Blogs

Concept of departmental audit               

The departmental auditors look into the assessee’s own (private) records to verify whether the assessee is paying central excise duty correctly on excisable goods manufactured or deemed to be manufactured and service tax on taxable services provided and whether proper procedures are followed where required to be followed viz., in case of exports or while claiming the benefit of any exemption from duty or tax. The main...

Central Excise on Garment Industry in Budget 2014?  

History  

The levy of central excise as per the stated policy of broadening the base of tax payers and reducing exemption was applied to the textile industry in 2001 with branded products being bought into the levy. In 2003 the entire industry was covered, but for some minor exemption. The nature of the garment Industry with manufacturers and the brand name owners/ exporters being different posed some challenges and therefore...

Under CST law, the tax cannot be levied on sale of goods in course of import and export. One should refer to Section 5(1) and 5(2) to understand what constitutes sale in course of export and sale in course of import. Even Article 286 of Constitution of India imposes restriction on levy of tax either on sale in course of export or import by a state government. It is interesting to note that such restriction is only for the state government and not for the union government. However, levy of...

Revenue Augmentation by Way of Cenvat Credit Restrictions  

[ Past Credit Availment – Last Chance? – CE/ ST]  

Excise duty collections are expected to be about ? 2 Lakhs crores and Service Tax collections about 2.2 Lakhs crores for the year 2014-15.  

The cenvat credit accounts for about 50% of the total duty payment to be made by the manufacturing sector. For service providers it may average about 20% of the duty payable. Therefore this year the credit to be...