"Completion certificate" concept of, - a myth or a farse ?
Why Govt. is the culprit upfront - RESPONSIBLE FOR COMMERCIALISNG -
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Time to up capital controls
The recent permission accorded to the Indian insurance companies, both in the life and general businesses, to set up shops abroad, seems to be an initiative whose time has not come. »Q ...There ought to be a Tobin tax that discourages the nonchalant use of the revolving door mechanism, taking a cue from Brazil and Thailand, among others.....UQ
One can only pity, rather sincerely empathise, the writer, learned but vciferous in his own way, for his not just in-box but closed-and -sealed tight- box views ! Seems to live in a world of his own, if not in that proverbial paradise believed to be largely inhibited /inhabited by a different class !!
For knowing what has has been happening to the novel idea/concept of "Tobin Tax" in countries of its origin, better be vigilant and keep eyes open to the scenario across !!!
Better it is realised now, instead of late or never, that ours is a nation still believed (open to correction if wrong) to be a live and kicking democracy. And one of those few around the globe which is still left with some belief in values of democracy; further in avoiding as far as feasible any unfair encroachment of others' territories , even remotely or indirectly through any mesure objectinably attempting to tax cross-border transactions with no rhyme or reason, so on and so forth. If so, the cry , however noisy or feeble that be, for ushering in any novel levy such as Tobin Tax, to say the least, going by diktat of common sense, could only be decried as a cry in wilderness !!!!
Anyone caring to know what has been the last reported development in the arena of European Community, to which the idea of Tobin Tax owes its birth, one may read the material in public domain; for instance, Reuters:
Britain is mounting a legal challenge to plans by 11 European nations to adopt the new financial transactions tax. Concern is that the plan will affect banks and institutions in countries outside the scheme. As it would be levied on all euro transactions anywhere in the world. Hopes for it suffered a setback when George Osborne said in Washington that the UK was taking the case to the European court of justice (ECJ).
"I am not against financial transaction taxes in principle," the chancellor said, noting that the UK put stamp duty on shares. "But I am concerned about the extra-territorial aspects of the European commission's proposals."
In one's independent conviction, the idea suggested but only to be promptly eschewed ; for, that is as bad or good as the other idea of Transfer Pricing already put into effect. Bad because it suffers from the malady of being in gross violation of the principle of 'territorial jurisdiction' , with far reaching dire consequences.
Further matured thoughts and frank and free exchange of opinion among the international tax experts, having direct experience and exposure to such matters might help in crystallising a largely acceptable objective view.
New takeaways on service tax at A/C restaurants
> Most fast-food joints have air-conditioned dining space. Some of their outlets have dedicated counters outside the AC hall for takeaway orders. Since these do not use ACs, the orders should not be taxed. However, this is being flouted.
Service tax is calculated on 40 per cent of the total value of the order, which translates into an effective rate of taxation of 4.8 per cent plus education cess, against the general rate of 12 per cent plus service tax.
1. As observed, the authoritative view repeatedly taken is this: In a case where for no fault/for reasons or in circumstances beyond the control of taxpayer, any one OR more of the condition(s) for entitlement could not be satisfied, the claim cannot be rightly rejected.
2. Instances commonly across are these: The timeframe as envisaged by law could not be complied with, mostly because of the otherwise avoidable delay; and, more often than not, the builder has no valid reasons or circumstances to offer/explain, to which the delay can be attributed. So much so, ‘completion’ happens to take place invariably beyond the committed date by builder.
Even so, as the law stipulates, payments having been made as committed to builder, those are appropriated towards the ‘purchase’ by taxpayer, and thereby fulfils the essential condition. In such instances, denial of exemption, in one’s conviction, will be in violation of the law; also in contravention of the supervening so-called “PRINCIPLES OF NATURAL JUSTICE”.
3. In the reported ITAT case, the assessee’s contentions have been rejected on the peculiar facts / circumstances underlined in the concluding para. 13 of the order; holding that those could not be accepted as ‘supervening impossibilities’. This, therefore, is an aspect to be necessarily borne in mind in a dispute of the kind in any given case.
In one’s perceptive opinon, it would be very much in the interests of a judicous administration of the law, should the CBDT come out with a ‘beneficial’ circular, conceding the judicial view thus far consistently taken, righteously so; and,thereby put an end to the otherwise inconclusive but infructuous ongoing battle of wits.
The soonest the CBDT does so, the better.
Refund of Service Tax paid ignorantly if its burden not ... - TaxGuru
taxguru.in/service-tax/refund-service-tax-paid-ignorantly-burden-passed...
This is with reference to the above captioned subject
there are about 100 people those who have purchased the apartments have paid the service tax to the service tax Department through the developer in 2007-08 & 2008 – 09, based on the demand given by the developer. The developer also has deposited the service tax to the government. Later, there was a clarification through a Govt. circular that the service tax in connecting with the construction of residential complex is not applicable. Based on this service tax position prior to 1st july 2010 reg, there is a clarification which i could able to find out thru website issued by Commissioner of Central Excise, Pune-III, Trade Facility No. 1/2011, dated 15-2-2011 stating that
With effect from 1-7-2010 (the Finance Act, 2010), an explanation has been inserted below sub-clause (zzzh) of section 65(105) to clarify that unless the entire consideration for the property is paid after the completion of construction (i.e. after issuance of completion certificate by the competent authority), the activity of construction would be deemed to be a taxable service provided by the builder/promoter/developer to the prospective buyer and the service tax would be charged accordingly.
And he clarifies that:
(a) Where services of construction of Residential Complex were rendered prior to 1-7-2010 no Service Tax is leviable in terms of para 3 of Boards Circular number 108/02/2009-S.T., dated 29-1-2009. The Service of Construction of Residential Complex would attract service tax from 1-7-2010. Despite no service tax liability, if any amount has been collected by the builder as “Service Tax” for Services rendered prior to 1-7-2010, the same is required to be deposited by the builder to the Service tax department. Builder cannot retain the amount collected as Service Tax.
(b) For services rendered after 1-7-2010 for which payment has been or is made after 1-7-2010, service tax is leviable and builder is liable to deposit the service tax to the service tax department. The only exception to this is provided within the parenthesis () in the “Explanation” in para 3.
(c) For services rendered after 1-7-2010 for which payment was made prior to 1-7-2010, service tax has been exempted by the Govt. based on documentary evidence vide notification no. 36/2010-S.T., dated 28-6-2010 as amended. Therefore, this benefit can be availed by builders on the basis of documentary evidence.
(a) Where services of construction of Residential Complex were rendered prior to 1-7-2010 no Service Tax is leviable in terms of para 3 of Boards Circular number 108/02/2009-S.T., dated 29-1-2009. The Service of Construction of Residential Complex would attract service tax from 1-7-2010. Despite no service tax liability, if any amount has been collected by the builder as “Service Tax” for Services rendered prior to 1-7-2010, the same is required to be deposited by the builder to the Service tax department. Builder cannot retain the amount collected as Service Tax.
(b) For services rendered after 1-7-2010 for which payment has been or is made after 1-7-2010, service tax is leviable and builder is liable to deposit the service tax to the service tax department. The only exception to this is provided within the parenthesis () in the “Explanation” in para 3.
(c) For services rendered after 1-7-2010 for which payment was made prior to 1-7-2010, service tax has been exempted by the Govt. based on documentary evidence vide notification no. 36/2010-S.T., dated 28-6-2010 as amended. Therefore, this benefit can be availed by builders on the basis of documentary evidence.
Commissioner of Central Excise, Pune-III, Trade Facility No. 1/2011, dated 15-2-2011
In this situation where the service tax refund case stands for.
I have made severe follow-up pn 2-3 occasions since no one ready to give any help let me know what needs to be done, to get back this service tax refund.
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