Background:
The manufacturing industries ( larger and medium) nowadays stick to their core competencies and get most jobs done on job work basis from others. The alternative nomenclatures used are: sub contracting, loan licensing, processing or labour charges. At times the principal send tools needed as well as the part/ entire raw material required for the process free of cost. The material procured by principal may be sent directly to the job worker from the supplier. In...
Read moreIntroduction:
The Joint Committee has submitted its report on various business processes in April 2015 and it was made public in October 2015. The report on GST payment process deals with aspects like how the payment would be processed and accounted internally, in a comprehensive manner. It also provides some limited information on types of payment of GST with procedures. The objective appears to be to ensure transparency, responsiveness of the IT infrastructure and...
Read moreIntroduction:
Cenvat credit rules 2004 has merged the credit of service tax paid on input services and of excise duty on inputs and capital goods. consequently the same set of rules applies to both a manufacturer and also to a service provider. However the credit availability to manufacturer is substantially more than that available to the service providers.
A manufacturer could avail credit of service tax paid on eligible input services and a service provider could also avail...
Read moreThe Government is committed to pass the GST bill in the winter session of parliament this year
(2105). However considering the many stages post the passing of the bill of: recommendation of GST council, passing of model law in States, IT infrastructure in few States, change management (awareness and training of tax administration, assessees and general public) the target date of April 2016 is not probable. GST implemented in the middle of the year maybe a major...
Read moreSUPREME COURT
1. Both inputs and final products are entitled for rebate under Rule 18 of Central Excise Rules (M/s Spentex Industries Ltd 2015-TIOL-239-SC-CX)