Article in this June 2013 issue of Tax Amicus discusses in detail service tax liability in the case of cross border provision of service. As per the article, cross border services entailing presence of an intermediary may unnecessarily suffer service tax because the provisions are not clear. Under Customs section, this issue covers CBEC Circular on classification of tablet computers and disposable sterilized dialyser & microbarrier for filtering blood; and DGFT clarification on deemed export benefits for supplies to projects enjoying zero Customs duty. Madras High Court has held that there is no conflict between Para 2.17 of FTP and Para 2.33 of the HBP in the case of import of second-hand multi-function printing and copying machines. Exemption from excise duty has been granted to goods cleared to duty free shops located in arrival terminals of international airports.
'Ratio decidendi' under Central Excise covers various CESTAT and High Court decisions on issues pertaining to different propositions under Cenvat credit and refund provisions. Service tax portion covers highlights of recently notified Service Tax Voluntary Compliance Encouragement Rules, 2013 and Delhi High Court Order holding that direct expenditure incurred by assessee can never be added to professional fees charged and paid by clients. Under VAT, Allahabad High Court has held that UP Entry Tax is not imposable on local sales. Income Tax section of this Amicus covers Uttarakhand High Court decision holding that due date in Section 36(1)(va) for crediting PF amount should be read to mean due date for filing return of income.