Blogs

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...

The manufacturing industries depends now a days stick to their core competencies and get most jobs done on outsourced basis.  

The sending of raw materials/semi-finished materials for some process as per the directions of principal manufacturer is known as job work.  

The industries who undertake the work of job work should be aware of the provisions under central excise and service tax applicable to them, so that can be compliant and not face demands of levy or...

The concept of renting /lease is not new to service tax with the Rent a Cab scheme being the first followed by Mandap Keeping services and banking and financial services.. In 2006 the category of Support services for business or commerce attempted to bring in offices provided along with infrastructural support to the net. In this case it was reasoned that only if the support staff was provided then this category would cover offices.  

The bureaucrats drafting the law have a view...

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...