TIOL-DDT 226 · the untouched capture
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<html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body bgcolor="#FFFFFF"> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 226</font><br> 21 10 2005<br> Friday</b></font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Service Tax – change in forms – who is a Service <font color="#FF0000">Tax</font> provider? </b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Section 69 of the Finance Act 1994, every person liable to pay Service Tax is required to apply for registration in the prescribed form.<br> <br> As per Section 70, every person liable to pay tax has to furnish a return at such intervals and such form as prescribed. <br> <br> For the late entrants, the word ‘prescribed’ has been defined as “prescribed by rules made under this chapter”<br> <br> So a form ST-1 for the application and a form ST-2 for the registration certificate and a form ST-3 for the return had been prescribed under the Service Tax Rules, 1994<br> <br> Now all these forms are changed and new forms are prescribed.<br> <br> <a href="http://www.taxindiaoline.com/RC2/pdfnoti/pdfsertax/pdf2005/stnot05_31.pdf">NOTIFICATION. No. 31/2005-Service Tax dated the 20th October, 2005</a><br> <br> As per Rule 3(1) of <b>The Service Tax (Registration of Special Category of Persons) Rules, 2005</b>, the input service distributor has to apply for registration in the form as notified by the Board.<br> <br> So far there has been no notification in this regard. In [<b>DDT 181 - 17 08 2005 - Wednesday</b>] we had pointed out “The Board simply forgot to issue this notification and so there is no form in which one should apply for registration. All input service distributors are offenders, because the Board has not so far prescribed the form. You simply cannot apply for registration, because you are required to apply in the form and there is no form. Strange are the ways of the Board! We hope to bring you the form soon – Board and God willing.”<br> <br> Now the Board has notified the form. Lo and behold! It is the same ST-1!<br> <br> <a href="http://www.taxindiaoline.com/RC2/pdfnoti/pdfsertax/pdf2005/stnot05_32.pdf">NOTIFICATION. No. 32/2005-Service Tax dated the 20th October, 2005</a><br> <br> As per Rule 9 and 10 of the Cenvat Credit Rules, 2004, the output service provider availing credit and the input service distributor are required to submit a half yearly return in the form prescribed by notification by the Board. <br> <br> Now the Board has issued a notification to prescribe the return and by a strange coincidence it is the same ST-3 return. <br> <br> <a href="http://www.taxindiaoline.com/RC2/pdfnoti/pdfsertax/pdf2005/stnot05_33.pdf">NOTIFICATION. No. 33/2005-Service Tax dated the 20th October, 2005</a><br> <br> In [<b>DDT 185 - 23 08 2005 - Tuesday</b>] we had pointed out certain lapses in the draft notifications for these forms. DDT is happy that most of the mistakes that we pointed out are corrected, but one major lapse still stands out like an ugly mole. We had asked,<br> <br> And what is <b>Service Tax provider?</b> What they obviously mean is service provider. For a typist, to type tax immediately after service is quite normal but if there is any one with a little more authority and responsibility over the typist, this would have been discovered.<br> <br> In spite of our pointing out this lapse, item No. 5 of the ST -3 return speaks of <b>5. Credit details for Service Tax provider/recipient. </b><br> <br> Sir, what you mean is service provider and recipient and not Service Tax provider and recipient! This only proves that they are not only committed to committing mistakes but also to ensure that they should not correct them!<br> <br> And you know you have to submit the return by the 25th of October. Hurry up; you have just two working days left! </font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Anti Dumping</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Antidumping duty imposed on import of Pentaerythritol originating in or exported from People’s Republic of China and Sweden. The anti-dumping duty imposed shall be effective up to and inclusive of the 19th day of April, 2006<br> <br> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2005/ctariff05_093.htm">Notification. No. 93/2005-CUSTOMS dated 20th October, 2005</a></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Provisional Antidumping duty imposed on import of certain rubber chemicals, namely PX-13[Anti-degradants-(N-1, 3-dimethyl butyl-N’Phenyl paraphenylenediamine(6PPD)], MOR[Accelerators-N-oxydiethylene-2-benzothiazole sulphenamide (2-Morphoolinothiobenothiazole) (MBS)] and TDQ[Anti-oxidants- Polymerised 2,2,4 -Trimethyl-1,2 di-hydroquinoline] ), originating in, or exported from, the European Union, People’s Republic of China, Chinese Taipei and the United States of America, confirmed finally. <br> <br> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2005/ctariff05_094.htm">Notification. No. 94/2005-CUSTOMS dated 20th October, 2005</a></font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Tax consultants in the dock - 19 KPMG officials face trial in the US for tax avoidance</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In a case alleging that bogus tax shelters the company sold helped rich clients avoid billions of dollars in taxes, 19 KPMG officials are facing trial in US courts. The charges include conspiracy to defraud the Internal Revenue Service and tax evasion.<br> <br> "The development and promotion of abusive tax shelters had a corrupting effect on the legal and accounting professions," IRS Commissioner Mark Everson said in a statement. <b>"Tax professionals should help people pay what they owe -- not more, not less." </b><br> <br> All the defendants were expected to voluntarily surrender except for one who faced an arrest warrant. <br> <br> It was alleged that the defendants evaded their clients' taxes and that some had evaded their own. <br> The Department of Justice has described the case as the largest criminal tax case ever filed. It said the KPMG scam allowed the firm's clients to avoid paying $2.5 billion in taxes. <br> <br> KPMG already has paid a $456 million fine after admitting it helped "high net worth" clients evade billions of dollars in capital-gains and income taxes by developing and marketing the tax shelters and concealing them from the IRS. The fine includes $128 million in forfeited fees KPMG earned by selling the tax shelters. </font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Until Monday with more DDT<br> <br> Have a nice Weekend. <br> <br> Mail your comments to</b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></font></p> </body> </html>