Service Tax in HEPC Membership Renewal

As per our previous blog on misconception of changes in Service Tax, the rate yet applicable is 12.36%.

A few days before, Munim Team came through notification from Handloom Export Promotion Council, a set up by Government of India, for renewal of its membership. It is to be noted that HEPC is an apex body to promote exports of Handlooms and products from India. However, while scanning through the notification of renewal, Munim Team noted that the service tax rate taken by the institute was 14% which is as per the declaration under Budget 2015-16 but not yet chargeable.

Thus, considering the gravity of the matter, Munim Team, working on the paramount objective of saving the interest of its members, immediately wrote to the HEPC on clarity on Service tax rate in the renewal of membership. Munim Team has also informed and suggested HEPC that the new service tax rate can only be charged only after enhancement in the Finance Bill 2015-16 in Parliament, followed by Government Order for the same. HEPC officials considered our suggestion and took actions accordingly.

After careful deliberation on the issue, HEPC responded to Munim mail stating that the renewal fee is to be submitted @14% service tax but the same would be refunded or adjusted in case GO is delayed further.

Following is the mail exchanged between HEPC and Munim:

From: HEPC <hepc@hepcindia.com>
Date: Tue, Apr 21, 2015 at 5:23 PM
Subject: Service Tax
To: contact.munim@gmail.com

Dear Sir/Madam,

This is in continuation to the office circular of even No HEPC//MEM-RTE- RENEWAL/2015-16 dated 09th March 2015, service Tax on the Membership fee was calculated@ 14% based on the declaration by Government anticipating that the notification would be received immediately.

As the issuance of G.O. is getting delayed, the difference in Service Tax collected will be either refunded or adjusted against participation fees for exhibitions organised by Council in this current fiscal year

Thanks & Regards

( R Anand)

Executive Director

Munim Team <contact.munim@gmail.com>	Apr 6
to hepcrond,

Sir,

With regard to your renewal fees, the service tax mentioned in the structure is 14%. However, it is 12.36% yet.

The revised rate shall come into effect from a date to be notified by Central Government after the enhancement of the Finance Bill, 2015.

Hence, you are requested to amend the price structure so that members can pay the renewal fee accordingly.

--

Regards,

Team Munim
Your Personal Munim
www.munim.in | contact@munim.in

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