With so many detractors this vital tax reform is struggling against the odds

S Madhavan: Quo vadis, Goods and Services Tax?

Business Standard

An earlier article in this column had discussed the service taxability of cost/revenue sharing arrangements which were increasingly being resorted to in the modern business world. A view was expressed that in either of these arrangements, there was typically no intent to provide services and hence the service tax ought not to be applicable. Specific to revenue sharing arrangements, the CBEC Circular No. 109/03/2009-ST dated 23/2/2009, which was issued in regard to service tax on screening of films by theatre owners, was discussed in detail. This Circular had clarified that in a revenue sharing model wherein the theatre owners and the distributors of films shared the revenues earned from sale of cinema tickets, the contracting parties were acting on principal to principal basis and did not provide services to each other. The Circular hence stated that no service tax ought to apply on such arrangements. Recently, the CBEC has issued Circular No.

Service taxation of revenue sharing arrangements

The sales taxability of transactions relating in the course of import and export has been the subject matter of intense judicial scrutiny, particularly due to exemption from the tax granted to transactions under the Central Sales Tax Act, 1956 (&ldquo;CST Act&rdquo;).

SC decides on taxability of sales from bonded warehouses

The indirect taxation of information technology software has been a longstanding matter of debate and dispute. In particular, the challenge of double taxation has been endemic. This article highlights the recent developments in this regard which could equally pose challenges as also present opportunities to mitigate the impact of the tax.

S Madhavan: Tackling double taxation of software

It is by now agreed wisdom in the minds of all stakeholders that the present scheme of consumption taxation, or indirect taxation as it were, is no longer sustainable and that the Goods and Services Tax (GST) is by far a better tax model. That being the case, the desired objective should evidently be to move to the GST as quickly as possible.

S Madhavan: GST roadblocks continue to impede progress

A previous article in this series had discussed an important recent judgment of the Mumbai High Court on the vires of the recently introduced Explanation to the relevant definitions contained in service tax law on construction services. The Explanation had deemed the construction of a building by a builder etc. as a service to the buyer of the building, if it was intended for sale, wholly or partly, before during or after construction. The only exception was an outright sale of immovable property where no sum was received from the buyer or on his behalf by the builder etc prior to the grant of a completion certificate relating to the building. The Court had held that the Explanation was legally valid. Subsequent to this judgment, the Central of Excise &amp; Customs (CBEC) has issued Circular No. 151/2/2012-ST dated 10.2.2012 (Circular) clarifying the service tax applicability on the various operating models prevalent in the construction industry.

S Madhavan: More clarity needed in service taxation of construction activities

Several earlier articles in this column have discussed the indirect tax issues surrounding the mobile telecommunications industry. An important constituent of this industry, namely the passive infrastructure sector, has witnessed significant litigation, in terms of the excisability of the communication towers that are erected in situ as well as on the availability of input credits on the goods and services used by the sector.

S Madhavan: Disallowance of Cenvat credits to the telecom industry

In an important recent decision, the Mumbai High Court has dismissed several writ petitions which had challenged the constitutional validity of the amendments made to certain definitions in service tax law relating to construction activities, vide the Finance Act 2010. As a consequence, the service taxation of construction activities appears settled and this is also a precursor to the likely treatment of such activities under the impending GST.

HC upholds service taxation of construction activities

One of the key expectations from the finance minister&rsquo;s speech last Friday on Budget 2012-13 was regarding the Goods and Service Tax (GST). Most importantly, there was a strong anticipation that the finance minister would forcefully reiterate a date for its introduction, given that the country had missed several earlier deadlines that were set in this regard.

Pranab sets stage for GST, sans date

The previous two articles in this column had discussed the Communication on the future of VAT in the EU ('Communication') adopted by the European Commission ('EC'), including its purpose, the overriding objectives of the reform as spelt out therein, as well as the four identified priority areas of work. The need for India to closely follow these developments and endeavour to incorporate the best in class thinking while approaching the dual GST in India were also briefly mentioned. This concluding article in the series will discuss the last two of the priority areas of work, as identified in the Communication and highlight the key takeaways for Indian policymakers.

Reforms in EU VAT - Lessons for the Indian GST

Solan (Himachal Pradesh) [India], December 13: Shoolini University has achieved a remarkable milestone by securing a Silver rating in the inaugural Times Higher Education (THE) Online Learning Rankings (OLR) 2024.

Shoolini Rated Top 25 Globally for Online Learning

Bengaluru (Karnataka) [India], December 13: Hilton Honors, the award-winning guest loyalty program of Hilton, is thrilled to announce an exclusive dining experience with Bollywood actor Sidharth Malhotra. This premier event will take place at the luxurious Conrad Bengaluru and offers Hilton Honors members an evening of exceptional cuisine and premium hospitality.

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Mumbai (Maharashtra) [India], December 13: R Srikrishna, Chief Executive Officer, Hexaware Technologies, has been recognized as one of India's Impactful CEOs at the 4th Edition of India's Impactful CEOs Conclave. This marks the second consecutive year Srikrishna has received this honor.

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Two other MLAs -- former deputy chief minister Manish Sisodia and Deputy Speaker of Assembly Rakhi Birla -- "deserted" their seats and chose "safer" options, he charged.
"We will issue chargesheets on failures and misdeeds of the AAP government and its MLAs. These chargesheets will be distributed among the people in their constituencies," Gupta told  a press conference.
He said the "chargesheets" were issued against the MLAs of Madipur, Burari, Model Town, Mundka, Kalkaji, Gokulpur, Malviya Nagar, R K Puram, Moti Nagar and Narela constituencies.
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S Madhavan: Quo vadis, Goods and Services Tax?

Service taxation of revenue sharing arrangements

SC decides on taxability of sales from bonded warehouses

S Madhavan: Tackling double taxation of software

S Madhavan: GST roadblocks continue to impede progress

S Madhavan: More clarity needed in service taxation of construction activities

S Madhavan: Disallowance of Cenvat credits to the telecom industry

HC upholds service taxation of construction activities

Pranab sets stage for GST, sans date

Reforms in EU VAT - Lessons for the Indian GST

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