SIGN IN SUBSCRIBE

News Update

GST - Record does not reflect that any opportunity was given to petitioner to clarify its reply or furnish further documents/details - In such scenario, proper officer could not have formed an opinion - Matter remitted: HCGST - Mapping of PAN number with GST number - No fault of petitioner - Respondent authorities directed to activate GST number within two weeks: HCGST - Circular 183/2022 - Petitioner to prove his case that he had received the supply and paid the tax to the supplier/dealer - Matter remitted: HCGST -Petitioner to produce all documents as required under summons -Petitioner to be heard by respondent and a decision to be taken, first on the preliminary issue raised with regard to applicability of CGST/SGST: HCGST - s.73 - Extension of time limit for issuance of order - Notifications 13/2022-CT and 09/2023-CT are not ultra vires s.168A of the Act, 2017: HCSun releases two solar storms - Earth has come in its wayRequisite Checks for Appeals - RespondentInheritance Tax row - A golden opportunity to end 32-years long Policy Paralysis on DTCThe Heat is on: Preserving Earth's Climate in the Face of Global WarmingVAT - Timeline for frefund must be followed mandatorily while recovering dues under Delhi VAT Act: SCIndia, Australia to work closely for collaborative projectsCX - All the information was available to department in 2003 itself, therefore, SCN issued four years after gathering information is not sustainable and is highly barred by limitation: HCPowerful voices of amazing women leaders resonated at UN HqsCX - Clearance to sister concern for captive consumption - Department cannot compel assessee to perpetuate the illegality and in such circumstances the whole exercise was revenue neutral: HC75 International visitors from 23 countries arrive to watch world's largest elections unfoldCentre asks States to improve organ donation frequencyCus - Revenue involved in the appeal filed by Commissioner is far below the threshold monetary limit fixed by the CBEC, therefore, department cannot proceed with this appeal - Appeal stands disposed of: HCPM says NO to religion-based reservationCus - Export of non-basmati rice - Since the objective of Central Government in imposing ban with immediate effect was to avert a food crisis in the country, a strict compliance of exemption conditions would further the said intent of the Notification(s): HCAdani Port to develop port in PhilippinesKiller floods - 228 killed in Kenya + 78 in BrazilI-T - Grant of registration u/s 12A can't be denied by invoking Sec 13(1)(b), as provisions of section 13 would be attracted only at time of assessment and not at time of grant of registration: ITATFlight cancellation case: Qantas accepts USD 66 mn penaltyI-T- Joint ownership in two residential properties at the time of sale of the original asset does not disentitle the assessee to claim of deduction under section 54F of the Act: ITATIsrael shuts down Al Jazeera; seizes broadcast equipmentIndia to wait for Canadian Police inputs on arrest of men accused of killing Sikh separatist: JaishankarUS Nurse convicted of killing 17 patients - 700 yrs of jail-term awarded
 
Aggregator - Service Tax joins ride - Uber cool, ooh, la la

MARCH 02, 2015

By Priyanka Naik, CA & Sunny Kachalia, CA

EFFECTIVE from 1 March 2015,the concept of 'Aggregator Model' under service tax regime,requiring the'aggregator' to pay service tax under Reverse Charge Mechanim (RCM), is introduced by amending Service Tax Rules, 1994 (STR) vide Notification No. 5/2015-ST and amending Notification No. 30/2012-ST vide Notification No. 7/2015-ST.

The term "aggregator" is now defined under Rule 2 (1)(aa) of the Service Tax Rules, 1994 to mean" a person, who owns and manages a web basedsoftware application, and by means of the application and acommunication device, enables a potential customer to connect with persons providing service of a particular kind under the brand name or trade name of the aggregator."

Further, Rule 2 (1)(d)(i)(AAA) of STR has been amended to provide that:

a. Person liable to pay service tax shall be the aggregator of the service andif the aggregator does not have a physical presence in India, a person representing him shall pay the tax.

b. If no such representative exists, then the aggregator shall appoint a person who shall be liable for paying taxes.

This amendment will impact, inter alia, entities providing web based taxi, hotel service.

Although,through the aforesaid amendment,tax liability is cast on aggregator still this amendment has many unanswered questions related to valuation, availment of CENVAT credit and availability of abatement.

For instance, -

++ What is the value on which service tax has to be levied (ie consideration charged by service provider (say cab owner) to the customers or the consideration charged by service provider to the aggregators)?

++ If the aggregator already pays service tax on the entire revenue charged to the customer by the service provider then whether cab owner will again be required to pay service tax?

++ Whether the end consumer (say a body corporate) will still be liable to pay service tax under RCM?

++ Whether, the abatement provisions will be available while computing service tax under RCM?

++ Whether, CENVAT credit will be available of service tax paid under RCM to the aggregator?

Given the multiple unanswered issues,it is expected that the Board should issue appropriate clarifications before litigations take a ride.

(The authors are Managers of SKP Business Consulting LLP and the above views expressed are personal.)

( DISCLAIMER : The views expressed are strictly of the author and Taxindiaonline.com doesn't necessarily subscribe to the same. Taxindiaonline.com Pvt. Ltd. is not responsible or liable for any loss or damage caused to anyone due to any interpretation, error, omission in the articles being hosted on the sites)

POST YOUR COMMENTS
   

TIOL Tube Latest

TIOL Tube
Shri N K Singh, recipient of TIOL FISCAL HERITAGE AWARD 2023, delivering his acceptance speech at Fiscal Awards event held on April 6, 2024 at Taj Mahal Hotel, New Delhi.

TOP NEWS

AR not Afar by SK Rahman

VISION 360



Shri Ram Nath Kovind, Hon'ble 14th President of India, addressing the gathering at TIOL Special Awards event.

TII LATEST

TIOLCORPLAWS LATEST