Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Restrictions under Cenvat Credit Rules- An analysis

Service Tax - By: - ashish chaudhary - Dated:- 21-8-2015 - Cenvat Credit scheme is designed to avoid cascading effects but it has been seen over a period that the government has been diluting the basic philosophy of the rule by introducing many arbitrary restrictions. This has been done to augment revenue without increasing the tax rates. Paper writer has made an attempt to analyse the restrictions and raise some possibilities as under: Partially using motor vehicle for renting: Motor vehicles f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

service covers those services which are exempted from whole of duty of service tax leviable thereon. It may be possible that a service provider has been providing multiple services few of which could be taxable while other may be covered by mega exemption notification. Unlike Central Excise, where it is compulsory to avail unconditional exemption notification, there is no such compulsion under service tax. Service provider may opt to charge service tax and may take full credit. This decision to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

passed on through endorsement of manufacturer s bill. (Gujarat HC in case of Darshan Industries). Similar option may be examined on imported goods to be purchased from importer also by way of endorsement. Splitting of works contract to avail credit on labour portion:A contract may also be in 2 parts ( contracts). An independent contract of sale with penalties for delayed supply, testing terms. A separate contract of service with conditions for (no artificial splitting). Credit of service tax ch .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

used in the business. e.g. mobile bills are taken in the name of company but these would invariably be used for personal calls by employees. Assessee may take credit of say 90% of ST treating balance 10% as attributable to personal usage of employees. Shifting of place of removal to buyer premise: Outward transportation credit is allowed upto the place of removal. Goods may be delivered FOR basis making the buyer premise as place of removal. Credit of service tax on expenditure incurred till tha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ice: Restriction of one year from the date of invoice hasbeen imposed on availment of credit on input/input service. (Not on capital goods) However, this may not cover the following situations: Rejected/ returned goods on which credit availed under Rule 16 of Central Excise Rules. Past Credits availed and reversed under protest due to oral/ written instructions from revenue officers. Re-credit of credit reversed for non receipt of inputs sent on job work. Re-credit of written off/ provision made .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

elapsed, the credit can be availed where it can be proved that the invoice was issued against a service which was not provided in whole or part or where amount is renegotiated due to deficient provision of service or any terms in contract. In these situations, vendor may be asked to issue credit note for old invoice and to reissue new invoice as per new agreed terms based on which credit may be taken. Payment of service tax under RCM without awaiting payment to vendor: In case of RCM, liability .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ility of department questioning the excess paid service tax. Option under Rule 6: Rule 6 cast obligation on manufacturer/service provider to reverse the credit attributable to manufacture of exempted goods/provision of exempted service. Many times, dilemma arises as to choosing a particular option. Following could be guiding factors: Capital Goods: Credit on Capital goods used exclusively for manufacture or exempted goods or provision of exempted services would not be available. Therefore if use .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Forum: Manpower Service provider

Forum: Due date of Filing TRAN-1

Forum: Excise duty credit on finished stock at additional place of business.

Forum: 3B mistake

Highlight: Diversion of income at source - Joint venture agreement - 97% of the receipt transfer to M/s TRG Industries (P) Ltd. - scope of the agreement - it is diversion by overriding title - not taxable in the hands of assessee - HC

Highlight: Expenditure on eligible projects or schemes u/s 35AC - After 01.04.2017 the legislature desired to withdraw such deduction. - The Union legislature was competent to introduce such amendment - HC

Highlight: Transfer of trading assets at cost price, the profit component also stood transferred to the outgoing Directors, which otherwise belonged to the Company - the fact that AO has made the addition in the hands of the Directors would not make any difference - additions confirmed - HC

Highlight: The interest u/s 234B of the Act cannot go beyond the stage of S.245D(I) before the Settlement Commission - HC

Highlight: Galvanized iron pipe is a different commercial commodity than a iron pipe, therefore the activity of galvanization in our considered opinion amounts to manufacture - Deduction u/s 80-IB allowed - HC

Highlight: Penalty u/s 271C - non deduction of TDS on interest paid to sister concerns in terms of Section 194A - Levy of penalty confirmed - HC

Highlight: Disallowance of interest - reference to section 179 - The legislature has also recognised, that the doctrine of lifting of veil in the matter of tax dues is to be applied to prevent fraud etc. and not where the company has suffered despite its normal bona fide function. - HC

News: RBI Reference Rate for US $

Notification: Amendment in Notification No. S.O. 3118(E), dated the 3rd October, 2016

Highlight: Discount on ESOP to be allowed as business expenditure u/s 37(1), during the years of vesting on the basis of percentage of vesting during such period, subject to upward or downward adjustment at the time of exercise of option.

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force

Notification: Companies (Restriction on number of layers) Rules, 2017

Highlight: Penalty u/s 271(1)(c) - additional income disclosure - surrender of income post survey u/s 133A - he disclosure made by the assessee is voluntary in nature, in the revised return - no penalty

Highlight: Reopening of assessment - notice u/s 148 issued on the directions of JCIT / CIT - a perusal of reasons for initiating reassessment proceedings clearly show that they are against the sprit of provisions u/s 147

Notification: All Industry Rates of Duty Drawback Schedule

Highlight: MAT - Adjustment to book profit - computation u/clause (f) of Explanation-1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s 14A r.w.Rule 8D of I.T. Rules.

Notification: The Customs and Central Excise Duties Drawback Rules, 2017

Highlight: Addition on account of alleged suppression of service value received - the addition made simply believing the Form 26AS will be an arbitrary exercise of power which cannot be sustained

Notification: Exempts intra state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 12/2017-UTT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

Notification: Seeks to amend notification No. 11/2017- UTT(R) to reduce CGST rate on specified supplies of Works Contract Services

Highlight: Liability to pay duty on import of software - Though no authorization was given by the appellant to DHL, it is an undisputed position that the software has, in fact, been ordered by the appellant and have been delivered to them by DHL - the appellant is to be considered as the importer

Notification: Exempts inter-state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 09/2017-IT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

Notification: Seeks to amend notification No. 08/2017-IT(R) to reduce CGST rate on specified supplies of Works Contract Services

Notification: Exempts intra state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 12/2017-CT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

Notification: Seeks to amend notification No. 11/2017-CT(R) to reduce CGST rate on specified supplies of Works Contract Services.

News: Tax on fuel more important for a dry state like Gujarat

Highlight: For an ayurvedic medicine to be classified under Chapter 30 has to pass the test whether it is for cure of any disease. If the same is only meant for care, then such product would not fall under medicament.

Highlight: Demand of interest - the period of limitation that applies to a claim for the principal amount should also apply to the claim of interest thereon.

Highlight: Government issues new notifications under CGST, IGST and UTGST to grant fresh exemptions in respect of certain supplies.

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 117 of the Central Goods and Services Tax Rules, 2017

Forum: Input tax credit

Forum: Cess paid instead of SGST

Forum: Construction of single unit bungalow

Article: SIMPLIFIED E-WAY BILL UNDER GST

Article: SERVICES UNDER REVERSE CHARGE UNDER GST REGIME

Highlight: Rate of exchange of conversion of the foreign currency with effect from 22th September, 2017 - Notification

Highlight: Companies (Acceptance of Deposits) Second Amendment Rules, 2017 - Notification

Highlight: Implementing Electronic Sealing for containers by exporters under self-sealing procedure prescribed by Circular 26/2017-Cus dated 1st July, 2017 and Circular 36/2017 dated 28 th August, 2017. reg. - Circular

Highlight: Amendment to Paragraph 2.72 (b) of the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20 - Public Notice

Notification: Amendment in Appendix 3 (SCOMET items) to Schedule- 2 of ITC (HS) Classification of Export and Import Items 2012

Circular: Amendment to Paragraph 2.72 (b) of the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20

Notification: Companies (Acceptance of Deposits) Second Amendment Rules, 2017

Notification: Rate of exchange of conversion of the foreign currency with effect from 22th September, 2017



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version