Blogs

The concept of renting /lease is not new to service tax with the Rent a Cab scheme being the first followed by Mandap Keeping services and banking and financial services.. In 2006 the category of Support services for business or commerce attempted to bring in offices provided along with infrastructural support to the net. In this case it was reasoned that only if the support staff was provided then this category would cover offices.  

The bureaucrats drafting the law have a view...

Service Providers - Is Input Credit Available in these Special cases?  

This note examines the practical situations when Input credit is available or not available while providing a service.  

Inputs means all goods used for providing any output service but excludes LDO, HSD or petrol, any goods used for construction or execution of works contract of a building or a civil structure or a part thereof or laying of foundation or making of support structures of capital goods except...

The common citizen, the trader [ big & small], small scale service providers, manufacturers who in normal course are not providing services would not be registered under service tax. Generally such persons would not like to be registered as it is a hassle, transaction costs would increase but at the same time they wish to be tax compliant.  

The reverse charge mechanism as well as the joint charge mechanism are normally not applicable to the Government or individual. In some cases...

Eligibility of input service credit – Sales promotion Vs Sales Commission  

The cenvat credit scheme is a beneficent legislation and allows for credits used for manufacture or service. Sales commission is paid for the following reasons: market creation/development, advertisement, sales promotion activities, identifying potential customers, negotiating with them, sourcing / funneling of orders, increasing sales etc.  

Cenvat Credit Rules prior to 1.4.11 specifically allowed...

The Central Excise as well as Service Tax have been amended post liberalization to follow the self assessment scheme. It means that the return is accepted as correct. In this type of a scheme there needs be a check against filing incomplete, incorrect, faulty returns. Therefore there are provisions for search & seizure as well as summon for giving evidence.  

In addition at times the Special audits in case of suspected revenue leakages or irregular cenvat credit the...