FOR RELAXATION.

Service tax on foreign commission agent

 

The foreign agents provide service to the exporters. However the services are provided outside India. They meet the prospective buyer outside India, they promote the products of the exporter outside India. For Service Tax to be leviable and payable, the services must be provided "in India", except in the state of Jammu & Kashmir. When the services are provided outside India, provisions of service tax is not applicable. Merely because the exporter is in India, or payment is being made from India, service tax does not become leviable. Section 64(1) of the Finance Act, 1994 reads as,

"This Chapter extends to whole of India except the state of Jammu & Kashmir."

Thus the chapter of service tax does not extend to a place outside India. While explaining the applicability of Service Tax in the state of Jammu & Kashmir, the board explained,

"The matter has been examined. At present the levy of service tax extends to the whole of India except the State of Jammu and Kashmir. The expression "India" includes the territorial waters of India. Indian territorial waters extend up to twelve nautical miles from the Indian land mass. Chapter V of the Finance Act which governs the levy of Service Tax has not extended to the levy to designated areas in the Continental Shelf and the Exclusive Economic Zone of India (as has been done in case of Central Excise vide Notification No. 166/87-C.E., dated 11-6-87 and in case of Customs by Notification Nos. 11/87-Cus., Dated 14-1-87 & 64/97-Cus., dated 1-12-97). It is, therefore, clarified that the services provided beyond the territorial waters of India are not liable to Service Tax as provisions of Service tax have not been extended to such areas so far."

This circular clearly accepts the position that if the Services are provided outside India, service tax is not leviable.

It is immaterial as to where is the person located, who is providing the service. What is relevant is, "where the services are being provided". The department has given following clarification in the frequently asked questions,

"The service provided by a person having its business premises in the state of Jammu & Kashmir, and providing taxable services to his clients in the other part of the country would be liable for payment of service tax. A person having his office in any of the other Indian states, who provides service to a person in the state of Jammu & Kashmir, would not be liable to pay the service tax."

This view explained one thing, which must be understood. This tax is not a tax on a person, or on a business establishment; but it is a tax on the services provided. Thus it becomes extremely necessary to understand as to at what place services has been provided. If the services has been provided in a place where the provisions of Service Tax extends, tax is payable otherwise tax is not payable.

In case of commissions agents, with respect to the export trade, the services are provided outside India. The agents provide services to the person outside India. When services are provided outside India, where the provision of service tax doesn't stand, no service tax is payable.

Section 66A reads as,

"SECTION [66A. Charge of service tax on services received from outside India. — (1) Where any service specified in clause (105) of section 65 is, —

(a) provided or to be provided by a person who has established a business or has a fixed establishment from which the service is provided or to be provided or has his permanent address or usual place of residence, in a country other than India, and

(b) received by a person (hereinafter referred to as the recipient) who has his place of business, fixed establishment, permanent address or usual place of residence, in India,

such service shall, for the purposes of this section, be taxable service, and such taxable service shall be treated as if the recipient had himself provided the service in India, and accordingly all the provisions of this Chapter shall apply :"

The section is very clear in saying that in this particular circumstances, provision of this chapter (provisions of service tax) shall apply. The section is not levying a new tax. Section 66A merely shifts the burden of payment of service tax from the service provider to service receiver in a particular circumstances. The burden must exist before it can be shifted. When there is no burden of service tax, there is no question of shifting it on any other person.

In Orient Craft Limited v. UOI, the Delhi High Court held that when the services received outside India, service tax is not leviable. It is leviable only when services are received in India. It said,

"4.?The contention of the learned counsel for the Petitioner based on the interpretation of Section 66A of the Act, is that any Service that is obtained by a person who has a fixed place of business or fixed establishment or permanent address in India is liable to tax for services availed by him in a foreign country. By way of an example, learned counsel for the Petitioner has cited that if such a person in India goes abroad, and has a hair cut, he would be liable to pay service tax in India on the basis of Section 66A of the Act.

5.?We are not at all convinced by this argument of learned counsel for the Petitioner. The Rules that have been framed by the Central Government make it absolutely clear that taxable service provided from outside India and received in India is liable to Service Tax. In the example given by the learned counsel for the Petitioner, there is no question on the service of a haircut having been received in India."

In view of these, it is absolutely clear that when services are not received in india, service tax is not payable. In this particular case, such services are not received in India, and hence Service Tax is not payable.

http://www.taxguru.in/service-tax/service-tax-on-foreign-commission-agent.html

No Surcharge and Cess on TDS, in case of Non-Salaries

 

The amended provisions would be applicable from October 01, 2009.

 

Finance Act (2) of 2009 comes with major amendment in TDS provisions, where it withdraws additional deductions of surcharge and cess for Non-Salaried, Resident Payments. This would give a slight relax to the deductors in calculating the rate of tax.

Applicable only on Non-Salaried, Resident Payments
The withdrawal of Surcharge and Cess is applicable only for Non Salaried payments, made to Indian Residents.

No Surcharge, But Cess on Salaried Payments
This amendment to Finance Act is not applicable for Salaried DS deductions, where the rate of tax will be determined by the rates in force and increased by Cess. Note that, in case of salaries, Surcharge is not applicable on Individuals from 2009-10 FY, so there is no question of surcharge applicability.

Surcharge Applicability on TDS
For the payments made under sections 193, 194, 194A, 194B, 194BB, 194C, 194D, 194E, 194EE, 194F, 194G, 194H, 194-I, 194J, 194LA, 195, 196B, 196C and 196D, Surcharge should be calculated at the rate of two and half percent, in the case of every company other than a domestic company, in case the amount paid/payable during the financial year exceeds one crore. For other cases, no surcharge has to be made.

The same condition holds for Payments collected u/s 206C (TCS) from company, other than a domestic company and the amount collected/liable for collection in the financial year exceeds one crore.

Applicability of Cess
For the payments made under sections 193, 194, 194A, 194B, 194BB, 194C, 194D, 194E, 194EE, 194F, 194G, 194H, 194-I, 194J, 194LA, 195, 196B, 196C and 196D, Cess should be calculated at the rate of 3% on Tax plus surcharge, provided that, the amount is not being paid to is paid to a domestic company and any other person who is resident in India.

Rate of Surcharge:
The amended rate of surcharge is as under:

1. Payment made to Company, other than a domestic company
   1. Amount paid/payable during the financial year exceeds one crore = 2.5%
   2. Below one Crore = ZERO
2. Payment made to others = ZERO

Rate of Cess:
The amended rate of Cess, including Education cess and Secondary/Higher education cess are as under:

1. Payment to a domestic Company = ZERO
2. Payment made to other than companies, who is resident of India = ZERO
3. Others = 3%

Applicability of Amended provisions
The amended provisions would be applicable from October 01, 2009.

 

http://www.taxguru.in/income-tax/no-surcharge-and-cess-on-tds-in-case-of-non-salaries.html

TO KNOW BANK'S MICR - PART 3

Bank Name	Branch Name	IFSC Code / MICR Code	Address	Contact
City Union Bank	KOTTUR	CIUB0000031 / NON-MICR	3/551,MAIN ROAD,KOTTUR- 614708 City: KOTTUR District: TIRUVARUR State: Tamilnadu	04367 - 279440
City Union Bank	CENTRAL OFFICE	CIUB0000032 / NON-MICR	NO.149, T.S.R BIG STREET, KUMBAKONAM, THANJAVUR DT, TAMIL NADU. 612001 City: KUMBAKONAM District: THANJAVUR State: Tamilnadu	9344301143
City Union Bank	TIRUVARUR TOWN	CIUB0000033 / NON-MICR	G.R.T BUILDING 45/F,SOUTH MAIN STREET City: TIRUVARUR TOWN District: TIRUVARUR State: Tamilnadu	04366 - 242224
City Union Bank	RAMNAGAR (COIMBATORE)	CIUB0000034 / 641054002	DOOR NO. 27 -30, SAROJINI STREET, RAM NAGAR City: COIMBATORE District: COIMBATORE State: Tamilnadu	9363218920
City Union Bank	PERIYAKULAM	CIUB0000035 / NON-MICR	NO.2,VAIGAI DAM ROAD, TENKARAI City: PERIYANKULAM District: THENI State: Tamilnadu	9344066641
City Union Bank	MANDAVELI (CHENNAI)	CIUB0000036 / 600 054 002	30 MANDAVELI STREET,RAJA ANNAMALAIPURAM City: CHENNAI District: CHENNAI State: Tamilnadu	9382642842
City Union Bank	PATTUKKOTTAI	CIUB0000037 / NON-MICR	42-A, I FLOOR, THALAIYARI STREET City: PATTUKOTTAI District: THANJAVUR State: Tamilnadu	9362710224
City Union Bank	TRIPLICANE (CHENNAI)	CIUB0000038 / 600 054 004	74 TRIPLICANE HIGH ROAD, TRIPLICANE City: CHENNAI District: CHENNAI State: Tamilnadu	9382644386
City Union Bank	CUDDALORE	CIUB0000039 / NON-MICR	22, NETHAJI ROAD City: CUDDALORE District: CUDDALORE State: Tamilnadu	9367636066
City Union Bank	PUDUKKOTTAI	CIUB0000040 / NON-MICR	SRI COMPLEX DOOR NO. 3182 NELLIMANDI STREET City: PUDUKKOTTAI District: PUDUKKOTTAI State: Tamilnadu	9344037583
City Union Bank	CHIDAMBARAM	CIUB0000041 / NON-MICR	164, WEST CAR STREET City: CHIDAMBARAM District: CUDDALORE State: Tamilnadu	9345511493
City Union Bank	SALEM	CIUB0000042 / 636 054 002	NO 98, 99,100 - FIRST FLOOR, ARUNACHALA ACGARI STREET, NEAR OLD BUS STAND City: SALEM District: SALEM State: Tamilnadu	9362118475
City Union Bank	GEORGE TOWN (CHENNAI)	CIUB0000043 / 600 054 006	50 ARMENIAN STREET,OPPO CATHOLIC CENTRE) City: CHENNAI District: CHENNAI State: Tamilnadu	9382642065
City Union Bank	TIRUPPOONDI	CIUB0000044 / NON-MICR	"SAS BUILDING",GROUND FLOOR,3/61, B-1, MAIN ROAD,TIRUPPOONDI - 611 110 City: THIRUPPONDI District: NAGAPPATTINAM State: Tamilnadu	04365 - 265423
City Union Bank	TIRUNELLIKKAVAL	CIUB0000045 / NON-MICR	2/128, EAST STREET,TIRUNELLIKAVAL 610 205,NEEDAMANGALAM TALUK,TIRUVARUR DISTRICT. City: THIRUNELLIKAVAL District: TIRUVARUR State: Tamilnadu	04369 - 237443

TO KNOW BANK'S MICR - PART 2

Bank Name	Branch Name	IFSC Code / MICR Code	Address	Contact
City Union Bank	SANNANALLUR	CIUB0000016 / NON-MICR	CRESCENT COMPLEX 32/2, GROUND FLOOR, NAGAPATTINAM MAIN ROAD City: SANNANALLUR District: TIRUVARUR State: Tamilnadu	04366 - 230512
City Union Bank	PORAYAR	CIUB0000017 / NON-MICR	NIVEDHA COMPLEX DOOR NO. 14 AND 15, SANDHAVELI STREET City: PROYAR District: NAGAPPATTINAM State: Tamilnadu	04364 - 289431
City Union Bank	SEMBANARKOIL	CIUB0000018 / NON-MICR	1/34,MAIN ROAD City: SEMBANARKOIL District: NAGAPPATTINAM State: Tamilnadu	04364 - 282438
City Union Bank	TIRUKKATTUPALLI	CIUB0000019 / NON-MICR	30, BAZAAR STREET City: TIRUKATTUPALLI District: THANJAVUR State: Tamilnadu	04362 - 280461
City Union Bank	TIRUPPANANDAL	CIUB0000020 / NON-MICR	JMR COMPLEX NO.10, SOUTH STREET City: TIRUPPANANDAL District: THANJAVUR State: Tamilnadu	0435 - 2456444
City Union Bank	TIRUVADAIMARUDUR	CIUB0000021 / NON-MICR	103, NORTH STREET City: THIRUVIDAIMARUDUR District: THANJAVUR State: Tamilnadu	0435 - 2460124
City Union Bank	VALANGAIMAN	CIUB0000022 / NON-MICR	SRIRAM NIVAS DOOR NO. 27 , KAILASANATHUR SOUTH STREET City: VALANGAIMAN District: TIRUVARUR State: Tamilnadu	04374 - 264422
City Union Bank	TIRUCHIRAPALLI	CIUB0000023 / 620 054 002	SMT. INDIRA GANDHI COLLEGE CAMPUS KALIAMMANKOIL STREET. City: TIRUCHIRAPALLI District: TIRUCHIRAPALLI State: Tamilnadu	9345150658
City Union Bank	ARIYALUR	CIUB0000024 / NON-MICR	12, CHINNAKADAI STREET City: ARIYALUR District: PERAMBALUR State: Tamilnadu	9362810740
City Union Bank	JAYANKONDA CHOLAPURAM	CIUB0000025 / NON-MICR	63-A,SANNATHI STREET City: JAYAMKONDAM District: PERAMBALUR State: Tamilnadu	04331 - 250268
City Union Bank	MANAPPARAI	CIUB0000026 / NON-MICR	56/57, NEW STREET City: MANAPPARAI District: TIRUCHIRAPALLI State: Tamilnadu	9344053444
City Union Bank	MADURAI	CIUB0000027 / 625 054 002	70, TAMIL SANGAM ROAD City: MADURAI District: MADURAI State: Tamilnadu	9344114746
City Union Bank	DINDIGUL	CIUB0000028 / NON-MICR	8, 1ST FLOOR, PENSIONER STREEET City: DINDUGAL District: DINDUGAL State: Tamilnadu	9367916268
City Union Bank	KEELAPALUR	CIUB0000029 / NON-MICR	V/152, TRICHY CHIDAMBARAM ROAD City: KEELAPALUR District: PERAMBALUR State: Tamilnadu	04329 - 247221
City Union Bank	TIRUMAKKOTTAI	CIUB0000030 / NON-MICR	NO.1/85, MAIN ROAD City: THIRUMAKOTTAI District: TIRUVARUR State: Tamilnadu	04367 - 272437

TO KNOW BANK'S MICR - PART 1

Bank Name	Branch Name	IFSC Code / MICR Code	Address	Contact
City Union Bank	THIYAGARAYA NAGAR (CHENNAI)	CIUB0000001 / 600054003	19 MAHALAKSHMI STREET,T NAGAR City: CHENNAI District: CHENNAI State: Tamilnadu	9382642081
City Union Bank	THANJAVUR	CIUB0000002 / NON-MICR	1609 - 1611, GROUND FLOOR, KANAKA RAMA VILAS SOUTH MAIN STREET City: THANJAVUR District: THANJAVUR State: Tamilnadu	9360330546
City Union Bank	KUMBAKONAM TOWN	CIUB0000003 / NON-MICR	42, MUTT STREET,TOWN BRANCH City: KUMBAKONAM District: THANJAVUR State: Tamilnadu	9344301144
City Union Bank	KUMBAKONAM MAIN	CIUB0000004 / NON-MICR	149, T.S.R (BIG) STREET City: KUMBAKONAM District: THANJAVUR State: Tamilnadu	9344301143
City Union Bank	MAYILADUTHURAI	CIUB0000005 / NON-MICR	87, PATTAMANGALA STREET City: MAYILADUTHURAI District: NAGAPPATTINAM State: Tamilnadu	9364612148
City Union Bank	NAGAPATTINAM	CIUB0000006 / NON-MICR	INDIRANI COMPLEX NO. 68, GROUND FLOOR NEELA SOUTH STREET City: NAGAPPATTINAM District: NAGAPPATTINAM State: Tamilnadu	9362610832
City Union Bank	MANNARGUDI	CIUB0000007 / NON-MICR	174, MAHATMA GANDHI ROAD City: MANNARGUDI District: TIRUVARUR State: Tamilnadu	9344010248
City Union Bank	TIRUVARUR VIJAYAPURAM	CIUB0000008 / NON-MICR	MUTHU SHOPPING COMPLEX, GROUND FLOOR - NO. 84MARKET ROAD City: VIJAYAPURAM District: TIRUVARUR State: Tamilnadu	9362711069
City Union Bank	ADUTHURAI	CIUB0000009 / NON-MICR	359, MAIN ROAD City: ADUTHURAI District: THANJAVUR State: Tamilnadu	0435 - 2472174
City Union Bank	AYYAMPET	CIUB0000010 / NON-MICR	337- 338, EAST SALAI STREET City: AYYAMPET District: THANJAVUR State: Tamilnadu	04374 - 242287
City Union Bank	ERAVANCHERI	CIUB0000011 / NON-MICR	2/332, MAIN ROAD City: ERAVANCHERI District: TIRUVARUR State: Tamilnadu	04366 - 273429
City Union Bank	KORADACHERI	CIUB0000012 / NON-MICR	220, V.K.M.BUILDINGS,KAMARAJAR SALAI City: KORADACHERY District: TIRUVARUR State: Tamilnadu	04366 - 232422
City Union Bank	KODAVASAL	CIUB0000013 / NON-MICR	45, BAZAAR STREET City: KODAVASAL District: TIRUVARUR State: Tamilnadu	04366 - 262033
City Union Bank	KUTTALAM	CIUB0000014 / NON-MICR	8, SANTHARAM STREET City: KUTTALAM District: NAGAPPATTINAM State: Tamilnadu	04364 - 234024
City Union Bank	NANNILAM	CIUB0000015 / NON-MICR	53, B. BAZAR STREET City: NANNILAM District: TIRUVARUR State: Tamilnadu	04366 - 230437

E-FILING OF SERVICE TAX RETURNS WILL BE COMPULSORY IN NEXT TWO MONTHS

The government will make electronic filing of service tax mandatory within a couple of months, said a senior official of the Central Board of Excise and Customs (CBEC). "Electronic filing of service tax will be made compulsory in the next two months," CBEC member Y G Parande told reporters on the sidelines of a PHD chamber seminar.

Parande also expressed hope that the government would meet service tax collection target during the fiscal despite impact of stimulus package on revenue realisation.

The government proposed to collect Rs 65,000 crore as service tax during the year.

The service tax collection during the first seven months has gone down by 5.4 per cent to Rs 28,926 crore compared with corresponding period last year.

Attributing decline in revenue collections to incentives given by thegovernment to help the economy combat the impact of global slowdown, Parande said, "certainly, the stimulus packages have had the effect (on indirect tax collections), particularly because rates were brought down.

http://www.taxguru.in/service-tax/electronic-filing-of-service-tax-returns-will-be-compulsory-in-next-two-months.html