CENVAT Credit is available on Capital goods used by manufacturer or service provider. Let us discuss the intricacies of CENVAT on capital goods which is most contentious issue nowadays.
In Continuation to my earlier Article ‘All about CENVAT Credit Rules, 2004- Part 1’ in which I have discussed Rule 2(A) to Rule 5B of Cenvat Credit Rules,2004.I have discussed Rule 6 to 16 of Cenvat Credit Rules,2004 in this Article.
Education Sector has been given tax benefit all over the globe. In the post Negative List era, it was imperative to appropriately exempt educational and related services . Clause (l) of new section 66D of the Act , exempt the education services from preschool to higher secondary, education as part of curriculum for obtaining a qualification recognized by law and education as a part of an approved vocational education course from levy of service tax .
S.N. 28 of the Exemption Notification no. 25 /2012 dated 20.6.2012 exempts services by unincorporated body or a non profit entity registered under any law to own members by way of reimbursement of charge or share of contribution. a. As a Trade Union b. For provision of exempted services c. For the common use of its member in a housing society or residential complex.
From 1.4.2012 , the definition of capital good has been extended to cover all motor vehicles ( other than those covered under the specified tariff heading) for all the category of service provider.
Information technology services are declared services under Section 66 E (d) – Development, design, programming, customization, adaption, upgradation, enhancement, implementation of information technology software
The facts of the case are the appellant, M/s. Paramount Communications Wire and Cable Ltd., another sister concern company M/s. Paramount Wire and Cable Ltd. were utilising the services of certain common staff located in their common head office at Delhi.
The Rules would have applicability in the following instances. Person who deals in cross border services. Person who have operations with suppliers or customers in the state of Jammu and Kashmir. Service provider operating within India from multiple location , without having centralized registration , will find them useful in determining the precise taxable jurisdiction applicable to their operations. Determines weather services are wholly consumed in SEZ to avail the outright exemption.
In cases where the service provider received any part of the consideration in non monetary form or by way of reimbursement , such item did not figure in the invoice raised, thereby depressing the real value of taxable service.
CA Sanjeev Singhal The Point of Taxation The rules were made applicable from 1.7.2011. The introduction of these rules has shifted the liability to pay tax from cash basis to accrual basis . Input credit can be availed on the basis of invoice when such invoice has been received. Basic Concept A] Associated Enterprises : […]
