Blogs

Service Providers - Is Input Credit Available in these Special cases?  

This note examines the practical situations when Input credit is available or not available while providing a service.  

Inputs means all goods used for providing any output service but excludes LDO, HSD or petrol, any goods used for construction or execution of works contract of a building or a civil structure or a part thereof or laying of foundation or making of support structures of capital goods except...

The common citizen, the trader [ big & small], small scale service providers, manufacturers who in normal course are not providing services would not be registered under service tax. Generally such persons would not like to be registered as it is a hassle, transaction costs would increase but at the same time they wish to be tax compliant.  

The reverse charge mechanism as well as the joint charge mechanism are normally not applicable to the Government or individual. In some cases...

Eligibility of input service credit – Sales promotion Vs Sales Commission  

The cenvat credit scheme is a beneficent legislation and allows for credits used for manufacture or service. Sales commission is paid for the following reasons: market creation/development, advertisement, sales promotion activities, identifying potential customers, negotiating with them, sourcing / funneling of orders, increasing sales etc.  

Cenvat Credit Rules prior to 1.4.11 specifically allowed...

The Central Excise as well as Service Tax have been amended post liberalization to follow the self assessment scheme. It means that the return is accepted as correct. In this type of a scheme there needs be a check against filing incomplete, incorrect, faulty returns. Therefore there are provisions for search & seizure as well as summon for giving evidence.  

In addition at times the Special audits in case of suspected revenue leakages or irregular cenvat credit the...

In this article we would examine what would be the effect of some services activity conducted in the course of a sale of immovable property in general and development of plots in particular. Consequently the impact of service tax.  We also examine the service tax implications along with few possible issues arising out of the recent decision of the Apex Court in L&T case.  

Background  

It would be relevant to understand the scheme of taxing powers set out in Constitution of...

What The Material/ Procurement Executive/ Manager needs to know about Indirect Taxes? 

The successful material/ purchase officers knows the production needs well in terms of quality, timeliness and quantity. He also understands the cost of products / services sought to be procured , where available at economical prices. Maybe nearer the source + have a few alternative’s in case of urgent procurement. 

In this article we look at a few options/ situation in the procurement...