Blogs

Issues and Possible resolution – Negative List  

In this article we examine some of the common issues arising from the negative list entries in sequence.  

Agriculture related services  

1. Whether agriculture operations should be carried out in rural area only for coverage by negative list entry?  

Comment: No. There is no condition that the agriculture activities should be performed in rural area only.  

2. Whether activities of horticulture, animal...

One of the major challenges for the assessee is –avoiding of the disputes with the department. To avoid/ reducesuch disputes with the department, one must understand the reason for such dispute. In this write up, we have analyzed the best practices of avoiding disputes with the department by using alternative measures/policies. We would understand the following in this writeup -  

1. Possible causes for the Disputes along with measures to mitigate them?  
2. How to avoid...

Introduction:  

The service tax law based on negative based taxation has been effective from 1st of July 2012. This regime is expected to augment the government’s revenue even in this period of slack business/ growth by tapping hitherto untaxed areas of various activities. It is expected that the new law would lead to large amount of disputes and challenges where unintended transactions would be subjected to the tax. One of the main issues causing concern in the trade is the joint...

The service tax law has resulted in a large number of disputes [ more than 1 lakhs + pending as on date] mainly due to the fact that the law is changing frequently and drafting has been seen to have many loose ends. The trigger happy attitude of some of the audit personnel from the Internal Audit or CAG has led to the number of cases increasing by leaps and bounds. The delays in dispute resolution and contrary judgements which are quite common has added to the woes of the service...