Service Tax – Team Negative List Goes for a HUG
ARE you liable to pay Service Tax? Every time there is a money transaction in your much-taxed life, please ask this question. Justice MC Chagla once remarked that at every moment in our life, we either comply with or contravene a law. This is more so now with all kinds of unspecified services being taxable.
CBEC has over a period of time learnt that teaching the assessees to swim by distance learning would not work; the best way is to push them into the water – they will either swim or sink – it's their fate! The much-hyped ACES is in deep trouble, but the fact remains that returns are being filed online and payments are being made electronically.
So they plunged the nation into ‘Negative List' regime yesterday with hundreds of serious doubts yet to be clarified. They will be clarified as we go on the dark path and in any case, the final diagnosis (post mortem) will reveal what the disease was and maybe after a Supreme Court order and a retrospective amendment to nullify that order, we will all understand the law better.
We had raised two important issues:
1. That the levy of Service Tax itself was not valid with effect from 1st July 2012, and
2. That Education Cess was not leviable on Service Tax with effect from 1st July 2012.
Board solved both the problems by issuing Orders under Removal of Difficulties under Section 95(1) (I), though in the second case, they used the Order, a Circular and the General Clauses Act apart from a D.O Letter from the JS, TRU to wriggle out of the situation.
In the British Parliamentary system, there is a concept that, “the King can do no wrong”.
There is an axiom in the Indian Democracy that the “Babu can do no wrong”. Even if he (especially a Revenue Babu) does wrong, it can be declared as right by the babu himself and in this, he treats the Supreme Court and the Parliament of India as subordinate offices of the Revenue Board.
Anyway, some major calamities were averted and we are now into the second day of the new regime. It's a reality – let's grin and bear it.
The JS, TRU suggests a HUG - Helpfulness, Understanding and Guidance.
Finally, in spite of our scathing criticism, it must be admitted that the TRU Team had undertaken a gigantic task and they have been successful to a large extent due to the dedication and hard work (for hardly any reward) of the TRU officers. A bear HUG to them – and we hope they would accept constructive criticism and to rectify the mistakes to ultimately make the life of the assessee less miserable.
TRU DOF. No. 334/1/2012-TRU, Dated: June 29, 2012
CBEC Circular No. 160/11/2012-ST , Dated: June 29, 2012
Order No. 2/2012 in F. No. 334 / 1 /2012 -TRU , Dated: June 29, 2012