IndianCAs by Ashwin Nagar

12 December 2009

IndianCAs: Advance FBT paid for the FY:2009-10 is to be treated as advanc...

THE POST BUDGET MEMORANDUM OF THE ICAI CLEARLY SPECIFIES AS UNDER

"Advance FBT paid should be treated as advance income tax paid, so that the same can be adjusted against incometax liability in order to avoid the procedural hassles and time involved in claiming refund. Further in case there is no advance tax payable either on account of loss or exempt income appropriate circular be issued to grant refund."

To download the post budget memorandum just click here : http://www.mediafir e.com/file/ yjylh2ligyi/ 16677postbudget_ memorandum09. pdf

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09 December 2009

Clarification on st on Alcoholic

Clarification regarding service tax payable by manufacturers of alcoholic beverages on job work basis

Letter F.No. 332/17/2009-TRU, dated 30-10-2009

It may be recalled that vide Finance (No.2) Act, 2009, the definition of taxable service, namely, Business Auxiliary Service (BAS) was suitably amended so as to include the manufacture of alcoholic beverages on job work basis. In practice, the brand owners (BOs) of alcoholic beverages get the products (Indian Made Foreign Liquor) manufactured on job work basis under a contract manufacturing arrangement with distilleries having facility to manufacture such beverages. In trade parlance, such job workers/distilleries are called as 'contract bottling units' (CBU). The aforesaid arrangement has come under tax net w.e.f. 01,.09.2009.

2. Under section 67 of the Finance Act, 1994, service tax is chargeable on the 'gross amount charged' by the service provider for providing taxable services. As per CIABC the gross value of sales, as per invoices, includes the following elements:

1) Bottling/job charges - paid to CBU

2) Distribution costs including freight, transit insurance etc. – paid to CBU

3) Other reimbursables – paid to CBU

4) Cost of raw materials – paid to CBU

5) Cost of packaging materials – paid to CBU

6) State excise duty and VAT – paid to State Government

7) Surplus/profit – retained by BO

It was their plea that if the entire amount charged by CBU is subject to service tax, it would amount to charging tax on goods. The CIABC, therefore, requested that the service tax should be charged on the amount representing the charges for service alone. Accepting their plea, Notification No.39/2009-ST dated 23.09.2009 was issued wherein exemption from service tax has been provided on the value which represents the value of inputs i.e. raw materials and packaging materials used in the manufacture of such alcoholic beverages.

3. The CIABC has now sought clarifications on the tax base on which the service tax would be chargeable after allowing the deduction provided in the notification. In short, they want to know as to how many of the above 7 elements (para 2 above) would be includible in the value for the purpose of charging service tax.

4. For removal of doubts and with a view to avoid disputes on valuation, it is clarified that :-

a) Service tax would be payable on the bottling/job charges, distribution costs and other reimbursables.

b) So far as inputs i.e. raw materials and packing materials are concerned, one of the conditions of exemption notification No.39/2009-ST is that there should be documentary proof specifically indicating the value of these inputs. Therefore, service tax on the value of raw materials and packaging materials would be exempt only when such charges are specifically mentioned in the invoice raised/documents maintained by the CBU.

c) As regards the statutory levies, namely, excise duty /VAT, they do not present any 'consideration' for rendering the service. Whether such amount is paid by BO or by CBU, they have no nexus with the provision of service. As such, these levies will not be included for charging service tax.

d) Similarly, the surplus/profit earned by the BO being in the nature of business profit (which falls within the purview of direct taxes), will not be chargeable to service tax.

5. This position may be clarified suitably to the field formations.

--
Best Wishes

CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
Mobile:+91 - 0 9390221100
+91 - 0 9440278412
e-Mail: vmvsr@rediffmail.com
vmvsr@yahoo.co.uk
http://pdicai.org/MyPage/203038.aspx

07 December 2009

ICE

Dear All,

A colleague has sent me the below message. It needs to be followed by each one of us......

We all carry our mobile phones with names & numbers stored in its memory but nobody, other than ourselves, knows which of these numbers belong to our closest family or friends.

If we met with an accident or  fall ill, the people attending us would have our mobile phone but wouldn't know whom to call. Yes, there are hundreds of numbers stored but which one is the contact person in case of an emergency? Hence this "ICE" (In Case of Emergency) Campaign

The concept of "ICE" is catching on quickly. It is a method of contact during emergency situations. As cell phones are carried by the majority of the population, all you need to do is store the number of a contact person or persons whom should be contacted during emergency under the name "ICE" ( In Case Of Emergency).

The idea was thought up by a paramedic who found , when he went to the scenes of accidents, there were always mobile phones with patients, but they don't know which number to call. He therefore thought that it would be a good idea if there was a nationally recognized name for this purpose. In case of an emergency situation, Emergency Service personnel and hospital Staff would be able to quickly contact the right person by simply dialing the number you have stored as "ICE."

For more than one contact name simply enter ICE1, ICE2 and ICE3 etc. A great idea that will make a difference!

Let's spread the concept of ICE by storing an ICE number in our Mobile phones today!

Please forward this. It won't take too many "forwards" before everybody will know about this.

It really could save your life, or put a loved one's mind at rest .

Remember:- "ICE will speak for you when you are not able to".

Warm Regards

Murali Mohan

05 December 2009

IndianCAs: Dubai real estate facts

By Indranil Sen Gupta, Research Analyst

FORTY years earlier Dubai was a village on the edge of the Arabian Desert. Locals citizens lived in houses made out of mud shacks and the only vehicle for travel or moving was `The Ship of The Desert'.

After 40 years Dubai have created artificial islands full of luxury villas, the world's tallest tower, an underwater hotel and many more things which might make tails spin of one's eyes. Dubai is now the glittering crown of the Middle East. The gulf state is now being known for its tall skyscrapers, wall-to-wall shopping centers and luxury hotels.

But the whole glittering castle is of the boom in real estate was constructed on sand. Sand made of credit/borrowed money. But the leash of bubble got broken when the financial crisis broke off sending the prices of real estate to rock bottom levels.

Now prices in the real estate sector crashed where prices have fallen by up to 60%.

400 construction projects worth more than $300 billion have been shut down or postponed. The project cancelaation reveals demand havedried up and future outlook is also very bleak.

Even after the world economy tried to come out of the dark woods of recession the Dubai real estate sector struggles to survive. They are finding hard to find buyers even after prices came down by 60%.

Moreover the cost of living in Dubai has gone up like any thing.

All these will add the unemployment in Dubai. Most of the Asians are placed their and they might come back as Dubai have less to offer now and cost of living have goes up.

Foreigners have refused to buy the projects which have resulted further trap for inventory creation. This has resulted to default of payments of debt.

The fear in Western markets is that banks risk losing billions, which will damage their lending process and recovery of the economy too. Dubai World has a net exposure of debt of $59 billion of liabilities as of August. Where as the total debt of Dubai is $80 billion. So the Dubai World holds debt of 73.75% of Dubai's total debt. The Dubai Government announced that it is restructuring Dubai World, an investment company owned by the government, with immediate effect. It has asked creditors for a six-month standstill on its obligations until at least 30 May 2010. Nakheel, a real estate subsidiary of Dubai World, has a convertible bond due next months

The most of the fear of UK and US is that Dubai might go for sell of assets which they are holding in UK and US. If this breaks out then one might find cascading fall in the world equities.

The fall in the share prices of banks eroded £14 billion from the UK alone. As per Credit Suisse European banks could have an exposure of €40 billion (£36 billion) as loans to Dubai. Banks including HSBC and Royal Bank of Scotland have helped to finance Dubai's acquisitions and are now on the hook if the state cannot repay its debts.

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03 December 2009

ST Notification on BAS

Government of India
Ministry of Finance
(Department of Revenue)

New Delhi, the 2^nd December, 2009

Notification No. 43/2009-Service Tax

G. S. R. (E).- Whereas the Central Government is satisfied that a practice was generally prevalent regarding levy of service tax ( including non-levy thereof ), under section 66 of the Finance Act, 1994 ( 32 of 1994) (hereinafter referred to as the Finance Act), on taxable service namely 'business auxiliary services' specified in sub-clause (zzb) of clause 105 of section 65 of the Finance Act provided by a person ( hereinafter called the 'service provider') to any other person ( hereinafter called the 'service receiver') during the course of manufacture or processing of alcoholic beverages by the service provider, for or on behalf of the service receiver, and that such services being a taxable service were liable to service tax under the said sub-clause (zzb) of clause 105 of section 65 of the Finance Act with effect from 1 st day of September 2009, which was not being levied according to the said practice during the period commencing from the 1 st day of September, 2009 and ending with the 22^nd day of September, 2009;

Now, therefore, in exercise of the powers conferred by section 11 C of the Central Excise Act, 1944 (1 of 1944), read with section 83 of the Finance Act, the Central government hereby directs that the service tax payable on the said taxable service, namely 'business auxiliary service' provided by the service provider to the service receiver, during the course of manufacture or processing of alcoholic beverages by the service provider, for or on behalf of the service receiver, which was not being levied in accordance with the said practice, shall not be required to be paid in respect of such business auxiliary service provided during the aforesaid period.

(F. No. 332/17/2009 – TRU)

(Prashant Kumar)

Under Secretary

--
CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
Mobile:+91 - 0 9390221100
+91 - 0 9440278412
e-Mail: vmvsr@rediffmail.com
vmvsr@yahoo.co.uk
http://pdicai.org/MyPage/203038.aspx

01 December 2009

ICAI ELECTION - unwanted SMS, Emails & Calls

Like you and Mr.Ramesh Agarwal, I as well as many of our members are equally suffering. 40/50 SMS and numerous mails that too multiple mails from the same candidate are such a pain that I sincerely wish the election is over. I do not mean any disrespect to any of our fellow members. I understand their anxity.

The institute can send mails giving contributions by candidates at one go and request all candidates not to canvass. All candidates hold respectable position in the society and it would be better if canvassing is not resorted to in future elections.

Best wishes

CA. P.Chatterjee

I fully agree with Mr Agrawal's view. One lady vandana is also disturbibg like hell on SMS as well as E mail. I wonder how come she has got all the details like mobile numbers, e mail id etc.

Our Institute should barred all these menance at once or may be such kind of approach should be barred from election's fair practice code.

CA Paresh Desai

Dear fellow members,

In continuation to the same I would like to add that some of the electoral candidates have send their article students at the residence/offices of the members. And each article has to at least cover 100 members in a day.
Thanks & Best Regards
CA Kanan Gala

Dear All,

I have been having this menace as our friend has pointed out and I guess all of us have got into this mess.

I understand that we could ask the Institute not to share the e-mail and mobile numbers. Could one of you check? If it is not there then we need to write to the Institute and ask them to put up a code of ethics and also adopt a privacy policy.

In my personal case - I have been lucky for the past 10 days as I am out of India and switched off the mobile and I know that when I get back on Saturday morning I will be greeted with a huge number os SMS.

Unfortunately, the Institute elections have become worse than political elections. If you have friends contesting elections please forward this and any other mail on this topic and ask them to think.

CA Sriganesh

Dear Shri All,

Thanks for the e-mail.

I fully subscribed to the feeling of my fellow members Chartered Accountants.

It is really so much of the botheration that some time we feel not to open the PC, the laptop, the incoming calls and even the SMS.

I really failed to understand as to what this election is? Are we really comparable to the most polluted politicians???

It's really the time to introspect and do something about the nuisance that we have been facing all through out from last more than a month.

With regards,

One totally frustrated and totally disturbed Chartered Accountant.

Dear Members

It has made my family's life miserable. Even When you are in bed room, sms beep buzz. This beep is like a horrible sound. Every one in my family has fear of it. Before becoming CA, I never thought that this nobel profession will make my life miserable for few days. Let us, honour the dignity of profession and make lives happy.

Pawan Jain

Dear sirs,
Yes, I agree with all of you! It has become like a political battle and this does not go well with the esteemed profession like CAs in India. Also it sends a wrong signal to outside world of CAs that Indian CAs are no way less than their political leaders displaying not so good qualities of keeping the profession away from the politics. I am sure once elected, our elected members will conveniently forget their fellow colleagues following the foot steps of our elected MPs or MLAs.
So, our institute should bring out a Dos and Don'ts for the next election keeping the ethical and moral standards of our profession in high order.
Hope wisdom prevails with the central council for the future.
M.Ganeshan

Dear All

My name is Ameet Israni and my membership number is 13252 (1972 registration).

I am appalled at the manner in which this election is taking place and the mode of canvassing.

1) I have received the official list of candidates from the ICAI New Delhi only three days back and the election is on 4th Dec. The list was dispatched by ordinary post on 15th November 2009.

2) There are some candidates on the list for Central Council who may not deserve to be in the list. Has any background check been done?

3) The reputation of our profession has taken a severe blow due to unpleasant happenings in the past.

4) We have to device a system that if any member of the institute wishes to blackball any candidate, it should be allowed after an investigation.

I look for suggestions.

Kind Regards

Ameet Israni

It is me sincere appeal to all members, either young ones or like us to boycott the elections.

Let us go to H.C, Appeal for the dissolve of constitution wherein the elected members of the professionals are the members of any type of body except framing Accounting Standards.

Let the Institute should be controller by some other institute or by elected group of Learned Retired Advocates of H.C. to keep our profession intact, otherwise one day will come where no one will believe this profession.

All members are spending recklessly to mint money with interest once they elected.

One day we all have to stop this nonsense. It is possible only if we all unite at this crucial juncture to save the image of profession.

CA Laxmi Mittal

With all due respect and acknowledgement of sentiments and views expressed by some of the fellow members, I would like to add that the election of the council is a part of the overall process of democracy being practiced in our country and in my view, democracy itself is a process of evolution where we try to arrive at a fine balance between FREEDOM and CONTROLS. Electoral Canvassing is also an integral part of democratic process where some times we experience excesses on the side of FREEDOM. However, rather than trying to overcome such excesses through systemic CONTROLS, it would be in the interest of democracy to try and achieve it through the process of creating awareness about the importance and value of Individual privacy. This can be best achieved by initiating debate and discussion as done herein by the fellow members. I am sure that in times to come, the learned fraternity like ours shall give due consideration to the value of Individual privacy while going through this process of canvassing for the future elections.

Thanks.

Kishor Kansagra

Dear Srinivas/Ramesh,

While I do agree on this however I think its legitimate and fair to hear from Election Candidates over the phone and SMS and request for preferntial votes. This is all part of the election process and should be taken in a very right spirit.

Warm Regards,

Mahesh C Soni

Dear Sir
At least mr. Agarwal is getting SMS address to him, in my case SMS addressed to some mr. Deshpande is being delivered to me since last six months and despite several attempts to get it straightened out, no solution! Further it is very shallow and unbecoming when some one whom i do not know or even have a faintest acquaintance, sends me a mass sms for navratri, diwali, new year etc! Time our members reflected on this and use the money spent on these to better causes like sponsoring some deserving students for education!

Natarajan T.G.

To stop this menace, you could do the following :

Call your mobile service provider or visit their website and register for DNC ( though not very effective but still)

If you use outlook for emails then you can block / delete all messages containing word " election " by going to the rules option wherein you can create your own rules.

Similarly you can block emails by going to Option - "safe & Blocked sender" -in hotmail /gmail etc., and block a particular email ID. After the election you can unblock whichever you want.

It is a pity that we all have to do this by wasting our precious professional time but there is no other option at this point of time.

My proposal to the ICAI :
Let's all write a letter to the ICAI and request them to order immediate stoppage of all types of canvassing for the election and if anyone does not follow the order, his name should be removed from the electoral list and debarred from the ICAI list for atleast six months.

CA.Bharat Desai

Dear All,

Can we do something?..... i guess no... except exchanging mails and in the worst case not to vote.

Election fever from politics has been passed on to our esteemed institute....

Regards,

CA Himesh Lakhani

The best thing seems to be that you update your profile in the institute in which you do not provide any telephone or email id as the members' directory is the main source of this type of harassment.

Any body at institute listning?

Regards

CA Deepak Purswani

I fully support & request our professional brothers & sisters to act responsibly.
vimal singhania

30 November 2009

Johnny and Service Tax Refund Part - V

By:

-CA. Pradeep Jain

Siddharth Rutiya

Visit us at: www.capradeepjain.com

In continuation of previous articles, structuring complicatedness involved in getting the refund claim under GTA service, Port services, Technical testing and analysis services and Specialized cleaning services, we in this article are unveiling the problems existing in the Service tax refund mechanism under Insurance Services (Section 65[105][d]). This is the fifth article in the series wherein the complete scenario is being elaborated with the means of humorous poems and conversation between Johnny (an assessee) and his father but the main motive is to bring out the problems faced by exporters.

Johnny and Jill went up the hill, to get the refund order
Johnny came back with a lack
And Jill came hopeless after.

The assesses claiming refund orders under Insurance services are experiencing enormous complexities in getting their refund orders passed on vague and futile justifications that not only are annoying and irritating the assessees but also deprives away the faith of assessees on the refund mechanism designed by the Government. Such reasons on which the department is refusing the refund claims on the said services are being written out hereunder as follows: -

Johnny-Johnny! Yes papa!

Got the refund?

No Papa,

Telling lies?

No Papa,

What's the reason?

This papa: -

Johnny says: I went to the department to get the refund for Insurance service availed by me in relation to export of goods, but department said: -

Johnny-Johnny go away,
Come again another day.
Your refund order has following Flay: -

The details of taxable value and service tax payable thereon are not mentioned. The documents issued by the insurer (including re-insurer) for payment of insurance premium does not specify the value of taxable service and the amount of service tax liability in the Insurance premium cover note. Further the refund claim was not accompanied along with the declaration document as regards the same. This is one of the pre conditions for availing the benefit of refund claim.

Johnny's View:

The details as regards the documents evidencing value of taxable service and service tax thereon are simply a formal requirement. However, the declaration and proposal document as required by you contains the details of the taxable value and the service tax levied thereon which evidences the payment of service tax on insurance services, and the same is enclosed along with the refund claim. Further, as this service is related to the export of goods the refund should be granted.

Johnny says: I went to the department next day again with the corrections and further supporting but department said: -

Johnny-Johnny go away,
Come again another day.
Your refund order has following more flay: -

The Insurance policy cover note issued by the insurer (including re-insurer) for payment of insurance premium is not a valid document for refund claim and it does not specifically relates to export of goods. Even the documents are not in the name of exporter i.e. the assessee. Hence, this construe that the insurance services were not availed by the exporter in respect of goods exported and therefore the refund is rejected.

Johnny's View:

The insurance services availed from the insurer are specifically related to the goods which can be evidenced by the Marine declaration issued by the insurer. Although the insurance cover note doesn't specify the details of goods but the said declaration contains the details of vessel and the description of goods alongwith the amount insured. The same is enclosed along with the refund claim application. Hence the allegation that it doesn't relates to export of goods is futile.

The allegation on the remaining controversy as regards the name of exporter on the documents issued by the insurer is vague in its entirety. The cover note of the insurance premium policy specifically mentions the name of exporter. Thus, the complete scenario clearly picturizes that the service of insurance availed by us was directly related to the exports made by us and there is nothing which leads to distrust of this fact. Further, the payment details enclosed along with the refund claim supports this allegation further.

Johnny says: I went to the department next day again with the further corrections but department rejected saying: -

Johnny-Johnny go away,

You won't get refund anyway.
It has following more flay: -

The insurance policy taken by assessee is an open Marine Cargo Policy and it doesn't specifically relate to the goods exported. Further the amount of service tax charged in the invoice is related to the complete policy premium and it can't be linked to the export goods sent separately.

Further, the invoices issued by the Insurance agency do not fulfill all the requirements specified under Rule 4A like category of service, Description of service, valid Invoice Number, Service tax rate, Service tax registration number and other alike things. In continuation it is alleged that your argument that these are rectifiable defects and you have amended the same is not acceptable. As the document should be proper and valid document.

Johnny's view: -

The view taken by the department is incorrect. The insurance policy taken is an open Marine insurance policy wherein we deduct the value of the consignment sent on export from the balance amount of sum insured and the remaining balance is carried forward for rest of the consignments to be dispatched in future. Hence, we are claiming the proportionate amount of service tax refund calculated on the amount of value of consignment and total policy amount. Thus, there is no difficulty in deriving at the service tax amount and department should allow the refund claim on same.

At the last, the view taken by the Department is stringent in applying the legal language as provided under Rule 4A, whereas the department should adopt a liberal view in this regard, more to in the case of Rule 4A of Service tax rules requirements. Non compliance of the requirements specified under Rule 4A, does not lead to a severe impact and there should be a practice on the part of departmental authorities to avoid allegations if the Rule 4A is not complied in its entirety. Henceforth, the allegation of the department is futile for disallowance of refund claim.

Fruitless again & again;

Johnny now in grief and pain!

Refund order now a dream;

His efforts have downstream!

Via this article the sole endeavor is to picturize the problems faced by assesses in getting the refund order as against the Insurance services. With this entertaining and rhythmical article we summarize that the present situation and mental state of assesses alleging refunds against export of goods is alike to the situation of Johnny as pointed out in the poem.

There are a number of services on which the refund is allowed. The assessee is facing difficulty in almost all of those services. Due to the large number of services we were not able to cover all the services in this article and hence we will be bringing further articles on the different services covered therein. Keep visiting for the next article……..

IndianCAs: Formal Dressing Rules

~ Formal Dressing Rules ~

| Ashwin Nagar | FCA and SAP-FICO\SEM-BCS |

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25 November 2009

TPAs' Liable for TDS-CBDT CIRCULAR

Circular No.8 of CBDT

CBDT has issued the Circular No. 8 regarding applicability of provisions under Section 194J of Income Tax Act'61 on payments made by Third Party Administrators (TPAs) to hospitals on behalf of insurance companies for settling medical/insurance claims etc with the hospitals. Circular

23 November 2009

Johnny and Service Tax Refund Part - IV

Johnny and Service Tax Refund Part - IV

By:

CA. Pradeep Jain

Siddharth Rutiya

Visit us at: www.capradeepjain.com

To prolong the series of the articles on Refund claims to exporters we here under this article are expressing the miserable situation of exporters claiming refund claims for service tax paid on services used in export of goods. This is the fourth article in a row of this series of articles. In the previous three articles we had elaborated the difficulties faced by the assessees in getting the refund claim under GTA service, Port services and Technical testing and analysis services.

In this fourth article we are attempting to present the grounds on which departmental authorities are disallowing the refund claims as related to Specialized cleaning services (namely disinfecting, exterminating, sterilizing or fumigating of containers) availed by the exporters (Section 65[105][zzzd]). This complete state of affairs is humorously picturisead by the way of poems and conversation between Johnny (an assessee) and his father. This Endeavour is just to bring out the problems faced by exporters.

Johnny and Jill went up the hill, to get the refund order
Johnny came back with a lack
And Jill came hopeless after.

The assesses claiming refund orders under Specialized cleaning services are facing vast difficulties in getting their refund orders passed on pointless and unimportant justifications that not only are harassing the assessees but also deprives away the faith of assessees on the refund mechanism. These enormous reasons on which the department is refusing the refund claims on the said services are being projected hereunder as follows: -

Johnny-Johnny! Yes papa!

Got the refund?

No Papa,

Telling lies?

No Papa,

What's the reason?

This papa: -

Johnny says: I went to the department to get the refund for Courier service but department said: -

Johnny-Johnny go away,
Come again another day.
Your refund order has following Flay: -

The refund claim was not accompanied along with the written agreement as regards the said service. This is one of the pre conditions for availing the benefit of refund claim.

Johnny's View:

The requirement of written agreement is simply a formal requirement that can be avoided as it is a fact that if there are any statutory requirements of the Foreign law for specialized cleaning of containers, then we the assessees are unable to evidence the same to your good honour and hence there can't be any written agreement in such respect. But as this service is related to the export of goods the refund should be granted.

Further, it is a set philosophy that no exporter will carry out the Specialized Cleaning service until and unless there is a requirement of same from the foreign buyers. This further clarifies the situation and makes it clear that the said requirement of submitting the written agreements is just a presupposed condition which can be avoided. But the department does not agree. Even it was argued that this requirement has been dispensed with new set of Rules effective from 06.07.2009. This has been down on our representations. This shows the intention of the Government. It is laid down principle that the beneficial notifications should have retrospective effect. But the department does not agree and says that it is clearly written in the notification that it is applicable from the date of notification and as such the requirement is relaxed from 06.07.2009 only.

Johnny says: I went to the department next day again with the corrections but department said: -

Johnny-Johnny go away,
Come again another day.
Your refund order has following more flay: -

There is no evidence from the enclosures of the refund claim and other documents that the refund of Specialized cleaning service as claimed by you is accredited by a competent statutory authority. This is a specific requirement in the notification. As you have not enclosed the certificate and it seems that the Specialized cleaning services as availed by you is from an agency not accredited by the competent statutory authority to provide such specialized cleaning. Even the relaxation from this condition is also applicable from 06.07.2009. Now, the agency is having its office in other city and as such it will take time to get certificate does not hold good in the era of fast communication. Moreover, your argument that fumigation done by this agency is acceptable to foreign countries does not hold good when there is specific requirement in the notification then you should produce the certificate.

The refund claims are allowed in respect of such service only when these are provided by a person who is validly accredited by the competent statutory authority and the said services are used in export of goods. This must be further evidenced by a valid certificate which must be enclosed along with the refund claim.

Johnny says: I went to the department next day again with the further corrections but department rejected saying: -

Johnny-Johnny go away,

You won't get refund anyway.
It has following more flay: -

The invoices issued by the Specialized cleaning agency do not fulfill all the requirements specified under Rule 4A like category of service, Description of service, valid Invoice Number, Service tax rate, Service tax registration number and other alike things. The debit note issued by agency without service tax registration and category of service are not valid duty paying document and as such the refund is not admissible. Further, your argument that these are rectifiable defects and you have amended the same is not acceptable. As the document should be proper and valid document.

Johnny's view: -

The view taken by the Department is stringent in applying the legal language as provided under Rule 4A, whereas the department should adopt a liberal view in this regard, more to in the case of Rule 4A of Service tax rules requirements. Non compliance of the requirements specified under Rule 4A, does not lead to a severe impact and there should be a practice on the part of departmental authorities to avoid allegations if the Rule 4A is not complied in its entirety. Henceforth, the allegation of the department is futile for disallowance of refund claim.

Fruitless again & again;

Johnny now in grief and pain!

Refund order now a dream;

His efforts have downstream!

By the virtue of this scenario picturiazed above the exclusive attempt is to bring into lime light the problems faced by assesses in getting the refund order as against the cleaning services. To represent the whole situation and to make it somewhat rhythmatic we have graced the article with humorous poems and conversation between Johnny and his father.

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