Posts Tagged ‘LEVY’
LEVY OF SERVICE TAX ON EXTERNAL COMMERCIAL BORROWINGS FROM FOREIGN BRANCH OF AN INDIAN BANK
1. Service tax authorities, of late, have been issuing notices to various borrowers of External Commercial Borrowings (ECB’s) from foreign branches of Indian banks and holding them liable to pay <a rel=”nofollow” onclick=”javascript:pageTracker._trackPageview(‘/outgoing/article_exit_link’);” href=”http://www.taxmann.net/STOnlineWeb/NewHomePage/Home.aspx?pId=160″>Service tax</a> from September 10, 2004 under section 65(12)(a)(ix) of the Finance Act, 1994 which covers ECBs.
According to the borrower, the responsibility of paying service tax is of the service provider which is the foreign branch of the Indian bank and, hence, the Indian bank having a permanent establishment in India, is supposed to pay and not the borrower.
The contention of the service tax authorities is partially correct after coming into effect of section 66A of the Finance Act, 1994 from April 18, 2006.
Until the coming into effect of section 66A, the liability and obligation to pay service tax was that of Indian bank and not that of the borrower. Contrary to the contention of the service tax authorities, even under rule 2(1)(d)(iv) of the said Rules, effective from August 16, 2002 and June 16, 2005 respectively, the borrower cannot be made liable for the payment of service tax.
2. Rule 2(1)(d)(iv) reads as follows :—
‘Person liable for paying the service tax’ means,—
IRS Tax Levy- Resolve Bank Levy with Instant Tax Solutions
A bank levy is when your bank account is frozen and all or part of the profits in your bank account is confiscated. Bank levies can befall for numerous causes, all the same the two most common are due to unpaid taxes and unpaid debt.
A bank levy by the IRS is brought down on folks to reclaim the absolute sum of money owed, while adjusting the sum of money to the tax due. When you neglect to pay your taxes even after you’ve been dished out a lawful notification, your bank will recuperate the amount from your current account and return it to the IRS. In case your account has depleted monetary fund to address your debt to the IRS, your bank holds the right to freeze out your account and regain the full sum. This procedure is known as a bank levy. Put differently, a bank levy is enforced on you coming after your unfitness to answer to the notice and pay off the undischarged taxes to the IRS within twenty-one days.
The bank account can be about whatever type of account (e.g. savings, current, etc) and while most levies happen in the United States, the IRS or a different creditor can occasionally go after off shore accounts. Once a bank levy is brought in on your account, whatever money that is in the account will be confiscated. If there is not adequate profit in the account, the whole amount will be abstracted and your account will generally stay frozen till the debt is compensated.
IRS Tax Levy-Tips on How to Deal with an IRS Levy
If you are faced with a levy from the IRS, then you should be conscious of what that entails and what you can do to deal it. This article will talk about levies in general and how to block an IRS levy that has been set on you.
A levy is an administrative processes made by an entity (such as the government) against an individual because the person in question has a financial obligation (i.e. owes something). In terms of taxes, a levy is a process brought by the IRS against a person who is late, or delinquent, in their taxes. A levy leaves the agency to capture any holdings they can in order to pay the financial obligation.
The IRS has a lot of immense and discretionary ability to deal with tax infringements. Masses in the U.S. are anticipated to compensate taxes, and when the IRS finds out, there is nothing but trouble in that aspect. A tax levy allows the IRS to place levies and assume belongings without going to court. Application of power does not require a court order – although the court does eventually become involved if in that respect appears an appeal or complaint.
With a tax levy, the IRS can gain out into a person’s bank account, wages, savings accounts, retirement fund, Social Security defrayments, and even belongings. This is a divine instrument that the IRS has to cut tax evasion. One great thing is that the common taxpayer will never have to concern about a tax levy, since they usually pay whenever the IRS first notifies to them of late taxes.
IRS Tax Levy- Introduction To Tax Levy Types
If you do not pay off your taxes (or arrive at agreements to conciliate your debt), the IRS may take over and sell whatever type of actual or personal property that you own or have a stake in. For example, they could confiscate and sell belongings that you hold (such as your automobile, boat, or dwelling), or they could levy property that is yours but is controlled by somebody else (such as your salaries, bank accounts, pension account, commissions, dividends, lease profit, accounts receivables, licenses, or the cash loan value of your life insurance).
IRS TAX LEVY
An IRS tax levy is a lawful seizure of your property/holdings to fulfill an IRS tax debt. Tax levies are dissimilar from liens. A tax lien is a claim applied as security for the tax debt, while a tax levy in reality claims the property to fulfill the debt. A levy is an administrative execution claimed by an entity (such as the authorities) versus an individual because the individual at issue has a financial obligation (i.e. Owes something). In tax terms, a levy is a legal action made by the Internal Revenue Service versus an individual who is late, or neglectful, in their tax payment. A levy grants the bureau to seize any property they can in order to compensate the debt.
The major types of levies are:
WAGE LEVY
The most common types are wage garnishments; this is the process of subtracting revenue from an employee’s monetary compensation including salary.
LEVY OF SERVICE TAX ON EXTERNAL COMMERCIAL BORROWINGS FROM FOREIGN BRANCH OF AN INDIAN BANK
1. Service tax authorities, of late, have been issuing notices to various borrowers of External Commercial Borrowings (ECB’s) from foreign branches of Indian banks and holding them liable to pay <a rel=”nofollow” onclick=”javascript:_gaq.push(['_trackPageview', '/outgoing/article_exit_link']);” href=”http://www.taxmann.net/STOnlineWeb/NewHomePage/Home.aspx?pId=160″>Service tax</a> from September 10, 2004 under section 65(12)(a)(ix) of the Finance Act, 1994 which covers ECBs.
According to the borrower, the responsibility of paying service tax is of the service provider which is the foreign branch of the Indian bank and, hence, the Indian bank having a permanent establishment in India, is supposed to pay and not the borrower.
The contention of the service tax authorities is partially correct after coming into effect of section 66A of the Finance Act, 1994 from April 18, 2006.
Until the coming into effect of section 66A, the liability and obligation to pay service tax was that of Indian bank and not that of the borrower. Contrary to the contention of the service tax authorities, even under rule 2(1)(d)(iv) of the said Rules, effective from August 16, 2002 and June 16, 2005 respectively, the borrower cannot be made liable for the payment of service tax.
2. Rule 2(1)(d)(iv) reads as follows :—
‘Person liable for paying the service tax’ means,—