Corporate Updates – 28-06-2016

CBEC – Service Tax:

Ministry of Finance has vide notification exempted the entire service tax leviable on taxable services provided by way of transportation of goods by a vessel from outside India upto the customs station in India with respect to which the invoice for the service has been issued on or before the 31st May, 2016. However, the exemption is subject to the condition that the import manifest or import report required to be delivered under Section 30 of the Customs Act, 1962 has been delivered on or before 31st May, 2016 and the service provider or recipient produces Customs certified copy of such import manifest or import report.


CBDT has clarified the issue regarding the amended provisions of Section 206C (1D) of the Income Tax Act, 1961, which provides that collection at source will not be levied if the cash receipt does not exceed two lakh rupees even if the sale consideration exceeds two lakh rupees. Further, the Board has clarified that in case the payment is received partly in cash and partly in cheque and cash receipt is less than two lakh rupees, then no tax is required to be collected at source as per section 206C (1D).

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