Jul. 3 – India’s Ministry of Finance has agreed to exempt service tax charges on developers and units operating within the country’s special economic zones (SEZs). The exemption will be available as a service tax refund for specified services received by units and developers within the SEZs. Taxes levied on services used exclusively for operations[…..]
By Himanshu Joshi, Accounts Associate, Dezan Shira & Associates Mar. 27 – Service taxes were first introduced to India through the Finance Act (1994) in the 1994-95 Union Budget, however the service tax rules have gone through various changes since their introduction. There was previously an exhaustive list of services that were subject to service tax,[…..]
By Himanshu Joshi Feb. 28 – A new taxation scheme for the services sector that came into effect on July 1, 2012, states that both the service provider and the recipient of the service must now pay the requisite service taxes. Prior to this, the liability to pay such services tax was only born by[…..]
In the Annual Budget for 2012-13, the Finance Minister has proposed to increase service tax to 12 percent from the previous rate of 10 percent. The new rate came into effect from April 1, 2012.
Mar. 22 – Before the new budget was issued, there was ambiguity surrounding the dealing of director’s remuneration. There is inconsistency about whether it is considered salary income or business income chargeable under the head business and profession. However, in the new union budget, India has issued a new clause – clause 194(J) – clarifying[…..]