Author: CA Tarannum Khatri

Registration Starts for Dena bank Concurrent Audit for the year 2014-15

Dena bank invites Application for the concurrent audit of bank branches for the financial year 2014-15. CA firm can apply online  from 12/5/2014 to 28/05/2014 ( before 3 PM). visit dena bank site But before applying check the criteria for Application. Disqualification criteria Any form of canvassing/lobbying/influencing/query regarding short listing, statusetc will be treated as disqualification. Following CA firms are not eligible for online registration.  Proprietorship CA firms. CA firm having less than 5 years existence. CA firms presently engaged by the Bank as concurrent auditor. CA firms not having CISA / DISA full time partners / employed CA. CA firms engaged by the Bank as Statutory Auditors CA firms debarred by ICAI / RBI or blacklisted by the Bank for refusal toconduct any assignment allotted by the Bank during last 3 (Three) years. Process for Selection After completion of online registration of CA firms, Bank will filter all the applications based on selection criteria fixed by the Bank & only shortlisted Audit Firms will be informed regarding their selection as Concurrent Auditor in Dena Bank. Short listed CA firms, refusing to accept Concurrent Audit assignment shall not be eligible for further assignment for next three years. For More Information Download following file Download...

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All about Service tax Invoice/Bill

Service provider issues service tax invoice after rendering of service. There is separate rule for issuance of service tax invoice:   Time Limit of issuance of service tax invoice: Invoice must be issued within thirty days from the date of completion of taxable services or receipt of payment, whichever is earlier. For banking and other financial services, time limit is 45 days. For continuous supply of service, invoice should be issued within 30 days from the date of completion of each event which requires service receiver to make payment to service provider.   Meaning of completion of taxable services: completion of services means physical part of services and also auxiliary part like measurement, quality testing etc is completed. So services are completed after completion of all the necessary activities of services. This does not include irrelevant reasons. Kindly note that issue of invoice is not required when small payment up to Rs. 1000 has been received. Thus this small amount is not covered under point of taxation rules.   Details on Invoice: As per rule 4A (1) Invoice or bill should be signed by authorized person and should be serially number and date should be mentioned. Following details should be shown on invoice 1.       Name, address and registration number of person providing taxable services. 2.       Name and address of person receiving taxable services. 3.       Description and value of taxable...

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Service tax on manpower supply service ( security service)

Budget 2015 brings lots of changes in service tax. Service tax on manpower supply service and security services is covered under full reverse charge now. For better under standing, read detailed article.   Service tax on manpower supply service – Definition: Manpower supply means supply of manpower , temporarily or otherwise, to another person to work under his ( service receiver-employer) superintendence or control.(Rule 2(g) of service tax rules) Reference : cbec notification read here.  Service tax rate for manpower supply service: Service tax rate for manpower supply service is 12.36% until 1st June, 2015. New rate 14% will be...

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EXEMPTION TO CERTAIN CONSTRUCTION SERVICES

We all know that construction service is taxable if turnover of services exceeds 10 lacks. But notification 26/2012 service tax provides various exemptions to construction services. Let’s have a look. If any person provides non commercial construction services to government or local authority or government authority, the whole service is exempt. Construction services (original) related to single residential unit other than part of a complex is also exempt.Single residential unit means a self contained residential unit which is designed for use, wholly or partially for residential purposes for one family.So service tax is payable if construction work is for more than one residential unit.If title of each floors is capable of being transferred to another person by municipal records , both the floors may be considered as separate single residential unit. Construction of Pipelines for water supply for government board is exempt. As per case law of Dinesh Chandra Agarwal Infracon vs CCE (2011) Service related to construction, erection, commissioning, installation, completion, fitting out , repair, maintenance, renovation, alteration of road, bridge, tunnel or termination for road transport for use by general public are exempt from service tax. General public means the body of people at large sufficiently defined by some common quality of public or impersonal nature. Construction, erection, commissioning, installation, completion, fitting out,repair, maintenance, renovation or alteration of a civil structure or any other work pertaining to...

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SERVICE TAX ON WORK CONTRACT

Meaning of Work Contract “Work Contract” means a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contract is for purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration of any movable or immovable property or for carrying out any other similar activity or a part thereof in relation to such property.-SEC 65(54) of Finance Act, 1994. Scope of work contract work contract is joint contract in which service is provided and some material is also transfer as sale. Vat should be payable on transfer of material.So activity of sale under contract is necessary. Following activities are covered under work contract: commission, erection and installation of plant, machinery, equipment, structure ; construction of buildings; turnkey projects; maintenance services -AMC contracts; Job work contracts. Valuation for service tax: Method Tax rate Input tax credit Calculate value as per rule 2A(i) of service tax rules, 2006 14.5% Input services and capital goods, input consumed during work contract Pay service tax under rule 2a(ii) 14.5%*40%/70% Input services and capital goods, input consumed during work contract       Note that cenvat credit for duty paid on material on which vat is paid and property in goods is transferred is not available.  *Budget 2015 service tax rate update Service tax calculation as...

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