Description
presentation throws light on service tax on storage and warehousing activities.
Service tax on storage and warehousing
Submitted toProfessor C.A. Ajit Shah
3/4/12
Click to edit Master subtitle style
What is service
3/4/12
?
?
Service Tax is an indirect tax imposed on specified services called "taxable services". Service tax cannot be levied on any service which is not included in the list of taxable services. Over the past few years, service tax been expanded to cover new services. service" means any service provided or to be provided to any person, by a storage or warehouse keeper in relation to storage and warehousing of goods. 65(105)(zza) of Finance Act, 1994)
? "Taxable
? (Section
3/4/12
ü
There are in all 117 services on which Service Tax is applicable as per Finance Act, 1994. Storage services {Section 65(102)} came under the ambit of service tax vide notification number 8/2002 dated 1st august 2002.
ü
What is meant by storage and warehousing?
? “Storage
and warehousing” includes storage and warehousing services for goods including liquids and gases but does not include any service provided for storage of agricultural produce or any service provided by a cold storage. 65(102) of Finance Act, 1994)
3/4/12
? (Section
Service tax exemptions
? Small
3/4/12
service providers whose aggregate value of taxable services rendered in the previous year has not exceeded the limit of 10,00,000 rupees.
(Service Tax Notification No .8/2008-ST Dated 01.03.2008)
? Services
provided to the united nations or international organizations. provided to special economic zones units and SEZ developers.
? Services
? Services
provided to Reserve Bank of India.
3/4/12
? Out
of total value of services provided proportionate value of goods and materials provided by the service provider.
?
Service Specific Exemptions:-
“The exemption from whole of the service tax leviable is given for services provided to an exporter for storage and warehousing of goods in respect of export goods.”
Case law
In, CCE Chennai v/s EID Parry (India) limited
3/4/12
It was decided thatActivity of storing and releasing of buffer stock of sugar as per the government direction does not amount
Synopsis of the case law – The dispute was as to whether the activity of storage by the assesse of the buffer stock of the sugar as per the government’s direction and releasing of the same as and when fresh stock to be kept as buffer stock arises and for which the government pays some amount to the assesses amounts to storage and warehousing of services by the assesses. It was held that the same is not a service assessable as a taxable service taking into cognizance the decision in the above case law . (Nawanshahr cooperative sugar mills v/s CCE, Jalandhar/Chandigarh )
3/4/12
3/4/12
Abatement
? In
service tax there is a concept of abatement and for such a service the CENTRAL BOARD OF EXCISE AND CUSTOMS (CBEC) from time to time issues notifications wherein it specifies the rate of abatement. eg :- in constructions services provided by a construction service provider (contractor) the entire amount received by it is not subject to service tax but only a part of that receipt is assessable to service tax under the construction service category.
? For
3/4/12
Submitted by Sandeep Singh Sethi S.y.b.m.s. A Roll Number-57
doc_504810782.pptx
presentation throws light on service tax on storage and warehousing activities.
Service tax on storage and warehousing
Submitted toProfessor C.A. Ajit Shah
3/4/12
Click to edit Master subtitle style
What is service
3/4/12
?
?
Service Tax is an indirect tax imposed on specified services called "taxable services". Service tax cannot be levied on any service which is not included in the list of taxable services. Over the past few years, service tax been expanded to cover new services. service" means any service provided or to be provided to any person, by a storage or warehouse keeper in relation to storage and warehousing of goods. 65(105)(zza) of Finance Act, 1994)
? "Taxable
? (Section
3/4/12
ü
There are in all 117 services on which Service Tax is applicable as per Finance Act, 1994. Storage services {Section 65(102)} came under the ambit of service tax vide notification number 8/2002 dated 1st august 2002.
ü
What is meant by storage and warehousing?
? “Storage
and warehousing” includes storage and warehousing services for goods including liquids and gases but does not include any service provided for storage of agricultural produce or any service provided by a cold storage. 65(102) of Finance Act, 1994)
3/4/12
? (Section
Service tax exemptions
? Small
3/4/12
service providers whose aggregate value of taxable services rendered in the previous year has not exceeded the limit of 10,00,000 rupees.
(Service Tax Notification No .8/2008-ST Dated 01.03.2008)
? Services
provided to the united nations or international organizations. provided to special economic zones units and SEZ developers.
? Services
? Services
provided to Reserve Bank of India.
3/4/12
? Out
of total value of services provided proportionate value of goods and materials provided by the service provider.
?
Service Specific Exemptions:-
“The exemption from whole of the service tax leviable is given for services provided to an exporter for storage and warehousing of goods in respect of export goods.”
Case law
In, CCE Chennai v/s EID Parry (India) limited
3/4/12
It was decided thatActivity of storing and releasing of buffer stock of sugar as per the government direction does not amount
Synopsis of the case law – The dispute was as to whether the activity of storage by the assesse of the buffer stock of the sugar as per the government’s direction and releasing of the same as and when fresh stock to be kept as buffer stock arises and for which the government pays some amount to the assesses amounts to storage and warehousing of services by the assesses. It was held that the same is not a service assessable as a taxable service taking into cognizance the decision in the above case law . (Nawanshahr cooperative sugar mills v/s CCE, Jalandhar/Chandigarh )
3/4/12
3/4/12
Abatement
? In
service tax there is a concept of abatement and for such a service the CENTRAL BOARD OF EXCISE AND CUSTOMS (CBEC) from time to time issues notifications wherein it specifies the rate of abatement. eg :- in constructions services provided by a construction service provider (contractor) the entire amount received by it is not subject to service tax but only a part of that receipt is assessable to service tax under the construction service category.
? For
3/4/12
Submitted by Sandeep Singh Sethi S.y.b.m.s. A Roll Number-57
doc_504810782.pptx