CA Pradeep Jain - Page 2

Budget 2015: Stepping Stone to Simplification?

As the budget session 2015 is approaching, the nation is garnering its own expectations. The assessees falling under the indirect tax net are no different. Struggling with the high end compliances and to cope up with the difficult rules to adhere, they too are in need for some relaxation and simplification. ...

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Posted Under: Income Tax |

Renting Vs Hiring By Uttrakhand High Court

The main thrust of the present article is to analyse the landmark judgment given by the Hon’ble Uttrakhand High Court recently, in the case of Commissioner of Customs & Central Excise Vs Sachin Malhotra, Raj Kumar Taneja, and M/s Shiva Travels [2014-TIOL-2039-HC-UTTRAKHAND-ST] wherein the difference between renting and hiring has been r...

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Posted Under: Income Tax |

Partial Reverse Charge-Increase in Complicacies

The date of 01.07.2012 was a critical date in service tax laws because from this date the service tax laws underwent gigantic change. The concept of Negative list and partial reverse charge was introduced for the first time to broaden the scope of service tax along with simplifying the service tax laws. ...

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The lament assessee asks “Kya yehi hai ache din?”

The most awaited 2014-2015 Finance Budget was presented by Hon’ble Finance Minister, Arun Jaitley on 10th of July 2014. The sugar-coated budget did not aim at bringing any major change due to the reason that there was short time span but still changes in various issues have been introduced. The budget was both a shock […]...

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Tour Operators: Cry Is Still On, Budget 2014 Partly Wiped Their Tears

The budget 2014 has arrived and the Hon’ble Finance minister has bought in several, if not many, changes in the service tax regime. In his endeavour to put the indirect tax laws in road to GST, he has avoided major changes but for small. However, these small changes have somewhat failed to meet the expectations of few sectors. ...

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Posted Under: Income Tax |

PSF, PFY and Tow- Ache din aa gaye hai

Earlier there was dispute on duty liability and classification of Polyester Staple Fiber (PSF) and Polyester Filament Yarn (PFY) manufactured from plastic waste or scrap or plastic waste including waste polyethylene terephthalate (PET) bottles. ...

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Posted Under: Income Tax |

Rule 4 Of CENVAT Credit Rules 2004: Little Amendments, Big Impact

Budget of 2014 had become the talk of the town since the day Mr. Narendra Modi came into power as the Prime Minister of India. The veil on the most awaited Budget has been lifted. But there seem least changes in the indirect tax regime. However these little changes too might have a considerable impact on the assessee. This piece of artic...

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Posted Under: Income Tax |

Circular for Input Service Distributor: Ate, drank absolutely nothing, and broke the glass worth twelve cents

There may be more than one factory registered under Central Excise and running under the same management. In order to facilitate the management, single head office is being set up for incurring expenses, availing services, easy disbursements and communication purpose. ...

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Posted Under: Income Tax |

Amendment in section 35E – Achhe din for Revenue

Dispute was going on the issue whether the first Appellate Authority or Tribunal can condone delay for late filing of review order under Section 35E(1) or not? As per Section 35E the Committee of Chief Commissioners is empowered to review an order passed by a Commissioner. ...

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Posted Under: Income Tax | ,

To cut a long story short – excise duty not leviable on subsidy given to Fertilizers

Providing the food grains at affordable prices to the public at large is the key policy of any government. Effective production of food grains is not possible without the fertilizers. A fertilizer is a chemical or natural substance added to soil or land to increase its fertility. Thus, to improve the quality as well as the quantity of agr...

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Posted Under: Income Tax |

Government Heading Towards E-Collection of Taxes

With effect from 01.10.2014, every assessee will be required to pay excise duty and service tax payable by him electronically through internet banking and there is no other option available except in certain peculiar circumstances. Therefore, with the technological advancement, the government has also adopted advanced means of revenue col...

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Posted Under: Income Tax |

Extending Advance Ruling to Resident Private Limited Companies

As per provisions relating to Advance Rulings contained in section 23C of the chapter III A of central Excise Act, 1944, and similar provisions contained in Section 96A of the Finance Act, an applicant desirous of obtaining an advance ruling may make an application in such form and in such manner as may be prescribed, stating the question...

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Posted Under: Income Tax |

A Close Watch On Service Tax Defaulters

The Government has enhanced the rate of interest to be charged on delayed payment of Service tax under Section 75 of Finance Act, 1994. This increase in the rate is based on period of delay rather a single increased rate for any period of delay....

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Posted Under: Income Tax |

Service Tax Exemption For Environmental Cause

Biomedical waste is waste that is either putrescible or potentially infectious. Biomedical waste may also include waste associated with the generation of biomedical waste that visually appears to be of medical or laboratory origin (e.g., packaging, unused bandages, infusion kits, etc.), as well research laboratory waste containing biomole...

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Posted Under: Income Tax |

Budget 14- Permission to dispose of Plant and Machinery Supplied to UN Projects

CA Pradeep Jain , Ranu Dhoot Burdened with extraordinary expectations after a campaign that promised “good days are coming,” Prime Minister Narendra Modi’s center-right government presented the most hyped budget on Thursday aimed at increasing investment, improving infrastructure and reviving manufacturing, though it fel...

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Posted Under: Income Tax |

Mandatory Fixed Pre-Deposit: A Sign Of Relief To Appellants ?

Filing of appeal is a mechanism available to the assessees who are aggrieved by the orders passed by the adjudicating authority or the higher appellate authorities. However, mere filing of appeal is not sufficient and there is a condition of making pre-deposit of duty or tax amount involved in the case. ...

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Posted Under: Income Tax |

Non Commercial entities- still not in Service tax ambit

With the coming up of new government led by Mr. Naredndra Modi, came new hopes. The hopes for a better India once again dawned in the hearts of the people. The much talked about Budget of 2014 was the ray of hope for the people. The budget brought in a several boons if not many for different sectors in the country...

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Colors of ambiguity still on Heena

There was dispute was going on between the trade and the Central excise department on the exemption on Heena Paste. This exemption was given in last year budget but there was ambiguity in drafting on such notification. We have written an article on the this issue just after the presentation of the budget. Now the Government has come with ...

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New Government, new hopes: Excise & Service tax law needs to be MODIfied

Whole country witnessed historic win of BJP lead NDA in recently concluded general elections. New government in the leadership of Mr. Narendra Modi is all set to prove its mettle of governance. With oath taking ceremony on 26.05.2014 and announcement of cabinet ministries, now Citizens of India have huge expectation on this newly formed G...

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Posted Under: Income Tax |

Restoration of Charm of Settlement Commission

The budget for the financial year 2013-14 took a hard hand by drastically amending the penal provisions relating to the offences under the Central Excise and Service Tax law. Though these provisions are harsh in the way making certain offences as cognizable and non-bailable, but, these amendments seems to restore the charm of Settlement C...

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Posted Under: Income Tax |

Credit Reversal on Trading of Flats- Questions that remains unanswered

List of declared services has been prescribed under section 66E wherein clause (b) includes construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, as a declared service except where the entire consideration is received after issuance of comple...

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Posted Under: Income Tax |

Cenvat Credit On Services Of Commission Agents – A Common Issue With Contrary Decisions

Cenvat Credit has been a highly sensitive issue since its inception. The assessees always attempt to avail credit of every possible input / capital goods / input service which has suffered the incidence of duty/tax by liberally interpreting their definitions. ...

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Posted Under: Income Tax |

Patta Patti manufacturers – Tempted to opt Cenvat Scheme

Compounded levy scheme was introduced in the Central Excise Law with the duty of Rs. 10000/- per machine per month in the year 1994. The scheme was simple with reasonable amount of duty, as such a no. of manufacturers of stainless steel patta-patti switched to it. Later on this duty was increased to Rs. 15000/- and then to Rs. 30000/-. ...

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Posted Under: Income Tax |

Assortment of Amendments in Penal Provisions of Service Tax

Beware if you are the one illicitly holding the government revenue!!! Government is all set to severely punish the people contravening the provisions of Finance Act, particularly, when one collect the service tax and fails to deposit the same to government exchequer. ...

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Posted Under: Income Tax |

Reverse Charge Mechanism- Applicability on CA & Other Services – Clarifications Still Needed

The concept of reverse charge was also prevailing in the positive list era where certain cases/services were specified where the service recipient was made liable to pay the service tax instead of service provider. However concept of partial reverse charge was introduced w.e.f. 1.7.2012 ...

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Service Tax – Sec. 73(2A) – Revenue To Follow ‘Something Is Better Than Nothing’

Section 73 of the Finance Act, 1994 relates to the issue of show cause notice and confirmation of demand. Under existing provisions where the appellate authority finds that the demand is confirmable on merits, however, extended period is not invokable, then the entire demand raised in the show cause notice is quashed. ...

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Posted Under: Income Tax |

Service Tax on parking – Positive or Negative

Even if you are taking an accident victim to hospital, you will have to pay service tax before getting him admitted to hospital. This statement has come true by virtue of the budget, 2013 as announced by hon’ble finance minister on 28.02.2013. ...

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Posted Under: Income Tax |

Service tax on Transportation of Food Stuff – Critical reasoning of Notification no. 03/2013 ST dated 01.03.2013

In previous budget, service tax law was shifted to negative list regime. Mega exemption notification no. 25/2012 ST dated 20.6.2012 was issued to prescribe the list of exempted services. In the current year budget, nominal changes have been done in this list. One such change has been done in the serial no. 21 of this notification which ex...

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Posted Under: Income Tax |

Service Tax on Restaurant: A Small Amendment Makes a Broader Scope of Service Tax

Under negative list regime, the service tax was introduced on restaurants, eating joints and mess which have licence to serve the liquor and facility of central heating or Air conditioning at any time during the previous year. However, this budget has removed the condition regarding the licence to serve the liquor....

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Posted Under: Income Tax |

Excise – Sub-Section 7A to Section 11A – Loopholes Inbuilt

Section 11A of the Central Excise Act, 1944 prescribes the issuance of show cause notice and other related provisions. In this section, sub-section 7A is inserted by Budget, 2013 to cover the cases of recurring nature where the show cause notices are issued on the exactly same grounds and allegations from time to time to the same assessee...

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Posted Under: Income Tax |

Voluntary Compliance Encouragement Scheme, 2013 – A Defaulter Friendly Scheme

a new scheme has been introduced for defaulter - service tax assessees named as Service Tax Voluntary Compliance Encouragement Scheme. While announcing this scheme, it was said by hon’ble Finance Minister that there are nearly 17,00,000 registered assessees under service tax, ...

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Manufacture or production of goods – an exemption or litigation in negative list

Exemptions and beneficial amendments are always prone to litigation – whether it is due to ambiguous language or due to creative interpretational skills of Revenue officers. Whatever be the reason, the departmental authorities are always less interested in extending the benefit of exemptions to the assessees. One such beneficial provisi...

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Posted Under: Income Tax |

The Bermuda Triangle Mystery Created by Negative List

After six years of uncertainties, finally section 66A of the Finance Act, 1994 has few more days to survive. 1.7.2012 is the day when this section will cease to exist. On this date, Export of Services Rules, 2005 and Taxation of services (Provided from outside India and received in India) Rules, 2006 will also extinguish. In place of thes...

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Hotel Industry – Negative List is Positive !!!

Service tax by way of Negative list is the beginning of a new era in the 18 years old Service tax law. Most of the existing provisions have been reviewed to line up them with the new scheme. Inspite of a no. of ambiguities regarding the negative list to be introduced w.e.f. 1.7.2012, the hotel industry is receiving positive signs therefro...

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Works Contract – Negative List- Unanswered Questions

Service tax on Works Contract was introduced on 1.6.2007. Starting with an attractive rate of 2% service tax on the composite value of both material & labour, today it has reached the rate of 4.8% w.e.f. 1.4.2012. Under the current scheme, the works contract covers only immovable properties, however, in order to bring it up to the propose...

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Deemed Sale V/S Declared Service – Controversy C/F to Negative List

Deemed sale – it is a critical aspect of the Sales Tax law and it is going to have direct impact on the upcoming Negative list scheme. The new definition of service as defined in context of negative list excludes the deemed sale. In other words, service tax is not to be levied on the deemed sale. However, simultaneously, the concept of ...

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Posted Under: Income Tax |

Changes in rate of Service tax on Money Changers

The rate of service tax on Authorised dealers in foreign exchange or authorized changers have been changed against this year by Budget, 2012. The method of computation of service tax is prescribed in sub-rule(7B) of principal Rule 6 of Service Tax Rules, 1994. The said Rule is reproduced here under for ready reference:...

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Section 80A – Another way to trap Renting service providers

Recent Budget has introduced a Section 80A for waiver of penalty subject to following conditions – Service tax due on renting of immovable property service is paid within a period of six month along with interest. The amount of service tax due will be as on 6.3.2012....

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Posted Under: Income Tax |

Note on Rule 10A of Cenvat Credit Rules

Budget, 2012 has brought a facility of transferring Cenvat Credit for the manufacturer having more than one registered premises. Notification No. 18/2012-Central Excise(Non-Tariff) dated 16.3.2012 has been issued in this regard which is effective from 1.4.2012. This notification says that Cenvat balance of special additional duty (SAD) l...

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Posted Under: Income Tax |

Circulars – Binding On Department?

The first and foremost issue is that whether the Circulars issued by the Board will be binding on the Revenue? Whether the Board circulars will be binding on the Assessee? Also, whether the Circulars will be binding on the Quasi Judicial Bodies i.e. the Original Adjudicating Authority (Deputy/Additional/Assistant Commissioner), Commission...

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Posted Under: Income Tax |

Expectations from Budget 2012

The Budget 2012-13 will be announced on March 16, 2012 by the Finance Minister Pranab Mukherjee. There are a lot of expectations from Budget as the economy of the country is not yet stable and after effects of recession can still be felt. The European Union economic crisis is also having a negative effect on the Indian economy...

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Posted Under: Income Tax |

Ups and Downs of Service Tax on Goods Transport Operators

Service tax on transportation had a bad innings right from its first levy. It has gone through the ups and downs since it was levied for the first time on 16.11.1997. The levy was challenged and was withdrawn on 2.6.1998 just after few months. Though government did retrospective amendments twice in this category of service, yet the issue ...

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Conversion of Shipping Bill – Nothing is simpler in this country

Circular no. 36/2010-Cus dt. 23.09.2010 was issued for simplifying the procedure related to conversion of shipping bills. It was issued as a consequence of series of Tribunal judgments which held that the conversion of free shipping bills to export promotion scheme is allowed as there is no such bar in the section 149 of customs act, 1962...

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Posted Under: Income Tax |

Section 11A-Branches opened for invocation of extended time limit…

Finance Bill, 2011 has substituted the language of this section. The basic theme of this section has been kept alive alongwith certain additions. The new section states as follows:- Sub section 1 to section 11A says that where any duty is short levied/paid or not levied/paid or erroneously refunded by way of any reason other fraud, collus...

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Posted Under: Income Tax |

Expansion of scope of Legal Consultancy Service

The Legal Consultancy service was brought under Service Tax net from 01.09.2009. The Taxable service was defined under sub-clause (zzzzm) of clause (105) of Section 65 of the Finance Act, 1994. The Legal services provided to a business entity by any other business entity in relation to advice, consultancy or assistance in any branch of la...

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Posted Under: Income Tax |

Pay service tax for Health services!!!

In the chain of imposition of duty on new services the levy on hospitals has also been added in the budget 2010-11. Although the rate of service tax is kept constant at 10% but in order to increase indirect tax revenues the Hon’ble Finance Minister has proposed a new levy for hospitals. In his budget speech he expressed that the hospita...

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Posted Under: Income Tax |

Introduction of Self-assessment of Goods under Customs

The Finance Minister has in Budget 2011-12 proposed to introduce self-assessment in Customs. In it speech the Finance Minister had said that this is done to quicken the clearance of the cargo by Customs authorities and to further modernize the Customs administration. It was further stated that under this, importer and exporters will them...

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Posted Under: Income Tax |

Budget Changes for Authorised Service Station Services

The service tax on the services provided by an Authorised Service Station was made taxable from 16.07.2001 onwards. In the start only servicing or repair of motor cars, two-wheeled and light motor vehicles by service stations or centres authorized by the manufacturers was covered under this service. From 16.06.2005 onwards reconditioning ...

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Posted Under: Income Tax |

Changes in Export/Import of Services Rules

The Export of Service Rules, 2005 provides that there will no service tax on the export of services. In these rules, the criteria are prescribed as to what will constitute export of service. In Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 the services received from outside India are taxed. Now, Budg...

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Posted Under: Income Tax |

Sudden hike in interest rate

The Interest liability is amplified in all the sections of custom, excise and service tax to 18% as from earlier of 13% per annum from this budget. This is one of highest increase in the rates of interest ever. In Central Excise the notification no. No. 6/2011-Central Excise (N.T.) dt. 01.03.2011 has brought an amendment for the purpose o...

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Posted Under: Income Tax |

Determination of Time & Rate in Service Tax (Point of Taxation Rules, 2011)

In respect to the service tax Law, the Central Government of India, as always, has come with lots of amendments and clarifications in the Budget, 2011. When a particular service will be taxed is the major aspect in the service tax law. As on date the service tax is payable on the receipt of payment towards the service provided, but now go...

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Posted Under: Income Tax |

Branded Goods – Stitched To Excise Duty

Major amendments have been brought in Ready made garments and made-up articles through the budget 2011-12. These goods fall under chapter 61 of the Central Excise Tariff Act, 1985. Earlier these goods were exempted vide serial no. 16 of Notification no. 30/2004-CE dt. 09.07.2004. The entry at this serial no. exempted all the goods falling...

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Posted Under: Income Tax |

Budget 2011- Two exemption Notifications- litigation inbuilt

The hon’ble Finance Minister of India has introduced the Finance Bill, 2011 on 25.2.2011. This bill has withdrawn a no. of exemptions given to various tariff items. By this bill, a no. of entries that attracted the NIL rate of duty in tariff has also been brought under the purview of excise duty. On some tariff items, rate of duty have...

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Budget 2011- Changing Levy of import duty on Stainless Steel Scrap

The rate of customs duty on the import of Stainless Steel Scrap under exemption Notification No. 21/2002-Cus dated 01.03.2002 has always been surrounded by controversies. There has been an amendment in the rate of duty on the import of SS scrap in almost all the Budgets announced in the recent years. We wrote article earlier on this contr...

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Budget 2011- Change in Rate of Service Tax on Money Changers

With effect from 16.05.2008, the services pertaining to purchase or sale of foreign currency, including money changing was brought under service tax. The authorised dealers in foreign exchange or authorized changers were also covered. The Authorised money exchanger was required to be authorised under Section 10(1) of the Foreign Exchange...

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Budget 2011- Change in Service Tax Refund Scheme

The scheme of refund of service tax paid on specified services which were utilised for export of goods was given effect in 2007 vide Notification No. 41/2007-ST dated 06.10.2007. The exemption was granted by way of refund. However, announcing the grant of exemption and actual granting of refund of service tax paid proved to be two differe...

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Clandestine Removal- A Blessing For 100 Per Cent EOU

“Ill gotten gains” are not the ill-ones if caused due to the interpretations of law. To survive in the cut-throat competition, the EOUs were allowed to clear the goods in Domestic Tariff Area. Being allowed the benefits like duty free import of input...

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Johnny and Service Tax Refund (Series-II)- Part 7 – “Refund on other services”

In continuation of previous articles, elaborating the difficulties in getting the refund claim under different conditions, we in this article are unveiling the problems existing in the Service tax refund mechanism under Conditions relating to Courier...

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Third Innings – Section 4A V/s Section 4

Section 4A of Central Excise Act, 1944 empowers Central Government to specify goods on which duty will be payable based on 'retail sale price'. The basic requirements for levy under MRP based Valuation is that the goods should be covered under provis...

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Johnny and Service Tax Refund (Series-II) Part VI – “Self Certification – An Inflexible Condition”

In continuation of previous articles, elaborating the difficulties in getting the refund claim under different conditions, we in this article are unveiling the problems existing in the Service tax refund mechanism under condition of Certification of Self Certification. This complete scenario is being elaborated with the means of humorous ...

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Johnny and Service Tax Refund [Series- II] – Part 5- “Condition relating to Time Limit of One Year”

we in this article are unveiling the problems existing in the Service tax refund mechanism under various services as specified in the Notification No. 17/2009-ST (herein after referred to as Said Notification). For example CHA service, Port Service, ...

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Service Tax- Conditions relating to Refund Claim of Rs. 500/- (Part 4 of Johnny and Service Tax Refund -Series- II)

we are attempting to present the grounds on which departmental authorities are disallowing the refund claims relating to “Amount of 500/-” against the services on which refund has been claimed. This complete state of affairs is humorously picturized ...

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Johnny and Service Tax Refund [Series- II]-Part 3- ‘Conditions Relating To Port Services’

In continuation of the series of previous two articles, elaborating the difficulties in getting the refund claim due to conditions relating to Invoice and CHA service, we in this article are attempting to present the problems existing in the Service ...

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Draft Scheme of on Site Audit in context of Post Clearance Audit (PCA) for Imports

INTRODUCTION: “A good beginning makes a good end”. Hope this comes true for the draft scheme of “On site audit”. Export-Import is an important determinant of growth of a country. A strict policy regarding the import-export may become an obstacle in ...

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Johnny and Service Tax Refund [Series-II] Part 2- ‘Conditions Relating to CHA service’

Presently, assesses are claiming refund orders on the services provided by CHA which are gigantic problematic services in getting refund. The refunds claimed by the assessees as against their exports are their civil rights but are being declined by the departmental authorities on various arguments which are of no significance and value le...

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Johnny and Service Tax Refund-Series- II, Part- 1- INVOICE

Today, in the present scenario also, the poor exporter is still facing enormous difficulty in getting refund orders as stated in the lines above. There is no radical change has taken place even after the change of total scheme by the Government. The refund claims are the Right of the exporters but the department is rejecting these claims ...

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Administration in GST – Moving Upstairs or Downstairs

“Too many cooks spoil the broth” perhaps this would have been in the thoughts of Group on Implementation of GST while analyzing the organizational structure for GST. This group is a committee constituted by the Government that has been framed to analyze all the aspects which will be affected by implementation of GST. On 12.07.2010, th...

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Sequence to Uniqueness for Associated Enterprises

Every Finance Act brings with it some new services under the purview of the Service Tax. The Associated Enterprises were also a part of those services that were brought under Service Tax Act in the year 2008 vide the Finance Act. From the beginning the service of the Associated Enterprise is walking with some uniqueness....

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Cenvat credit on building material: – Tax Expert or Jyotishi

Before the recent amendment in Explanation 2 of the Rule 2 (k) the assessee was claiming credit on Cement and steel items as inputs used in the manufacture of capital goods. To this the argument by the assessee was that the said items were being used indirectly in relation to the manufacture of finished goods and whatever is used in the m...

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Posted Under: Income Tax |

Packing the dispute of branded goods on packing material

There are already two articles published on our website www.capradeepjain.com on this issue. The title of these articles was “SSI exemption: - The branded issue” and “Brand name for packing material: - all is well when ends well”. The budget has made further amendment while passing the budget to end the controversy. This amendmen...

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Job Work: Better late than never

Rule 6 of the Cenvat Credit Rules, 2004 provided that the cenvat credit will not be admissible on the inputs or input services which are used in the manufacture of exempted goods or which are used in providing the exempted services. The Rule 6 ibid also said that if the common inputs are used for manufacture of dutiable and exempted goods...

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No room for builders under Service tax net

Thus, it is clear that that the realty sector has been worst hit by this year budget. Even this was explained by us in our power point presentation on the budget. This explanation will bring every builder in ambit of service tax. The retrospective amendment of renting has added fuel to the fire. The Finance Ministry has not waited for the...

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Snatching earth beneath landlord’s feet with retrospective amendment

The renting of immovable property for commercial/business purpose was brought under service tax net in 2007. However, as has been the case with almost all the services the drafting of the provisions was not free from confusion. As per the definition it appeared that the services provided in relation to renting of immovable property was le...

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“Eligible” covers Non-eligible also

:This year the Budget 2010 announced on 26.02.2010 has given benefits to Small Scale Units. These benefits have been given not only to those units which are availing the small scale exemption under Notification No. 8/2003-CE dated 01.03.2003 but also to the units who are eligible to avail the benefit under the said Notification. In this ...

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Unfolding the levy on Umbrella

As the budget, 2010-11 has brought many changes in Excise Law. It varies from areas like applicable rate of excise duty, their Cenvat Credit allowable, exemption from excise duty and so many. The duty on umbrella and umbrella parts are closely affected due to applicability of new Notifications inserted in this Budget. Therefore, we are g...

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Expectations from Budget 2010-2011

On February 26’ 2010, the Finance Minister Mr. Pranab Mukherjee will present the Union Budget in the Parliament. Everyone is awaiting the announcement of Budget to see that their interest has been taken care of. There is a lot of speculation about the Budget as everyone has expectations from the same. In this Article we are discussing t...

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Comments of Department of Revenue on First Discussion Paper on GST

GST shall have two components: one levied by the Centre (Central GST), and the other levied by the States [State GST]....

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Hard nut to crack -Service tax refund claim

The recent circular no. 120/01/2010-ST dated January 19, 2010 has been issued by the Board for claiming the refund of unutilized Cenvat credit under Rule 5 of Cenvat credit Rules by the service exporters. The above circular has tried to address all the problems faced by the service tax exporters in claiming such exemption. They have tried...

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Job Work and Reversal: All is Well……

The credit taken on common inputs is very small but the demand is very huge. The authors of this article have come across the situation where the credit taken on common inputs was only Rs. 30,000 but the demand raised was around Rs. 65 Lakhs. Thus, it has created havoc in the minds of industrialists. Even the defenses taken in reply of su...

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One circular- many solutions

In these CHA services, during the import or export of goods, apart from the service of CHA there are various other services which are involved like the port services, terminal handling service, cargo handling service, cleaning or fumigation of containers services etc. In most cases, it is the CHA who is dealing with the service providers ...

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Johnny and Service Tax Refund Part – VII

In continuation of previous articles, elaborating the difficulties in getting the refund claim under different services, we in this article are unveiling the problems existing in the Service tax refund mechanism under Services of purchase or sale of foreign currency, including money changing provided to an exporter in relation to export g...

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Johnny and Service Tax Refund Part – VI

In this unbroken series of articles on the issues relating to the problems faced by exporters under refund claim mechanism we herein are unveiling the VI th part of the same. Herein we are uncovering the problems existing in the Service tax refund mechanism under Business Auxiliary Services provided by commission agent to cause sale of go...

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Johnny and Service Tax Refund Part – V

The assesses claiming refund orders under Insurance services are experiencing enormous complexities in getting their refund orders passed on vague and futile justifications that not only are annoying and irritating the assessees but also deprives away the faith of assessees on the refund mechanism designed by the Government. Such reasons ...

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Johnny and Service Tax Refund Part – III

In continuation of the series of previous two articles, elaborating the difficulties in getting the refund claim under GTA service and Port services, we in this article are attempting to present the problems existing in the Service tax refund mechanism under Technical testing and analysis Services (Section 65[105][zzh]). This complete sta...

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Johnny and Service Tax Refund Part – IV

In this fourth article we are attempting to present the grounds on which departmental authorities are disallowing the refund claims as related to Specialized cleaning services (namely disinfecting, exterminating, sterilizing or fumigating of containers) availed by the exporters (Section 65[105][zzzd]). This complete state of affairs is hu...

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Posted Under: Income Tax |

Good transactions under Goods and Services Tax

The indirect tax regime in India is evolving into GST in the year 2010. The steps towards introduction of GST have commenced. The Empowered Committee of State Finance Ministers has introduced the First Discussion Paper on GST in India on November 10, 2009. A dual structure of Central GST (CGST) and State GST (SGST) is proposed to be impos...

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Posted Under: Income Tax |

Brand Name for Packing Industry: – All is well that ends well

SSI Exemption is granted subject to fulfillment of certain conditions which are prescribed in Notification no. 8/2003. One of the conditions prescribed is that the SSI exemption will not be applicable to specified goods bearing a brand name or trade name of another person, irrespective of the fact whether such brand name was registered or...

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Posted Under: Income Tax |

How to file return in ACES- Part-III

Now it’s time to do act online like: File claims and Submit intimations, case portfolio, export related documentations, provisional assessment, file the refund claim, complete/amend/ surrender the registration certificate, file all types of returns through online as well as through excel utility and also you can get the help at every po...

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Posted Under: Income Tax |

Johnny and Service Tax Refund Part – II

In continuation of previous article, elaborating the difficulties in getting the refund claim under GTA service, we in this article are unveiling the problems existing in the Service tax refund mechanism under Port Services (Section 65[105][zn]). This complete scenario is being elaborated with the means of humorous poems and conversation ...

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Posted Under: Income Tax |

Johnny and Service Tax Refund Part – I

With the help of this article an effort has been made to picturise the present situation existing in the refund structure mechanism under Service tax. This state of affair is elaborated with the means of poems and conversation between Johnny (an assessee) and his father....

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Posted Under: Income Tax |

How to file return in ACES- Part-II

In this article we are describing all the features of Service Tax section like: filing of ST-1, getting of ST-2 and filing of ST-3. Again, as it is not possible to compile all the things in one article, we will give details for filing ER-1 return other returns in our next articles on the same issues at the earliest....

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Posted Under: Income Tax |

How to file return in ACES- Part-I

The word automation has its own pros n cons. Anyone have some different imagination of this word. What, why, how, to whom and so many doubt come to their mind. All of sudden this word is on everyone’s tongue. Automation…, Automation…, Automation…, after all what is this! Nobody was disposed to the automation of filing of return wi...

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Posted Under: Income Tax |

Job Work, Cenvat & Litigation – Good Job for Consultants

Rule 6 of CCR deals with the Cenvat Credit provisions in case of manufacturer of both dutiable and exempted goods (hereinafter referred as said manufacturer). Sub rule 1 to this rule says that credit is not allowed on that much portion of the inputs/input services that are used for manufacture of exempted goods. Sub rule 2 prescribes that...

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Posted Under: Income Tax |

Rate of service tax on contract entered after July 7th, 2009 where the developer supplies steel and cement free of cost to contractor

What would be the rate of service tax on contract entered after July 7th, 2009 where the developer supplies steel and cement free of cost to contractor? The Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 has been amended vide Notification No. 23/2009-ST, dated 07.07.09. The Explanation to sub-rule (3) was amend...

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Posted Under: Income Tax |

Merchant Overtime Fee- Dispute on overtime

By CA. Pradeep Jain and Sukhvinder Kaur [LLB (FYIC)] Merchant overtime fee (MOT charges) are the charges which are required to be paid by the exporter/ assessee who is availing the services of Central Excise Officers, in accordance with any prescribed  procedure, beyond office hours or on Sunday, Saturdays or public holidays i.e. is afte...

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Posted Under: Income Tax |

Renting of Immovable Property

The Division Bench of the Delhi High Court comprising of Justice Badar Durrez Ahmed and Justice Rajiv Shikader gave a milestone judgment on 18th April, 2009, in the case of Home Solution Retail India Ltd and Others Vs. UOI and Others (2009-TIOL-196-HC-DEL-ST). The issue involved in this case related, to a batch of Writ Pet...

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Posted Under: Income Tax |

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