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The union budget increased the rate of service tax 12.36% to 14% wef 01.06.2015. The education cess and secondary higher education cess subsumed in the revised rate of Service Tax. The rate was increased to augment revenue and to prepare the tax payer for paying higher rate of tax in GST regime.

The emphasis of article is to bring out the clarity on rate of tax applicable for ongoing works. Before going further it is very interesting to note that past history on ‘applicable rate of...

New service tax rate of 14% is effective from June 1, 2015. This article is intended to provide you with insights of how to deal with change in rate and which scenarios old rate shall prevail and when a new rate has to be applied. Few of the practical questions posed could be as under: 

• What if invoice is issued before the change of rate but payment is received after the change in rate. Which rate needs to be applied? 
• What should be the rate applied in case service is provided...

"Service” has been defined as an activity between two persons. In normal course the principle of “mutuality” is applied and there can be no tax when one deals with oneself. However an exception has been created in the Service tax law for dealing with a branch outside India.  

The Place of Provision of Services Rules 2012 has deemed certain locations as the place of provision. This depends on the nature of activity. Where the place is outside India, no service tax is...

Many of the dealers today are not very clear about levy of VAT on freight charges being collected on the sale transactions. An attempt has been in this article to provide clarity on the implication of freight charges. Under the earlier Karnataka Sales Tax, the dealer of goods could have claimed deduction towards transportation charges if the amounts were shown separately. However, the same is not the case in case of KVAT introduced from 2005.    

Definition of turnover  

Section...

As per the Karnataka VAT provisions, input tax in relation to any registered dealer means the tax collected or payable under this Act on the sale to him of any goods for use in the course of his business, and includes the tax on the sale of goods to his agent who purchases such goods on his behalf subject to the manner as may be prescribed to claim input tax in such cases. The input set off would be subject to restrictions provided in Section 11, 12, 14 and 17.   

There are scenarios...