RIICO exempted from service tax; SMEs may benefit
Updated: Apr 09, 2014 05:27:23pm
Jaipur, Apr 9 (KNN) Rajasthan State Industrial Development and Investment Corporation Limited (RIICO) has been exempted from service tax as per the new notification of the central government, consequent upon which the money paid to it on account of conversion of land, transfer and maintenance of land, etc will not be subject to service tax.
The development has an implication for the industrial units located in the estates developed by RIICO.
“In view of this and the opinions received from tax consultants, the management of the corporation has decided to stop recovering and depositing service tax on all heads pertaining to infrastructure activities (as covered under functions entrusted to municipality) excepting ‘rent’ and ‘testing charges’ henceforth,” it said.
However, service tax will be required to be paid for the services falling under ‘reverse charge mechanism,’ it added.
RICCO has therefore asked all concerned not to collect and deposit service tax, henceforth on all heads of incomes pertaining to infrastructure activities excepting ‘rent’ and ‘testing charges.’
The recoveries of service tax effected for infra heads during the month of March 2014 need not be deposited now with the service tax department in view of the decision taken. (KNN/ES)
The development has an implication for the industrial units located in the estates developed by RIICO.
“In view of this and the opinions received from tax consultants, the management of the corporation has decided to stop recovering and depositing service tax on all heads pertaining to infrastructure activities (as covered under functions entrusted to municipality) excepting ‘rent’ and ‘testing charges’ henceforth,” it said.
However, service tax will be required to be paid for the services falling under ‘reverse charge mechanism,’ it added.
RICCO has therefore asked all concerned not to collect and deposit service tax, henceforth on all heads of incomes pertaining to infrastructure activities excepting ‘rent’ and ‘testing charges.’
The recoveries of service tax effected for infra heads during the month of March 2014 need not be deposited now with the service tax department in view of the decision taken. (KNN/ES)
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