<?xml version='1.0' encoding='UTF-8'?><?xml-stylesheet href="http://www.blogger.com/styles/atom.css" type="text/css"?><feed xmlns='http://www.w3.org/2005/Atom' xmlns:openSearch='http://a9.com/-/spec/opensearchrss/1.0/' xmlns:blogger='http://schemas.google.com/blogger/2008' xmlns:georss='http://www.georss.org/georss' xmlns:gd="http://schemas.google.com/g/2005" xmlns:thr='http://purl.org/syndication/thread/1.0'><id>tag:blogger.com,1999:blog-1927235588488662884</id><updated>2024-09-10T07:37:17.661-07:00</updated><category term="Knowledgebase"/><title type='text'>AAB &amp; Associates</title><subtitle type='html'>Chartered Accountants</subtitle><link rel='http://schemas.google.com/g/2005#feed' type='application/atom+xml' href='https://www.aab-associates.com/feeds/posts/default'/><link rel='self' type='application/atom+xml' href='https://www.blogger.com/feeds/1927235588488662884/posts/default'/><link rel='alternate' type='text/html' href='https://www.aab-associates.com/'/><link rel='hub' href='http://pubsubhubbub.appspot.com/'/><author><name>koda</name><uri>http://www.blogger.com/profile/14121068617379862138</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><generator version='7.00' uri='http://www.blogger.com'>Blogger</generator><openSearch:totalResults>3</openSearch:totalResults><openSearch:startIndex>1</openSearch:startIndex><openSearch:itemsPerPage>25</openSearch:itemsPerPage><entry><id>tag:blogger.com,1999:blog-1927235588488662884.post-8163645254028114574</id><published>2014-11-17T21:55:00.000-08:00</published><updated>2015-08-17T09:36:26.749-07:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="Knowledgebase"/><title type='text'>Reverse Charge Mechanism & Abatement Rate Chart</title><content type='html'><div dir="ltr" style="text-align: left;" trbidi="on"> <h1 id="pf-title" style="background-color: white; clear: both; color: #080000; direction: ltr; font-family: Arial, Georgia, serif; font-size: 23px; margin: 1em 0px; page-break-inside: avoid !important;"> Reverse Charge Mechanism &amp; Abatement Rate Chart&nbsp;</h1> <h1 id="pf-title" style="background-color: white; clear: both; color: #080000; font-family: Arial, Georgia, serif; margin: 1em 0px; page-break-inside: avoid !important; text-align: left;"> <span style="font-size: small;">-&nbsp;<span style="background-color: transparent;"><span style="font-weight: normal;">Taxguru.in</span></span></span></h1> <span id="pf_author" style="background-color: white; color: #7f7f7f; display: block; float: left; font-family: Arial, Georgia, serif; font-size: 0.85em; margin: -1em 0px 1em;"></span><br /> <div id="pf-content" style="background-color: white; clear: both; color: #080000; direction: ltr; font-family: Arial, Georgia, serif; font-size: 14px; line-height: 19.0400009155273px;"> <div class=""> <div class="added-to-list1" id=""> </div> <div class="added-to-list1"> <span style="line-height: 19.0400009155273px;">We know that the rate of</span><span style="line-height: 19.0400009155273px;">&nbsp;</span><span class="IL_AD" id="IL_AD5" style="line-height: 19.0400009155273px;">abatement</span><span style="line-height: 19.0400009155273px;">&nbsp;</span><span style="line-height: 19.0400009155273px;">and applicability of RCM (Reverse Charge Mechanism) play an important role while making payment of service tax to vendor and payment of service tax under RCM. In the article we have compiled all the</span><span class="IL_AD" id="IL_AD6" style="line-height: 19.0400009155273px;">provisions</span><span style="line-height: 19.0400009155273px;">&nbsp;</span><span style="line-height: 19.0400009155273px;">and</span><span style="line-height: 19.0400009155273px;">&nbsp;</span><span class="IL_AD" id="IL_AD3" style="line-height: 19.0400009155273px;">notifications</span><span style="line-height: 19.0400009155273px;">&nbsp;</span><span style="line-height: 19.0400009155273px;">applicable for Abatement on service tax and Reverse charge mechanism. It would be beneficial for all those who are dealing with processing of vendor bills in relation to service tax and is liable to pay service tax under RCM.&nbsp;</span></div> <div class="added-to-list1"> <span id="more-59634"></span></div> <div class="added-to-list1"> <b><span class="text-node">The provisions&nbsp;</span><span class="IL_AD" id="IL_AD7">relating to</span><span class="text-node">&nbsp;abatement is tabulated below:</span></b></div> <div class="added-to-list1"> In case abatement is applicable&nbsp;<span class="IL_AD" id="IL_AD2">then the</span>&nbsp;service tax is not&nbsp;<span class="IL_AD" id="IL_AD9">payable</span>&nbsp;on the whole amount of bill. Say for example in&nbsp;<span class="IL_AD" id="IL_AD10">case of</span>GTA (goods Transport Agency) the taxable rate is 25% (i.e 75% abatement is allowed). So in such a case if GTA bill is of Rs 1,00,000 then the applicable service tax would be 12.36% of (25% of 1,00,000) i.e Rs 3,090.</div> <div class="added-to-list1"> <strong><span class="text-node">Abatement&nbsp;</span><span class="IL_AD" id="IL_AD1">Rate chart</span><span class="text-node">&nbsp;under Service tax</span></strong></div> <table border="1" cellpadding="0" cellspacing="0" style="border-collapse: collapse; border: none; font-size: 1em; margin: 1em 0px; table-layout: auto; width: 533px;"><tbody> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="8%">S.N</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="41%">Service</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="9%"><div align="center" class="added-to-list1"> Taxable</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="10%"><div align="center" class="added-to-list1"> Effective rate as on date</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="30%"><span class="IL_AD" id="IL_AD8">Condition</span>&nbsp;<span class="IL_AD" id="IL_AD12">for service</span><span class="text-node">&nbsp;provider</span></td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 1</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="41%"><span class="text-node">Goods Transport Agency (GTA) (any person who pays or is liable to pay freight either himself or through his agent for the transportation of such goods by road in a goods carriage)</span><br /> <span class="text-node">Provided that when such person is located in a non-taxable territory, the provider of such service shall be liable to pay service tax.</span></td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="9%"><div align="center" class="added-to-list1"> 25%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="10%"><div align="center" class="added-to-list1"> 3.090%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="30%">No cenvat credit availed</td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 2</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="41%">Transport of goods by rail</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="9%"><div align="center" class="added-to-list1"> 30%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="10%"><div align="center" class="added-to-list1"> 3.708%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="30%">Nil</td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 3</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="41%">Transport of passengers by rail</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="9%"><div align="center" class="added-to-list1"> 30%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="10%"><div align="center" class="added-to-list1"> 3.708%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="30%">Nil</td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 4</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="41%">Transport of goods in a vessel from one port in India to another</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="9%"><div align="center" class="added-to-list1"> 50%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="10%"><div align="center" class="added-to-list1"> 6.180%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="30%">No cenvat credit availed</td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 5</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="41%">Transport of passengers by air</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="9%"><div align="center" class="added-to-list1"> 40%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="10%"><div align="center" class="added-to-list1"> 4.944%</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="30%">Cenvat credit on inputs and CG is not availed</td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 6</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="41%">Supply of food or any other article of human consumption or any drink, in a restaurant / other premises</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="9%"><div align="center" class="added-to-list1"> 40%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="10%"><div align="center" class="added-to-list1"> 4.944%</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="30%"><span class="text-node">Cenvat&nbsp;</span><span class="IL_AD" id="IL_AD11">credit of</span><span class="text-node">&nbsp;goods in Ch. 1 to 22 not taken.</span><br /> <span class="text-node">Further, Rule 6 reversal&nbsp; required</span></td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 7</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="41%">Supply of food in convention centre, pandal, shamiana etc</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="9%"><div align="center" class="added-to-list1"> 70%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="10%"><div align="center" class="added-to-list1"> 8.652%</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="30%"><span class="text-node">Cenvat credit of goods in Ch. 1 to 22 not taken.</span><br /> <span class="text-node">Further, Rule 6 reversal&nbsp; required</span></td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 8</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="41%">Accommodation in hotels, inns etc</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="9%"><div align="center" class="added-to-list1"> 60%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="10%"><div align="center" class="added-to-list1"> 7.416%</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="30%">Cenvat credit on inputs and CG is not availed</td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 9</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="41%">Renting of any motor vehicle designed to carry passengers</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="9%"><div align="center" class="added-to-list1"> 40%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="10%"><div align="center" class="added-to-list1"> 4.944%</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="30%">No cenvat credit availed</td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 10</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="41%">Package tour</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="9%"><div align="center" class="added-to-list1"> 25%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="10%"><div align="center" class="added-to-list1"> 3.090%</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="30%"><span class="text-node">No cenvat credit availed.</span><br /> <span class="text-node">Bill incl. of charges for tour</span></td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 11</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="41%">Booking accommodation</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="9%"><div align="center" class="added-to-list1"> 10%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="10%"><div align="center" class="added-to-list1"> 1.236%</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="30%"><span class="text-node">&nbsp;-No cenvat credit availed</span><br /> <span class="text-node">– Bill indicates so</span><br /> <span class="text-node">– NA if invoice only for service charges</span></td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 12</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="41%">Services other than 11 and 12 provided in relation to tour</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="9%"><div align="center" class="added-to-list1"> 40%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="10%"><div align="center" class="added-to-list1"> 4.944%</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="30%"><span class="text-node">&nbsp;-No cenvat credit availed</span><br /> <span class="text-node">– Invoice is for gross amount</span></td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 13</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="41%">Financial leasing services including hire purchase</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="9%"><div align="center" class="added-to-list1"> 10%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="10%"><div align="center" class="added-to-list1"> 1.236%</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="30%">Nil</td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 14</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="41%">Services in relation to chit</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="9%"><div align="center" class="added-to-list1"> 70%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="10%"><div align="center" class="added-to-list1"> 8.652%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="30%">No cenvat credit availed</td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 15</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="41%"><span class="text-node">Construction of a complex, building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly, except where entire consideration is received after issuance of completion certificate by the competent authority,-</span><br /> <span class="text-node">(a) for a residential unit satisfying both the following conditions,</span><br /> <span class="text-node">namely:–</span><br /> <span class="text-node">(i) the carpet area of the unit is less than 2000 square feet; and</span><br /> <span class="text-node">(ii) the amount charged for the unit is less than rupees one crore;</span><br /> <span class="text-node">(b) for other than the (a) above</span></td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" width="9%"><div align="center" class="added-to-list1"> a) 25%</div> <div class="added-to-list1"> b) 30%</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" width="10%"><div align="center" class="added-to-list1"> a) 3.09%</div> <div class="added-to-list1"> b) 3.708%</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" width="30%"><span class="text-node">(i) CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004;</span><br /> <span class="text-node">(ii) The value of land is included in the amount charged from the service receiver.</span></td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 16</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="41%"><span class="text-node">Works contracts entered into for execution of&nbsp;</span><b>original works</b></td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="9%"><div align="center" class="added-to-list1"> 40%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="10%"><div align="center" class="added-to-list1"> 4.944%</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="30%">Cenvat credit on inputs not availed</td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 17</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="41%"><span class="text-node">Works contracts entered into for maintenance or repair or reconditioning or restoration or servicing of any&nbsp;</span><b>goods</b></td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="9%"><div align="center" class="added-to-list1"> 70%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="10%"><div align="center" class="added-to-list1"> 8.652%</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="30%">Cenvat credit on inputs not availed</td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 18</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="41%"><span class="text-node">For&nbsp;</span><b>other works contracts,&nbsp;</b><span class="text-node">not covered under sr. no. 16 and 17 , including maintenance, repair, completion and finishing services such as glazing, plastering, floor and wall tiling, installation of electrical fittings of an immovable property</span></td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="9%"><div align="center" class="added-to-list1"> 60%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="10%"><div align="center" class="added-to-list1"> 7.416%</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="30%">Cenvat credit on inputs not availed</td></tr> </tbody></table> <div class="added-to-list1"> &nbsp;<b>The provisions relating to RCM (Reverse Charge Mechanism) is tabulated below:</b></div> <div class="added-to-list1"> In case of Reverse Charge mechanism the service receiver is either required to pay the whole amount of service tax or part of the amount of service tax. Say for example in case of works contract the service recipient is required to pay 50% of the amount of service tax. Again in case of Original works the taxable portion is 40% only. So if the total amount of bill before service tax is Rs 1,00,000 then the service recipient is required to pay Rs 1,00,000*12.36%*40%*50% = Rs 2,472 as service tax under RCM and Rs 2,472 is required to be paid by vendor.</div> <div class="added-to-list1"> <strong>RATES OF SERVICE TAX FOR SERVICE PROVIDER AND RECEIVER UNDER REVERSE CHARGE MECHANISM</strong></div> <table border="1" cellpadding="0" cellspacing="0" style="border-collapse: collapse; border: none; font-size: 1em; margin: 1em 0px; table-layout: auto; width: 534px;"><tbody> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" rowspan="2" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="center" class="added-to-list1"> S.N</div> </td><td class="added-to-list1" rowspan="2" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="40%"><div align="center" class="added-to-list1"> Service</div> </td><td class="added-to-list1" rowspan="2" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="21%"><div align="center" class="added-to-list1"> Service Recipient</div> </td><td class="added-to-list1" colspan="2" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="29%"><div align="center" class="added-to-list1"> % of Service tax payable</div> </td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> Provider</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> Recipient</div> </td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 1</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="40%">Provided by person who is located in non-taxable territory and received by any person located in taxable territory (In case of foreign services and services from J&amp;K)</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="21%">Any person</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> Nil</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> 100%</div> </td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 2</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="40%">Works contract services by individual, HUF, firm or AOP</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="21%">Body corporate</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> 50%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> 50%</div> </td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 3</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="40%">Manpower supply for any purposes or security services by individual, HUF, firm or AOP</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="21%">Body corporate</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> 25%</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> 75%</div> </td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 4</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="40%"><span class="text-node">Renting of vehicle to any person who is not engaged in the similar line of business to carry passenger by individual, HUF, firm or AOP</span><br /> <span class="text-node">– With abatement</span><br /> <span class="text-node">– Without abatement</span></td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="21%">Body corporate</td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> Nil (With Abatement)</div> <div class="added-to-list1"> 60% (Without Abatement)</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> 100% (With Abatement)</div> <div class="added-to-list1"> 40% (Without Abatement)</div> </td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 5</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="40%">Support services by Government and Local Authority (excluding renting and 66D (a) (i) to (iii)</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="21%">Business Entity</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> Nil</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> 100%</div> </td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 6</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="40%">Provided or agreed to be provided by a director of a company to the said company (w.e.f. 7 August 2012 vide Not. 45/2012)</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="21%">Body corporate</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> Nil</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> 100%</div> </td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 7</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="40%">Individual advocate</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="21%">Business entity</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> Nil</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> 100%</div> </td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 8</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="40%">Arbitral Tribunal</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="21%">Business entity</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> Nil</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> 100%</div> </td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 9</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="40%">Sponsorship</td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="21%">Body corporate or Partnership Firm</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> Nil</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> 100%</div> </td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 10</div> </td><td class="added-to-list1 hilight" style="background-color: #f9ffb5; cursor: pointer; padding: 0.5em; page-break-inside: avoid !important; position: relative; vertical-align: top; width: auto !important;" valign="bottom" width="40%">GTA (Goods Transport Agency)</td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="21%">Company, P. Firm, Factory, Society, excise registered assessee</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> Nil</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> 100%</div> </td></tr> <tr style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; page-break-inside: avoid !important;"><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="8%"><div align="right" class="added-to-list1"> 11</div> </td><td class="added-to-list1" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="40%">Insurance agent to insurance companies</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="top" width="21%">Insurance business</td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> Nil</div> </td><td class="added-to-list1" nowrap="nowrap" style="padding: 0.5em; page-break-inside: avoid !important; vertical-align: top; width: auto !important;" valign="bottom" width="14%"><div align="center" class="added-to-list1"> 100%</div> <div> <br /></div> </td></tr> </tbody></table> </div> </div> </div> </content><link rel='edit' type='application/atom+xml' href='https://www.blogger.com/feeds/1927235588488662884/posts/default/8163645254028114574'/><link rel='self' type='application/atom+xml' href='https://www.blogger.com/feeds/1927235588488662884/posts/default/8163645254028114574'/><link rel='alternate' type='text/html' href='https://www.aab-associates.com/2014/11/reverse-charge-mechanism-abatement-rate.html' title='Reverse Charge Mechanism & Abatement Rate Chart'/><author><name>Arun Balaji</name><uri>http://www.blogger.com/profile/04884388303419924662</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author></entry><entry><id>tag:blogger.com,1999:blog-1927235588488662884.post-8486027239112018138</id><published>2014-09-22T03:23:00.001-07:00</published><updated>2014-09-22T03:23:31.749-07:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="Knowledgebase"/><title type='text'>CBDT extends 80% rate of depreciation on windmills and devices running on wind energy installed after 31-3-2014</title><content type='html'><div dir="ltr" style="text-align: left;" trbidi="on"> <div style="background-color: white; background-position: 0% 0%; background-repeat: no-repeat; border-width: 0px; color: #333333; font-family: Arial; font-size: 12pt; font-weight: bold; margin-bottom: 1em; margin-top: 1em; padding: 0px; text-align: center;"> <b>INCOME-TAX (EIGHTH AMENDMENT) RULES, 2014 - AMENDMENT IN NEW APPENDIX-I</b></div> <div style="background-color: white; background-position: 0% 0%; background-repeat: no-repeat; border-width: 0px; color: #333333; font-family: Arial; font-size: 11pt; font-weight: bold; margin-bottom: 1em; margin-top: 1em; padding: 0px; text-align: center;"> <b>NOTIFICATION NO. 43/2014 [F.NO.152/1/2013-TPL]/SO 2399(E)</b>,&nbsp;<b>DATED 16-9-2014</b></div> <div style="background-color: white; background-position: 0% 0%; background-repeat: no-repeat; border-width: 0px; color: #333333; font-size: 12pt; margin: 0pt 3pt 4pt; padding: 0px; text-align: justify;"> In exercise of the powers conferred by section 295 read with section 32 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—</div> <div style="background-color: white; background-position: 0% 0%; background-repeat: no-repeat; border-width: 0px; color: #333333; font-size: 12pt; margin: 0pt 3pt 4pt; padding: 0px; text-align: justify;"> <b>1.</b>&nbsp;(1) These rules may be called the Income-tax (8th Amendment) Rules, 2014.</div> <div style="background-color: white; background-position: 0% 0%; background-repeat: no-repeat; border-width: 0px; color: #333333; font-size: 12pt; margin: 0pt 3pt 4pt; padding: 0px; text-align: justify;"> (2) They shall come into force on the date of their publication in the Official Gazette.</div> <div style="background-color: white; background-position: 0% 0%; background-repeat: no-repeat; border-width: 0px; color: #333333; font-size: 12pt; margin: 0pt 3pt 4pt; padding: 0px; text-align: justify;"> <b>2.</b>&nbsp;In the Income-tax Rules, 1962, in the New Appendix I, in Part-A relating to Tangible Assets, under the heading III. Machinery and Plant, in item (8), in sub-item (<i>xiii</i>),—</div> <table class="list" style="background-color: white; border: 0px solid rgb(0, 0, 0) !important; color: #333333; font-size: 12pt; margin: 0mm 0mm 4pt 3mm; text-align: justify; text-indent: 0mm;"><tbody> <tr><td align="right" class="list" nowrap="" style="border: 0px solid rgb(0, 0, 0) !important; font-size: 12pt; white-space: nowrap; width: 47px;" valign="top">(<i>a</i>)</td><td align="justify" class="list" style="border: 0px solid rgb(0, 0, 0) !important; font-size: 12pt;" valign="top">&nbsp;</td><td align="justify" class="list" style="border: 0px solid rgb(0, 0, 0) !important; font-size: 12pt;" valign="top">In clause (1), for the words, figures and letters "installed on or before 31st day of March, 2012", the words, figures and letters "installed on or after the 1st day of April, 2014" shall be substituted; and</td></tr> <tr><td align="right" class="list" nowrap="" style="border: 0px solid rgb(0, 0, 0) !important; font-size: 12pt; white-space: nowrap; width: 47px;" valign="top">(<i>b</i>)</td><td align="justify" class="list" style="border: 0px solid rgb(0, 0, 0) !important; font-size: 12pt;" valign="top">&nbsp;</td><td align="justify" class="list" style="border: 0px solid rgb(0, 0, 0) !important; font-size: 12pt;" valign="top">In clause (<i>m</i>), for the words, figures and letters "installed on or before 31st day of March, 2012", the words, figures and letters "installed on or after 1st day of April, 2014" shall be substituted.</td></tr> </tbody></table> </div> </content><link rel='edit' type='application/atom+xml' href='https://www.blogger.com/feeds/1927235588488662884/posts/default/8486027239112018138'/><link rel='self' type='application/atom+xml' href='https://www.blogger.com/feeds/1927235588488662884/posts/default/8486027239112018138'/><link rel='alternate' type='text/html' href='https://www.aab-associates.com/2014/09/cbdt-extends-80-rate-of-depreciation-on.html' title='CBDT extends 80% rate of depreciation on windmills and devices running on wind energy installed after 31-3-2014'/><author><name>Arun Balaji</name><uri>http://www.blogger.com/profile/04884388303419924662</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author></entry><entry><id>tag:blogger.com,1999:blog-1927235588488662884.post-6098406175421313076</id><published>2014-09-20T03:58:00.000-07:00</published><updated>2014-09-20T22:43:02.406-07:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="Knowledgebase"/><title type='text'>Taxability of Software Payments under Income-Tax Act</title><content type='html'><div dir="ltr" style="text-align: left;" trbidi="on"> <span style="background-color: white; font-family: Arial, Verdana, Tahoma, 'Times New Roman'; font-size: 13px; line-height: 19.5px;">Software is made available to end users by software developers either directly or through distributors. In case of direct transfer, th</span><span style="background-color: white;"><span style="font-family: Arial, Verdana, Tahoma, 'Times New Roman'; font-size: 13px; line-height: 19.5px;">e </span><span style="font-family: Arial, Verdana, Tahoma, 'Times New Roman'; font-size: 13px; line-height: 19.5px;">EULA</span><span style="font-family: Arial, Verdana, Tahoma, 'Times New Roman'; font-size: 13px; line-height: 19.5px;"> (</span></span><span style="background-color: white; font-family: Arial, Verdana, Tahoma, 'Times New Roman'; font-size: 13px; line-height: 19.5px;">End user Licence Agreement) prevents the end user from effecting resale of such software. Hence there is no question of multiple level deduction of tax at source. Tax has to be deducted at source either u/s </span><span style="background-color: yellow; font-family: Arial, Verdana, Tahoma, 'Times New Roman'; font-size: 13px; line-height: 19.5px;">194J</span><span style="background-color: white; font-family: Arial, Verdana, Tahoma, 'Times New Roman'; font-size: 13px; line-height: 19.5px;"> or u/s </span><span style="background-color: yellow; font-family: Arial, Verdana, Tahoma, 'Times New Roman'; font-size: 13px; line-height: 19.5px;">195</span><span style="background-color: white; font-family: Arial, Verdana, Tahoma, 'Times New Roman'; font-size: 13px; line-height: 19.5px;"> of Income-tax Act.&nbsp;</span><br /> <span style="background-color: white; font-family: Arial, Verdana, Tahoma, 'Times New Roman'; font-size: 13px; line-height: 19.5px;"><br /></span> <span style="background-color: white; font-family: Arial, Verdana, Tahoma, 'Times New Roman'; font-size: 13px; line-height: 19.5px; text-align: justify;">However in case of transfer through distributor, the chain is Software developer-Distributor-End-user. &nbsp;The scope of the notification is captured in the following table</span><br /> <span style="background-color: white; color: #5e5e5e; font-family: Arial, Verdana, Tahoma, 'Times New Roman'; font-size: 13px; line-height: 19.5px; text-align: justify;"><br /></span> <br /> <table border="2" cellpadding="2" cellspacing="0" style="background-color: white; color: black; font-family: Arial, Verdana, Tahoma, 'Times New Roman'; font-size: 13px; line-height: 19.5px; margin: 0px; padding: 0px; width: 491px;"><tbody style="margin: 5px; padding: 5px;"> <tr style="margin: 0px; padding: 0px;"><td style="margin: 0px; padding: 0px;" valign="top" width="64"><b style="margin: 0px; padding: 0px;">S.No</b></td><td style="margin: 0px; padding: 0px;" valign="top" width="103"><b style="margin: 0px; padding: 0px;">Software developer</b></td><td style="margin: 0px; padding: 0px;" valign="top" width="103"><b style="margin: 0px; padding: 0px;">Distributor</b></td><td style="margin: 0px; padding: 0px;" valign="top" width="103"><b style="margin: 0px; padding: 0px;">End-user</b></td><td style="margin: 0px; padding: 0px;" valign="top" width="103"><b style="margin: 0px; padding: 0px;">TDS u/s</b></td><td style="margin: 0px; padding: 0px;" valign="top" width="111"><b style="margin: 0px; padding: 0px;">Benefit of Notification</b></td></tr> <tr style="margin: 0px; padding: 0px;"><td style="margin: 0px; padding: 0px;" valign="top" width="64">1</td><td style="margin: 0px; padding: 0px;" valign="top" width="103">Resident</td><td style="margin: 0px; padding: 0px;" valign="top" width="103">Resident</td><td style="margin: 0px; padding: 0px;" valign="top" width="103">Resident</td><td style="margin: 0px; padding: 0px;" valign="top" width="103">194J by Distributor to Software Developer. End user need not deduct Tax at source</td><td style="margin: 0px; padding: 0px;" valign="top" width="111">Available</td></tr> <tr style="margin: 0px; padding: 0px;"><td style="margin: 0px; padding: 0px;" valign="top" width="64">2</td><td style="margin: 0px; padding: 0px;" valign="top" width="103">Non-Resident</td><td style="margin: 0px; padding: 0px;" valign="top" width="103">Resident</td><td style="margin: 0px; padding: 0px;" valign="top" width="103">Resident</td><td style="margin: 0px; padding: 0px;" valign="top" width="103">&nbsp;195 by distributor to Software developer. End user need not deduct tax at source</td><td style="margin: 0px; padding: 0px;" valign="top" width="111">Available</td></tr> <tr style="margin: 0px; padding: 0px;"><td style="margin: 0px; padding: 0px;" valign="top" width="64">3</td><td style="margin: 0px; padding: 0px;" valign="top" width="103">Non-Resident</td><td style="margin: 0px; padding: 0px;" valign="top" width="103">Non-Resident</td><td style="margin: 0px; padding: 0px;" valign="top" width="103">Resident</td><td style="margin: 0px; padding: 0px;" valign="top" width="103">195 by distributor to Software developer and by End-user to distributor.</td><td style="margin: 0px; padding: 0px;" valign="top" width="111">Not Available</td></tr> <tr style="margin: 0px; padding: 0px;"><td style="margin: 0px; padding: 0px;" valign="top" width="64">4</td><td style="margin: 0px; padding: 0px;" valign="top" width="103">Non-Resident</td><td style="margin: 0px; padding: 0px;" valign="top" width="103">Resident</td><td style="margin: 0px; padding: 0px;" valign="top" width="103">Non-Resident</td><td style="margin: 0px; padding: 0px;" valign="top" width="103">195 by Distributor to Software Developer. End-user need not deduct Tax at Source</td><td style="margin: 0px; padding: 0px;" valign="top" width="111">Available</td></tr> </tbody></table> <span style="background-color: white; color: #5e5e5e; font-family: Arial, Verdana, Tahoma, 'Times New Roman'; font-size: 13px; line-height: 19.5px;"><br /></span> <span style="background-color: white; color: #5e5e5e; font-family: Arial, Verdana, Tahoma, 'Times New Roman'; font-size: 13px; line-height: 19.5px;">- See more at: http://taxguru.in/income-tax/taxability-software-payments-incometax-act-1961.html#sthash.HJYOqjw0.dpuf</span></div> </content><link rel='edit' type='application/atom+xml' href='https://www.blogger.com/feeds/1927235588488662884/posts/default/6098406175421313076'/><link rel='self' type='application/atom+xml' href='https://www.blogger.com/feeds/1927235588488662884/posts/default/6098406175421313076'/><link rel='alternate' type='text/html' href='https://www.aab-associates.com/2014/09/taxability-of-software-payments-under.html' title='Taxability of Software Payments under Income-Tax Act'/><author><name>Arun Balaji</name><uri>http://www.blogger.com/profile/04884388303419924662</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author></entry></feed>