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"Service” has been defined as an activity between two persons. In normal course the principle of “mutuality” is applied and there can be no tax when one deals with oneself. However an exception has been created in the Service tax law for dealing with a branch outside India.  

The Place of Provision of Services Rules 2012 has deemed certain locations as the place of provision. This depends on the nature of activity. Where the place is outside India, no service tax is...

Many of the dealers today are not very clear about levy of VAT on freight charges being collected on the sale transactions. An attempt has been in this article to provide clarity on the implication of freight charges. Under the earlier Karnataka Sales Tax, the dealer of goods could have claimed deduction towards transportation charges if the amounts were shown separately. However, the same is not the case in case of KVAT introduced from 2005.    

Definition of turnover  

Section...

As per the Karnataka VAT provisions, input tax in relation to any registered dealer means the tax collected or payable under this Act on the sale to him of any goods for use in the course of his business, and includes the tax on the sale of goods to his agent who purchases such goods on his behalf subject to the manner as may be prescribed to claim input tax in such cases. The input set off would be subject to restrictions provided in Section 11, 12, 14 and 17.   

There are scenarios...

Many of the practical issues have been addressed in this year’s budget by the Central Government. One of the good news for the tax payer is extension of time limit for availing the Cenvat credit to 1 year from earlier limit of 6 months. The important changes and the impact have been highlighted in this article. All Cenvat credit related changes otherwise provided would be effective from 01.03.2015.    

1. Cenvat credit on goods directly dispatched to job worker  

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Under CST law, the tax cannot be levied on sale of goods in course of import and export. Article 286 of the Constitution of India imposes restriction on levy of tax either on sale in course of export or import by a state government. The exemption is mainly to counter double taxation of foreign trade. Even the Government’s policy is to export goods and not to export taxes.   

Tax exemption on exports and penultimate sales  

As per Section 5(1) of CST Act 1956, sale is deemed to...