UNIT 1 SERVICE TAX 1 NATURE OF SERVICE TAX 101. 102. 103. 104. 105. 106. 107.
Why service tax What are different approaches to service tax What are different features of service tax Is it constitutionally valid How to determine service tax liability What is basis of charge What one should know before beginning study of service tax law
3 4 4 5 6 6 9
2 MEANING OF SERVICE 109. 110. 111. 112.
What is the meaning of service What is activity What is significance of consideration What is significance of phrase Activity must be carried out by a person for another person 113. What are declared services 114. What are specific exclusions from definition of service given in section 65B(44) I-9
11 11 12 15 16 28
CONTENTS
I-10 PAGE
115-P1-P6 Problems on service
31
3 NEGATIVE LIST 120. What are services given in negative list 121. Services provided by Government/local authority - What is covered under Negative list Category 1 122. Services provided by RBI - What is covered under Negative list Category 2 123. Services by a foreign diplomatic mission located in India - What is covered under Negative list Category 3 124. Services relating to agriculture or agricultural produce - What is covered under Negative list Category 4 125. Trading of goods - What is covered under Negative list Category 5 126. Any process amounting to manufacture or production of goods What is covered under Negative list Category 6 127. Selling of space for advertisements in print media - What is covered under Negative list Category 7 128. Service by way of access to a road or a bridge on payment of toll charges - What is covered under Negative list Category 8 129. Betting, gambling or lottery - What is covered under Negative list Category 9 130. Admission to entertainment events or access to amusement facilities - What is covered under Negative list Category 10 131. Transmission or distribution of electricity - What is covered under Negative list Category 11 132. Services relating to education - What is covered under Negative list Category 12 133. Service by way of renting of residential dwellings for use as residence - What is covered under Negative list Category 13 134. Financial sector - What is covered under Negative list Category 14 135. Services relating to transportation of passengers - What is covered under Negative list Category 15 136. Services relating to transportation of goods - What is covered under Negative list Category 16 137. Funeral services - What is covered under Negative list Category 17 137-P1-P18 Problems on Negative List
4 MEGA EXEMPTION NOTIFICATION 138. What are services given in Mega Exemption Notification 139-P1-P9 Problems on Mega Exemption Notification
65 75
5 PLACE OF PROVISION OF SERVICE 140. When is service provided outside taxable territory 141. What is basic rule of charge of service tax 142. What are specific provisions 143-P1-P4 Problems on Place of Provision of Service
82 83 84 90
6 COMPUTATION OF SERVICE TAX LIABILITY 144. How to compute service tax liability 145. How to determine value of taxable service 146. What are compounding schemes 147. When abatement is applicable 148-P1-P5 Problems
97 98 102 108 112
7 POINT OF TAXATION 150. Point of taxation - How to determine and its significance 151. What is general rule of determination of point of taxation 152. How to determine point of taxation in case of change in effective rate of tax 153. How to determine point of taxation where a service is taxed for the first time 154. How to determine point of taxation in the case of reverse charge mechanism 155. How to determine point of taxation in case of copyrights, etc. 156. How to determine point of taxation in other cases 157. What are special provisions for individual, firms, LLPs 158-P1-P5 Problems on Point of Taxation
118 119 121 124 126 127 127 128 128
8 REVERSE CHARGE MECHANISM 159. What is reverse charge mechanism
138
CONTENTS
160. What are cases covered by reverse charge mechanism 161. What are other essential points pertaining to reverse charge mechanism 162-P1-P9 Problems on Reverse Charge Mechanism
I-12 PAGE
138 140 142
9 SMALL SERVICE PROVIDER 164. 165. 166. 167.
Who is a small service provider Exemption available to small service provider - Is it optional How to calculate limit of Rs. 10 lakh in the preceding year Aggregate not exceeding Rs. 10 lakh in the current year - How to determine 168. Small service provider exemption - Is it available if tax is payable under reverse charge mechanism 169. How to compute limit of Rs. 10 lakh if tax is payable under reverse charge mechanism 170. Small service provider exemption - Is it available in case service provided under a brand name 171. What are Cenvat credit restrictions 172-P1-P5 Problems on Small Service Provider
What are main procedures and records What are provisions pertaining to returns When a person is liable for penalty under service tax What is Voluntary Compliance Encouragement Scheme, 2013 (VCES) What is role of chartered accountants What are challenges before the service tax administration in India Is there any electronic tax administration What is administrative mechanism of service tax
159 168 171 178 179 179 180 180
11 PROBLEMS ON SERVICE TAX 184-P1-P38 Problems on Service Tax
What is the background and justification of VAT What is tax on value added What are the benefits of VAT in brief What is the need for introducing VAT What are the merits of VAT Is there any demerit of VAT
211 213 214 214 214 217
13 INPUT TAX CREDIT AVAILABLE IN VAT 207. 208. 209. 210. 211. 212.
What is input tax credit Coverage of input tax credit - How to find out What is carrying over of tax credit What is treatment of exports What about inputs procured from other States What is input tax and output tax
221 222 225 226 226 227
14 DIFFERENT MODES OF COMPUTATION 214. What are variants of VAT 215. What are different modes of computation of VAT 216. Provision illustrated
228 229 230
15 PROCEDURES 218. What are provisions pertaining to compulsory issue of tax invoice, cash memo or bill 219. What are provisions regulating registration 220. What is composition scheme 221. What is Taxpayers Identification Number (TIN) 222. What are provisions regarding return 223. What is self-assessment of VAT liability 224. What is significance of audit
234 235 236 237 237 238 238
CONTENTS
225. 226. 227. 228. 229. 230. 231. 232.
What is declaration form What are other taxes What are penal provisions How many goods are covered under VAT What are VAT rates and classification of commodities What are records to be maintained What is status of VAT in special transactions How revenue losses be compensated
I-14 PAGE
239 239 239 239 239 240 240 244
16 PROBLEMS ON VAT 233-P1-P11 Problems on VAT
246
UNIT 3 CENTRAL EXCISE 17 LAW OF EXCISE DUTY IN BRIEF 301. Law of central excise 302. What are basic conditions for levy of excise duty 303. What are different types of excise duties
257 258 260
18 DEFINITIONS 306. Goods and excisable goods - How to define
263
307. Manufacture and manufacturer - How to define
265
19 VALUATION FOR CENTRAL EXCISE 310. What are different methods of calculation of excise duty payable 311. What is specific duty 312. Tariff value is fixed by Government - How to determine duty payable 313. What is valuation mode based upon maximum retail price 314. What is excise duty based on value under section 4 315. What is valuation based upon production capacity
271 271 272 272 276 283
I-15
CONTENTS
316. What is compounded levy scheme 317-P1-P7 Problems on Valuation for Central Excise
What is Cenvat What is availment and utilization of Cenvat credit What one should know before beginning study of Cenvat credit What are capital goods What are inputs What are input services What are the provisions of Cenvat credit specified in rule 3 What are conditions for claiming Cenvat credit under rule 4 What is the refund of Cenvat credit in rule 5 What are obligations under rule 6 for a person claiming Cenvat credit What is the manner of distribution of credit by input service distributor What are the provisions of rule 7A pertaining to distribution on credit on inputs 331. What are the provisions under rule 8 pertaining to storage of input outside factory 332. What are the provisions pertaining to documents and accounts
21 BASIC PROCEDURE 337. What are basic procedures 338. What are different returns under central excise 339. What are different export procedures
330 332 332
22 SMALL SCALE INDUSTRY AND JOB WORK 341. 342. 343. 344. 345. 346.
Who is eligible to be treated as small scale industrial unit Which articles are eligible for SSI exemption How to calculate limit of Rs. 4 crore/Rs. 1.5 crore What are procedural concessions given to SSI What is job work under central excise What are concessions/exemptions available in the case of job work
333 334 334 335 336 336
CONTENTS
UNIT 4
I-16 PAGE
CUSTOMS LAW 23 BASIC CONCEPTS OF CUSTOMS LAW 401. 402. 403. 404. 405.
What is background of customs law What are important definitions What are functions of Customs Department What are common features of customs and central excise What is taxable event for import/export of goods
341 342 344 344 345
24 TYPES OF CUSTOMS DUTY 408. What are different types of customs duties 409. What is basic customs duty 410. What is Countervailing Duty (CVD) 411. What is the special CVD to compensate sales tax/VAT 412. What is anti-dumping duty 413. What is safeguard duty 413A. What is protective duty
347 347 348 350 351 352 353
25 VALUATION 414. How to find out value for the purpose of Customs Act 415. How to find out transaction value 416. How to convert transaction value into Indian currency 417-P1-P3 Problems on Valuation and Computation of Customs Duty
What is self-assessment of customs duty What are import procedures What are export procedures What are provisions regulating baggage What are different exemptions from customs duty
