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This festive season, service sector has witnessed imposition of Swachh Bharat Cess (SBC) in very hasty move by government. It was promised at the time of the budget that it would only be imposed on some services. Govt has gone back on its word. Further they have been left with very little time to prepare for this new tax. This owed to lack of clarity over various issues, holiday period and limited time between issuance of notification for levy and actual levy. Trade and industry had insisted...

In the next recent times we have seen margins getting squeezed and competitiveness increasing. Indirect tax constitutes around 25-30% of the top line in the manufacturing industries and 10-15% in Services. Indirect Tax laws are unfortunately different in their applicability and there are a number of restrictions on the credits in respect of capital goods, inputs and input services. Tax laws in India are ever changing and quite complicated. The tax administrators as well as the Internal...

Introduction:

The Cenvat credit scheme is beneficial scheme the intention of which is to allow the manufacturer of dutiable

goods as well as the provider of taxable services to avail eligible credit. In this article the paper writer examines the eligibility to credit on inputs to a manufacturer of final products.

CENVAT credit rules have unified the credit available on goods and services. With effect from 10.09.2004 the scope had been enlarged by amending the CENVAT credit rules...

Background:  

The manufacturing industries ( larger and medium) nowadays stick to their core competencies and get most jobs done on job work basis from others. The alternative nomenclatures used are: sub contracting, loan licensing, processing or labour charges. At times the principal send tools needed as well as the part/ entire raw material required for the process free of cost. The material procured by principal may be sent directly to the job worker from the supplier. In...