Service Tax Dept Asks Rs 75 Crore Tax Demand on Sebi
Securities and Exchange Board of India – SEBI is slapped Rs 75 crore tax notice by the Service tax department. Service tax demand notice was sent to the capital market regulator in 1st week of April 2016. The tax demand served on Sebi is applicable to previous years.
The tax demand follows a final assessment of Sebi’s book of accounts. The service tax department had earlier estimated the service tax dues would be to the tune of Rs.500 crore, but a final assessment of Sebi’s books of accounts had led to a service tax notice of Rs.75 crore.
The service tax notice is for the period starting July 2012 till March 2015. Section 25 of the Finance Act states that from the date of Sebi’s constitution to the date of establishment, it is not liable to pay wealth tax, income tax or any other tax on wealth, income, profits or gains derived.
Sebi provides services to stock exchanges, their members, brokers and investors for processing of initial public offerings, debt issues, mutual funds, new fund offers and other services, including informal guidance to companies. According to Sebi’s annual report, in 2014-15, it received total fees of Rs.322.85 crore, compared with Rs.175.35 crore in 2013-14.