Refund – Limitation when amount deposited on audit objection
28 July 2016
The assessee had deposited a sum as service tax with department on audit objection raised. Subsequently, show cause notice was issued demanding payment of service tax along with interest which included the amount deposited at audit objection stage. Demand was later dropped and assessee sought refund of amount deposited by him. Issue for consi...
GST in India – ‘Supply’ defined
15 June 2016
The taxable event for levy of Goods and Services Tax (GST) is ‘supply’ and hence Section 3 of the Model GST Act, released by the Finance Ministry yesterday (14th June 2016), covers the meaning and scope of ‘supply’.
The specific inclusions under the term ‘supply’ are as under: ...
GST Model Law in India – Credit mechanism specified
15 June, 2016
Model Goods & Services Tax Act has been released by the Indian Finance Ministry on 14th of June. The Model Law amongst other details also provides mechanism for taking Input Tax Credit (ITC) in respect of defined inputs, capital goods and input services. The terms inputs and input services have been defined in a wide manner to cover g...
India prepares for GST – Model Act released
15 June 2016
The Model Goods & Services Tax (GST) Act as prepared by the Empowered Committee has been released by the Indian Ministry of Finance on 14th of June.
The Constitutional (One Hundred and Twenty-Second) Amendment Bill, 2014, to empower the Indian government to levy such tax, which will subsume presently levied Centr...
Exemption for supply to R&D establishment
19 May 2016
CESTAT Mumbai has allowed benefit of Notification No. 10/97-C.E. to air-conditioning and refrigeration equipment supplied to Research & Development Organisations namely, Vehicle Research & Development Establishment, and the Electronic & Radar Development Establishment, when the AC system were specially designed and modified, by the...
Lease equalisation levy is not consideration and not liable to Service tax
19 May 2016
To qualify as ‘gross amount charged’ there must be a payment and it must be in the nature of a consideration for a service. The Tribunal in the case of Reliance Infratel Ltd v. Commissioner has held that amount for ‘lease equalisation levy’ which had been entered in the books of accounts of the assesse...
India-Mauritius Double Taxation Avoidance Convention re-cast
17 May 2016
As per Procotol signed on 10-5-2016, India and Mauritius have agreed to certain amendments in the ‘Agreement for avoidance of double taxation and prevention of fiscal evasion with Mauritius’ (DTAC) between the two countries. The DTAC originally signed on 24-8-1982 had been subject to much debate and India was trying to re-negotiate...
DRI officers not empowered to issue notices for imports before 8-4-2011
4 May 2016
The Delhi High Court has held that officers of Commissionerates of Customs (Preventive), Directorate General of Revenue Intelligence (‘DRI’), Directorate General of Central Excise Intelligence (DGCEI) and similarly placed officers, do not have jurisdiction to issue show cause notices under Section 28 of the Customs Act, 1962, in respe...
‘Integrated Declaration’ under the Indian Customs Single Window project
15 April, 2016
In furtherance to the Indian Customs Single Window project, wherein online permissions are being obtained from various govt. agencies, the CBEC has developed ‘Integrated Declaration’, under which all information required for import clearance by the concerned government agencies has been incorporated in the electronic format of bill of e...
BSS not covers procurement on behalf of group companies under cost sharing arrangement
CESTAT, Mumbai has held that when services are procured for use by several group companies, Valuation Rules do not stipulate any condition as to one on one identification of service recipient and service provider in order to fall within the ambit of 'Pure Agent'.
In the instant case, the assessee procured various services for u...
Valuation – Cost of process carried out at job-worker’s premises after clearance
14 April 2016
The Supreme Court has held that cost relating to bullet proofing of jeeps, undertaken outside the factory by job-workers after clearance of the not-yet bullet-proofed jeeps, is not to be included in the value of jeeps for the purpose of levy of Central Excise duty.
Affirming the Order of the CESTAT, the Apex Court in its order in the ...