Service Tax - Board and CCs authorized to issue instructions - Is Principal CC covered?
IN the Finance Act 2014, a new clause (m) was added to Section 94 (the power to make rules) for
authorisation of the Central Board of Excise and Customs or Principal Chief Commissioner of Central Excise or Chief Commissioners of Central Excise to issue instructions, for any incidental or supplemental matters for the implementation of the provisions of this Act ;
In exercise of this power the Government has amended the Service Tax Rules to provide for a new Rule 12 which reads as:
12. Power to issue supplementary instructions .- The Board or the Chief Commissioners of Central Excise may issue instructions for any incidental or supplemental matters for the implementation of the provisions of the Act.
As per the above rule, the Board or Chief Commissioner can issue instructions. What about the Principal Chief Commissioner - Has the Government forgotten him?
Or is section 95 of the Finance (No.2) Act, 2014 supposedly taking care of this omission?
Who are these instructions meant for - the officers or the assessees?
And can a Chief Commissioner or even the Board issue instructions for implementation of the Act? What kind of instructions are being planned - be assured any kind will only multiply litigation.
The Government has also introduced a new Rule 11 which reads as:
11. Determination of rate of exchange . - The rate of exchange for determination of value of taxable service shall be the applicable rate of exchange as per the generally accepted accounting principles on the date when point of taxation arises in terms of the Point of Taxation Rules, 2011.
This is another litigation bomb. What is the generally accepted accounting principle? Enough fodder for audit objections and subsequent Show Cause notices.
These provisions will come into force on 1 st October 2014.
Notification No. , Dated: August 25, 2014