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PLI scheme for electronics manufacturing sees incremental investment of Rs 8,390 CrG20 finance leaders agree to tax super-rich but forum not yet readyDPIIT promotes green logistics industry balancing economic growth and environmentIndia, US ink pact to stymie illegal trafficking of cultural propertyRailways expands tracks by 31,180 kmFroth in Yamuna river: Delhi complains to Centre against UP and HaryanaGovt to enhance reach of Indian Digital Public InfrastructureFormer BJP Minister says BJP has totally failed as Opposition in KarnatakaGovt provides incentives to small tea growersEU penalises 5 countries for infringing budget rulesI-T-Transaction involving transfer of unutilised shares cannot be deemed to be sale of shares so as to attract levy of Long Term Capital Gain u/s 112: ITATChina says Relations with Japan at critical stageST - Once the activity of appellant that is of forfeituring the amount of earnest money is not a declared service, question of retaining said money as consideration for rendering such service becomes absolutely redundant: CESTATEU medicines regulator disapproves Alzheimer’s new drugSC says no restrictions on voluntary name banners along Kanwar route eateriesFM favours debt reduction but sans affecting economic growthKargil Victory Day: PM warns Pak against practising terrorismChina pumps in subsidies worth USD 41 bn into car sectorMisc - Payments made to Government cannot be deemed to be a tax merely because statute provides for their recovery as arrears: SC CBMisc - Royalty not a tax; royalty is contractual consideration paid by mining lessee to lessor for enjoyment of mineral rights & liability to pay royalty arises out of contractual conditions of mining lease: SC CBMisc - Since power to tax mineral rights is provided for in Entry 50 of List II, Parliament cannot use its residuary powers in this subject matter: SC CBCus - Owner of goods has a liability to pay customs duty even after confiscated goods are redeemed on payment of fine - Interest follows: SC

MESSAGE BOARD

   

Budget Suggestion


Anamoly in the definition of "Exempted Service"

Section 66D of the Finance Act (Negative list of services) excludes “any process amounting to manufacture or production of goods”. The “exempted service” defined under rule (e) of CCR, 2004 includes the services mentioned in the “Negative list of services”. Rule 6(1) of CCR, 2004 does not allow input services used for the provision of exempted Services.

The above provision and rules implies that if the activity carried out by job workers amounts to "manufacture", the job workers need to reverse / pay the common input service tax credits, proportionate to the exempted turnover (i.e., labour charges received from the principal) or pay up 7% of the above credits on the value of labour charges. Therefore, this anomaly created in the law needs immediate fix up in the ensuing budget.

Warm Regards

Yogish Rudra.M

U K GODBOLE GODBOLE 01/02/2016

 

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