Volume 3 Issue No. 33 / 2011 Lexspeak May, 2011

Thought for the day
” He who labors diligently need never despair; for all things are accomplished by diligence and labor “

News from the Govt

Service Tax

Court Judgement


International Commercial Terms

The Incoterms rules are the International Chamber of Commerce (ICC) rules for the use of domestic and international trade terms.
International Commercial Term (Incoterm)
DES – Delivered Ex Ship
The passing of risk does not occur until the ship has arrived at the named port of destination and the goods made available for unloading to the buyer. The seller has agreed to bear not just cost, but also Risk and Title up to the arrival of the vessel at the named port.

Statutory Compliance Chart
May 2011

1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31

05 May
– Service Tax     Payment
05 May – Excise Duty Payment
07 May – TDS/TCS Payment
10 May – Excise Returns Monthly
15 May – PF Payment
15 May – TDS –
Quarterly Return 15 May –
Income Tax Annual                   Salary Return
20 May
– Professional Tax
20 May – VAT Payment
21 May – ESIC Payment
30 May – Issue Form 16A
ForQ4     (IT)
31 May – Luxury Tax
31 May – Issue of
Form16 to
Like mothers, taxes are often
misunderstood, but seldom

Hi All
May Day (1st May) known as Labour Day . It is only natural that I place on record my sincere thanks to and appreciation of my team which has labored diligently to bring to you this newsletter every fortnight since 2009.  When sometime back we were faced with a “do-it-by-yourself” situation, they rose to the occasion and learntthe technical aspect of publication too to ensure that even with minimal external help, the initiative continues.  I can see the  love, passion and commitment that they have put in the “doing”.

This issue contains a number of circulars and notifications relating to Service tax which have been grouped appropriately for ease of reading and reference.  You can find all the earlier issues of Lexspeak under Resource Centre in our website sharadasc.com

To read the earlier issues and articles Click Here


Service of Documents by
e-mode instead of Under Posting Certificate
MCA has taken a “Green Initiative in Corporate Governance by allowing paperless compliances by Companies after the discontinuance of Certificate of Posting by Indian Post. Documents served via e-mode are deemed to be in compliance with Section 53 of the Companies Act, 1956.
Download Circular >
Read relevant IT Act sections>
Appointment of Cost
Auditor by the Companies
Audit Committee of the Board / Board of Directors of companies can now appoint a Cost Auditor without seeking prior approval from the Central Govt. However, post-appointment intimation within 90 days of appointment is required.
Download Circular >
Coins of 25 paise
below – withdrawal from circulation
25 paise coin will become history soon. The Govt. of India has decided to withdraw coins of denomination of 25 paise and below from circulation w.e.f. 30th June, 2011. The said coins would be exchanged at the banks maintaining small coins depots till 29th June, 2011.
Download Circular >
“Declaration of
Intent” on EOU Shipping Bills for claiming Chapter 3
DGFT has clarified that shipments made by EOUs for the period 01.04.2008 till 31.03.2010 would not require “Declaration of Intent” for claiming Chapter 3 benefits. However, w.e.f. 01.01.2011 all types of S/Bs including EOU S/Bs must contain the said “Declaration of Intent”.
Download Circular
Labeling of goods in
bond prior to Ex-bond clearance
Imported goods can now be labelled in Bonded Warehouses subject to certain procedural conditions. CBEC has extended this facility to remove the difficulties faced by importers on account of space constraints at CFSs/Port/ICDs and nature of goods.
Download Circular
Implementation of
”Self-Assessment” in Customs
Bill of Entry (Electronic Declaration) Regulations, 2011 & Shipping Bill (Electronic Declaration) Regulations, 2011 which provide for ‘Self-Assessment’ of Customs Duty by the importer/exporter will become effective with the enactment of Finance Bill, 2011.
Download Circular >
Amendment to the
Drawback Rules, 1995
The Duty Drawback Rules provide for recovery of DBK amount in case of non-realisation of exports by the exporter. Vide the amendment to the Rules, however, no recovery will be made if the non-realised amount has been compensated by ECGC, written off by RBI and a certificate from the respective Foreign Mission of India is obtained.
Download Circular >
 Service Tax
Withdrawal of service tax exemption on services
provided by CS/CA/CWA
Effective from 1st May, 2011, Govt. has withdrawn the exemption of service tax on the services provided by practicing CS/CA/CWA in his/her professional capacity relating to representation of client before any statutory authority in the course of proceedings initiated under any law for the time being in force.
Download Notification >
New services under Service Tax ambit w.e.f. 1st May,
With the Finance Act, 2011 coming into force from 1st May, 2011, the two new services, already announced i.e. Hotel, short term accommodation services & restaurant services will attract Service Tax. However, abatement to the extent of 50% and 30% resepectively will be available.

Department has also issued Accounting Codes for the above said new services.

Download Notification>
Download Notification>
Download Circular>
Service Tax exemption for few services
CBEC has clarified that visa application processing services rendered by visa facilitators to individuals directly as against business entities would be exempt from Service Tax.
Exemptions effective from 1st May, 2011
Hotel, inn, guest house, club etc providing short term accommodation for a continuous period of less than 3 months and charging declared tariff of less than Rs.1000 per day need not charge Service Tax.

– Health care service provided by hospital, nursing home or multi-speciality clinic to an employee of any business entity or to a person covered by health insurance scheme where payment for the same is received from such business entity directly is exempt from Service Tax.

Commercial coaching centres awarding certificate / degree / diploma recognised under law and Preschool coaching & training establishments exempt from Service Tax.

Download Circular >
Download Notification>
Download Notification>
Download Notification>
Amendment to certain Service Tax Rules
– Amendment to Service Tax Rules, 1994   (insurance business)
Download Notification
– Amendment to Export of Services Rules, 2005 (services added)
Download Notification>
 – Amendment to Taxation of Services (Provided from Outside India and Received in India) Rules, 2006
Download Notification>
Services referred to in amendment rules>
 Court Judgment
No Stamp Duty on increased capital in the absence
of specific provisions – Delhi HC ruling
In a landmark decision, Delhi High Court has held that a company is not required to pay stamp duty on the enhanced Authorised Share Capital if there is no specific provision in the Stamp Act that permits such levy.
Read More >
Download Judgment >
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