Service Tax – Un-notified Issues
While the Board has issued the last minute notifications for abatement and exemptions, there are still a couple of unresolved issues.
As raised in yesterday's DDT, “What will be the Small scale exemption limit for this financial year?” Will it be straight ten lakhs or will there be a proportionate reduction in the threshold limit?
Now what about the import and export of services with regard to cosmetic surgery and legal consultancy? If an Indian Law Firm is providing a consultancy service to a foreign firm, is it export or import of service?
One of our contributors asks,
“If a leading actress chooses to change the shape of her nose and she approaches a consultant in US and gets the surgery performed in the US, will she be liable to pay tax in India?”
Maybe the The Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 and Export of Services Rules, 2005 need amendments.
Has the Board forgotten about the existence of these Rules? Will the Board react? And while on that Notifications 17/09 ST and 18/09 ST both dated 7.7.2009 also need suitable amendments.