Broad guidelines on review on ‘(a) Rent-a-cab scheme ...cagofindia.delhi.nic.in/.../indt_tax/ser_tax/Guidelines-Servicetax.pdf · Service tax on ‘Rent-a-cab scheme ... chronic

Broad guidelines on review on ‘(a) Rent-a-cab scheme operator’s services; (b) Photography services; and (c) Health club and fitness centre services’

1. Introduction

(a) Rent-a-cab scheme operator’s services

Service tax on ‘Rent-a-cab scheme operator’s services’ was levied with effect from 16 July 1997. As per Section 65(91) of the Finance Act, 1994, ‘Rent-a-cab scheme operator’s’ means any person engaged in the business of renting of cabs. This service was completely exempted vide Notification No.3/99, dated 28 February 1999 till 31 March 2000. It, therefore, implies that service tax was applicable from 16 July 1997 to 27 February 1999 and from 1 April 2000 onwards. As per Section 65(20) of Finance Act, 1994, read with Section 2(22) and 2(25) of Motor Vehicles Act, 1988 the definition of ‘Cab’ includes ‘Motor Cab’ or ‘Maxi Cabs’. As per Section 2(22) and 2(25) of the Motor Vehicles Act, 1988, a Motor Cab is defined as any motor vehicle constructed or adapted to carry not more than six passengers excluding the driver for hire or reward, and Maxi Cabs means ‘any motor vehicle constructed or adapted to carry more than six passengers, but not more than 12 passengers excluding the driver, for hire or reward.

Any person who gives his vehicles viz. Car/Taxi/Van to a third person for the purpose of local transport is also covered under the Rent-a-cab scheme operator. The taxable service rendered by a Rent-a-cab scheme operator means any service provided to any person by a Rent-a-cab scheme operator in relation to the renting of a cab.

The value of taxable service in relation to the service provided by a Rent-a-cab scheme operator to any customer shall be the gross amount charged by such operator from such customer for services in relation to the renting of a cab and include the rental so charged.

The Board had clarified that no service tax is payable by a person sub-letting his cab to another operator provided such an operator had paid service tax.

Abatement of 60 percent of gross amount charged by the service provider is allowed with effect from 9 July 2004 vide Notification No.9/2004. Charges for providing extra facilities like providing services of driver, TV, audio system etc. are includible in taxable value as per Board’s circular dated 11 July 1997.

(b) Photography services

Service tax on ‘Photography services’ was levied with effect from 16 July 2001. As per Section 65(78) of the Finance Act, 1994, Photography includes still photography, motion picture photography, laser photography, aerial photography and fluorescent photography. The taxable service as per section 65(105), means any service provided to a customer, by a photography studio or agency in relation to photography, in any manner, Photography studio or agency has been defined as ‘any

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professional photographer or a commercial concern engaged in the business of rendering service relating to photography’ - Section 65(79).

The photography services are rendered by still photography studios, still films processing laboratories, cinematographic studios/labs who undertake motion picture photography and processing of cine films, holography studios (laser photography) that make holograms, aerial photographers, industrial photographers, etc.

The taxable value shall be the gross amount charged by the service provider. This would also include an amount paid in advance. The Board had clarified vide circular dated 9 July 2001 that cost of photographic paper, chemical etc. is not deductible from taxable value.

Laboratories providing services of X-ray/CT scan do not come within the purview of service tax as clarified by the Board vide circular dated 27 December 2001.

The Board had also clarified vide the said circular that the collection centre which collect exposed film and get it developed from processing laboratories do not undertake any activity under photography and hence not liable to tax.

(c) Health club and fitness centre services

Service tax on ‘Health club and fitness centre services’ was levied with effect from 16 August 2002. As per Section 65(51) of the Finance Act, 1994, ‘health and fitness services’ means physical well being service such as sauna and steam bath, turkish bath, solarium, spas, reducing or slimming saloons, gymnasium, yoga, meditation, massage (excluding therapeutic massage) or any other like service. As per [Section 65(52)], ‘Health club and fitness centre’ means any establishment including a hotel or a resort, providing health and fitness service. If the hotel or resort charges specifically for use of such facilities only then service tax will be payable on such charges being separately recovered.

Health and fitness services are provided by clubs, fitness centres, health saloons, hotels, gymnasium and massage centres. The services which fall under this category might be for weight reduction and slimming, physical fitness, gyms, aerobics, yoga, meditation, reiki, sauna and steam bath. Turkish bath, sun bath and massage for general well being. However therapeutic massage does not come in the ambit of taxable service. Therapeutic massage basically means a massage provided by qualified professionals under medical supervision for curing diseases such as arthritis, chronic low back pain and sciatica etc. Ayurvedic massages, acupressure therapy etc given by qualified professionals under medical supervision for curing diseases/disorders will come under the category of therapeutic massages. If the massage is performed without any medical supervision or advice but for the general physical well being of a person, such massages do not come under the purview of therapeutic massages and they would be liable to service tax.

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Monthly/periodical membership fee charged is includible in taxable value. However no service tax was payable on fees collected prior to 16 August 2002.

The institutes imparting diploma course in yoga are not covered under this category as clarified by the Board (August 2002).

Rate of Service Tax

Service tax is chargeable on the above services as a percentage of the value of the taxable service. The rates are as under: -

Prior to 14 May 2003 5 per cent

During 14 May 2003 to 9 September 2004 8 per cent

With effect from 10 September 2004 10.2 per cent (ST 10 per cent, education cess 2 per cent of ST)

Copies of some of the important notifications/circulars are enclosed as Annexure A. These are in no way exhaustive and complete. The relevant publications on service tax may, therefore, be studied before conducting review.

2. Audit objectives

It is proposed to derive assurance in audit that there is : -

(i) adequacy of monitoring mechanism devised to ensure that all potential assessees providing – (a) Rent-a-cab scheme operator’s services; (b) Photography services; and (c) Health club and fitness centre services have been brought into the service tax net.

(ii) the tax administration is efficient and effective in ensuring compliance to the rules and legislations.

(iii) the internal controls devised for strengthening service tax administration are in place.

3. Statistical information

Statistical information may be collected as per Annexure B-I. The information so collected from Commissioners may also be consolidated Chief Commissionerate-wise. Percentage growth of these services may be worked out as per Annexure B-II.

4. Sample for review

The number of service providers in this service may vary from Commissionerate to Commissionerate, depending upon the level of industrial development, scope for the said services and the location of big cities, etc. The Accountants General/Pr. Directors of Audit may, therefore, select the quantum of

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sample at their discretion. All service tax Commissionerates created separately vide Notification dated 14 September 2004 should be covered in the sample. The period of review may be from the dates on which service tax on these services were levied to March 2006.

For the purpose of conducting pilot study, adequate number of cases may be selected so as to bring out the main issues which could be focused upon and highlighted in the review. The findings of pilot study may be sent by 1 September 2006. These would be discussed in the regional seminars to be held in September 2006, in which only selected field offices would participate. In the light of experience gained in these regional seminars, additional guidelines on the sample size and emerging issues to be examined for inclusion in the review would be issued.

5. Broad Issues

5.1 Registration

Section 69 of the Finance Act prescribes that every person liable to pay the service tax shall make an application for registration to the superintendent of Central Excise. After the amendment in Section 69, vide Finance Act, 2005, the following persons are also required to get themselves registered with effect from 13 May 2005: -

(a) input service distributor as defined under Rule 2(k) of Cenvat Credit Rules, 2004;

(b) any provider of taxable service whose aggregate value of taxable service from all taxable services and from all premises in a financial year exceeds Rs.3 lakh.

Rule 4 of the Service Tax Rules details the procedure for such registration providing that the application must be made in Form ST-1 within a period of 30 days of the service tax becoming leviable vide notification dated 20 October 2003 new Form ST-1 has been prescribed..

The Audit scrutiny will cover the following: -

(i) It may be seen in audit whether application for registration has been obtained in new form and whether all the columns of new form have been fulfilled.

(ii) Whether the department has evolved a mechanism to identify potential assessees or there is a tendency to rely on voluntary compliance on the part of assessees. The Director General, Service Tax (Mumbai), being apex authority has been issuing instructions from time to time for collecting intelligence, conducting surveys for identification of unregistered service providers.

(iii) Audit may ascertain whether the instructions of Director General (Service Tax), Mumbai dated 26 May 2003 were being followed vigorously during the year 2005-06 or there has been or slow down in carrying out surveys. The

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Director General (Service Tax) in his performance report for the year 2004-05 have highlighted the achievement of issue of fresh registration to new service tax providers during the year 2004-05 in the course of instant registration without any penalty ‘street surveys schemes’. The instructions issued by the Board/Director General (Service Tax) on these schemes may be studied and this project plan of Director General (Service Tax) critically examined. The details may be collected as per Annexure C-I.

(iv) Prior to amendment of Section 82, the Commissioner of Central Excise was empowered for search alone and not for seizure. After amendment in Section 82 with effect from 16 August 2003, the Commissioner of Central Excise has been vested with the power to search premises and seize documents. The Director General (Service Tax), Mumbai, vide his D.O. letter dated 27 June 2003 has instructed the Commissioners to exercise this power in effective and meaningful way.

The action taken by the selected Commissionerates in so far as these services were concerned may be analysed and the information collected as per Annexure C-II.

(v) In view of amendment in Section 69 as discussed in Para 5.1, it may be seen in audit whether service providers whose aggregate value of taxable service exceeded Rs.3 lakh in a financial year had got themselves registered. It may be seen in audit as to how many of those service providers who had obtained exemption from service tax on account of aggregate value of taxable service not exceeding Rs.4 lakh vide Notification No.6/2005-ST, dated 1 March 2005 have got themselves registered with effect from 13 May 2005. The value of taxable service prior to their exemption may be analysed. The case of non-registration of service providers whose taxable service would have been in the range of Rs.3 lakh to Rs.4 lakh based on their past value of taxable service may be highlighted.

(vi) The penalty under section 75A (with effect from 16 July 2001 to 9 September 2004) was leviable on the new assessees who had registered themselves after a gap of certain period. After withdrawal of Section 75A the penalty is still leviable with effect from 10 September 2004 under substituted Section 77, it may be verified whether this penalty was levied during the period after 10 September 2004 in question on defaulters.

The details may be collected as per Annexure C-III, C-IV and C-V.

5.2 Cases of non-registration to be highlighted by Audit

In view the definition of – (a) Rent-a-cab scheme operator’s services; (b) Photography services; and (c) Health club and fitness centre services and the kind of activities covered under these services, only big and well organised service providers may have been paying income tax. Apart from the usual source of information such

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as income tax returns (in consultation with income tax audit wing), yellow pages, internet, local newspapers, advertisement through local TV channels etc., other unconventional sources for information relevant to each of these services will, therefore, also have to be accessed. Some of the sources for information, service-wise, are discussed below: -

Rent-a-cab scheme operator

The records of registration authorities may be examined in consultation with State receipt audit wing dealing with Motor Vehicle taxes to see whether two or more vehicles have been registered for commercial purpose in the name of same person and whether that person is registered as service provider. If only one vehicle is registered it may be possible that persons would himself be operating taxi. In that case it is doubtful whether he would be covered under the definition of rent-a-cab scheme operator. The license/permit to ply vehicle locally or inter-city routes by local authority/Transport department could also be vital source of information to ascertain the extent of non-registration. In the course of regular audit of the units, the records relating to fixing of vehicles may also be seen and information passed on to the review party for follow-up action.

The services are provided by a service provider under ‘rent a cab’ category to the Public Sector Undertakings and autonomous bodies, Central/State Government and other agencies.

The accounts of most of the undertaking/autonomous bodies are computerized. It is therefore possible to retrieve information with regard to amount paid to service producers. The information in the proforma (Annexure I) may be obtained. The information so received be verified with the Service Tax Commissionerate to find out whether the said service provider are registered and the amount of tax paid is correct. Non levy/short levy of service tax be commented upon.

Mobile phone companies may have launched special schemes to bulk purchasers for call taxis. The records of mobile phone companies in this connection could be of help in identification of call taxis and to check whether these call taxis are registered and paying service tax appropriately.

Photography services

(i) It may be seen whether photography studios are required to be registered under the Local/Municipal Act or provisions. If so, such cases may be co-related with records of excise department.

(ii) If possible, the data on the number of marriages performed/social function held may be collected from various source such as Banquet hall, community hall, local body etc. and the normal rate of covering such events assessed and applied for highlighting the evasion by non-registered service providers.

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Health and fitness services

(i) It may be seen whether health club and fitness Centres are required to be statutorily registered. If so, the records of local authority may be seen.

(ii) Advertisement in local newspapers, internet regarding the opening/functioning of health club and fitness centre may be seen.

(iii) It may be seen in audit whether the high profile registered clubs are charging separately for these services.

(iv) It may also be seen for the Income Tax Returns/Sales Tax Returns of the Hotels and Resorts whether they are charging separately for providing these services to their guests. Catalogues/brochures of these hotels and resorts could be of help.

In the big cities, there are lot of service providers engaged in providing the above services to clients. Such un-registered service providers could be identified.

In case the amount of service tax evaded by identified un-registered service providers could not be worked out on the basis of Income Tax records/other secondary records, the same may be estimated on the basis of average revenue yield for registered service providers.

The extent of evasion of service tax due to non-registration of service providers may be worked out as per Annexure D-I, D-II and D-III.

5.3 Returns

Section 70(1) (existing Section 70 re-numbered as sub-section (1) by Finance Act, 2005 with effect from 13 May 2005) requires every person liable to pay service tax to assess the tax due on services provided by himself and furnish to the Superintendent of Central Excise a return in ST-3 form, every half year, by 25th of the month following the particular half year.

Section 70(2) (inserted with effect from 13 May 2005) requires every notified person to furnish a return to the Superintendent of Central Excise. No proper form appears to have been devised for submission of return. The return being filed by this category of service provider and mechanism devised by Department to monitor their return may be critically examined and highlighted in the review.

Evaluation of Internal Controls

The following points may be examined: -

Form ST-3 have been substituted by new form vide Notification No.31/2005-Service Tax, dated 20 October 2005. It may be seen whether for the half year ended September 2005 return was filed in the substituted form. It may also be seen in audit

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whether information required to be filed in the new form is adequate for the purpose of scrutiny of the return.

(a) Whether all the registered persons have been filing returns regularly.

(b) Cases of non-submission of return by the registered assessees and action taken by the department thereon such as issue of show cause notices, adjudication and levy of penalty, etc.

In respect of sufficient number of cases where the assessees have not furnished any return/stopped furnishing return after registration, it may be independently verified in co-ordination with the Income Tax Wing or other subsidiary records as discussed in para 5.2, whether these persons were still rendering services to the clients. The extent of evasion of service tax by these persons may be worked out on the basis of their Income Tax returns/other subsidiary records.

The information may be collected as per Annexure E-I and E-II.

(c) As per Section 77 (prior to its substitution with effect from 10 September 2004), if a person fails to furnish in due time the return he would be liable to a penalty (not exceeding one thousand rupees with effect from 16 July 2001). However, as per Section 80, no penalty is leviable if the assessee proves that there was reasonable cause for the said failure. Penalty for failure to furnish the return in due time would also be leviable under the substituted Section 77 with effect from 10 September 2004.

It may be verified whether the department has taken any action for levy of penalty on non-receipt/delayed receipt of return. Failure of the department to monitor the receipt of return may be highlighted and amount of penalty not levied on such delays worked out as per Annexure F.

List of books of accounts maintained by the assessee is required to be annexed alongwith the service tax return filed for the first time.

It may be seen in audit whether the Department have monitored the receipt of list of books of accounts.

5.4 Assessment

From 16 July 2001 onwards, self assessment procedure has been introduced under which every person liable for service tax shall himself assess the tax and furnishes to the Superintendent of Central Excise a half yearly return in form ST-3. In view of the amended provisions, the superintendent shall not be required to pass any order of the assessment. Section 71 empowering the Superintendent of Central Excise to call for further information/document from the assessee and Section 72 empowering the Assistant/Deputy Commissioner to make best judgement assessment have been omitted by the Finance Act, 2004 with effect from 10 September 2004. Section 73 has also been substituted with effect from 10 September 2004. This means

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there were no provisions either in Act or in the Rules whereby the Department could have an access to the records of the assessee till 1 March 2006 when Rule 4 of Service Tax Rules, 1994 was amended. As per the inserted new sub-rule 4 of Rule 4 (inserted vide Notification No.5/2006–Service Tax dated 1 March 2006) the departmental officer can inspect the records at the premises of the assessee.

The provisions of Section 73 are in line of Section 11A of the Central Excise Act, 1944. As per section 78 of the Finance Act, 1994 (substituted by Finance Act, 2004 with effect from 10 September 2004) when any person suppresses or conceals the value of taxable services with an intent to evade the payment of service tax or raises the inaccurate value of taxable service such person shall be liable to a penalty in addition to service tax and interest, a sum which shall not be less than, but which should not exceed twice the amount of service tax sought to be evaded.

In case the service tax as determined is paid within thirty days the amount of penalty liable to be paid would be twenty five per cent of the service tax.

Evaluation of Internal controls

The effectiveness of the internal control mechanism devised by department may be checked and following points seen: -

(a) Adequacy of the information available in revised prescribed return.

(b) The impact of withdrawal of Section 71 and Section 72 on the scrutiny of returns by Department.

(c) The methodology/mechanism devised by Department to ensure that the assessee has correctly assessed the tax liability.

(d) Whether the returns were being checked after 16 July 2001 and the efficacy of the new procedure.

(e) Whether notices (within one year or 5 years as the case may) were issued under substituted Section 73 and action taken for finalization of adjudication process. The delay in finalization of adjudication process analyzed, particularly when the time limit in line with Section 11A of Central Excise Act, 1944 has not been laid down.

(f) Fast track disposal scheme for service tax adjudication may be analysed and suitable comments made on the working of this scheme.

(g) Whether action for levy of penalty under Section 78 taken.

(h) Whether the penalty was waived only after the condition as laid down in Section 80 was satisfied.

The information may be collected as per Annexure G and H.

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5.5 Over-all internal control mechanism in administration of service tax

(a) In order to effectively monitor the collection of service tax, Director General (Service Tax) have been issuing instructions from time to time.

In the light of these instructions it may be seen in audit: -

(i) Whether the officers posted in the service tax cell are being retained there for at least one year.

(ii) Whether the special cell for building up complete and upto date database in respect of potential service tax assessees has been created in the Divisions. If so, the progress made in building up database.

(iii) Whether similar cell created in the Commissionerates and effectiveness of the cell in generation and maintenance of database.

(iv) The impact of maintenance of database in terms of increasing the revenue.

(v) Whether fortnightly reports on the progress made in increasing tax base are being regularly furnished by Divisions to Commissioners and from Commissioners to Chief Commissioner.

(vi) Whether the quarterly reporting system for monitoring the pendency in scrutiny of ST-3 returns and adjudication system introduced. Its effectiveness in reduction of pendencies. Suitable proforma for collection of information may be devised for adoption in regional seminar.

Directorate of System, Chennai has released off-line package ‘Service Tax Revenue Monitoring System (STREMS) in 2003. Tamil Nadu may obtain a write up on this package and circulate to all the field offices for follow-up action under intimation to Headquarters.

(b) On the recommendations of Director General of Service Tax, the Government of India have created six exclusive service Tax Commissionerates at Mumbai, Delhi, Chennai, Kolkata, Bangalore and Ahmedabad with effect from 18 May 2004.

In this connection it may been seen in audit: -

(i) Whether these Commissionerates have started functioning and from which date.

(ii) Whether the suggestions made by Director General of Service Tax in his letter dated 9 July 2004 for meeting the staff requirements for newly formed Commissionerates have been met and the extent of shortage in staff.

(iii) The efficiency of these newly created Commissionerates in augmenting the service tax revenue. The revenue realized prior to creation of

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Commissionerates with revenue realised after creation may be analysed after taking into the revenue for new services covered after 18 May 2004.

(iv) Whether all the relevant records have been transferred to newly created Commissionerates.

5.6 Initiative by Audit

Gross receipt as shown in ST-3 returns may be cross verified in as many cases as possible with the amount of receipts exhibited by the assessees in their Income Tax returns in co-ordination with Income Tax Audit Wing or from other subsidiary records after taking into consideration the types of services includible in the gross amount. The methodology discussed in Para 5.2 may also be applied to the extent possible. The cases of undervaluation and short payment of service tax detected as a result thereof may be highlighted. The extent of abatement of 60 per cent to rent-a-cab operators scheme may be examined and comments on reasonableness of the abatement to the extent of 60 per furnished. The calculation of service tax upto 8 July 2004 may also be checked accordingly.

The information may be collected as per Annexure J-I and J-II.

5.7 Local audit of the records of assessees

In case it is desired to scrutinize the commercial records of some of the assessees on the basis of their ST-3 returns or some other solid information, prior permission of headquarters justifying the need for such an examination may be obtained.

5.8 Appeals

Under Section 85, an assessee can appeal to Commissioner of Central Excise (Appeals) against an assessment order passed by Assistant Commissioner/Deputy Commissioner within three months from the receipt of the assessment order.

The pendency of appeals may be examined in Audit.

Information may be collected as per Annexure K.

5.9 PAN based registration

The Central Board of Excise and Customs had issued circular in August 2001 with a view to issuing unique code number based on PAN. The work was to be completed by 15 November 2001. The Director General (Service Tax) in his Performance Report for the year 2004-05 have stated that scheme of allotment of PAN based registration numbers and allotment of STC codes has been properly implemented in most of the Commissionerates all over India.

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The extent of completion of this work may be examined and deficiency highlighted.

Information in Annexure L-I and L-II obtained.

Annexure B-I

Details of service tax collections in respect of Commissionerates/Divisions

Name of the service (a) Rent-a-cab scheme operator’s services

Commissionerate _______________________________

(Amount in lakh of rupees) 16.07.1997 to

27.02.1999 2000-2001 2001-2002 2002-2003 2003-04 2004-05 2005-06

Total no. of service providers registered

Revenue Total no. of service providers registered






Revenue

(1) (2) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18)

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Annexure B-I


Name of the service (b) Photography services


(Amount in lakh of rupees) July 2001 to March 2002 2002-2003 2003-04 2004-05 2005-06






Revenue

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

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Annexure B-I


Name of the service (c) Health club and fitness centre services


(Amount in lakh of rupees) 16 August 2002 to March

2003 2003-04 2004-05 2005-06





Revenue

(1) (2) (3) (4) (5) (6) (7) (8)

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Annexure B-II

Details of percentage growth with (+) or (-) over previous year in respect of

Name of Service (a) Rent-a-cab scheme operator’s services

Commissionerate _________________________________

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

(1) (2) (3) (4) (5) (6)

Note: Separate details for each service.

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Annexure B-II


Name of Service (b) Photography services

Commissionerate ___________________

2002-03 2003-04 2004-05 2005-06

(1) (2) (3) (4)


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Annexure B-II


Name of Service (c) Health club and fitness centre services

Commissionerate ___________________

2003-04 2004-05 2005-06

(1) (2) (3)


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Annexure C-I

Details of surveys carried out by range offices (selected)

Name of the Service (a) Rent-a-cab scheme operator’s services



Commissionerate _______________________________________

(Amount in lakh of rupees)

Sl. No. Range Name of service

No. of surveys carried out

No. of persons evading service tax identified

No. of persons issued registration (out of 5)

Addl. Revenue realised as a result upto 30.09.2006

Out of Column (7) additional revenue from service

Remarks

2004-05 2005-06 2004-05 2005-06 2004-05 2005-06 2004-05 2005-06 No. of persons Revenue

(1) (2) (3) (4) (5) (6) (7) (8) (9)

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Annexure C-II

Details of search and seizure (selected Commissionerates)






Sl. No. Name of service Year No. of searches No. of seizures No. of SCN issued Amount of service tax involved Remarks

(1) (2) (3) (4) (5) (6) (7) (8)

2005-06

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Annexure C-III

Details of un-registered service providers whose value of taxable service exceeded Rs.3 lakh

Name of the Service Details of service tax collections in respect of Commissionerates/Divisions




Commissionerate ______________________________


Sl. No.

Name of service

Period (13.5.2005 to 31.03.2006)

No. of assessees who failed to get themselves registered within the prescribed time

Amount of penalty

(1) (2) (3) (4) (5)

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Annexure C-IV

Details of penalty leviable under section 75A for the period from 16 July 1997 to 9 September 2004 (selected Commissionerates)






Sl. No.

Name of service

Period (16.07.2001 to 09.09.2004)


Amount of penalty

Leviable Levied Recoverable

(1) (2) (3) (4) (5) (6) (7)

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Annexure C-V

Details of penalty leviable under section 77 (selected Commissionerates)






Sl. No. Name of service Period (10.09.2004 to 31.03.2006)


Amount of penalty

Leviable Levied Recoverable

(1) (2) (3) (4) (5) (6) (7)

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Annexure D-I

Details of cases of non-registration






Sl. No.

Name of the service provider

Source of information

Gross receipts as per income tax returns

Service Tax payable

Interest Penalty Remarks

Period Amount One and one half % for every month upto 15.07.2001

@24% from 16.07.2001

@15% from 16.08.2002

13% from 16.08.2004

(1) (2) (3) (4) (5) (6) (7) (8)

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Annexure D-II

Details of cases of non-registration






Sl. No.


Source of information

Gross receipts as per other secondary records

Service Tax payable



@24% from 16.07.2001

@15% from 16.08.2002

@13% from 16.08.2004

(1) (2) (3) (4) (5) (6) (7) (8)

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Annexure D-III

Estimation of the service tax loss






Period No. of un-registered service providers identified*

No. of registered service providers

Total revenue during the year

Average revenue yield for registered service provider

Remarks

(1) (2) (3) (4) (5) (6)

2004-05

2005-06

Note: Other than those un-registered service providers in respect of which revenue loss has been worked out by verification of income tax returns/other subsidiary records.

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Annexure E-I

Details of non-submission of returns and the amount of service tax not paid (as per income tax records)





(Amount in lakh of rupees) Sl. No.

No. of the assessees

Period of non-submission of return

Gross value of services provided as per income tax returns

Service Tax payable



@24% from 16.07.2001

@15% from 16.08.2002

@13% from 16.08.2004

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)

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Annexure E-II

Details of non-submission of returns and the amount of service tax not paid (as per secondary records)






Sl. No.

No. of the assessees

Period of non-submission of return

Gross value of services provided as per secondary records

Service Tax payable



@24% from 16.07.2001

@15% from 16.08.2002

@13% from 16.08.2004

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)

Note: Names of the assessees may be furnished separately as key document

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Annexure F

Details of non filing of returns and penalty




Commissionerate _________________________________ (Amount in lakh of rupees)

Sl. No.

Period No. of assessee registered

No. of returns due

No. of returns received

Returns received by due date

Returns not received

Returns received late

Amount of penalty

Leviable Levied Recoverable(1) (2) (3) (4) (5) (6) (7)` (8) (9) (10) (11)

Upto 2003-04

01.04.2004 to 09.09.2004

10.09.2004 to 31.03.2005

01.04.2005 to 31.03.2006

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Annexure G

Details of returns checked after 16 July 2001






Sl. No.

Year No. ofreturns received

Returns checked Returns pending checking

No. of cases where further information/documents were called for till 9 September 2004 under Section 71

Additional demand raised Details of recovery

Within threemonths

After three months

No. ofdemands

Amt. Interest Penalty No. ofdemands

Amt. Interest Penalty

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)

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Annexure H

Delay in adjudication






(i) Sl.No.

No. of SCN issued upto 09.09.2004 under Section 73

Total amount involved

SCN adjudicated within six months

SCN adjudicated within one year

SCN adjudicated after more than one year

SCN pending (as on 30.09.2006)

No. Amount No. Amount No. Amount No. Amount

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

(ii) Sl.No.

No. of SCN issued under substituted section 73 from 10 September 2004 to 31 March 2005

Total amount involved

SCN adjudicated within six months

SCN adjudicated within one year

SCN adjudicated after more than one year

SCN pending (as on 30.09.2006)

No. Amount No. Amount No. Amount No. Amount

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

31

Annexure H (Contd.)

Age-wise analysis of pending show cause notices


Age No. Amount

(i) More than two years

(ii) More than one year

(iii) Less than one year

32

Annexure J-I

Details of undervaluation







Period Grossreceipt as per ST-3

Gross receipts as per income tax returns

Service Tax paid

Service Tax payable

Service Tax short paid

Interest Penalty

One and one half % every month upto 15.07.2001

@24% from 16.07.2001

@15% from 16.08.2002

@13% from 16.08.2004

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)

33

Annexure J-II

Details of undervaluation







Period Gross receipt asper ST-3

Gross receipts as per other subsidiary records

Service Tax paid

Service Tax payable

Service Tax short paid

Interest Penalty

One and one half % every month upto 15.07.2001

@24% from 16.07.2001

@15% from 16.08.2002

@13% from 16.08.2004

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)

34

Annexure K

Details of appeals pending with CCE (Appeals)






Sl. No.

Appeals pending with CCE (Appeals) as on 01.04.2005

Decided in favour of Department

Assessee gone in appeal to CEGAT (out of 4)

Against the Department

Appeal pending as on 01.04.2006

Remarks

2005-2006 2005-06

No. Amount No. Amount No. Amount No. Amount No. Amount

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)

35

Annexure L-I

Internal control mechanism




Name/Number of Commissionerates/Divisions

No. of assessee registered as on 31.03.2006

No. of cases where STC number based on PAN not allotted by department

Remarks

(1) (2) (3) (4)

36

Annexure L-II

Internal control mechanism




Name/Number of Commissionerates/Divisions

Whether special cell created

No. of assessee registered as on 31.03.2006

No. of assessee in respect of which database not created

Remarks

(1) (2) (3) (4) (5)

37

Annexure I

Details of payment made to service provider – Rent-a-cab/Photography


Sl. No.


Address of the service provider

ST registration No.

Bill No.

Bill date

Value as per invoice

Amount paid

Abatement claimed and ST paid

Date of payment

Vehicle registration No.

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

38

Documents

Broad guidelines on review on ‘(a) Rent-a-cab scheme ...cagofindia.delhi.nic.in/.../indt_tax/ser_tax/Guidelines-Servicetax.pdf · Service tax on ‘Rent-a-cab scheme ... chronic