SHAYVIDZ Member's Best Wishes !!

Dear Members!
These Life Making 20days have gr8 power.Every hour,every minute can gv u extra marks.Leave everything just for20days..Study Study Study!!
ALL THE BEST TO EVERY MEMBER OF SHAYVIDZ FAMILY, FROM EVERY MEMBER OF SHAYVIDZ FAMILY.

Admin's Announcement

Dear Members!
As u know that Exam Fever has already been started,so v hv decided2gv a small break2our sms updates till 18th May2011.
V wil send some EXAM TIPS

Admin's Announcement

Dear Members!!
Its really nice to get ur appreciating emails which inspired us alot to Complete all the amendments & case laws of DT and all the amendments of IDT. Thanks alot for being a part of SHAYVIDZ Family.
You can also download all amendments from our blog
http://shayvidz.blogspot.com
Share the knowledge waves of SHAYVIDZ with everyone & lets join us on our blog & facebook.
You can write us at shayvidz@gmail.com
Thanks alot !! :-):-)

Admin's Announcement

Dear Members!!
We please to inform u that we have also completed all amendments of INDIRECT TAXES by FA2010 & notification including circulars upto 31.10.2010 relevant for MAY 2011.
This will cover 22-26 marks of IDT Paper.
You can also download all  amendments from our blog
http://shayvidz.blogspot.com

Service Tax - New Rule6(7C)

New Rule6(7C) of S.Tax Rules

*Taxable Service: Promotion,Marketing or organising lottery

*Distributor/Selling Agent

*OPTIONAL MODE of PAYMENT of S.Tax instead of 10%
(a)if Guaranteed Lottery Prize PAYOUT is MORE than 80% -then Rs.(6000+Cess) on every Rs.10Lacs (or part 10Lacs) of aggregate FV of tickets PRINTED

(b)if Guaranteed Lottery Prize PAYOUT is LESS than 80% -then Rs.(9000+Cess) on every Rs.10Lacs (or part 10Lacs) of aggregate FV of tickets PRINTED

*if ONLINE LOTTERY, then aggregate FV of tickets SOLD.

*Option once excercised cant b withdrawn during that FY

*Persons Marketing Lottery tickets otherthan above, shall b exempted IF THIS OPTION IS AVAILED BY Distributor/Selling Agent

Taxable Services - TRANSPORT OF PASSENGERS BY AIR

18.TRANSPORT OF PASSENGERS BY AIR

*Service Provided by Aircraft Operator in transporting passengers EMBARKING IN INDIA FOR DOMESTIC JOURNEY OR INTERNATIONAL JOURNEY

*EXCEPTION to PASSANGERS FROM/TO NORTH EAST (ARUNACHAL PRADESH, ASSAM, MANIPUR, MEGHALAYA, MIZORAM, NAGALAND, SIKKIM, TRIPURA) & BAGHDORA in West Bengal

*Domestic - Least of (i)10% of Gross value of Ticket (ii)Rs.100 per journey per ticket

*International -
(a)Economic class or where only one class, then Least of (i)10% of Gross value of Ticket (ii)Rs.500 per journey per ticket
(b)Other i.e. BUSINESS CLASS - 10% OF GROSS VALUE OF TICKET(CCR will b available in this case)

*No CCR in case of Rs.100 or Rs.500 scheme

*EC & SHEC leviable on above amount

Taxable Services - BUSINESS AUXILIARY SERVICES

17.BUSINESS AUXILIARY SERVICES

*As games of chance,lottery will b taxable in separate head & not under this service.

*Exemption to services provided by NEWS AGENCY if
(a)NOTIFIED for collection & distribution of news (b)APPLIES OR ACCUMULATES its income & NOT DITRIBUTE it to its members

*Circular: RE-INSURANCE COMMISION - NOT LIABLE TO S.TAX in any head, becoz when the amt of insurance is quite high, insurance company in certain cases, SHARES the risk with re-insurer. Agreement between Company & Re-insurer is only SHARE OF EXPENSES & thus NO SERVICE is provided

Taxable Services - BUSINESS SUPPORT SERVICES

16.BUSINESS SUPPORT SERVICES

Circular: Container detention charges are NOT CHARGEABLE TO S.TAX as retaining the container beyond pre-holding period is neither a service provided in behalf of client(BAS) nor it is infrastructural support in business(BSS), it is just A PENAL RENT

Taxable Services - RENTING of IMMOVABLE PROPERTY

15.RENTING of IMMOVABLE PROPERTY

*IMMOVABLE PROPERTY includes (a)Building/part of building & land appurtenant thereto (b)LAND incidental to use of such building (c)Common/shared area/facilities (d)VACANT LAND given ON LEASE or LICENSE for CONSTRUCTION of bldng or temporary structure at a later stage to b used for furtherance of business/commerce (w.r.e.f.1.6.2007)

*IMMOVABLE PROPERTY does not include (a)Vacant land solely used for agriculture,forestry etc (b)Land used for educational,sports,circus,entertainment & parking purpose (c)Building used solely for residential purposes & accommodation purposes including hotels,hostels etc

*Taxable service = Renting of IM Property or ANY OTHER SERVICE IN RELATION TO SUCH RENTING, for use in course of or for furtherance of business/commerce (as factories, office bldng, warehouses, theatres, exhibition halls & multiple use bldng)

*RENTING includes letting,leasing,licensing, or similar arrangement but not include renting (i)by/to a RELIGIOUS BODY (ii)to an educational body

Taxable Services - PREFERENTIAL LOCATION OR DEVELOPMENT SERVICES

14.PREFERENTIAL LOCATION OR DEVELOPMENT SERVICES

*by BUILDER or any person authorised by builder, to Buyer

*Inclusions:
+Prime/Pref Location Charges, Internal/external development charges(devloping/maint parks,sewerage or water pipelines,access roads, common lighting etc)
+Fire-fighting installation charges
+Power backup charges etc

*Exclusion: (a)Parking Charges
(b)Development charges to the extent paid to State or Central Govt
(c)RWA/CGHS charges

Taxable Services - COMMERCIAL/INDUSTRIAL CONSTRUCTION SERVICES

13.COMMERCIAL/INDUSTRIAL CONSTRUCTION SERVICES

*Constructn of new bldNg which is INTENDED FOR SALE shall b DEEMED 2b TAXABLE UNLESS ENTIRE PAYMENT 4property IS PAID BY BUYER AFTER COMPLETION of Constructn

*Competent authority to issue completion certificate: Regd architect,enginner,licensed surveyor

*Does not include: Constructn,repair,alteration& renovation of wharves quays,docks,stages, jetties,piers& railways WITHIN PORT &service provided wholly WITHIN AIRPORT

Taxable Services - BRAND PROMOTION SERVICES

12.BRAND PROMOTION SERVICES

*By ANY person through BUSINESS ENTITY or otherwise

*under CONTRACT for PROMOTION/MARKETING of a BRAND of goods,service,event or endorement of name, including Trade Name,logo or house mark

*by appearing in ads & promotional event or carrying out any promotional activity.

(Brand Ambassador's services are taxable)

Taxable Services - TRANSPORT OF COASTAL GOODS/ TRANSPORT OF GOODS THROUGH NATIONAL or INLAND WATERWAYS (declared by Parliament)

11.TRANSPORT OF COASTAL GOODS/ TRANSPORT OF GOODS THROUGH NATIONAL or INLAND WATERWAYS(declared by Parliament)

*Services by ANY person to ANY person

*Not taxable in transport of following goods: Petroleum etc, Luggage of passengers, Foodstuff,Clothing, Registrd Newspaper, Magazines,Pharma products,Defence Equipments, Seeds, Hank Yarn, Raw jute&jute textiles

Taxable Services - TELECOMMUNICATION SERVICES

10.TELECOMMUNICATION SERVICES

*Almost ALL services taxable

*Exclusion:
(a)Online Info & database access-retrieval service
(b)broadcasting agency
(c)Internet Telecom service

Taxable Services - AIRPORT SERVICES

9.AIRPORT SERVICES : (Airport includes CIVIL ENCLAVE)
*same provisions as Port Services

Taxable Services - PORT SERVICES

8.PORT SERVICES

*Taxable: ANY Services RENDERED WITHIN A MAJOR PORT or OTHER PORT

*by Any person to Any person

*Not Taxable: Pollution control Services,Fire Services,Supply of Electricity or Water,Hospital(except cosmetic/plastic surgery),School Services otherthan Commercial coaching or training center(CCTC),Repair of Govt's Ship etc, Repair of Ship etc amounts to Manufacture

*Value: Demurrage Charges wud b INCLUDIBLE

*Abatement: wud continue at the rate it was available in their respective clauses

Taxable Services - TOUR OPERATOR

7.TOUR OPERATOR

*Taxable Service:
(a)Planning,Organizing,Arranging tours, arrangment of accomodation,sightseeing etc by any mode of transport
(b)Business of operating tours in tourist vehicle under permit

*Not Taxable:
Stage Carriage under permit (Citybus),
Tours Abroad,
Educational Tours by Educational Body otherthan commercial coaching or training center,
Haj&Umrah Pilgrimage

*Invoice based Abatement:
(a)Package Tour:75%
(b)Accomodation Booking Service only:90%
(c)Hotel+Food OR Hotel+Transportation:60%

Taxable Services - HEALTH CHECK-UP SERVICES

6.HEALTH CHECK-UP SERVICES-Taxable
*By Hospital,Nursing Home,Multi-Specialty clinic
*To: (a)EMPLOYEE of any business entity for HealthCheckup/preventive care (b)INSURED PERSON for HeathCheckup/preventive care/TREATMENT
*Payment directly by Business Entity or Insurance Company to Hospital
*Additional amt paid by employee,if any,wud nt b liable for S.Tax

Taxable Services - MANAGEMENT,MAINTENANCE /REPAIR

5.MANAGEMENT,MAINTENANCE /REPAIR
Maintenance of Road service has been excluded

Taxable Services - ASSET MANAGEMENT SERVICE BY INDIVIDUALS

4.ASSET MANAGEMENT SERVICE BY INDIVIDUALS
*Taxable Service: Asset Mgmt, Portfolio Mgmt, Fund Mgmt

Taxable Services - COPYRIGHT SERVICES

3.COPYRIGHT SERVICES (Now in separate clause)
*By ANY person to ANY person
*Trf TEMPORARILY or Permitting to use/enjoy
*Taxable services :Sound recording &Cinematographic films recording
*Not Taxable :Original Literacy (books etc),Dramatic(TV serials etc),Musical(Tunes etc),Artistic works(Painting etc)

Taxable Services - CONSTRUCTION OF RESIDENTIAL COMPLEX SERVICES

2. CONSTRUCTION OF RESIDENTIAL COMPLEX SERVICES

*Constructn of such complex which is ENTENDED FOR SALE shall b DEEMED 2b a TAXABLE SERVICE UNLESS THE ENTIRE PAYMENT for property IS PAID BY THE BUYER AFTER THE COMPLETION of the Constructn.

*An option to pay s.tax on 25% is also given if gross amount INCLUDES VALUE OF LAND.

*Service NOT taxable when provided to JAWAHARLAL NEHRU NATIONAL URBAN RENEWAL MISSION and RAJIV AWAAS YOJNA

ICAI News

w.e.f. MAY-2011 exams (PCC/IPCC & FINAL) the candidates will be allowed ADDITIONAL 15Mins (from1.45pm to 2.00pm)for Reading & Planning Q.Paper.

Taxable Services - ERECTION, COMMISSIONING or INSTALLATION

TAXABLE SERVICES

1. ERECTION, COMMISSIONING or INSTALLATION - Exemption to erection,commissioning of food grains handling system,cold storage,units processing agricultural products

Service Tax - New Rule6(7C) inserted

Rule6(7C) inserted for S.Tax on service of promotion,marketing or organising Lottery - We will discuss it later in detail.

Service Tax - Rule6 & Rule7

DEPOSIT OF TAX under Rule6
&
e-Filing of RETURN under Rule7

If S.Tax paid in PRECEDING FY = Rs.10lacs or more INCLUDING AMOUNT PAID BY UTILIZATION OF CENVAT CREDIT, then e-Payment of Tax & e-Return is MANDATORY.

Service Tax - New Proviso to Rule 4A

S.Tax Rules,1994

Rule4A - Issue of Invoice by SP & ISD

New Proviso inserted -
in case, ISD is AIRCRAFT OPERATOR providing service of air transport of passanger,an INVOICE etc. shall include TICKET IN ANY FORM, whether or not containing Regn No. of SP, classification of service recd & address of SP, but containing other info in such doc as reqd in this Rule.
e.g. in case of Kingfisher Airlines, Ticket will be deemed as INVOICE for the purpose of S.Tax.

Service Tax - Exemption NT 11/2010 & NT 32/2010

NT 11/2010 Exemption of service of TRANSMISSION OF ELECTRICITY,provided to any person by any person

NT 32/2010 Exemption (RETROSPECTIVE EFFECT) of service of DISTRIBUTION OF POWER,provided to any person by Distributn Licensee/distributor franchisee/any other person authorised to distribute power

Service Tax - Exemption NT 36/2010

NT 36/2010
*Exemption to advance recd prior to 1.7.2010 towards 8 New Services introduced & specified existing services by FA2010 are exempt TO THE  EXTENT OF AMOUNT OF ADVANCE PAYMENT RECVD before1.7.2010 in respect of them.
*Exemption of S.Tax only on that partial/full amt which is recvd by SERVICE PROVIDER by 1.7.2010(& not by agent,who in turn trf such amt to SP after1.7.2010)

Admin's Announcement

Dear All Members !

We please to inform u that we have completed all the amendments (including notifications upto 31.10.2010) of Excise & Customs.
Now today onwards we will send amendments in Service Tax.
Come on.. lets put ur all efforts in this last 20days.. Do Well..

SHAYVIDZ's Admin

Customs - Rule3 of Baggage Rules,1998

Rule3 of Baggage Rules,1998
Circular No.25/2010 Dt 4.8.2010
It has been clarified that Rule3 shall not apply in case of person returning from HONG KONG. Bcoz HONG KONG is SEPARATE Custom territory from China

Customs - Duty Drawback Rules

Rule7 of DBK Rules
Whr the exporter finds that the DBK rate fixed u/R 3 or 4 is less than 4/5th of duty/taxes paid on inputs or input services, he may submit an application will all details to Commissioner within THIRTY DAYS (earlier60days)+extended 30days

Rule16A of DBK Rules
Period of 1yr for producing evidence has been amended & now it is 3months

Customs - Duty Drawback not payable if EXPORT PROCEEDS NOT REALISED as per FEMA,1999

Circular No.7/2010 Dt 23.3.2010
Drawback(DBK) not payable whr EXPORT PROCEEDS NOT REALISED as per FEMA,1999 even if the claim has been settled by ECGC or realisation waived by RBI.

Customs - Valuation of Pre-packed articles

Sec3
Valuation of Pre-packed articles
*Same Provision of calculating value of CVD shall apply to goods specified under Medical and Tiolet Preparation(ED)Act,1955

Customs - Sec20

Sec20
Re-importation on rejection - Time limit in case of Nepal has been extended to 10yrs

Excise - Power of Superintendent increased

Now Superintendent is empowered to adjudicate cases involving duty and/or CENVAT credit upto 1Lac in individual SCN

Excise - New Levy of CLEAN ENERGY CESS by Sec83 of FA2010

New Levy of CLEAN ENERGY CESS by Sec83 of FA2010
*Its an ED levied on Production of COAL,LIGNITE &PEAT mentioned in 10th Sch
*Levy on GROSS QTY OF COAL RAISED (not washed coal)@ Rs.50per ton
*No EC & SHEC on such cess
*Invoice-not specifically reqd. Qty, name of consignee is sufficient
*Rule3(4)of CCR2004 -To be paid in cash (CCR cannot b utilised for pymnt)
*Rule3(4)of CCR2004 -Buyer cannot avail credit
*Registration-reqd Mines wise
*Payment-ALTERNATE MONTHS by 5th/6th
*Return-ALTERNATE MONTHS by 10th
*Assessment-Self Assessmnt
*General Penalty Rs.10000
*Exemption-Coal produced in Meghalaya
*In case of import of coal in raw form, CVD in lieu of excise will levied @Rs.50per ton

Excise / Customs - Settlement Commission

Settlmnt Comm
  
Sec32O /127L
*Now assessee can apply for settlement more than 1ce.
*Bar on subsequent applicatn in cases whr -
1.an order of settlement passed which provides for imposition of penalty on grounds of CONCEALMENT of duty liablity
2.A person is convicted of any OFFENCE, after passing of settlement order
3.CASE IS SENT BACK by Set.Comm. to CEO
  
Sec32F /127C
Time limit for passing order of Settlement can b extended by 3months. Earlier this time limit was 9months
 
Sec32E /127B
Now assessee can file application for settlement where he has not maintained proper records

Excise - NO Penalty if duty & intt paid voluntary before issue of SCN

Sec11A(2B)

A new explanation has been inserted which provides that NO PENALTY will be imposed in respect of voluntary payment of duty & interest before issuance of SCN

Excise - Sec35 of CEA,1944

Sec37 of CEA,1944
C.Govt. has been empowered to make rules for withdrawal of facilities / imposition of restrictions on CENVAT Credit

Excise - Valuation - After-sales services & PDI charges to be included in AV

Circular No. 936/26/2010 Dt 27.10.2010
It had been clarified that after-sales services & pre-delivery inspection (PDI) charges were liable to be included in assessable value u/s 4 of CEA,1944

Excise - SSI - Relaxation from Brand Name restriction has been extended

SSI
Relaxation from brand name restriction has been extended to plastic containers & bottles.
(Where the specified goods are in the nature of packing material and plastic bottles and are meant for use as packing materials by the person whose brand name they bear)

Excise - CCR availed on BREAKAGE LOSS on Input reqd to be reversed if fully w.off. in books

Circular No.930/20/2010 dt 9.7.2010
In case of BREAKAGE LOSS of input, which is fully written off in books of account, credit availed is required to b reversed as per the provisions of Rule3(5B) of CCR2004

Excise - EC & SHEC in case of Compounded Levy Scheme

Compounded Levy Scheme

Sec3A of CEA 1944 : EC & SHEC are already included in ED mentioned in Sec.

(Reason EC w.e.f.2004 & SHEC w.e.f.2007 however Sec3A inserted in FA2008)

Rule15 of CER 2002 : EC & SHEC will be added separately on the ED mentioned in Rule.

Excise - Valuation Rule 5 - Both Side Freight excludible

Rule 5 of Valuation :

Now both side freight is excludible without stating in invoice specifically of return journey.

Circular No.643/34/2002 is withdrawn.

Excise - Assessable Value in case of 100% EOU makes DTA sales from otherthan factory gate (i.e. Depot)

Excise

Circular No. 933/21/2010

When 100% EOU makes DTA Sale from Depot (i.e. otherthan factory gate), then it will b treated as deemed import & ED=Custom Duty on A.V. which will NOW b calculated by applying Rule4 to 9 SEQUENTIALLY (Old Provision - AV as per Rule 7 only)