In this article we shall take a close look at the taxability of maintenance and repair services under service tax as well as specified exclusions from the same apart from recent developments. The aspects of Cenvat credit and remote service have been addressed. The relevant case laws along with comments and practical issues one comes across in the normal course are discussed with possible solutions.
The immovable and movable properties one acquires It is quite common to...
Revenue Augmentation – 6 Month Restriction – Can One Avail post 1st September?
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 50-60% of the total duty payment to be made by the manufacturing sector. For service providers credit may average about 20% of the duty payable. Therefore this year the credit to be availed would be in excess of ? 1.5 Lakhs...Read more
Concept of departmental audit
The departmental auditors look into the assessee’s own (private) records to verify whether the assessee is paying central excise duty correctly on excisable goods manufactured or deemed to be manufactured and service tax on taxable services provided and whether proper procedures are followed where required to be followed viz., in case of exports or while claiming the benefit of any exemption from duty or tax. The main...Read more
Central Excise on Garment Industry in Budget 2014?
The levy of central excise as per the stated policy of broadening the base of tax payers and reducing exemption was applied to the textile industry in 2001 with branded products being bought into the levy. In 2003 the entire industry was covered, but for some minor exemption. The nature of the garment Industry with manufacturers and the brand name owners/ exporters being different posed some challenges and therefore...Read more
Under CST law, the tax cannot be levied on sale of goods in course of import and export. One should refer to Section 5(1) and 5(2) to understand what constitutes sale in course of export and sale in course of import. Even Article 286 of Constitution of India imposes restriction on levy of tax either on sale in course of export or import by a state government. It is interesting to note that such restriction is only for the state government and not for the union government. However, levy of...Read more