Goods and Services Tax : Learn about the evolution of ISD under GST and its impact on taxpayers, including mandatory compliance, resource allocation, and p...
Goods and Services Tax : 1. GST refund process for exports of Goods and /or services without payment of Tax involves a different document. The option to ex...
Goods and Services Tax : The term input is one of the important concepts, which is integrally connected to output. The existence of output cannot be realiz...
Service Tax : Input service distributor is defined in Rule 2(m) of Cenvat Credit Rules, 2004.In simple words a input service distributor is a he...
Service Tax : Assessee and Department have been involved in tug of war on cenvat credit on inputs, input services and capital goods. The assesse...
Excise Duty : CESTAT Ahmedabad held that demand of excise duty equal to 10%/5% unsustainable as Cenvat credit in respect of common input service...
Service Tax : CESTAT held that Hotel accommodation service received by appellant is an eligible input service under Rule 2(l) of CENVAT Credit R...
Excise Duty : High Court has held that the service tax paid on re-insurance would be allowable as input service under the CENVAT Credit Rules, 2...
Excise Duty : Tata Motors Ltd. Vs Commissioner of Central Excise (CESTAT Mumbai) We find that in the facts and circumstances of the present case...
Excise Duty : The input service credit on insurance is denied on the ground that these insurance has been taken for the family members of the em...
Input has been defined to include, inter-alia, all goods used in a factory by the manufacturer and goods used for providing any output service; Goods that shall not constitute input have been specifically excluded. These shall include, besides petroleum items, any goods used for construction of a civil structure (by a manufacturer as well as a service provider) excepting when they are used in the provision of any of the specified construction services. Thus, goods used by a sub-contractor for rendering services of construction to the main contractor shall constitute input.
Recently in the case of Kbace Tech Pvt. Ltd. v. CCE/CST CESTAT ruled that the refund or CENVAT credit on input services is allowed only if the services are consumed in the output service. It is held that the Board’s Circular No. 120/01/2010-ST, dated 19-1-10 does not have the effect of amending the statute and cannot be seen as authorizing sanction of refund if the credit of service tax does not relate to services consumed for providing the output service.
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 to give clarification on all the issues. But the famous Hindi proverb “lohe ke chane chabana” (Hard nut to crack) is apt for refund claim for the exporters under Notification 41/2007 or refund under Rule 5.
In order to make exports of services from India internationally competitive, the Government of India has zero rated such exports. Consequently, the services exporting community is entitled to obtain refunds of input tax credits or utilise such credits to offset domestic output service taxes. The IT and the ITES industry is a key part of the service exporting community and was expected to be a major beneficiary of such refunds in terms of being competitive in the global marketplace.
In a recent landmark judgement in Coca Cola India Pvt. Ltd. vs. Commissioner of Central Excise (2009-VIL-06-HC-BOM-ST), the Mumbai High Court has interpreted the relevant provisions of service tax law in a broad and inclusive manner in order to hold that expenses incurred by a company in relation to advertising and promoting a brand owned […]
The services availed by a manufacturer for outward transportation of final products from the place of removal should be treated as an input service in terms of Rule 2(1)(ii) of the Cenvat Credit Rules, 2004 and thereby enabling the manufacturer to take credit of the service tax paid on the value of such services.
The question before the Tribunal was whether Service Tax paid on outward transport of goods can be taken credit as input service. The issue is too well known for any detailed elaboration. Straight to what the Tribunal had to say; In a lucid and analytical dissection matching mathematical precision, the Tribunal observed.
