the untouched capture · TIOL-DDT 330

TIOL-DDT 330 · the untouched capture
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<div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 
  <strong><font color="#996699" size="3">TIOL-DDT 330</font><br>
  27 03 2006<br>
  Monday</strong></font></div>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Gautam 
  Bhattacharya floors Hyderabad</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If 
  Service Tax can have a brand ambassador to spread the good word, you can't 
  find any one better than Gautam Bhattacharya the simple, casual, humble effective 
  preacher &#8211; the Commissioner, Service Tax in the CBEC. In a seminar in 
  Hyderabad on Saturday, Gautam faced volleys and googlies from the trade with 
  an ease that only the likes of Sachin Tendulkar can perform. Though there were 
  not many sixers, the match was a lively one. With his candid humility he admitted 
  that he cannot give answers to all the questions, but he can certainly carry 
  the message to North Block. That of course is itself a great march ahead for 
  many assessees as it is difficult to get your problems reach to the law makers. 
  For nearly four hours Mr. Bhattacharya answered questions from the audience. 
  Please our breaking news for a detailed coverage of the seminar.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NCAER 
  wants doctors and lawyers under Service Tax net</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The 
  National Council of Applied Economic Research (NCAER) is unhappy that the Finance 
  Minister has not imposed Service Tax on lawyers and doctors. &#8220;It is a 
  matter of concern that the finance ministry, while seeking to expand the ambit 
  of the service tax, has not thought it fit even to mention professionals such 
  as lawyers and doctors&#8221;. The Council observed that these professional 
  enjoy almost 100% tax exemption and even those who pay taxes inflate costs. 
  With the Service Tax net spreading wide, it should be only a matter of time 
  before the doctors and lawyers come under the Service Tax net.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Builders 
  go to Court</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The 
  DGST's circular proposing to levy service tax on all builders found great favour 
  with the Chief Commissioners and they have been going great guns to rope in 
  the builders under the tax net. (For details on the circular please see (<a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=3333"><strong>DDT- 
  309 dated: 23 02 2006</strong></a>). The Builders had sent a representation 
  to the Board which had been forwarded to the DG Service Tax. But even before 
  the DGST answer them, coercive action is being taken to &#8216;recover' the 
  taxes. The Promoters and Builders Association of Pune (PBAP) is understood to 
  have filed a writ petition in the Bombay High Court. Tax consultants will soon 
  have to shift base from Tribunals to High Courts as many Service Tax issues 
  will be going to the High Courts for immediate redressal. Given the style of 
  tax administration, the Government will be contribution eagerly for clogging 
  the courts with litigation, with their clarifications and circulars. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Even 
  non performance can be a service &#8211; titbits on Service Tax</strong></font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What 
  is Service?</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Service 
  is the non-material equivalent of a good. Service provision has been defined 
  as an economic activity that does not result in ownership, and this is what 
  differentiates it from providing physical goods. It is claimed to be a process 
  that creates benefits by facilitating either a change in customers, a change 
  in their physical possessions, or a change in their intangible assets. By supplying 
  some level of skill, ingenuity, and experience, providers of a service participate 
  in an economy without the restrictions of carrying stock (inventory) or the 
  need to concern themselves with bulky raw materials. On the other hand, their 
  investment in expertise does require marketing and upgrading in the face of 
  competition which has equally few physical restrictions. Providers of services 
  make up the Tertiary sector of industry. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Supply 
  of service</strong></font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Singapore 
  Law</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anything 
  which is not a supply of goods but is done for a consideration (including if 
  so done the granting, assignment or <strong>surrender of any right</strong>) 
  is a supply of services</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>EU 
  Law</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Supply 
  of &#8216;services' shall mean any transaction which does not constitute 
  a supply of goods (i.e. the transfer of the right to dispose off tangible property 
  as owner). Supply of service includes,-</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Assignment 
  of intangible property</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Obligation 
  to refrain from an act or to tolerate an act or situation</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Performances 
  made in pursuance of an order of public authority.,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">From 
  Mr. Gautam Bhattacharya's presentation on Service Tax at Hyderabad on 
  25.3.2006</font></p>
<P align=center><B><IMG height=62 src="http://www.taxindiaonline.com/RC2/image/ddt/gnl_txt.jpg" width=375></B></P>
<TABLE cellSpacing=0 cellPadding=0 width=350 align=center border=1>
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    <TR> 
      <TD><IMG height=67 hspace=5 src="http://www.taxindiaonline.com/RC2/image/ddt/gnl_word.jpg" width=67 align=absMiddle vspace=5><B><I>&nbsp;<font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.&nbsp;a 
        pri&middot;o&middot;ri </font> - </I></B></TD>
    </TR>
  </TBODY>
</TABLE>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- 
  Proceeding from a known or assumed cause to a necessarily related effect; deductive. 
  Made before or without examination; not supported by factual study.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">&#8220;<em>In 
  any investigation of the constitutional powers of these great Dominion legislatures, 
  it is not proper that a Court should deny to such a legislature the right of 
  solving taxation problems unfettered by &#8221;a priori&quot; legal categories 
  which often derive from the exercise of legislative power in the same constitutional 
  writ.</em>&quot; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In 
  (1959 SCR 379: AIR 1958 SC 560) quoting a passage from the Broken Hill South 
  Ltd. v. Commissioner of Taxation, N.S.W. 56 CLR 337 at p. 379 </font></p>
<p align="center"><font color="#993300" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>&quot;We 
  must all obey the great law of change. It is the most powerful law of nature.&quot; 
  - Edmund Burke</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6666">Until 
  Tomorrow with more DDT</font></strong></font></p>
<p align="justify"><font color="#FF6666"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Have 
  a nice Day. </font></strong></font></p>
<p align="justify"><font color="#FF6666"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail 
  your comments to </font></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
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