Indirect Taxes

Service Tax - Statute Update

Rajkamal Shah
CA.

• As regards to maintenance and furnishing of records under service tax, the CBEC has clarified as follows :

1. Records maintained for the purpose of various laws such as Income-tax Act, Companies Act, Cenvat Credit Rules, 2004, VAT is acceptable.

2. The amendment in rule does not cast any additional responsibility on tax-payers in terms of maintenance of records.

3. The list of records maintained is to be furnished once only and thereafter wherever there is change in the list.

4. The audit team or any authorized officer prior to the visit of the registered premises of an assessee should give prior intimation along with the list of documents he requires for the purpose of scrutiny, verification or audit.

5. The tax-payer should provide the records as required by the authorized officers within a period of 15 days from the date of request. If he is unable to produce any of the records called for within the stipulated period, he should inform the same along with the reasons for non-production of records and the authorized officers may grant further time for production of such records keeping in view the overall facts of the case.

6. Only such records should be demanded which is necessary for conducting such audit, scrutiny or verification.
   
   (Letter F.No. 137/26/2007-CX.4 dtd. 1-1-2008)

• In Letter F. No. 137/280/2007-CX-4 dated 17-12-2007, the Commissioner, CBEC, has intimated to the Commissioner of Central Excise, Thane 1, that renting of immovable property to Central Excise Office cannot be regarded as in furtherance of business or commerce and therefore it is not liable to pay service tax under the category of ‘Renting of Immovable Property’.