Blogs

Central Excise on Garment Industry in Budget 2014?  

History  

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...

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...

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...