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Context:
- The Goods and Service Tax (GST) Intelligence unit has slapped a notice on the Employees’ Provident Fund Organisation (EPFO) for defaulting on payment of service tax.
Introduction:
- The GST The Intelligence Unit has also sought to examine the PF department’s records till 2016-17.
- It had sought for overall records of all its regional and zonal offices and issued separate notices to EPFO’s different offices.
EPFO’s stand:
- The EPFO said that the PF office was exempted from paying service tax from April 2016 and hence, its services were exempt from any levy under the new indirect tax system.
- It also challenged the demand for levy of service tax on statutory administration charges and interest charged by EPFO.
- The EPFO cited an order dated April 13 from the Customs, Excise and Service Tax Appellate Tribunal which said that it was not liable to pay service tax on the statutory activities performed under the Employees’ Provident Fund and Miscellaneous Provisions Act 1952.
