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Sunday 21 February 2016

Changes made in service tax relating to service by Government to business entity : As per section 66D on negative list of service while service provided by government and local authority are generally not taxable, support services services provided by Government to business entity have been kept in taxable category. Further in respect of support services to business entity , tax is payable on reverse charge by business entity and not government except for renting of immovable property. It included services like advertisement, construction, works contract, security and other infrastructural, administrative, operational,logistic, marketing services. However Clause 109 of Finance Act 2015 increased the ambit of taxable service from support service to any service provided by government to business entity from date to be notified later. Now by NN 6/2016 dtd 18-02-2016, the date has been notified as 01-04-2016. Furtherby NN 7/2016 dated 18-02-2016, exemption has been provided for service to business entity with a turnover up to ten lacs in preceding year.


Exports to Nepal' would be treated at par with other exports from 1-3-2012 and would not form part of turnover limit of Rs. 400 lakhs or Rs. 150 lakhs for SSI-exemption purposes accordingly, words 'and Nepal' in Explanation (G) to SSI Notification No. 8/2003-CE to treat exports to Nepal as clearance for home consumption, were struck down-Ketan Pottery Works [2016] 66 taxmann.com 259 (Gujarat)


in Swadeshi Polytex Ltd. (44) ELT 794 (SC) it has been held by the Apex Court that any unintended byproduct during the course of manufacturing of a particular goods could not be said to be an intended one


Assessee took credit of CVD/Special CVD paid on imported materials based on 'endorsed bill of entry' - Department denied credit on ground that endorsed bill of entry is not an eligible document under rule 9(1) - Assessee argued that bill of entry (even if endorsed) continues to be an eligible document under rule 9(1)(c) - HELD : There is no dispute about receipt of material and payment of duty thereon - Hence, credit taken based on endorsed bill of entry is valid, as endorsed bill of entry is also a valid document for availing credit- Suyash Chemicals [2016] 66 taxmann.com 241 (Mumbai - CESTAT)