OVERVIEW
Service tax in India evolved from having no Siatutory levy before 1994 to becoming a comprehensive tax on all services until its subsumption into GST. Since the Constitution did not specifically provide for taxing services, Parliament relied on its residuary powers under Article 248 read with Entry 97. Based on the Tax Reforms Committee’s recommendations, service tax was introduced through the Finance Act, 1994,…
admin
OVERVIEWGST replaced multiple taxes with a single, unified tax on goods and services across India to simplify the system and reduce tax-on-tax. However, GST was more than a tax reform. It reshaped our federal structure. The 101st Constitutional Amendment empowered both Parliament and States to levy GST under Article 246A, assigned interstate trade to Article…
The department challenged the order passed by CESTAT wherein the tribunal, inter alia, held that the activity of digital offset and offset printing amounts to manufacture and the same is classifiable under heading chapter 4911 of the Central Excise Tariff. Therefore, no service tax would be payable on such activity. The department/revenue contended that the…
The department had challenged the order passed by the Bombay High Court, wherein, show cause notices were pending adjudication for a period from ten to seven years and the same were transferred to the call book. No communication was sent by the department regarding the same. The assessee was informed when they sought a closure…
The assessee provided corporate guarantees to banks/financial institutions lending to subsidiary/related companies. There was no consideration. The revenue alleged that they have provided "banking or financial services" as a corporate guarantee, which is like a bank guarantee. For the period post-July 2012, it was alleged that it is a "service" under section 65B(44) of the…
The above provisions are valid in so far as the provisions of the IGST Act are concerned. The same cannot be borrowed and/or extended to the provisions of CGST & SGST Act. The state legislature does not have legislative competence to levy tax on exports. UBR Comments: Whether or not a supplier is an intermediary…