Finance Bill 2009 - PowerPoint PPT Presentation

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Finance Bill 2009

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Self-attested copies of bill of lading/airway bill. The original invoice/bill/challan issued by the ... Changes Applicable from Enactment of Finance Bill 2009 ... – PowerPoint PPT presentation

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Title: Finance Bill 2009


1
Finance Bill 2009
  • Service Tax Provisions at a Glance

2
System of Applicability
3
Changes affected from Retrospective Effects
  • Exemption to Goods Transport Agency Services
    (from the date of enactment of bill).
    notification No. 1/2009.
  • Now Applicable from 1st Jan 2005
  • Information Technology Services
  • Clause V and VI-change of word acquired to
    provided (from the date of Notification)

4
Changes applicable from 7th July
  • Works Contract Services Composition Scheme
  • Composite Contract
  • Two Separate Contract
  • Free Supply
  • Contract entered prior to 7th July.

5
Changes applicable from 7th July
  • Rule 3(5B) of the CENVAT Credit Rules 2004 for
    reversal of CENVAT credit claimed on
    Input/Capital Goods write off before put to
    use.
  • Rule 6(3) of the CENVAT Credit Rules 2004 for
    payment of credit on exempted activity _at_6 on
    exempted activity (if not maintaining separate
    books of accounts)

6
Changes applicable from 7th July
  • Private Bus Operator (Not. 20/2009)
  • Contract carriage permits was taxable under tour
    operator services. Whereas no tax was there on
    the stage Carriage permits.
  • Sale and Purchase of Foreign Exchange by
    Scheduled Banks (Not. 19/2009). Scheduled Bank as
    referred in schedule II of the RBI Act.
  • Club or association membership fee on certain
    associations of FIEO. (Not. 16/2009). Valid upto
    31st March 2010.
  • Service become taxable provided/received in
    CSI/EEZ related to certain installation,
    structure, vessels. (Not. 22/2009). Presently
    was taxable for designated areas.

7
Changes applicable from 7th July
8
Exempted Service to Exporter of Goods
  • Transport of goods by road, from the place of
    removal to any ICD, CFS, port or airport or from
    any CFS or ICD to the port or airport and
  • Services provided by a foreign commission agent
    for procuring orders. Maximum 10 of the FOB.
  • More than that no exemption, no refund.

9
Exempted Service to Exporter of
Goods..Conditions..
  • registered with an export promotion council.
  • having Import-Export Code Number
  • registered with the Department under section 69
    of the Finance Act, 1994
  • inform the jurisdictional AC/DC in Form EXP
    1 before availing such exemption for the first
    time
  • exporter should preserve the originals of
    relevant document

10
Exempted Service to Exporter of
Goods..Conditions..
  • should self-certify on the face of Documents for
    the receipt of services and their use in export
    of goods.
  • required to file a half-yearly return in form EXP
    2 within 15 days from the end of every
    half-year.

11
Exempted Service to Exporter of
Goods..Conditions..
  • following documents should be enclosed with the
    return
  • Self-attested copies of shipping bill/bill of
    exports pertaining to the exports in respect of
    which the exemption has been claimed.
  • Self-attested copies of bill of lading/airway
    bill pertaining to above exports .
  • The original invoice/bill/challan issued by the
    provider of taxable service in the name of the
    exporter.

12
Exempted Service to Exporter of
Goods..Conditions..
  • The said original invoice/bill/challan should be
    self-certified by the exporter.
  • Even in case an exporter does not avail any
    benefit under this notification during a half
    year, he should file a Nil return

13
Refund to Exporter of Goods
  • Replaces the Notification No. 41/2007
  • exporters of goods who are registered with the
    Export Promotion Councils exporters and having
    import export code
  • have not claimed CENVAT credit on such service
    tax paid.
  • claim of refund which is for Rs.500 or more

14
Refund ..Procedure
  • not a manufacturer-exporter and is not registered
    with the department, shall first file a
    declaration in Form A-2 for obtaining a service
    tax code.
  • The refund claim should be filed in Form A-1
    within one year from the date of export of goods.

15
Documents to attach-refund
  • Self-attested copies of shipping bill/bill of
    exports
  • Self-attested copies of bill of lading/airway
    bill.
  • The original invoice/bill/challan issued by the
    provider of taxable service
  • in case the amount of total claim is upto 0.25
    of the total declared fob value of the export
    under the claim, such certificate will be issued
    by the exporter or by an authorized person

16
Documents to attach-refund
  • in case the amount exceeds the above limit, such
    certification shall be done by the Chartered
    Accountant who audits the annual accounts in
    Co.Act or Income Tax Act.
  • Deptt. need to intimate deficiency in five days
    and grant refund in 30 days.

17
Changes Applicable from Enactment of Finance Bill
2009
  • Power to First Appeal of Order Issued by
    Authorities Lower than Commissioner.
  • Amendment in Section 94 to get sufficient power
    for GST.

18
Changes will become applicable from date of
Notification after enactment of Finance Act 2009
  • Transport of Goods through Rail (amended
    Services)
  • transportation of goods in containers by rail, by
    other than Government railways is taxable under
    section 65(105)(zzzp) since 2006
  • New Services introduced
  • Transport of Coastal Goods through Inland water
    National Waterways
  • Legal Consultancy Service
  • Cosmetic and Plastic Surgery service

19
Legal Advisory Services
  • Advisory In any Branch of Law
  • Separate Clause, hence no effect on CA.
  • By Business entity to another Business entity.
  • No Tax if rendered by individual and vice se
    versa.
  • No tax for appearance before any court of
    law/statutory authorities.

20
Cosmetic or Plastic Surgery Services
  • An extension to Beauty Treatment services.
  • Activity related to cosmetic surgery of face,
    nose, eyelid, ears, fat removal, brow lift,
    cheek, forehead, lip, dental and facial covered
    except done for reconstructive surgery due to
    any congenital defect, abnormalities, disease,
    injury will not be covered.

21
Changes will become applicable from date of
Notification after enactment of Finance Act 2009
  • Amendment in existing Services
  • Modification in Business Auxiliary Service (BAS)
    section 65(19)..
  • Job Work classify as manufacturing and
    excisibility.
  • Stock-broker Service section 65(105)(a)
  • Information Technology Services.

22
Opportunities for CAs
  • Section 14AA of the Central Excise Provides for
    Special Audit was earlier can be performed only
    by Cost Accountants. Now CA can also do.
  • Certification of refund claim of Service Tax
    beyond 0.25 of the FOB value declared by the
    exporter of goods.
  • New EXP-2 Return for Exporter to claim exemption.

23
Thank You
  • CA. Atul Kumar Gupta
  • Partner APRA Associates
  • Chartered Accountants
  • 9810103611
  • atul_at_servicetax.net
  • www.servicetax.net
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