News Views & Stories Brought to you by www.servicetaxonline.com

Alert No 20100410A :  Saturday, April 10, 2010

Latest Amendments and Recent News Views & Stories

Brought to you by www.servicetaxonline.com

News Views & Stories:

Service tax of Rs10 lakh and above must be paid by e-mode

Service tax payment by big tax-payers enters electronic Era

In this era of information technology, business is bound to be at the speed of thought and the government does not wish to lag behind. Manual payments through bank challans and other conventional methods have experienced the hurdles of cheque clearances and difficulties faced by the finance department at the time of reconciliation of figures. Information technology, no doubt, has fostered all areas. However, it is a double-edged sword as it makes payment procedures easy to execute but difficult to rectify the mistakes....more

Recent Important Judgements:

STO 2010 CESTAT 15
Mining Service: Stay: The Contract relates to excavation and transportation of Run of Mine (ROM). The transportation of goods is within the mining area. The Tribunal in the case B.K. Thakkar STO 2007 CESTAT 1032 held that transportation within the mining area is part of mining activity and hence, the assessee is not separately liable to pay Service Tax. In view of the terms and conditions of the Agreement, prima facie, strong case in favour of the Applicant as the Contract is for mining, and 'Mining Service' comes under the scope of Service Tax w.e.f. 01.06.2007 and the present demand is prior to this period. Accordingly, the Stay Petition is allowed.


STO 2010 CESTAT 14
Port Service vs. Business Auxiliary Service: Stay: The railway siding charges are not covered under the scope of port service and the same are not related to vessels or goods and also in the case of Chennai Port Trust held that the service in question is Business Auxiliary Service. Keeping in view the above decision, the pre-deposit of the amounts of Service Tax and penalty are waived.


STO 2010 CESTAT 13
Consulting Engineering Service: Valuation: The designs and drawings which are part of the contract are treated as goods by the Customs Authorities and were assessed under the Customs Act therefore the finding that the same are service is not sustainable and requires re-consideration. The impugned order is set aside and the matter is remanded to the adjudicating authority for de-novo adjudication.


STO 2010 CESTAT 12
Site Formation Service: The activity of undertaking Work Order for laying of Optical Fibre Cable, prima facie not covered under Site formation services. Stay granted.


STO 2010 CESTAT 9
Outward Transportation of Gas: Input Service Credit: Stay: Input credit of Service Tax on Commercial or Industrial construction service / Erection, Installation or Commissioning service used for execution of pipeline project, prima facie available as they are in relation to the business activity to provide outward service of transportation of natural gas through pipeline. Stay granted.

 

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Regards,

Team STO


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