Big 4 Consulting Company booked for allegedly evading service tax

the Appellate Tribunal was right in holding that the second reassessment proceedings were not validly initiated and thereby quashing the reassessment proceedings-the proceedings initiated by the AO for the second time under Section 147 is barred by limitation-even the proviso to Section 147 does not come into play on the facts of the case-AIT-2010-373-HC Even if the goods belong to same entry, manufacture does take place if new identifiable/marketable goods known in market emerge due to operation conducted-the process of ironing applied to the stiched brassieres prior to their packing was a process incidental to the completion of the brassieres as a manufactured product-process of purification and filtration being incidental or ancillary to the manufacture of a marketable product, the Respondent was entitled to Modvat credit on the inputs involved-AIT-2010-370-HC Larger Bench of CESTAT rules the Tribunal has ample power to condone the delay in filing the appeal including the one filed under section 35 E (4)-AIT-2010-372-CESTAT Corruption in IRS takes its toll-Deputy Commissioner of Income Tax Dhananjay Kumar arrested by CBI in Mumbai-Joint Commissioner of Customs & Excise Hemant Kothikar also arrested by CBI FM directs expediting of Cadre Restructuring in CBDT & CBEC Tariff Value for import of Brass Scrap is 3924-Customs Non-Tariff Notification No. 78 Chief Justice of Gauhati High Court Justice Ranjan Gogoi to be Chief Justice of Punjab & Haryana High Court Anti-dumping duty on imports of Acrylic Fibre originating in, or exported from Japan and Belarus-Customs Tariff Notification No.85 Prescribing SION for new product “Propylene” under Chemical & Allied Products Group-DGFT PN 7 Inclusion of Finished Leather in the Focus Product Scheme of FTP-DGFT PN 6 Exchange Rate for imported goods is Rs 47.25 per US Dollar and Rs 60.35 per EURO-Exchange Rate for export goods is Rs 46.30 per US Dollar and Rs 58.70 per EURO-Customs Non-Tariff Notification No. 77-Click on Exchange Rate for details Anti Dumping Duty under the Notification No.15/2007 is not applicable to Spandex Yarn (Elastomeric yarn)-Customs Circular No.30 Import of goods under Notification No.13/2010 for Commonwealth Games, 2010-Customs Circular No.31 Larger Bench of CESTAT rules charges towards pre-delivery inspection and after-sale-service by dealers from buyers of the cars to be included in the assessable value of cars for payment of excise duty-AIT-2010-366-CESTAT merely because there was non accounting of goods, penalty was technical and inference of clandestine removal was not called for-AIT-2010-365-HC ITAT rules provision for doubtful debts and provision for standard debts are to be taken into consideration for computation of book profit u/s. 115JB of the IT Act-AIT-2010-361-ITAT HC rules slitting of aluminum foils into customized width, mounting the same on the printing machine and thereafter printing the necessary text thereon is covered for 80IB benefit as it falls within the ambit of the term “produce”-AIT-2010-363-HC Definitive Anti-dumping duty imposed on imports of Coumarin, originating in, or exported from China-Customs Tariff Notification No. 82 Special Bench of ITAT Ruling-where a forward contract is entered into by the assessee to sell the foreign currency at an agreed price at a future date falling beyond the last date of accounting period, the loss is incurred to the assessee on account of evaluation of the contract on the last date of the accounting period i.e. before the date of maturity of the forward contract-AIT-2010-355-ITAT-SB

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Big 4 Consulting Company booked for allegedly evading service tax

AIT News Network

NEW DELHI. Nothing could be worse news for a Big 4 Consulting Company, known as Top Tax Advisor to MNCs; and which claims to have hired a team of over 10 dozen “great” Tax Experts on Compensation ranging upto Rs 2 Crore Per Annum; itself being booked by the Service Tax Department for allegedly evading service tax which is said to be in the range of around Rs 10 Crore on various taxable services provided by it. Though the Company is advising over 200 MNCs based in India; who have signed a global mandate for Tax Advisory Services at the rates ranging from Rs 5000/- to Rs 20000/- Per Hour; through its offices located at Delhi, Gurgaon, Mumbai, Kolkata, Chennai and Bangalore etc.; the Company is said to be seeking Consultancy from outside Experts as the stake and the reputation involved are high.

· Several IRS Officers have also recently resigned and joined the said Consulting Company as Tax Consultant and have been hired on Packages which are said to be in the Range of Rs 25 Lakh to Rs 50 Lakh Per Annum.

· The efforts were made by Allindiantaxes to contact Mr VK Garg ,Commissioner of Service Tax, Delhi to ascertain the exact nature of investigations and allegations against the Big 4 Consulting Company but he was reported to be on leave. Mrs Sandhya Baliga Commissioner of Central Excise Delhi-II who is temporarily holding the charge of Commissioner of Service Tax was also not available for her comments on the development.

· Further, no Press Release has yet been issued by CBEC on the issue though the Top Brass of Finance Ministry has already taken a serious note of the development according to sources and it is contemplating issue of instructions to keep all Big Consulting Companies under Service Tax scanner. According to CBEC several Companies providing merger and acquisition advisory services are liable to pay service tax under notified taxable service of “Business and Management Consultancy” whereas only few companies are said to have paid service tax under the said category claiming that they are not Business or Management Consultant and thus , are not liable to pay service tax. Further, Royalty payment by MNC Companies to their Parents is also under the watch of service tax.

· Some Companies have already started soul searching and are doing in-house deliberation to voluntarily pay service tax along with the interest of 13 per cent on services rendered by them and not paid by them, before the service tax department knocks at their door with search warrant. But service tax department is going to rake in a moolah after investigations as aggregate gross billing of Big Consulting Companies is said to be over Rs 500 Crore. The cost of compensation paid by the Companies to their 300 odd Partners itself is between Rs 50 lakh to Rs 2 Crore per Partner. Even if a small percentage of the gross billing of the Companies is subject to service tax; the Revenue is going to garner a handsome figure without engaging any Consultant.