FLOW CHARTS ON POINT OF TAXATION

 Point of Taxation means the point of time with respect to which the payment of service tax to the Government account is due. Rule 2(e) of the Point of Taxation, 2011 defines "Point of Taxation" means the point in time when a service shall be deemed to have been provided. For better understanding of Rules 3,4,5 and 7, provisions of the respective rules are presented in flowchart.

https://docs.google.com/presentation/d/1CHweF4ScNPGBSc7KsQDu1Qy-6o9Wm7PRj-G9Yq2nuMc/edit?pli=1#slide=id.p

ACCOUNTING CODE FOR PAYMENT OF SERVICE TAX UNDER THE NEGATIVE LIST APPROACH TO THE TAXATION OF SERVICES

On 06/07/2012, CBEC has issued a circular no. 161/12/2012 -ST,  regarding Accounting Code for payment of service tax under the Negative List approach to taxation of services, with effect from the first day of July 2012

Negative List based comprehensive approach to taxation of services came into effect from the first day of July, 2012. For payment of service tax under the new approach, a new Minor Head - ‘All taxable Services’ has been allotted under the Major Head “0044-Service Tax”.

Accounting codes for the purpose of payment of service tax under the Negative List approach, with effect from 1^st July, 2012 is as follows:

Name of Services	Accounting codes
	Tax collection	Other Receipts	Penalties	Deduct refunds
All Taxable Services	00441089	00441090	00441093	00441094

NOTE: (i) service specific accounting codes will  also continue to operate, side by side, for accounting of service tax  pertaining to the past period (meaning, for the period prior to 1^st July, 2012); (ii) Primary Education Cess on all taxable services will be booked under 00440298 and Secondary and Higher Education Cess on all taxable services will be booked under 00440426; (iii) a new sub-head has been created for payment of “penalty”; the sub-head “other receipts” is meant only for payment of interest etc. leviable on delayed payment of service tax; (iv) the sub-head “deduct refunds” is not to be used by the assessees, as it is meant for use by the Revenue/Commissionerates while allowing refund of tax.


http://www.servicetax.gov.in/st-circulars-home.htm

INCOME-TAX (SEVENTH AMENDMENT) RULES, 2012 - AMENDMENT IN RULE 12 AND SUBSTITUTION OF FORMS ITR-5 AND ITR-6

NOTIFICATION NO.25/2012 [F.NO.142/31/2011 -TPL]/S.O. 1453(E), DATED 2-7-2012

In exercise of the powers conferred by section 295 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:-

1. (1) These rules may be called the Income-tax (7th Amendment) Rules, 2012.

(2) They shall come into force from the date of its publication in the Official Gazette.

2. In the Income-tax Rules, 1962,-

(A)  in rule 12,–

 (i)  in sub-rule (1),-

(a) in the proviso to clause (a), for the words "being an individual, who is a resident," the following words, brackets and figures shall be substituted, namely:-

"who is a resident, other than not ordinarily resident in India within the meaning of sub-section (6) of section 6";

(b)  in the proviso to clause (ca), for the words "being an individual or Hindu undivided family, who is a resident," the following words, brackets and figures shall be substituted, namely:-

"who is a resident, other than not ordinarily resident in India within the meaning of sub-section (6) of section 6";

 (ii)  in sub-rule (3), in the proviso, in clause (aa) after the words "being a resident," the words, brackets and figures "other than not ordinarily resident in India within the meaning of sub-section (6) of section 6" shall be inserted;

(B)  in Appendix-II,

 (i)  for Forms ITR-5, the following shall be substituted, namely:-

 (ii)  for Form ITR-6, the following shall be substituted, namely:-

"Forms ITR-5 and ITR-6 have been separately attached"

Export of Goods and Services

RBI has issued a Master Circular No. 14/2012-13 on Export of Goods and Services.Export of Goods and Services from India is allowed in terms of clause (a) of sub-section (1) and sub-section (3) of Section 7 of the Foreign Exchange Management Act 1999 (42 of 1999), read with Notification No. G.S.R. 381(E) dated May 3, 2000 viz. Foreign Exchange Management (Current Account) Rules, 2000, as amended from time to time.
This Master Circular consolidates the existing instructions on the subject of "Export of Goods and Services from India" at one place.
This Master Circular is being issued with a sunset clause of one year. This circular will stand withdrawn on July 01, 2013 and be replaced by an updated Master Circular on the subject.
Full text of the Master Circular No.14/2012 can be obtained from: http://rbidocs.rbi.org.in/rdocs/content/pdfs/14ME010212F_A.pdf

RELIEF TO EXPORTER OF GOODS FROM SERVICE TAX

CBEC vide Notification No. 42, dated 29/06/2012, has granted exemption of specified taxable services received by an exporter of goods and used for export of goods  from payment of service tax subject to certain specified conditions and to the extent specified therein. 

RELIEF TO EXPORTER OF GOODS FROM SERVICE TAX

CBEC vide Notification No. 41, dated 29/06/2012, has granted rebate of service tax paid on the taxable services utilized by an exporter of goods for export.

1st July, 2012

Happy Chartered Accountants Day

CA. Vinay Kaushik