Advocate Anuj Bhasin

Questions Answered by Advocate Anuj Bhasin

Q: Very less membership and consultancy fee are we liable for service tax

Dear Sir, I have a consultancy firm. We provide service to our members only. Our membership fee is 200/- and consultancy fee 51 to 1100. Our membership fee will be in service tax area or exclude the area. So please tell me detail about it. What is my limit for service tax and which percent for my service?

Advocate Anuj Bhasin answered
Payment of Service Tax is required once your yearly turnover is Rs 10 lakhs or more. Conclusion:If your yearly turnover is above Rs 10lakhs, Service Tax is payable at full rate (i.e. 15% including SWC and KKC) since no abatement is available on consultancy services.

Q: Is it legal to charge VAT on MRP

I have ordered a pair of shoes from Jabong having MRP-Rs.9995(inclusive of taxes) as cited on the shoe box. Have applied coupon discount-30% (Rs.2998.50) Then the amount chargeable should be-Rs.6996.50 But they are again applying VAT around 5%-Rs.349.25 Making the total amount payable by me around-Rs.7346.25 Is it legal to double charge the taxes after giving discount and besides the MRP-Rs.9995 (inclusive taxes) Isn't double taxing against the trade practices and punishable under law

Advocate Anuj Bhasin answered
No VAT can be imposed if MRP bears "Inclusive of Taxes" Label. You can definitely go to consumer forum and sue against unfair VAT charge ability. State Consumer Dispute Redressal Commission (SCDRC) has clarified the situation in case of Black Bird who used to charge VAT on MRP after giving discounts.

Q: Can a third person file complaint regarding custom fraud

My query is limited to knowing as to what action can be taken by a "non-interested third person" who comes to know that a company is importing something for Rs. 500/-, actual cost of which is 20,000/-. Now this certainly is to avoid custom duty etc. But is there any reward for a public person coming forward to complaint about it?

Advocate Anuj Bhasin answered
A suitable reward upto 5% of the amount recovered can be given to any informer who gives information regarding the whereabouts, assets, movable and immovable properties of persons or companies from whom arrears of duty, tax, fine, penalty etc. are recoverable under the Customs Act, 1962, the Central Excise Act, 1944 or Service Tax Act, 1994. The quantum of reward will be decided by the Chief Commissioner concerned.Source : http://www.cbec.gov.in/htdocs-cbec/defaulters-new/reward-recovry

Q: What to reply to an adverse police verification report of passport

I applied for a renewal of passport in October 2015 in Delhi. I had initially got a new passport in 2006. The house in delhi is in my uncles name and i have stayed with him in the delhi house for more than 10 years. I moved to Bangalore but I dont have a valid address proof because of frequent travel. The house in delhi is rented out for almost an year. I renewed pasport under tatkal in Oct2015. During police verification inspector came to know about the rented house and asked for a written letter stating my situation. Now i got an adverse police verification report. What should by my reply?

Advocate Anuj Bhasin answered
Firstly, I would like to tell you that there is nothing to worry about. You have 2 options:1. You can apply for police re-verification and be present at the time of verification and DO not mention anything about living in any other city. 2. Submit a affidavit with correct address and address proof for the new address. You can submit Bonafide letter from your School/Collage/Work to make your case stronger.Hope, this helps. Regards, Anuj Bhasin