CA : No problems, Sir,

ITO : (After seeing papers etc.) Oflate, your tax practice has shot up sharply but we rarely see you in corridors of income tax building ! surprisingly, your client profile also remains more or less the same.

CA : Sir, to tell you frankly (off the record), taxation practice does not attract service tax and that’s the reason it has gone up. So far as Income Tax is concerned, you will agree that there is no concealment as all incomes have been disclosed.

ITO : I should atleast express my sympathy to Service Tax Department.

IMPORTANCE

Press Reporter : What is important- tax collection or tax payment and whose service is important?

Revenue Officer: It is tax collection as if it is not collected by us, Government won’t get money and it would affect economic development of nation.

Assessee: No, No, It is payment and assessee which is more important. If we don’t pay, what you and Government will collect? And if we do not provide service, where is the question of levying service tax?

Government Officer: (Suddenly, some officer from Ministry enters.) Don’t argue friends! the importance lies in us, the creator of law.

Beauty Parlour under Service Tax

Two beauticians were heard talking

One: What is the worst thing that can happen to a beautician running beauty parlour under service tax.

Other: A group of young service tax officers banging into the parlour and gang-searching the assessee (search under section 82 of the Finance Act, 1994)

Corporate Compensation

Director (to MD) - You may pay me sitting fee, salary, perquisites_ _ _ etc. but no commission please.

MD - But why, it is our corporate practice since last so many years.

Director - Commission income, they say, may now subject to service tax and I do not want to pay Income Tax as well as Service Tax on that income and then, Director as commission agent! It looks funny and embarrassing too.