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The service tax<\/a> department had earlier asked about 200 companies to return export benefits claimed during 2012-2016 on software provided to clients outside India, and pay a 15% service tax along with fine. ET had reported this first in November.
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While the government announcement on Tuesday made IT industry association Nasscom<\/a> and some companies that were served with the demand notices rejoice, tax experts said the issue could return to haunt them.
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“This clarification is not a relief for IT\/ ITeS companies … (it) in turn will encourage more tax officers to issue such notices as it (clarification) specifically mentions that the matter would only be resolved subsequently at the adjudication level,” said Sachin Menon, national head, indirect tax<\/a>, KPMG<\/a> India.
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\nAccording to the notices slapped by the service tax department, supplying software to clients outside India does not tantamount to exports of services. This is mainly because the client sends specific details of what it wants in the exported software to Indian IT firms through an email. According to the department, the email containing specifications is nothing but goods made available to the Indian firm to provide IT\/ ITeS service to the foreign buyer. Therefore, it is a service.
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\nET had viewed four such tax notices in which companies were asked to pay tax.
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“I would have expected the department to clarify its stand on the issue raised in the show cause notice and instruct the field formations to adjudicate dropping the demand immediately. The issue will continue to haunt IT\/ITeS companies even under the GST<\/a> regime where they have to predeposit about 10% of the amount demanded by the tax authorities, for admitting an appeal,” said Menon.
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\nTax experts said the clarification is also silent on the pre-deposit liability of the exporter against such demands.
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\nET reported that the tax department had made the demand based on the ‘place of supply’ provision. Under taxation laws, tax is paid at the place where the supply is made. While this is easy to determine in the case of goods, with services it is tough, experts said.
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政府留出Rs 10000 - cr税收对科技公司的需求
服务税务部门此前要求约200家公司出口的收益回报声称在2012 - 2016年在软件提供给客户在印度之外,并支付15%服务税和罚款。
孟买:政府表示,它缓解了信息技术和it驱动的服务(工艺)部门留出税收达10000卢比的对公司的需求。但专家表示这可能不是最终的决议会发生仅在审判级别和税务官员可以筹集更多的这样的要求。
的服务税部门此前要求约200家公司出口的收益回报声称在2012 - 2016年在软件提供给客户在印度之外,支付15%服务税和罚款。等已经在11月第一个报道。
尽管政府周二宣布行业协会行业协会和一些公司的需求通知喜乐,税务专家表示,这个问题可以回到困扰着他们。
“这个澄清不是一个救援/工艺公司…(IT)将鼓励更多的税务人员问题等通知(澄清)特别提到这件事只会随后审判水平,解决“Sachin Menon说,国家的头,间接税,毕马威(KPMG)印度。
根据服务的通知了税务部门,为客户提供软件印度以外不等同于出口服务。这主要是因为客户端发送的具体细节希望导出的软件印度it公司通过电子邮件。根据部门,电子邮件包含规范只是商品提供给印度公司提供外国买家/工艺服务。因此,它是一种服务。
等认为四个这样的税收通知公司被要求交税。
“我预期部门澄清其站在这个问题上提出了显示引起注意和指导领域形成立即裁决的需求下降。这个问题将继续困扰甚至针对公司下销售税政权,他们必须predeposit约10%的金额由税务机关要求,承认上诉,”Menon说。
税务专家表示,澄清也沉默等出口商的pre-deposit责任与要求。
等报道,税务部门的需求的基础上,提供供应的地方。根据税收法律、税收支付供应的地方。虽然这是容易确定的商品与服务是很困难的,专家说。
的服务税部门此前要求约200家公司出口的收益回报声称在2012 - 2016年在软件提供给客户在印度之外,支付15%服务税和罚款。等已经在11月第一个报道。
尽管政府周二宣布行业协会行业协会和一些公司的需求通知喜乐,税务专家表示,这个问题可以回到困扰着他们。
“这个澄清不是一个救援/工艺公司…(IT)将鼓励更多的税务人员问题等通知(澄清)特别提到这件事只会随后审判水平,解决“Sachin Menon说,国家的头,间接税,毕马威(KPMG)印度。
根据服务的通知了税务部门,为客户提供软件印度以外不等同于出口服务。这主要是因为客户端发送的具体细节希望导出的软件印度it公司通过电子邮件。根据部门,电子邮件包含规范只是商品提供给印度公司提供外国买家/工艺服务。因此,它是一种服务。
等认为四个这样的税收通知公司被要求交税。
“我预期部门澄清其站在这个问题上提出了显示引起注意和指导领域形成立即裁决的需求下降。这个问题将继续困扰甚至针对公司下销售税政权,他们必须predeposit约10%的金额由税务机关要求,承认上诉,”Menon说。
税务专家表示,澄清也沉默等出口商的pre-deposit责任与要求。
等报道,税务部门的需求的基础上,提供供应的地方。根据税收法律、税收支付供应的地方。虽然这是容易确定的商品与服务是很困难的,专家说。
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