Blogs

SUPREME COURT

1. Service Tax cannot be levied on indivisible works contracts prior to 1.6.2007(CCE, Kerala vs. M/s Larsen and Toubro Ltd 2015-TIOL-187-SC-ST)

• Prior to 1.6.2007, service tax is applicable only to service contract simpliciter not to composite works contract. Section 67 of the Finance Act which provides for value of gross amount charged for charging service tax refer to value of service in case of contract of service simpliciter not for composite contracts.
• In...

It is very often that the Tribunals & Courts while deciding tax disputes considers various provisions of allied laws like Law of Limitation, Foreign Exchange Management Act, 1999 & Indian Evidence Act, 1872 etc. Therefore while practicing and presenting the case before authorities, Tribunals the Advocates & Chartered Accountants need to have knowledge on various provisions of allied laws. In this article I am highlighting some of provisions of Limitation Act which are very much relevant to...

The Cenvat credit rules 2004 enable a manufacturer under central excise to avail the credit on "Input Services" which are used directly or indirectly in relation to the manufacture of the final products and clearance of the same from the place of removal. A large proportion of the services consumed by manufacturers, therefore, would now be an input service. Similarly, the service provider is eligible for the CENVAT credit on the inputs and capital goods used for providing the output...

Cenvat Credit scheme is designed to avoid cascading effects but it has been seen over a period that the government has been diluting the basic philosophy of the rule by introducing many arbitrary restrictions. This has been done to augment revenue without increasing the tax rates. Paper writer has made an attempt to analyse the restrictions and raise some possibilities as under:  

1. Partially using motor vehicle for renting: Motor vehicles falling under chapter heading 8704...