Blogs
Indirect Tax Latest Judicial Precedents May 2016
- Service provider can opt to pay service tax on works contract on gross amount and take credit on input/input service (CST.,Vapivs S.V. Jiwani 2016(42) S.T.R. 209 (Bom.)
- Background: Assessee engaged in rendering works contract service, paid service tax on gross amount without availing the option provided under Rule 2A of ST (Determination of Value) Rules, 2006 and taken credit on input/input service. Department alleged that tax needs to be paid under Rule 2A and assessee not...
Time Limits for Filing Refund Claims Under Cenvat Credit Rules- Service Exporter
Finally CBEC by notification 14/2016-CE(NT) has brought out the required clarification as to from which date the period of one year was required to be counted for the purpose of limitation in filing the refund application by the manufacturers exporters and service exporters under Rule 5 of Cenvat Credit Rules.
This issue was more of a concern for the service provider, as notification 27/2012-CE(NT) had referred filing of refund claim before the expiry of the period specified in...
Read moreTextile exporter various options to claim benefit under IDT
Background
Textile industry has been exempted from excise duty until Budget 2016-17 where exemption has been withdrawn on manufacturing of readymade branded garments falling under chapters 61, 62 and 63 of CETA and having MRP equal to or exceeding Rs. 1,000/-. The duty may be charged either @ 2% (without Cenvat) or 12.5% (with Cenvat).
The imposition of levy shall have impact not only on the domestic manufactures but on exporters also. Till now as it was exempted, exporters could...
Excise Duty on Textile Sector-Increased cost and Compliance Burden
Textile has been subjected to duty of excise at different point of time. In 2004, exemption was granted on textile articles falling under chapter 61, 62 and 63 from duty of excise by issuing Notification No. 30/2004-CE. It was again subjected to duty in 2011-12. After remaining liable for one year, it was rolled back by then finance minister P Chindabaram and since then textile was out of central excise purview. In Union Budget 2016-17, branded readymade garments has again been made...
Importers of Goods-Need to Register and pay Service Tax
Background:
Sounds unusual but true. Thanks to the budget proposal by Finance Minister.
In 2012 when Negative List was introduced it was announced by then Finance Minister Mr. Pranab Mukharjee that
“I propose to tax all services except those in the negative list. The list comprises 17 heads and has been carefully drawn up, keeping in view the federal nature of our polity, the best international practices and our socio-economic requirements”
But it appears...
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