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Introduction:

The Cenvat credit scheme is beneficial scheme the intention of which is to allow the manufacturer of dutiable

goods as well as the provider of taxable services to avail eligible credit. In this article the paper writer examines the eligibility to credit on inputs to a manufacturer of final products.

CENVAT credit rules have unified the credit available on goods and services. With effect from 10.09.2004 the scope had been enlarged by amending the CENVAT credit rules...

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...

Introduction:  

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...

Introduction:

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...