Blogs

Eligibility of input service credit – Sales promotion Vs Sales Commission  

The cenvat credit scheme is a beneficent legislation and allows for credits used for manufacture or service. Sales commission is paid for the following reasons: market creation/development, advertisement, sales promotion activities, identifying potential customers, negotiating with them, sourcing / funneling of orders, increasing sales etc.  

Cenvat Credit Rules prior to 1.4.11 specifically allowed...

The Central Excise as well as Service Tax have been amended post liberalization to follow the self assessment scheme. It means that the return is accepted as correct. In this type of a scheme there needs be a check against filing incomplete, incorrect, faulty returns. Therefore there are provisions for search & seizure as well as summon for giving evidence.  

In addition at times the Special audits in case of suspected revenue leakages or irregular cenvat credit the...

In this article we would examine what would be the effect of some services activity conducted in the course of a sale of immovable property in general and development of plots in particular. Consequently the impact of service tax.  We also examine the service tax implications along with few possible issues arising out of the recent decision of the Apex Court in L&T case.  

Background  

It would be relevant to understand the scheme of taxing powers set out in Constitution of...

What The Material/ Procurement Executive/ Manager needs to know about Indirect Taxes? 

The successful material/ purchase officers knows the production needs well in terms of quality, timeliness and quantity. He also understands the cost of products / services sought to be procured , where available at economical prices. Maybe nearer the source + have a few alternative’s in case of urgent procurement. 

In this article we look at a few options/ situation in the procurement...

Understanding of “Economic / Business  Activity”  and “Consideration” in Service Tax  

The provision for Service Tax levy - Section 66B specifies that the value of services provided or agreed to be provided in taxable territory for consideration would be liable. The definition of “service” states that any activity for a consideration from one person to another…  

The Negative List based taxation from 1.7.12 has substantially expanded the coverage under service...