Blogs

HighCourt

1. Cenvat credit - outdoor catering- eligible to extent borne by employer (Dalmia cement Ltd. 2015 (39) S.T.R. 982 (Mad.)
   • Manufacturer availing outdoor catering services provided to employees. 
   • Cenvat credit of service tax paid eligible. If cost recovered from employees, credit cannot be claimed to that extent.

Comment: The judgment has been rendered for issue prior to 1.4.2011. Since then, the definition of input service has been amended to...

There is confusion with respect to levy of service tax on the services provided by outdoor caterers to industries after the amendment made in mega exemption notification no.25/2012 on 22.10.2013. Presently, few of the caterers have been charging and collecting service tax for such services unless questioned. In this article, we have tried to analyse and interpret the exemption entry which could be useful to many assessees availing the outdoor catering services.     

An exemption...

Goods and Service Tax (GST) upcoming in India is likely to result in widening the tax base substantially by covering large number of potential taxpayers who are hitherto not covered in the tax net either due to their activity not being in the nature of taxable or due to some exemption being claimed. It is talked that the present assessee base on Central side itself is expected to rise to approximately 60 lacs assessees from existing base of apprx. 15 lacs. One of major contributor in...

India is on behest of implementing Goods and Service Tax (GST) which is said to be biggest tax reform since Independence.   

One important aspect under GST would be to deal with transitional provisions especially in relation to ongoing contracts which have been entered into pre GST but not completed at the time of GST introduction. Present discussion is confined to transitional challenges on the contracts entered into by service providers only.  

The conditions in contract...

SUPREME COURT

1. Service Tax cannot be levied on indivisible works contracts prior to 1.6.2007(CCE, Kerala vs. M/s Larsen and Toubro Ltd 2015-TIOL-187-SC-ST)

• Prior to 1.6.2007, service tax is applicable only to service contract simpliciter not to composite works contract. Section 67 of the Finance Act which provides for value of gross amount charged for charging service tax refer to value of service in case of contract of service simpliciter not for composite contracts.
• In...