NATURE OF SERVICE TAX

Transcription

1 CONTENTS About the Authors I-5 Preface I-7 UNIT 1 SERVICE TAX 1 NATURE OF SERVICE TAX 101. Why service tax What are different approaches to service tax What are different features of service tax Is it constitutionally valid How to determine service tax liability What is basis of charge What one should know before beginning study of service tax law 9 2 MEANING OF SERVICE 109. What is the meaning of service What is activity What is significance of consideration What is significance of phrase Activity must be carried out by a person for another person What are declared services What are specific exclusions from definition of service given in section 65B(44) 28 I-9

2 CONTENTS I P1-P6 Problems on service 31 3 NEGATIVE LIST 120. What are services given in negative list Services provided by Government/local authority - What is covered under Negative list Category Services provided by RBI - What is covered under Negative list Category Services by a foreign diplomatic mission located in India - What is covered under Negative list Category Services relating to agriculture or agricultural produce - What is covered under Negative list Category Trading of goods - What is covered under Negative list Category Any process amounting to manufacture or production of goods - What is covered under Negative list Category Selling of space for advertisements in print media - What is covered under Negative list Category Service by way of access to a road or a bridge on payment of toll charges - What is covered under Negative list Category Betting, gambling or lottery - What is covered under Negative list Category Admission to entertainment events or access to amusement facilities - What is covered under Negative list Category Transmission or distribution of electricity - What is covered under Negative list Category Services relating to education - What is covered under Negative list Category Service by way of renting of residential dwellings for use as residence - What is covered under Negative list Category Financial sector - What is covered under Negative list Category Services relating to transportation of passengers - What is covered under Negative list Category Services relating to transportation of goods - What is covered under Negative list Category Funeral services - What is covered under Negative list Category P1-P18 Problems on Negative List 54

3 I-11 CONTENTS 4 MEGA EXEMPTION NOTIFICATION 138. What are services given in Mega Exemption Notification P1-P9 Problems on Mega Exemption Notification 75 5 PLACE OF PROVISION OF SERVICE 140. When is service provided outside taxable territory What is basic rule of charge of service tax What are specific provisions P1-P4 Problems on Place of Provision of Service 90 6 COMPUTATION OF SERVICE TAX LIABILITY 144. How to compute service tax liability How to determine value of taxable service What are compounding schemes When abatement is applicable P1-P5 Problems POINT OF TAXATION 150. Point of taxation - How to determine and its significance What is general rule of determination of point of taxation How to determine point of taxation in case of change in effective rate of tax How to determine point of taxation where a service is taxed for the first time How to determine point of taxation in the case of reverse charge mechanism How to determine point of taxation in case of copyrights, etc How to determine point of taxation in other cases What are special provisions for individual, firms, LLPs P1-P5 Problems on Point of Taxation REVERSE CHARGE MECHANISM 159. What is reverse charge mechanism 138

4 CONTENTS I What are cases covered by reverse charge mechanism What are other essential points pertaining to reverse charge mechanism P1-P9 Problems on Reverse Charge Mechanism SMALL SERVICE PROVIDER 164. Who is a small service provider Exemption available to small service provider - Is it optional How to calculate limit of Rs. 10 lakh in the preceding year Aggregate not exceeding Rs. 10 lakh in the current year - How to determine Small service provider exemption - Is it available if tax is payable under reverse charge mechanism How to compute limit of Rs. 10 lakh if tax is payable under reverse charge mechanism Small service provider exemption - Is it available in case service provided under a brand name What are Cenvat credit restrictions P1-P5 Problems on Small Service Provider SERVICE TAX PROCEDURES 174. What are main procedures and records What are provisions pertaining to returns When a person is liable for penalty under service tax What is Voluntary Compliance Encouragement Scheme, 2013 (VCES) What is role of chartered accountants What are challenges before the service tax administration in India Is there any electronic tax administration What is administrative mechanism of service tax PROBLEMS ON SERVICE TAX 184-P1-P38 Problems on Service Tax 185

5 I-13 CONTENTS UNIT 2 VAT 12 BACKGROUND 201. What is the background and justification of VAT What is tax on value added What are the benefits of VAT in brief What is the need for introducing VAT What are the merits of VAT Is there any demerit of VAT INPUT TAX CREDIT AVAILABLE IN VAT 207. What is input tax credit Coverage of input tax credit - How to find out What is carrying over of tax credit What is treatment of exports What about inputs procured from other States What is input tax and output tax DIFFERENT MODES OF COMPUTATION 214. What are variants of VAT What are different modes of computation of VAT Provision illustrated PROCEDURES 218. What are provisions pertaining to compulsory issue of tax invoice, cash memo or bill What are provisions regulating registration What is composition scheme What is Taxpayer s Identification Number (TIN) What are provisions regarding return What is self-assessment of VAT liability What is significance of audit 238

6 CONTENTS I What is declaration form What are other taxes What are penal provisions How many goods are covered under VAT What are VAT rates and classification of commodities What are records to be maintained What is status of VAT in special transactions How revenue losses be compensated PROBLEMS ON VAT 233-P1-P11 Problems on VAT 246 UNIT 3 CENTRAL EXCISE 17 LAW OF EXCISE DUTY IN BRIEF 301. Law of central excise What are basic conditions for levy of excise duty What are different types of excise duties DEFINITIONS 306. Goods and excisable goods - How to define Manufacture and manufacturer - How to define VALUATION FOR CENTRAL EXCISE 310. What are different methods of calculation of excise duty payable What is specific duty Tariff value is fixed by Government - How to determine duty payable What is valuation mode based upon maximum retail price What is excise duty based on value under section What is valuation based upon production capacity 283

7 I-15 CONTENTS 316. What is compounded levy scheme P1-P7 Problems on Valuation for Central Excise CENVAT 319. What is Cenvat What is availment and utilization of Cenvat credit What one should know before beginning study of Cenvat credit What are capital goods What are inputs What are input services What are the provisions of Cenvat credit specified in rule What are conditions for claiming Cenvat credit under rule What is the refund of Cenvat credit in rule What are obligations under rule 6 for a person claiming Cenvat credit What is the manner of distribution of credit by input service distributor What are the provisions of rule 7A pertaining to distribution on credit on inputs What are the provisions under rule 8 pertaining to storage of input outside factory What are the provisions pertaining to documents and accounts BASIC PROCEDURE 337. What are basic procedures What are different returns under central excise What are different export procedures SMALL SCALE INDUSTRY AND JOB WORK 341. Who is eligible to be treated as small scale industrial unit Which articles are eligible for SSI exemption How to calculate limit of Rs. 4 crore/rs. 1.5 crore What are procedural concessions given to SSI What is job work under central excise What are concessions/exemptions available in the case of job work 336

8 CONTENTS I-16 UNIT 4 CUSTOMS LAW 23 BASIC CONCEPTS OF CUSTOMS LAW 401. What is background of customs law What are important definitions What are functions of Customs Department What are common features of customs and central excise What is taxable event for import/export of goods TYPES OF CUSTOMS DUTY 408. What are different types of customs duties What is basic customs duty What is Countervailing Duty (CVD) What is the special CVD to compensate sales tax/vat What is anti-dumping duty What is safeguard duty A.What is protective duty VALUATION 414. How to find out value for the purpose of Customs Act How to find out transaction value How to convert transaction value into Indian currency P1-P3 Problems on Valuation and Computation of Customs Duty CUSTOMS PROCEDURES, BAGGAGE, EXEMPTIONS 419. What is self-assessment of customs duty What are import procedures What are export procedures What are provisions regulating baggage What are different exemptions from customs duty 374