SEBI Gets Service Tax Summons?
IT is reported that the Service tax Department has sent notices and summons to the Securities and Exchange Board of India (SEBI) for recovery of Service Tax dues amounting to roughly 500 crores. It seems SEBI is yet to give the particulars asked for by the revenue Department. SEBI believes that they are not liable to pay any tax. Some officers in SEBI take shelter under Section 25 of the SEBI Act which reads as:
Exemption from tax on wealth and income.
25. Notwithstanding anything contained in the Wealth-tax Act, 1957 (27 of 1957), the Income tax Act, 1961 (43 of 1961) or any other enactment for the time being in force relating to tax on wealth, income, profits or gains-
(a) the Board;
(b) the existing Securities and Exchange Board from the date of its constitution to the date of establishment of the Board, shall not be liable to pay wealth-tax, income-tax or any other tax in respect of their wealth,income, profits or gains derived.
But this does not speak of Service Tax, point out the Revenue officers. Most likely the Supreme Court has to decide the issue.