Blogs

Union Budget 2014- Indirect Taxation- The Ugly Side- Tax terrorism to Continue unabated.  

In recent times, the law abiding assesses have to contend with large number of target based queries/notices, audits and summons generally high amount of tax terrorism. Infructuos demands [ 9095% bound to fail as per revenue officers themselves ] in VAT and Service Tax have been observed. These lead to demands and disputes which go on for years leading to killing the golden goose and...

Revenue Augmentation by Way of Cenvat Credit Restrictions  

[ Past Credit Availment – Last Chance? – CE/ ST]  

Excise duty collections are expected to be about ? 2 Lakhs crores and Service Tax collections about 2.2 Lakhs crores for the year 2014-15.  

The cenvat credit accounts for about 50% of the total duty payment to be made by the manufacturing sector. For service providers it may average about 20% of the duty payable. Therefore this year the credit to be...

One of the major challenges for the assessee is – avoiding of the disputes with the department. To avoid/ reduce such disputes with the department, one must understand the reason for such dispute. In this write up, we have analyzed the best practices of avoiding disputes with the department by using alternative measures/policies. We would understand the following in this writeup -  

1. Possible causes for the Disputes along with measures to mitigate them?  

2. How...

A.  Suggestions for Revenue Augmentation + Reforms  

1. Information in respect of assessees be shared between the Central Government and the State Governments on a reciprocal basis. This will facilitate reconciliation of returns and indicate areas / sectors of revenue leakage or areas requiring further investigation.  

2. Excise/Service Tax Audit in line with the Income-Tax Audit be introduced for traders/ manufacturers/ service providers having a turnover of goods/services...