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Saudi Arabia imposes temporary visa ban on 14 countries, including PakistanUK protests against Israel detaining two British lawmakersGovt to set up dedicated startup India desk for budding entrepreneursDelhi Govt takes stern action against steep fee hike by private schoolsUK MP Dan Norris arrested for alleged child sex offencesIndian-American country judge nabbed on money-laundering chargesAustralia pledges 2.3 bn Australian dollar to enable households buy solar batteriesIndia, Lanka sign MoU on defence cooperationCX - Mere interconnection under Income Tax law does not establish a related party transaction under Central Excise law, thereby invalidating department's demand for duty at 110% of production cost: CESTATOwaisi moves SC against Waqf Amendment ActNo TDS to be deducted u/s 194EE on payments u/s 80CCAST - Removal of smart cards for pairing with set-top boxes (STBs) constituted job work under Rule 4(5)(a) of CCR, 2004 and thus, reversal of CENVAT credit is not required: CESTATCBIC issues AGT orders of 229 Jcs / ADCs + 308 ACs / DCs + 177 Pr Commissioners / Commissioners + 12 Pr CCs & CCsST - Activity of serving as intermediary between foreign entities & Indian customers, qualifies as export of services; commissions earned by assessee will not attract Service Tax levy: CESTATKessler Syndrome: Over 1200 objects of space debris banged into earth in 2024CX - Valuation - Specifications meant for guidance purposes per se differ from detailed engineering drawings; only the latter is to be included in assessable value: CESTATTrump grants another 75-day to TikTok to find Chinese buyerEU fears Trump beer tariffs may cost one lakh jobsTrump tosses out National Security Agency DirectorBudget Session of Parliament adjourns sine-die; 16 Bills passedHamas says Israeli offensive in Gaza is fatal for hostagesEuropean Commission votes to freeze existing sustainability rules to compete with China and USParliament passes Protection of Interest in Aircraft Objects Bill, 2025US economy adds 2.28 lakh jobs in March monthI-T - Provisions of section 50C are equally applicable to asset forming block of asset as well: ITATChina retaliates; imposes 34% tariffs on American goods

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ST on services rendered by 'Govt' - opening Pandora's Box?


Government and Local Authority Service - identification

After deletion of support service from Negative List of Services appearing in Sec.66D (a) (iv) and definition of support service from interpretation clause 65B (49) the argument of sovereign right will not hold good. Board Circular, Education Guide, case laws are relevant as long as the term support service was in place. Now the correct identification revolves around whether any service has been received from the Government or Local Authority. If it is a payment of tax, the activity of Government or Local Authority is only a collection of tax which constitutes merely a transaction in money and the same is excluded from the scope of service as per Clause 44 (a) (iii) of Sec.65B of FA. When the Fee is as a charge for an activity done by Government or Local Authority it is a service. However the fee taken in any Court or tribunal established under any law for the time being in force is not taxable as they are covered in Negative List in terms of Sec. 65B (44) (c)

govindan_mani govindan_mani 13/04/2016

 

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