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Job work is one of the important aspects that a manufacturer registered under Central Excise should be familiar with not just because it enables him to plan his processes in order to optimise the benefits available under the Central Excise Act, 1944 but would also enable him to cut costs on his manufacturing. This is so as the processes which pose problems or which are not cost-effective at his end [ due to economies of scale] can be sub-contracted or delegated to another manufacturer or...

Service providers / manufacturers avail various input services such as catering services, travelling services, insurance etc., which would be consumed by the employees. Such services would not be eligible for Cenvat credit when they are primarily consumed for personal purpose. However, consumption of these services purely for personal purpose would be rare and often these services are in relation to business of providing services or final dutiable products. In such cases, Cenvat credit...

Stock transfer of Goods to a branch or consignee is common in trade. Stock transfer can be both Intra & Inter state. A prudent businessman should plan the sales transactions with the option of stock transfers considering the VAT and CST provisions prevailing in the state. Planning such transactions is not a cakewalk as it involves many risks. Few of the points which should be considered in case of stock transfers along with the details of risk involved are discussed below.

INTRASTATE...

Under negative list based taxation, service tax is levied on service portion in an activity wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) are supplied in any manner as part of the activity.  

Without getting into validity of ST levy on supply of food or drink, we have examined whether credits can be availed by hotel when it pays service tax on abated values of services?  

What is cenvat credit Scheme?

Cenvat scheme...

Discounts are very common in business. There are various types of discounts like trade discount, cash discount, quantity discounts, repeat customer discounts, end of year discounts etc. These discounts are allowed mainly to encourage customers to purchase more goods or to make early payments. It is necessary to understand the VAT impact on such discounts allowed.   

Though the VAT provisions are similar at large across the states, there are variances observed with respect to the...

VAT is a levy on sale of goods. For the purpose, it is usually the seller who would be held liable for payment of VAT. However, there are few exceptions created under the VAT provisions. As per Section 3(2) of KVAT Act 2003, in case there is a sale by an unregistered person to a registered dealer, then the tax shall be paid by such registered dealer who is a buyer of goods. Similarly exceptions are created with respect to collection and payment of tax especially in case of industrial...