Pradeep Jain - Chartered Accountant

Queries

Sir,Can a 100 % EOU export goods on payment of duty and claim rebate? please guide with authority.

No, a 100% EOU cannot export goods by paying duty and later on claiming rebate. They are required to export under bond without payment of duty under Rule 19 of the Central Excise Rules, 2002. They can claim refund of unutilized credit under Rule 5 of Cenvat Credit Rules, 2004.
Sir,We are manufacturer, since service has been rendered before 31.03.12 and bill has also been raised before 31.3.12, only the transporter bill i.e post of delivery (LR)and payment received after 1.4.2012,and In the customer Invoice charge service tax 10.3%. kindly advice the effective rate of tax will be 10.30%?

The query is not clear. We understood the query as under:- You are manufacturer and getting services of GTA. LR raised as well as goods delivered before 31.3.2012. But payment made after 1.4.2012. What will be rate of service tax? If this query then the answer is:- The service tax on GTA is to be paid by you i.e. service recipient. The POT says that the service tax is to be paid in such cases (where recipient is liable) on receipt basis. If the payment is made after 1.4.2012 then service tax will be payable at new rates. Even the CBEC circular 158/9/2012 dated May 8, 2012 has also clarified the same.
Dear Sir, We are supplying the automobiles parts to an automobiles co. we had supplied some parts during the time of Jan- 2012 to March-2012, now automobile company has increased & amended the purchase order retrospectively the price of our parts supplied to them from our co. Now, we have to raise the supplementary invoice due to the rate revision for duty difference but, the rate of excise duty has been change from 10% to 12% from 17.03.2012., So if today, I want to raise the Excise invoice what should be the rate of Excise duty i.e 10 or 12%. Pls. give your opinion on the issue with supporting rules, regulation, case law etc. Regards, Sanjay Sharma

The rate of duty is payable on the date of clearnace of goods from the factory. Hence the duty is payable @10% in instant case. However, the interest will be payable on the same as per Apex Court decision in case of SKF bearings Limited.
Query The Assessee is a News Paper publishing Company and prints and sale its own newspaper. It has spare printing capacity and at times does printing of News Papers as Job work (above Rs. 10 Lacs) for other small newspaper vendors / Other Publishers. 1. Whether the assessee is liable to charge Service Tax on this Job work? 2. Whether considering the notification No-8/2005, it would be liable to charge Service Tax? 3. Whether this job work of printing can get Service Tax exemption considering the Notification no-14/2004? Please advice.

No service tax is required to be collected for jobwork done of printing as the Notification No. 14/2004-ST dated 10.09.2004 clearly exempts service provided in relation to printing done for another person as Business Auxiliary Service.
After 01.04.2008 on which situation service tax credit on outward fright is allowed

As per clarification given in Board Circular no. 97/8/2007 dated 23-8-2008, the Credit of Service Tax on Outward freight will be allowed if the following 3 conditions are fulfilled: 1. The sale takes place at the buyer’s door or the property in the goods remains with the seller till the goods reaches buyer in an acceptable condition; 2. The risk of damage to goods during the transit is borne by the seller/manufacturer; and 3. The freight charges are integral part of the price of the goods.
Since service has been rendered & estimate has been given before 31.03.12 but final bill has not been raised till 22nd April 2012. At which service tax rate the invoice should be raised?

This question relates to point of taxation when there is change in rate of duty. It has two replies depending upon the category of service provided by you:- a. If one is falling under six categories on which service tax was payable on receipt basis then the service tax is payable on receipt of amount. If the amount is received in April then the service tax @ 12.36% otherwise the service tax is payable @ 10.3%. b. However, if the person is paying service tax under normal point of taxation then the service tax is payable under two situations viz. when the service is provided before change in rate of duty and secondly, when the service is not provided before change in rate of duty. Since your query says that the service is provided then the invoice or payment received before the date of change in rate then the service tax is payable on old rate. But you are telling that the invoice is raised afterwards and there is no mention of payment in query. In such situation if the payment is received before 31.3.2012 then the service tax is payable @ 10.3% (old rate). But if the payment is also received after the date of change in rate of duty i.e. 31.3.2012 then the service tax is payable on higher rate i.e.12.36%.
Respected Sir, Can proceedings of sending show cause notice for levy of service tax, interest and penality be initiated on Legal Rep's after the death of Proprietor. Your expert advice and help shall be highly appreciated.

There is no provision in the Central Excise law or the rules framed there under for such an action. No action can be taken against the Legal representative after the death of the Proprietor.
I manufacture gold jewellery on gold issued from jeweller(Exporter). My anual labourrecieved is 15 lac.My personel stock is 20 lac&annual sale is 9 lac.Am I liable to servicetax or exciseduty

The manufacture of Gold is on jobwork basis and for this the supplier is required to obtain registration. The excise duty liability is on the supplier of goods only. As you are only doing jobwork then it will not be liable to service tax under BAS service, as the process undertaken by you amounts to manufacture. This is the reason excise duty is being charged on the same. If any process amounts to manufacture under Central Excise then there is no service tax on such process. Hence, no excise duty or service tax is payable by you.
Dear Sir, whether zinc sulphate is classified under heading 283329 (Agriculture grade zinc sulphate ordinarily used as micronutrient) or under heading 31(All goods, other than those which are clearly not to be used as fertilizers).

The classification of Zinc Sulphate will be under heading 283329 if it is of agriculture grade and is ordinarily used as a micronutrient. Chapter 31 does not cover goods other than fertilizers but covers fertilizers, therefore, Zinc sulphate will not be covered under Chapter 31. The Chapter Note 1 (b) to Chapter 31 clearly provides that this chapter does not contain separately chemically defined compounds [other than those answering to the descriptions in Note 2(a), 3(a), 4(a) or 5 below]. And the compounds given in Note 2(a), 3(a), 4(a) or 5 do not include Zinc Sulphate. Further, serial number 103 of Notification number 12/2012-C.E dated 17.3.2012 also exempt Agricultural grade Zinc Sulphate ordinarily used as micronutrient from payment of duty. The tariff heading mentioned in above serial number is also 2833 29.
Sir we purchase Pig Iron from a Unit which is Export Oriented Unit on domestic sale has to pay BCD and CVD their is changes in budget regarding exemption of cess, pls clarify which cess exempted and which is still leviable and can be take credit of the cess.

The educaiton cess and SHE cess on CVD is exempted but the custom educaiton cess and Custom SHE cess is still applicable. But the credit was available of cess paid on CVD. Hence, it will not be available henceforth.
Dear Sir, We are exporting the Automobiles parts on payment of Excise duty and subsequently claiming the rebate of excise duty paid at the time of Export and while procuring inputs we are claiming the CENVAT credit of the excise duty paid on Inputs. There is no domestic sales, it is 100% export. Questions need to be answered— 1. In your view, is it appropriate to deposit the Excise duty and then claim the same as rebate? , 2. Should we stop the export on payment of duty and subsequent claiming of rebate, because in this scheme we are getting only our hard earned money back which we deposited as excise duty from the excise department after a considerable time, no value addition? 3. Alternatively, and most importantly, should we opt Export without payment of Excise duty under LUT and then claim (i) Refund of CNVAT credit accumulated on account of non-payment of duty on export, (ii) claim Duty Draw Back under All Industry Rate? Pls. give us your valuable opinion about above situation and guide us which scheme we should go for. Thanks and Regards, Sanjay Sharma

The claiming of rebate is simplest way of getting the money back from the department. Yes, the other option of refund of unutilised credit is cumbersome as department insists on corelation of raw material and finished goods. Although this budget has proposed to give the same on proportionate basis but it will be seen how field formation interpretate the same. The other alternative of taking drawback is also good but then you need to take the cenvat credit. As logic given for opting out of the option by you is that you pay the duty first on Raw material then take cenvat credit. Utilise the same in payment of duty and then take rebate. It is taking back your hard earned money. In all the options quoted by you, you pay the duty first on your RM and then get it back from the department.Hence there is no difference in earlier option and last two options. Lastly, if you do not intend to pay the duty of Raw materials first then you opt for procurement of duty at nil rate of duty under Rule 19 of Central Excise Rules.
Dear sir, we are registered dealer in central excise. We import scrap and sell it to local excise dealer. While importing scrap we are levied Basic Custom Duty (BCD), CVD, Cess and HCess on above. As a registered dealer in central excise we are passing on the CVD, Cess on CVD and HCess on CVD to our dealers. I just want to know whether BCD, Cess on BCD and HCess on BCD paid by us at the time of import can be get back as refund or drawback or by any other mode.? Thank You.

There are no provisions in customs law for refund of basic customs duty, however there is provision to get duty drawback on import portion of BCD, but it is applicable only if you are exporting. Since you are not exporting, the same shall not be applicable to you.
My client was purchased duty paid item which is falling under central excise tariff heading no.69032010 It is used to melting of brass for manufacturing of excisable goods, whether can we treat as a capital goods under Rule 2 of CCR,2004 or not and take the cenvat credit 50% as per terms of rule 4 of Cenvat credit rule 2004

The goods falling under Chapter 82,84,85 and 90 falls under the definition of "capital goods". However, the refactory materials are also covered under the definition. Hence, if the goods falling under 69032010 is silicon carbide crucibles are refractory material then the credit on the same will be available.
Dear Sir, We are exporting the Automobiles parts on payment of Excise duty and subsequently claiming the rebate of excise duty paid at the time of Export and while procuring inputs we are claiming the CENVAT credit of the excise duty paid on Inputs. Questions need to be answered— 1.In your view, is it appropriate to deposit the Excise duty and then claim the same as rebate? , 2.Should we stop the export on payment of duty and subsequent claiming of rebate, because in this scheme we are getting only our hard earned money back which we deposited as excise duty from the excise department after a considerable time, no value addition? 3.Alternatively, and most importantly, should we opt Export without payment of Excise duty under LUT and then claim (i) Refund of CNVAT credit accumulated on account of non-payment of duty on export, (ii) claim Duty Draw Back under All Industry Rate? Pls. give us your valuable opinion about above situation and guide us which scheme we should go for. Thanks and Regards, Sanjay Sharma.

There are many options which you can explore, however which is most beneficial depends upon your entity only. Moreover you can also go for refund of accumulated CENVAT credit under Rule 5 of CCR'04 , since the scheme has been changed in the current budget and refund is allowed on the basis of export turnover.
when I fill er-1 month of march-12, add new column of Tariff Notification availed (what does fill in it)

In this column you have to add the Notification prescribing the present rate of duty for your product
One promoter acquired land in his name and divided it in 100 plots and sold them to individual buyers. The buyers register their respective plots in their name. Now each buyer gives a contract individually to contractor (who was the previous land owner) to construct a single residential unit for his personal use. Therefore 100 individual residential units are constructed for 100 individual customers. I wanted to know whether service tax will be applicable on it or not? Can the individual buyers claim that this residential unit is for personal use and exempt from service tax?

If the individual buyers themselves had undertaken the construction, then only they could have claimed that the residential flat was for their personal use. However, the buyers have hired a contractor to build their house. Therefore, exemption from service tax cannot be claimed. Moreover in a recent judgement in case of Isha Homes (I) Private limited {2012 – TIOL – 424 – CESTAT – MAD} tribunal in the similar case has ordered pre – deposit of the amount of service tax.
Sir, can u tell me any notification to charge excise duty for neepal export. kindly send me a copy in my mail id. i shall always thanks for you sir.

The notification for export to Nepal has been changed from March 1, 2012. The rebate of duty paid on the export to Nepal will be done under normal export procedure contained in Notification number 19/2004-C.E.(N.T.) dated 6.9.2004 as amended by Notification number 24/2011-C.E. (N.T. ) dated 5.12.2011 effective from 1.3.2012.
dear sir i am engaged in manufacturing of gold ornaments on job work whether i am liable to pay service tax

Since the manufacture of unbranded jewellery has been brought under excise net from the current budget, you shall not be required to pay service tax on the same, as the person who gets the goods manufactured on job work basis has been made liable for payment of duty. Hence the principal manufacturer will be liable for payment of the excise duty on the same.
Dear Sir, We are manufacturer of excisable as we as exempted goods, we are taking cenvat on the inputs and paying the 5% (now 6%)amount on the finish goods clearance. I want to know whether we have to pay the 5% amount on goods cleared for export as the the notification No.24/2010-CE (NT) dt 26.5.10 specifically exclude the exempted goods from exporting under Bond.

As per point no. (v) of Rule 6(6) of Cenvat Credit Rules’04 the provision of Rule – 6(1), 6(2), 6(3), 6(4) shall not be applicable in case excisable goods are removed without payment of duty for export under bond in terms of provisions of Central excise rules,2002. Thus, you shall not be required to reverse credit on the same. But if you manufacture totally exempted goods then you will not be allowed to take the credit. However, if you are manufacturing excisable and exempted goods then you are allowed to take the credit on common input and input services.
since service has been rendered before 31.03.12 and bill has also been raised before 31.3.12, only the payment has been received after 1.4. 12, the effective rate of tax will be 10.30%?

The Chartered Accountants are paying service tax on receipt basis as per Rule 7 of Point of Taxation Rules. As per the recent amendments in budget 2012, the amendment has been made vide Notification No. 04/2012-ST, dated 17/03/2012 in Rule 2 of Point of Taxation Rules, in which the following rule has been inserted:- ‘2A. Date of payment.—For the purposes of these rules, “date of payment” shall be the earlier of the dates on which the payment is entered in the books of accounts or is credited to the bank account of the person liable to pay tax: Provided that — (A) the date of payment shall be the date of credit in the bank account when — (i) there is a change in effective rate of tax or when a service is taxed for the first time during the period between such entry in books of accounts and its credit in the bank account; and (ii) the credit in the bank account is after four working days from the date when there is change in effective rate of tax or a service is taxed for the first time; and (iii) the payment is made by way of an instrument which is credited to a bank account, (B) if any rule requires determination of the time or date of payment received, the expression “date of payment” shall be construed to mean such date on which the payment is received;‟. Hence, in case of change in rate of duty, date of payment will be point of taxation and consequently, in case referred by you the service tax is payable on rate applicable on the date of payment. It will be after April 1, 2012. Further it is also clarified by Circular No. 154/5/2012-ST, dated 28/03/2012. It clarifies that the Notification No. 04/2012-ST, dated 17/03/2012 has amended Point of Taxation Rules as well as Rule 7 which applied to the individuals or proprietary firms or partnership firms providing specified eight services taxable services of section 65 of the Finance Act, 1994 which also includes the services provided by practicing chartered accountants. Rule 7 determined the point of taxation in such cases as the date of receipt of payment. The issue has been examined for invoices issued on or before 31st March 2012, the point of taxation shall continue to be governed by the Rule 7 as it stands till the said date. Thus in respect of invoices issued on or before 31st March 2012 the point of taxation shall be the date of payment. Following the same, the service tax will be payable @ 12% as the payment is after April 1, 2012. We hope that the above will satisfy your query.
Sir, we are 100% eou. we filed refund claim for the quarter of july 10 to Sept. 10 on 30.09.2011 for unutilised credit under rule 5. But department rejected our claim on time bar. Pls. guide.

The time limit under Section 11B of the Central Excise Act, 1944, does not apply to refund of accumulated credit. This has been held by the CESTAT in many cases. The Board has also clarified in Circular No. 120/01/2010- ST, DT. 19/01/2010 that even for opening balance in Credit Register, refund can be filed. It was said that “As regards the quarterly filing of refund claims and its applicability, since no bar is provided in the notification, there should not be any objection in allowing refund of credit of the past period in subsequent quarters. It is possible that during certain quarters, there may not be any exports and therefore the exporter does not file any claim. However, he receives inputs/input services during this period. To illustrate, an exporter may avail of Rs.1 crore as input credit in the April – June quarter. However, no exports may be made in this quarter, so no refund is claimed. The input credit is thus carried over to the July-September quarter, when exports of Rs.50 lakh and domestic clearances of Rs.25 lakh are made. The exporter should be permitted a refund of Rs.66 lakh (as his export turnover is 66% of the total turnover in the quarter) from the Cenvat credit of Rs.1 crore availed in April-June quarter.”
I could not submit some of the input credit invoices before adjudicating authority as a result i was asked to pay service tax with interest and penalty, whether I can make appeal to commissioner appeal showing all the input credit documents which i have misplaced.

Yes. Appeal can be filed before the Commissioner (Appeal) submitting the additional documents and the reasons for non-submission before the Adjudicating Authority. You can submit for setting aside/modifying or annulling the Order-in-Original. The Commissioner (Appeal) can quash the order or modify the order but cannot remand the matter back to the Adjudicating Authority as he is not empowered to remand the case.
We are paying service tax on receipt basis, being ca, and servixe provided before 31.03.2012, bill raised before 31.03.2012, payment received after 31.03.2012. Pl inform what rate will be charged

As per recent amendment in POT as well as CBEC clarification, you have to pay the service tax @ 12.36%. It is clarified that if the payment is received after March 31 ( not within four working days) then service tax at higher rate is to be paid.
Respected Shri Jain, Sir, We are an EOU and sell part of goods to DTA. Could you please guide us on Excise Duty Calculations for DTA sales by an EOU (especially after Budget 2012-13) or any Notification No. where the method of calculation can be referred to . Thanking you in advance.

There is no clarification on this issue by CBEC also. When the education cess and SHE cess is not charged on CVD at the time of import then it should not be charged by EOU. Let us wait for the clarification.
Respected Sir, As you know the excise rate has been changed from 10% to 12%,till feb-2012 I was typing in the payable sheet of finished goods in the tariff notification availed column in the ER-1 02/2008,then when I will show the 12% duty of the sale on the seprate sheet then I have to write 02/2008 or any other notification.

You have to show two separate enteries for each product. One showing duty @ 10% from 1.3.2012 to 16.3.2012 and other showing duty @ 12% from 17.3.2012 to 31.3.2012.
what is the maharashtra state excise duty structure for sugar which has to be calculated in CT-1

We are dealing in Central Excsie, Service tax, DGFT and Customs. But we are not dealing in State Excise Duty. Hence, we cannot reply your query.
We are Selling of space or time slots for advertisements in internet. As per negative list are we exempted from service tax. Regards, Balaj.P

Yes, you are covered in Negative list of Service tax. Sale of space for advertisement in internet is non-taxable and no service tax will be payable.
Respected Sir, One of my clients is about to cross the turnover of Rs.4 crore,then does he becomes permanently excisable to issue excisable invoices compulsorily or if his turnover remains below rs.4 crore then can he take the benefit of Rs. 1.5crore till which no duty is charged.

If your client has crossed the limit of 4 crore then he will be liable to pay duty in the next financial year and he will not be entitled to benefit of 1.5 crore in that year.
Respected Jain Sir, we would like to draw your honours kind attention on the fact that one of the our client is service providing a business axuliary services and problem is that assessee has providing services after the 17.03.2012 and completion of providing a service is 20.03.2012. The invoice has been used on after 31.03.2012 & Payment received after 31.03.2012 and on 01.04.2011 service tax rate has been changed to 10.3% to 12.36 %. Sir , I would like to ask ? 1. wether assessee has charges service tax on 12.36 % or 10.3 %. 2. assessees services liable to tax on old rate or new rate,please give details as per the service tax point of taxation rules in brief ? 3. If above mentioned Question , payament of services received before the 31.03.2012 and bill invoice is issued on after 01.04.2012 ?

As per point of taxation rules, service tax shall be payable by earlier of the following dates- 1. Provision of service 2. Payment received 3. Invoice issued Therefore, whether service tax received before 31.03.2012 and invoice issued before 31.03.2012, service tax shall be chargeable @ 10.3%. But if the payment is received after 31.03.2012 then the rate of service tax shall be 12.36%.
vat rate of haryana

We are dealing in Service tax, Excise, DGFT and Custom. We donot deal in VAT. Hence, we cannot reply your query.
Respected sir, Can I take 100% credit of addl.duty of the machinery imported this year or I have to take 50% credit compulsorily.

A unit eligible for SSI exemption can take 100% credit on capital goods otherwise 50% credit is available.
Respected Sir, IF 50% credit of addl.duty on imported parts on machinery is been taken in february-2012 & remaining I want to take in March-2012.
Kindly clarify that service rendered till 31.03.2012 and bill raised on 01.04.2012 then what will be service tax rate.

If the bill is raised on 01.04.2012 for service rendered till 31.03.2012, the service tax will be charged @ 12% i.e. the assessee will have to pay extra 2% tax. This is as per the newly enacted Rule 2A in Point of Taxation Rules, 2011 in case of new levy or rate change, the date of payment will be either the date of entering payment in the books of Accounts or date of credit in bank account of person liable to pay service tax.
What is the rate of service tax under composition scheme from 01.04.2012?

The rate of service tax under Composition scheme from 01.04.2012 will be 4.8%. Earlier it was 4%.
Dear Sir, Kindly advise whether a non excisable unit needs excise registration for Factory Stuffing permissions for exports.

A non excisable unit cannot take registration in Central excise except when the exporting units intends to bring the inputs at nil rate of duty to be used for exports. The stuffing of non excisable goods is normally done by service recipient.
Respected Sir, How to sale the goods if it is received as sales return from a government Enterprise in excise.

It has to be sold under central Excise invoice. Rule 16 of Central Excise Rule will apply. It should come back with duty paying document. The unit can take credit on returned goods on basis of such duty paying document. If the same is returned after repairing then credit is to be reversed and if the same is returned after manufacturing process then duty is to be paid.
Respected Sir, Is there any surety of GST Implementation from 01-08-12 as declared by FM in the budget 2012-13.

he has not said about implementation of GST but for computer software for the GST.
We are dealing in unbranded jewellery and issuing tax invoice, sales invoice and cash memo as per up vat act. What procedure we have to follow for excise purpose

only one invoice can be used for clearance from a factory under Rule 11 of Central Excise Rules. If you require more than one invoice then permission from Deputy Commissioner/ Assistant Commissioner of Central Excise is to be taken.
Respected jain sir, We would like to draw your kind attention on the fact that one of the our client would want to CT Certificate from Assistant Commissioner of Central excise. Sir, we consulting them and getting CT - 1 certificate from the department of certral excise ( Assistant commissioner ) but we asking you after that certificate granted by assistant Commissioner which proof we have to submitted please give information? 1). After getting CT-1 Certificate which export proof assessee has to submitted ? 2). How many time limit to submission of proof of export to assistant commissioner ? 3) Give list of document in details which can be submitted to the assistant commissioner ? 1).

CT-1 certificate is used for export through merchant exporter. The merchant exporter has to obtain the CT-1 certificat. You have to execute a bond with AC/DC and then CT-1 certificate will be issued by Range superintendent. The liability to submit proof of export will be on you and not on manufacturer. The time limit of submission of proof of export is six months. You have to submit original and duplicate copy of ARE-1, Self attested copy of EP copy of shipping bill and Bill of lading.
Respected sir, i want know that is new service tax rate applicable on service provided in Feb -12 and invoice raised on april -12. Please answer me

It depends on service provided by you. As per POT, if the tax is payable on the basis of invoice raised, service provided or payment received, whichever is earlier then the assessee pay the tax in March itself. But if the POT says that the tax is to be paid on receipt basis (as in case of lawyers) then the service tax is to be paid @ 12% as the payment is received in April 2012.
Respected Sir, how to sale goods which are received as sales return from a non-excisable manufacturer

The seller can sale the sales-returned goods as a normal sale because the buyer is non-excisable manufacturer (Either buyer is dealer or manufacturer of exempted goods). The point which is to be kept in mind is that whether we (seller) are excisable manufacturer or not. If yes, then first see that the buyer is charging excise duty (amount of duty as mentioned by the seller) or not. If the buyer is charging then seller will entitled to take credit (at the time of removal) and then reversed the same (at the time of return).
Respected Sir, AS rate of excise duty has been changed,and If a ct-3 in which 10.3% duty is there and a part qty has been sold of that ct-3 before 16-03-2012,now as the rate has been changed now what is the procedure we have to do to cancell that ct-3 or we have to send back to the eou customers of ours.

In this case, the supplier has to cancel that ct-3 for the remaining quantity (i.e.40) because amount of duty will be short in case of non-cancellation of ct-3. The supplier of the goods has to apply to Range for the issuance of “Non-utilisation certificate”.
Sir, We are doing Job Work of Processing slitting & pickling of duty paid (excise) Coiles. All the material comes under 54 FC Challans. Our Services comes under business auxillary Service. We were covered under notificatin no. 8/2005 of Service Tax up the year ending 31.03.2012. Is there any amendment to this notification in the budget 2012-13.

No, there is no change in the Notification no. 08/2005-ST.
Respected Sir, Is there any change in the turnover limit of Excise according to the budget 2012-13,or it is 1.5 crore as it is.

No, there is no change in the turnover limit of excise according to the budget 2012-13 and the limit of Rs.1.5 crore is retained.
Respected Sir, is there any change regarding interest on late payment of Excise duty according to the budget 2012-13.

No. There is no change regarding rate of interest on late payment of Excise duty as per the Finance Budget for the year 2012-13. The existing rate of interest on late payment of excise duty is 18% p.a.
Can I have Central Excise Notification of change of rate from 10 to 12%

In the Finance Budget for the year 2012-2013 the prime amendment in the field of Excise is the increase in the rate of Excise duty. The rate of Excise duty has been increased from 10% to 12% except on few items vide Notification no. 18/2012-CE dated 17/03/2012. You can download the above mentioned notification from our website- capradeepjain.com from Central Excise Section in Tariff Notification Section.
Can their be any saving on freight charges if a manufacturer opts for Work Contract Tax?

If the vehicle is owned by the manufacturer then there may be saving on freight charges.
Respected Sir, How to take credit on the goods received as sales return from a government enterprise.

The credit on sales return will be available if the goods are brought to the factory of seller for being re-made, refined, re-conditioned or for any other reason and if the process undertaken by the seller amounts to manufacturing process as per Rule 16 of the Central Excise Rules, 2002. In case of sales return by a Government Enterprise, either Govt. enterprise should send Original invoice of the seller or issue a Debit note to the seller then only the seller can take credit proportionately.
Respected Sir, if an excisable unit has one or more registered unit on the same name then it will be considered as a LTU.? or it would on the basis of taxes paid.

Eligibility of LTU is on the basis of taxes paid in cash or from account current and not on the basis of excisable units. For a unit to become a Large Taxpaying Unit, it is required that the said Unit should have paid the excise duty/service tax of more than Five Crore Rupees in the financial year 2004-05 or during the year preceding the year of application. Income Tax assessees paying advance tax of more than Rs. 10 crores can also be eligible for LTU status.
when a excisable unit shut then what process required also excise duty pending & what about excise audit & AG audit ?

In case a unit is being shut down than it has to surrender its excise registration. Notification No. 35/2001-CE(NT) prescribes that the registered assessee who ceases to carry on the operation for which he is registered, shall de-register himself by making a declaration in the form specified in Annexure-III and deposit his registration certificate with the Superintendent of Central Excise. If any amount of duty is pending it should be payable within the statutory time limit. The procedure regarding audit is the same as normal audit procedure. No special procedure is prescribed.
Respected sir, how to sale a capital good on which credit is not taken though it was a excisable invoice,is it necessary to take credit on it to sale or we have to make an exempted excisable invoice.

It has to be sold under an invoice issued under Rule 11 of CER, 2002. Since you have not taken the credit, as such there is no need to reverse the credit. Mention the fact that "No cenvat credit is taken on such capital goods" on the face of invoice. There is no need to take credit but the clearance of capital goods has to take place under a Central Excise invoice but without any payment of duty.
whether a DTA unit can claim refund of unutilized CENVAT credit under rule 5 of CCRs, 2004 as the rule covers export and not deemed export

When a unit exports under bond then it is eligible to claim refund of unutilised credit under Rule 5 of Cenvat Credit Rules, 2004 read with notification 5/2006. It does not apply only EOU. Even a DTA unit exporting goods can claim refund. Even as per tribunal decisions, the unit sending goods to 100% EOU can claim refund of unutilised cenvat credit.
Sir, is service tax applicable on work contract of making Aluminium / Glass window, Door. if yes When the liability of service registration number arise and what is the percentage of Service tax.is abatment recived on gross value.

Yes, Making of Aluminium/Glass window door is leviable to service tax under work contract service, If such making of aluminium/glass window door is related Work project like Residential, commercial, industrial, institutional etc. The liability of service tax registration will arises when value of taxable services provided or to be provided is equal to 10 Lakhs or more then 10 lakhs. The rate of service tax on “work contract service” is 10.3% (inclusive of Education Cess and Sec. Higher Education Cess) on value of service. However assessee has an option to pay service tax under composition scheme @ 4.12% (inclusive of Education Cess and Sec. Higher Education Cess) on gross amount charged for the work contract but the service provider cannot avail Cenvat credit of Inputs, when he opts the composition scheme. The restriction under composition scheme is only on Cenvat credit of input and he can avail Cenvat credit on input service and capital goods.
SSI Exemption Limit is allowed till 1.5 Crores provided turnover in previous year was within 4.0 Crores. Say a new unit starts product on September 1, will they be eligible for exemption upto 1.5 crores for the remaining part of the year or the amount will be proportionate to the months. If the former is true are than any precedents/circulars or case laws?

Yes, new unit is eligible to take whole credit of 1.5 crores for the remaining part of the year povided his product should be covered SSI exemption notification number 8/2003-CE dated 1.3.2033 and as amended. According to this Notification, SSI exemption limit is allowed upto 1.5 crores when aggregate value of clearances (exempted as well as dutiable products) in previous financial year was within the limit of 4.0 crores. There is no provision of proportionate exemption. Hence, in this case when the unit starts production from September, the last year aggregate value will be zero. Therefore, the unit is eligible for SSI exemption upto Rs. 1.5 crores for the remaining part of the year.
Sir, What is the Basic Duty and CVD payable on (a) Iron Ore Pellets, and (b) Sponge Iron currently in India

The rate of Basic Excise Duty or CVD on “Iron Ore Pellets” (26011210) is 10%. And the rate of Basic Custom duty on “Iron Ore Pellets” is 2.5% (as amended from Notification 21/2002-Cus. dated 1.3.2002). The rate of Basic Excise Duty or CVD on “Sponge Iron cast fitting” (73071110) is 10%. And the rate of Basic Custom duty on “Sponge Iron cast fitting” is 10%.
We buy raw material from domestic manufacturer and claim Cenvat and after processing exporting the final product without payment of duty. Is there any additional export benefit in Customs/Excise other that claiming cenvat on RM.

yes, there are number of export benefits available like drawback, advance authorisation/ DFIA, FMS, FPS, VKGUY, Market linked FPS etc. are available. Since you are availing Cenvat credit on inputs then you can claim drawback with Cenvat credit. You can go through foreign trade policy to view the other benefits.
Sir, we as a dealer sold 100 Qty to manufacturer with cenvat pass, now manufacturer wants to return 60 qty back to us through issuance of excise invoice by reversing the cenvat amount availed on 60 Qty. Can we take it as fresh entry in RG23D and pass on the same to other manfuacturer/dealer.

Yes, you as a dealer can do so. The only requirement for the dealer is that the goods should be received under a duty paying document. Since the dealer is receiving the same, he can enter the same in RG 23D register.
Respected Sir. We have purchase Raw Material from HALDIA Petrofils. We have got the RM with Excise Duty, also they have charged Freight Charges + Service Tax. Can we take Credit of the same Invoice.

Yes, we can also take the credit of service tax charged on Freight in Excise invoice. Any invoice issued under Rule 11 of Central Excise Rules is a valid duty paying document for taking Cenvat credit under Rule 9 of Cenvat Credit Rules, 2004.
I have paid the 4% addl. duty and CVD on imports by partly through debiting of DEPB licence and partly by Cash. Can I avail CENVAT credit on the said Addl. Duty and CVD which is paid through DEPB. If yes, what document to be provided, since Bill of Entry does not reveal the details of duties paid through DEPB. Only the total amount debited in DEPB license is mentioned in Bill of Entry. Please advice.

Yes, manufacturer can take credit of 4% SAD and CVD paid through DEPB as per condition number (vi) specified in notification number 97/2009-Cus. Dated 11.9.2009 and as amended. Further, the valid duty paying document is Bill Of Entry as per Rule 9 of Cenvat Credit Rules. The Bill of Entry clearly mentions BCD amount as well as CVD amount when the duty is passed through DEPB. The credit of BCD amount includes Basic custom duty plus custom education cess and custom SHE cess and the credit of the same is not available. The CVD amount includes CVD plus education cess on CVD plus SHE cess on CVD and 4% SAD. The credit is available on this amount. However, one has to calculate the complete duty amount at his own and tally the same with duty paid through DEPB. Then he can take the credit.
Respected Sir, how to sale machinery in excise if it is purchased from a non-excisable trader,it will be an exempted sale or it would be a duty paid sale.

As per Rule, we have to reverse the cenvat credit on removal of capital goods. As we have purcahsed from non-registered dealer then we have not taken the credit on the same. Since the credit is not taken then there is no need to reverse the same. It will not be termed as exempted sale or duty paid sale. We have to reverse the credit taken at the time of purchase.
i want to know what r the service tax provisions related to works contract service what r the requirment for filling return for such work contract service and the time period in which is should be filled

The provisions relating to works contract are very vast and it is difficlut to answer the same in this query section. If we are registered in works contract under Sales tax then we can opt for work contract under service tax.If we are not able to maintain the material and labour separately then we can opt for composition scheme under service tax. The rate of tax under composition scheme is 4%. For every contract, the assessee has to opt for composition scheme.
i have purchased mahciney for rs.200000.00 and taken credit Rs.10000.00(50%)and i want to sell mahcinery after 2 months then we have to calculate duty on 50% taken or on 100% duty?and can we take remaining 50% credit on the sold machiney.

While removing the machine from the factory, you should take the remaining 50% Credit. This means that the whole credit of duty is to be taken in the same financial year. Then if the machine is not put to use then you have to reverse the complete cenvat credit. But in case it is put to use then you should deduct depreciation @ 2.5% per quarter as per Rule 3 (5) of Cenvat Credit Rules, 2005 and then reverse the cenvat credit.
In case of goods exported, If we have availed rebate of excise duty paid on inputs under rule 18, can we avail 1% duty drawback as per customs circular no 35/2010 dtd 17/9/10?

There are two types of rates in the drawback schedule. One is "with cenvat credit" which is custom portion only. The other is 'without cenvat credit" which with excise and custom duty. It implies that if we have availed the cenvat credit of excise duty then custom portion is allowed and in another case, sicne credit is not availed then benefit of excise and custom will be allowed. Sicne you have availed the benefit of excise duty under Rule 18 then only custom portion will be allowed. Since you have not mentioned the product name as well as whether this "with cenvat" rate or "without cenvat" rate, hence we cannot comment. You have to judge as per guildelines given above.
We have paid service tax on bills towards our parent company outside india. Now when we came to know that it is covered under Export of service, we are claiming refund of service tax paid. But deptt is saying since we have recovered Service tax from our parent company, they will transfer the refund to Consumer Welfare Fund. Please help....

A person cannot be enriched unjustly. If you have recovered service tax paid by you from your parent company then you cannot claim refund of service tax as you will be enriched unjustly. It is required to be proved that service tax has not been recovered from the parent company if it is not recovered from them by leading cogent evidence. But if the service tax amount is recovered then the refund of the same will not be given to you but will be transferred to Consumer Welfare Fund.
Dear sir, I have request the my new password as earlier as possible the above email address, AMIT

in case you have forgot the password then at the time of login, you should click on "Forgot password". You will get the username and password on your e-mail address by the software.
Can duty paid goods (specifically liquor) be allowed to stock at duty free shops at airports? Pls provide the reference of related statute/circular/ notification

since the liquor is covered under State excise duty and we are not dealing in this subject, we are not able to reply the same. Please contact the expert in this field.
Builder issue following details to buyer at the time of booking of residential unit and as per agreement: Description Amount (Rs.) Basic sale price 23, 08,887 PLC charges/ ( Development charges) 26,674 Security services 58,000 Club membership facility 43250 Maintenace charges 25250 Total Payable 24,62,061 Is he is liable to pay service tax in following catagory: Construction of Residential complex Preferential location and development charges Security service Club service Repair or maintenance service. Is it correct and builder has to take registration in all above category. Pls clarify Thanks

As per the clause (ii) of definition given of residential complex in sec 65(91a) residential complex means any complex comprising of (ii) a common area. Common area as per circular no. B1/6/2005-TRU, dated 27-7-2005 would include roads, staircases and other similar areas where residents of the residential complex have easement rights. The list of facilities prescribed is merely illustrative and not exhaustive. Some residential complexes may also contain other facilities such as market or shopping complex, schools, security, banks, gymnasium, health club, sports facilities, and power back up and the like. Thus all the services provided by builder will be chargeable pertaining to Club, security, repair or maintenance will be chargeable under the head “Construction of residential complex service only”. However, for preferential location and development charges, there is a separate head itself called “Preferential location or development of complex service sec (65(105)(zzzzu) under which same shall be chargeable and separate registration for the same shall also have to be taken by builder.
Builder company: As per agreement builder issued a Letter dated 18 october 2011 to buyer mentioning: On start of first floor roof payment of Rs. 139200 should paid upto: 31 october-2011 & even no work is started on that date. Actual payment received on 08 December-2011 Which date is to be considered for service tax as per point of taxation rules 2011. Pls clarify Thanks

Commercial or industrial construction service and construction of residential complex service has been notified as Continuous supply of service. As per Point of Taxation rules, in case of continuous supply of service, the point of taxation shall be (a)The time when the invoice for the service provided or to be provided is issued; Provided that where the invoice is not issued within fourteen days of the completion of the provision of the service, the point of taxation shall be date of such completion. (b)In a case, where the person providing the service, receives a payment before the time specified in clause (a), the time, when he receives such payment, to the extent of such payment. Explanation 1. – For the purpose of this rule, where the provision of the whole or part of the service is determined periodically on the completion of an event in terms of a contract, which requires the service receiver to make any payment to service provider, the date of completion of each such event as specified in the contract shall be deemed to be the date of completion of provision of service. Explanation 2. - For the purpose of this rule, wherever any advance, by whatever name known, is received by the service provider towards the provision of taxable service, the point of taxation shall be the date of receipt of each such advance. As per your query, the agreement provides that a letter is issued to the buyer mentioning that “On start of first floor roof payment of Rs. 139200 should be paid up to 31 October-2011 & even no work was started on that date.” Thus, as per given information buyer should pay for first floor roof till 31 October, 2011. So event in this case is date as per contract on which payment is to be made i.e. 31 October, 2011. In case of continuous provision of service is date of completion of service is end of event (i.e. date on which payment as per contract is to be made). As per Point of Taxation Rules, 2011, Point of taxation shall be earlier of date of issuing of invoice or date of making advance payment, whichever is earlier. But if invoice id not issued till 14 days of completion of service, then point of taxation shall be date of completion of service or date of advance payment, whichever is earlier. In the given case, service is deemed to be completed on 31st October, 2011. If the builder issues invoice within 14 days of such completion (i.e. till 14November, 2011), then point of taxation shall be date of issue of such invoice or 8 December, 2011(date of making advance payment) whichever is earlier i.e. date of issue of invoice. But if the builder fails to issue invoice till 14th November, 2011 then point of taxation shall be earlier of 31st October (provision of service) or 8th December (date of advance payment); which will be 31st October 2011.
commercial construction& residental comlex construction service tax paid in which value actual amount received or stamp duty valuation which ever is greater/lessor

Under commercial construction & residential complex construction, service tax is payable on the amount received, billed or service provided whichever is earlier. Hence, it does not say anything about the stamp duty valuation.
In case of renting of immovable property having joint ownership by 05 persons, whether basic exemption of Rs.10 lakhs is availeble to all 05 persons or to ONLY ONE person ? Rent agreemnet is entered by all 5 persons and accrodingly separate cheques are also received by all 5 persons and further all the 5 person have shown rent income in their individual income tax return also and claimed TDS on rent also

In case of renting of immovable property having joint ownership by 05 persons, whether basic exemption of Rs.10 lakhs is availeble to all 05 persons or to ONLY ONE person? Rent agreemnet is entered by all 5 persons and accrodingly separate cheques are also received by all 5 persons and further all the 5 person have shown rent income in their individual income tax return also and claimed TDS on rent also.
While filing ST-3 for GTA, we are require to give detail of amount exempt under N/N 34/2004 or not. If detail require , in what way?

Yes, the details of exempt amount is required to be shown in ST-3 return. In column F(I)(a) “Service Received” we have to mention total amount of Freight Amount paid and in column F(I)(c)(ii) “Amount paid towards exempted service (other than export of service)” we have to mention amount of Freight relating to Notification No. 34/2004 and 13/2008. The difference of above columns will be the taxable amount.
We are registered as trader but we want to sell goods through hi-sea sales from a different state, how to prepare invoice in such situation

For issuing an invoice, it is first required that the person issuing an invoice should have taken registration. This means that the premises from which the goods are to be sold should be registered premises. In your case, it is required that you should have registered premises i.e. depot or godown and only then an invoice can be issued. The clearance procedure to be followed in high seas sales is the same as that of general purpose clearance. The Bill of entry should be in the name of one party only and the name of the high sea buyer will be noted only on production of high sea sale contract which should be legally enforceable. Original bill of entry should also be given. All declarations, undertaking, bonds etc. are to be given by the high sea buyer. And the Original importer is also required to fulfill conditions relating to importation.
procedure for registration under excise. documents required . information required.

You have to file online application for the Central Excise Registration. After online filing, take a printout of the same form and acknowledgement generated after filing that application. We normally give this check list to our client for Central Excise registration:- 1. MEMORANDUM & ARTICALS OF ASSOCIATION – IN CASE OF COMPANY/ PARTNERSHIP DEED- PARTNERSHIP FIRM; 2. COPY OF LEASE DEED AGREEMENT/PATTA/ RENT DEED AGREEMENT; 3. COPY OF PAN CARD OF FIRM & ITS PARTNERS; 4. COPY OF SITE MAP PLAN; 5. COPY OF GROUND MAP PLAN; 6. COPY OF SSI REGISTRATION, IF ANY; 7. COPY OF RST/CST/TIN REGISTRATION NO; 8. COPY OF IEC CODE; 9. NUMBER OF BANK A/C & TWO MAJOR BANK DETAIL- NAME OF BANK, BRANCH, A/C NUMBER & TYPE OF A/C –SAVING/ CURRENT A/C; 10. NAME ADDRESS, PHONE, FAX NO. E-MAIL ADDRESS, PAN AND OF FIRM/COMPANY; 11. NAME, RESIDENTILA ADDRESS, PHONE NO, FAX NO., E-MAIL ADDRESS, PAN CARD OF DIRECTOR/PARTNES & AUTHORISED SIGNATORY, IF ANY; 12. INVESTMENT IN LAND, PLANT MACHINERY
what is the procedure to take credit on machinery imported if the installation is in the unit-1 and want to take cenvat credit in unit-2

The credit is available in the unit in which it is installed.
Dear Sir, Please let me know that can I take cenvat credit of Ed. Cess and Higher Edu cess on total duty(final duty) for the purchase from 100% EOU

As per new Rule, the Education cess and SHE cess paid on CVD and SAD is available as credit. Hence it is final payment of education cess and SHE cess. Therefore, you can take credit of education cess and SHE cess.
Dear sir, can I have details of VAT levied on hotels under the VAT Acts across the country?

We are dealing in Central Excise, DGFT, custom and service tax. But we are not dealing in service tax matters. Hence, your queries cannot be answered by us.
Dear Sir, I have a query related to construction services. AS 7 construction contracts state that the revenue should be recognized on % completion method. whereas now as per point of taxation rules ST should be paid on due basis. now the problem is what shall be entry in accounts as per AS. Because if we due drs following ST rule we are ignoring AS 7 and if we follow AS 7 we are ignoring ST due basis. Waiting for an early reply.

Rule 3 of the Point of Taxation Rules provide that service tax will be payable from the date of issue of invoice or from payment made, whichever is earlier. If the invoice is issued within the prescribed period of 14 days then from the date of completion of the provision of service, service tax will beome payable. And it will bw the date of completion of provision of service or payment, if the invoice is not issued within the prescribed period. First of all it is important to note that, rules that govern accounting in books and that govern tax law such as service tax are different and should be followed individually. They should not be mixed as each one have different statue backing with them. In the accounting, the concerned point is about construction contracts, which is governed by AS-7 “Construction contracts”. The accounting in the books shall be done as per above standard (as the same is mandatory in nature). As per this AS revenue and cost should be recognized as per % of completion method, where contract revenue is matched with contract cost incurred in reaching stage of completion. Contract revenue is recognized as revenue in the statement of profit and loss in the accounting periods in which the work is performed. Contract costs are usually recognized as an expense in the statement of profit and loss in the accounting periods in which the work to which they relate is performed. In such a case, the agreement between contractor and contractee becomes important. This is because payment is made on continuous basis and invoice is raised in accordance with the relevant agreement. This agreement decides date of making payment and the date on which invoice is raised. In such a situation, payment of service tax as per Rule 3 of the Point of Taxation Rules, 2011 shall be made at the time of making payment or date of raising invoice which ever is earlier. Thus, the account should be prepared as per relevant statue i.e. AS-7 “Construction contract” and service tax should be paid as per Rule 3 of Point of Taxation Rules, 2011.
Dear Sir, I want to know that can an Assessee registered with excise department perform 100% job work task with out performing any kind of manufacturing activity on his own, if yes than the circular in this regard.

There is no circular avaialble but there is no ban also on doing 100% job work. The central excise registration is taken for the goods to be manufactured. If no goods are manufactured then no duty is payable.
Dear sir I have filled the form no 15 CA. During the filing of form 15ca i do one mistake. i have entered the wrong 15cb certificate no in form 15ca. now what is te process for rectifying it.

This query does not fall under the fields for which we provide service. We are dealing in Central Excise, service tax, custom and DGFT.
we undertook survey abroad in respect to our product which is not excisable and paid Service Tax on the payments made in FOREX.We are simultaneously outservice provider in the category of AMC. Can i avail Cenvat of the said ST paid.

The finished good is exempted from payment of excise duty, then as per Rule 6 (1) of the Cenvat Credit Rules, 2004 the cenvat credit of input services utilized in relation to exempted finished goods will not be available. Also, the output service provided by you has no nexus with the service utilised by you, therefore, the cenvat credit of service tax paid on the Forex services will not be available to you.
Dear Sir half yearly service tax return must fill up online submit or manual submit to department pls.send your suggestion sir...

It is compulsory to file online return from October 1,2011. But the date of filing of online return has been extended from October 25 to December 26.
respected sir please send me detail procedure to e-file form EXP-2 (service tax). Sir your early response will be highly appreciated as last date to file EXP-2 is 15 october 2011.

The format of EXP-2 is available on our website. It is to be filed in that format only. The relevant shipping along with other export documents as well as original bills of service provider are to be submitted. The certification is also to be done. The transport of road as well as commission to foreign agent under BAS service is exempted under notificaiton 18/2009 and return in respect of these services are to be filed.
WILL GST BE IMPLEMENTED FROM 01-04-2012.WHAT IS THE LATEST NEWS ON IT.

The consitutional amendment is still pending. thus, it seems to be difficult to be implemented from 1.4.2012. After the amendment passed by both houses, it has to be passed by all states. Thereafter the GST bill will be proposed and will be discussed with all concerned i.e. Centre, State and trade associaiton will discuss the same. Thereafter it will be passed. Since, it is said that all the returns as well as registration will be online, hence the software based on law will be placed and discussed. There after the GST will be implemented. But till now, the centre and states are fighting on the same. Even TN chief minister has objected on GST implementation.
what is the punishment on late e-filing of er-1 at present.

For late e-filing of ER-1 return under the Central Excise Rules, 2002 the provision of general penalty under Rule 27 will apply as no specific provision has been provided. Under this Rule, for contravention of any of the provisions of Central Excise Rules, where no penalty is provided elsewhere penalty of Rs. 5, 000/- will be imposable. Similar provision is provided under Rule 15A of the Cenvat Credit Rules, 2004.
i have paid by mistake Rs.40000 in the excise pay code no.00380115 instead of in 00380003 so can i get refund from central excise department.

If there is minor mistake in writing accounting code then it could be condoned. But if you have paid the amount twice i.e. one under wrong head and one under coorect head then you can apply for refund from the department.
what is the excisable procedure to sell goods if we receive part qty.as sales return from a non-excisable trader.

We have already replied the query raised by you. However, we are once again producing the reply for your ready referenc:- "From the query, it seems that you are excise registered unit and intend to sale the input as such on which no credit is taken as it is received from non- excisable trader. It has to be removed under Excise invocie under Rule 11 and there is no need of reversal of Cenvat credit as no credit is taken." If the facts understood by us are wrong, do revert back to us to reply the same.
I had got registered in 2002 with number starting with ST. I had not taken pan based number & had been filing nil return since 2004 as turnover was less than threshhold limit. Now aces doesn't accept st no, how i should file the return under aces. Whether ihave totake fresh no & surrnder the old no or there is a way out. I am registered at commessionerate Delhi II

You have to apply afresh & apply for registration to the department. When you submit the documents of registration to the department clearly mention the facts in the forwarding letter that you are already registered and filing return manually on regualar basis.
One of our group company is an Exporter of Iron ore. It has used various input services during the course of export, after paying service tax. It sought to avail the refund under Notification 41 / 2007 dt.6.10.2007. It has not filed the claim at the end of relevant quarter. The adjudicating authority has proposed to reject the claim. Is there any case law that the period in section 11 B prevails over the period mentioned in the notification ?

We have not come across such case law. On the contrary, the legal position is against us. The following decisions clearly says that the time limitation under Section 11B does not apply in such cases:- a. 2009-TIOL-1463-CESTAT-AHM b. 2011-TIOL-68-CESTAT-MAD c. 2010-TIOL-1526-CESTAT- AHM
Recently notifcation regarding mandatory efiling of central excsie return is published.The word used that it is mandatory for all assesses.I would like to know if unit paid duty less than 1 cror for previous financial yea,.Is it necessary to them to efile er4,er5 and er6? Our local range office make interpreting that it is mandatory to all assesses without limit of duty paid.

When the law says that the return is to be filed if the assessee has paid more than Rs. one crore from PLA+Cenvat then there is no question of filing it manually or online. Thus, the contention of the department is not tenable.
is service tax paid on courier services were available to utilise the excide duty to be paid on finished goods which are about to remove

As per High Court decision of Ultratech Cement, the credit is available on business expenditure. Courier service is business expenditure only and credit on the same is avaialbe. Furhter, as per latest amendment also, it does not fall under exclusion category. Hence the credit on courier service is allowed. Further, as per latest amendment, credit of service tax is avaialbe on receipt of invoice provided the payment of the same is made within three months of taking of credit. Hence, you can take the credit immediately on receipt of invoice and utilse the same in payment of excise duty on your final product.
what is the excisable procedure to sell goods if we receive part qty. from a non-excisable trader.

From the query, it seems that you are excise registered unit and intend to sale the input as such on which no credit is taken as it is received from non- excisable trader. It has to be removed under Excise invocie under Rule 11 and there is no need of reversal of Cenvat credit as no credit is taken.
is it liable for an assessee to file er-4,er-5,er-6 according to the notification no.21/2011 & 22/2011 dated 14-09-2011 paying duty more than 10 laks & less than 1 crore

The unit has to file the ER-4, ER-5 and ER-6 is if he is paying Excise duty more than Rs. one crore from PLA plus cenvat. Thus, when there is no need to file the return if you are paying less than Rs. one crore, then there is no question of filing it electronically.
we have Received the security amount regarding to complex on lease, 50 % amount out of the security will be adjusted with the rent income in coming 12 months. My question is 50 % security amount which shall be adjusted with future rent shall be treated as a advance against of rent or not and what we will be liable for pay service tax on advance payment received?

If the security amount received by you clearly say that it is adjustable with the advance then it is clear that it is advance rent only. In that case, the service tax is payable on the same. The point of taxation says that the invocie or payment whichever is earlier.
what is the excisable procedure to sell goods which are received from non-excisable trader as sales return.

Firstly, for sales return, the non excisable trader will send the challan clearly saying that he is not taken cenvat credit. He will also send the "Duplicate for transporter" copy of manufacturer invoice along with goods. on the basis of these documents, the manufacturer can take credit under Rule 16. Now on resale of these goods, if the process undertaken amounts to manufacture then duty is to be paid on return of material. In case the process does not amount to manufacture then it has to be cleared on reversal of cenvat credit. In both situations, the goods will be cleared under the cover of invoice issued under Rule 11 of Central Excise Rules, 2002.
what is the procedure to sell goods to sez unit from a excisable unit.

It will be sold under ARE-1 procedure.
WE ARE 100% EOU UNIT, WE PURCHASE INDIGINEUOS RAW MATERAL UNDER CT-3, WHICH IS CT-3 CERTIFICATE VALIDITY PERIOD?

There is no specified period for the same. But if the CT-3 mentions the period then that will be valid period for CT-3 certificate.
we are registered under the mandap keepers category and want to know about the abtements available to us we are having an cenvat credit also kindly advise us in such an manner that our laibility of service tax should not increase and also the cenvat credit is not wasted

The rate of abatement for Mandap keeper under Notificaiton number 1/2006-ST dated 1.3.2006 and as amended is 40% i.e. you have to pay the service tax on 60% of value. Regarding second query, the balance of unutilised credit can be used in payment of service tax. The notification 1/2006 debars on taking of cenvat credit on inputs, input service and capital goods used in providing such service. Thus, firtly, it resricts taking and not utilising. Secondly, it restricts credit on such input, input service and capital goods which are used for providing such Mandap keeper service. If the same service provider is providing other serivce or manufacturer of excisable goods then he can take credit on input, input service and capital goods used in providing these services or manufacture of dutiable final product. There is no one to one co-reltaiton in Cenvat credit. Hence the credit already earned can be used for payment of any service tax.
whether debited 2%, and 1% from cenvat10% ?

No. The Education cess and SHE cess can be debited from the balance of Education cess and SHE cess and not from Basic Excise duty.
we are SSI manufacturing & availing cenvat credit, unit, our turnover rs. 3.5crore, now regarding job work we are sent material for job work excisable goods and non excisable goods from outside, whether we make annexure-II Challan or only simple challan. for this material under SSI UNIT.

You have to follow the procedure under notificaiton 83/94 and 84/94 in this regard. As per procedure, you have to give undertaking to the AC/DC of job worker under the above notificaiton.
whether service tax payable on job work/charges ?

For seeing the liability of service tax on job work, process undertaken is most important. If the process undertaken in job work amounts to manufacture then no service tax is payable. Further, if it does not amount to manufacture, but if the Central Excise manufacturer is supplying the goods and is using the same in manufacture of his dutiable final product then exemption is available under notificaiton 8/2005. Otherwise the serivce tax is payable. It is also to be seen if the job work is relating to textile processing, agriculture etc then also exemption is avaiable.
Whether debited education cess and S.H.ED. FROM CENVAT ACCOUNT?

The cenvat credit of education cess and Secondary and Higher education cess is avaiable. The education cess and SHE cess payable can be paid from the credit avaiable in these accounts.
kindly sent the notification copy for service provider submission invoice within 15days of service proved. and new notification copy for service tax deposit.

With reference to your query of raising of invoice, we submit that Rule 4A of Service tax Rules already provided for raising of invoice within 14 days (not 15 days) of raising of invoice. Now, it is also mentioned in Point of Taxation Rules introduced by notification 18/2011-ST dated 13.2011 and assessee was given option to follow the same either from 1.4.2011 or from 1.7.2011.
is the time bar clause applicabe for imposition of penalty under section 76 in cases where no tax recovery is pending i.e. SCN is to be issued in 1/5 years period as the case may be.

Penalty under Section 76 is imposed for late payment of service tax. The demand for recovery of service tax is issued under Section 73. These are two separate things. The demand is issued within one year from the date of filing of return. But demand within period of 5 years can be issued if there is fraud, willful suppression of facts, collusion or any contravention of any provision of service tax with an intent to evade payment of duty. The penal action under Section 76 can be proposed in both types of demands.
In my view the penalty under section 76 is mandatory in case of late payment of tax and no scn is required to be issued for recovery nor recovery of said penalty is time barred.Kindly confirm the views.

Penalty U/s 76 can be imposed only when the department issues show cause notice. It means penalty can be imposed by the department only after completion of adjudication. Assessee cannot pay penalty on Suo Moto basis. If the assessee proves that there is reasonable cause to failure for the payment of service tax along with interest and department satisfy from the contention of the assessee then department can waive the penalty U/s 80.
One of my client is Providing Labour to a Contractor who is having Contract for Laoding unloading to the ships arrived on the port. The main contractor is charging and receiving Service tax from the party. My client had underbonafide belief not charged service tax on contractor. Now Servie Ta authority insist to pay the tax for 5 years from my client. Though the Revenue is not looser in this case. Please advise

According to the sec 65(105)(k) “any service provided or to be provided by a person , by a manpower recruitment or supply agency in relation to the recruitment or supply of manpower, temporarily or otherwise is a taxable service”. Accordingly, the service provided by the client is classifiable under the head manpower recruitment agency and since the definition also covers the phrase “supply of manpower, temporarily or otherwise” the supply of labour even if temporarily is covered under the same. Thus the demand raised by the department is justified. We suggest you to take the registration (if not taken) and pay service tax with interest as applicable under the head manpower recruitment as early as possible
I read your useful article on aces at taxguru portal. I have one question in my mind about surrender of ST-2. The question is as under: 1. Whether we have to file any physical documents in the departments after uploading surrender application at aces. 2. if yes, please provide me the list of documents.

You have to file the original ST-2 certificate along with the downloaded application. Normally, service provider surrender the registration when they are availing threshold exemption under notification 6/2005. In such cases, some departmental authorities also ask for last two returns to check whether the assessee is eligible for such exemption.
whether interest is payable on late filing of proof of exports in case when proof of exports are received after 6 months of clearance.

The proof of export is to be filed within six months of date of export and not from the date of clearance. Secondly, if the export is not filed within such period then the duty is payable by exporter himself.When the duty is paid then interest is also payable.
In an export related rebate the exporter has to follow incoterms. Value for claimimg rebate of duty paid goods exported will be transaction value -Sec.4 - Exworks. Suppose transaction value for export is 1Lakh and exporter incurs expense for others for delivery to ship say 50,000/ Now duty payable @ 10 % eExicse duty on transaction vlaue os 10,000/ plus 5,000/ total 15,000/ Now while sanctioning rebate AC orders rebate in cash 10,000/ and in cenvat 5000/ In my opinion this is wrong. Please clarify and i wnat to know your views on this practice followed. By, M.RAM KUMAR, SUPDT OF CE, BANGALORE

The rebate claim should be sanctioned in cash of duty paid by exporter.The "place of removal" as defined in Section 4 says plthat any other place or premises where the excisable are sold then it is "place of removal". If the port is place of removal then duty is payable on sale value on place of removal. Also, as per master circular 97/8/2007, the Cenvat credit is allowed on outward freight if manufacture is able to establish that sale has taken place at destination. Following the same, exporter has to pay the duty upto port if sale takes palce at port. Furhtermore, the transaction value can be less than, equal or more than FOB value of goods as per Chapter 7.1 of Part-II of Supplementary instructions issued by CBEC. Moreover, the assessment is finalised by Superintendent at the time of submission of ARE-1 (within 24 hours of export) as per para 6.3 ibid or para 4.5 of chapter 8. When the assessment is finalised then AC/DC cannot challenge the same unless it is appealed as per Apex Court decision in case of Flocks India. Hence, the assessment done by superintendent is final then duty paid by exorter should be refunded.
polyester sub heading

3907
can we avail the cenvat benefit on GTA paid. Please note that GTA paid after availing the benefit of abetment

We can avail the benefit of GTA paid on transportation of inputs and capital goods if you are manufacturer of dutiable goods or taxable service provider. This is given under definition of "input services". Under the abatement notificaiton 1/2006, the rest
Whether pay duty on non matching SION in eou unit? whether pay duty agianst non realise export forign payment? in eou

SION are applicable in advance authorisaion, DFIA scheme but not for 100% EOU scheme. Secondly, if the positive NFE is not there, then the department may ask for the duty.
Assessee having manufacture branded & non branded sweingh machine and have registered under Excise Duty @1%. whether it is required to show the turnover of non branded item sale in ER8 return.

It seems that non branded sewing machine is exempted.The manufacturer registered with Central Excise department has to show details of both dutiable and exemtped clearances in his returns.
The query raised by you is that - I am doing the business of manufacturing of doors, windows, partitions using aluminum, glass materials from 01.04.2005. From 01.04.2005 to 31.03.2009, I did work for companies engaged in the construction of residential fl

This opinion has been given to the best of our knowledge and belief. The Service Tax law is subject to various amendments and judicial pronouncements. Our opinion is also subject to the same. Your Need Our Concern… Thanking you, Regards, Prade
The query raised by you is that could you please advise how to clear Excisable Goods to be exported as Free Sample to an overseas customer?

The Foreign Trade Policy, 2009-14 provides for export of samples as under: 2.30 Export of samples and Free of charge goods shall be governed by provisions given in HBP v1. And in the Handbook of Procedure, Vol-I it has been provided in Para 2.27 tha
We have been registered in central excise as a manufacturer of certain products. Now we are in the process of getting a works contract, which includes excisable products some of which we manufacture and some we need to buy. Can we do this business also? W

We need to pay the excise duty on good manufactured by you. Regarding trading goods there will not be any liability on you. Since you have not told the exact nature of works contract undertaken by you, we cannot comment on the same. You have to study t
Whether the LR (Lorry receipt) issued by the Transporter can be taken as evidence of payment of Service Tax. The LRs issued by the transporters contained their Service Tax registration number and the service tax & education cess. Otherwise any other docum

First of all, one has to see whether the consignor or consignee, whomsoever pays the freight amount to the transporter is liable for payment of service tax if he falls under seven category mentioned in Rule 2(1)(d) (iv) of Service Tax Rules. This is repro
If material cleared against CT3, to a 100% EOU without duty vide ARE3, in the ER1 whether this should be shown as export under Bond, if so system prompts to give the Non Tariff Noti. No. & Sr. no. whereas in the CT3 the Notification mentioned is Tariff No

The material supplied against CT-3 to a 100% EOU vide ARE-3 does not fall under the category of export under bond, so in the option whether there is export, you have to show that there is no export. The final export is not done by you. You have only suppl
Whether Service Tax Credit can be claimed based on the Soft copy of the Invoice. Cellular Mobile Usage Monthly Bills for all the employees in our organization (Connection taken in Company Name). Please advice.

Service Tax cannot be availed on the soft copy of invoice. The valid duty paying documents are listed in Rule 9 of Cenvat credit Rules. The department allows the credit on original invoice issued by service provider. Even there is lot of litigation on cre
The nature of business is dealership of Maruti and Service Station. For the F.Y 2009-2010 the gross turn over was Rs. 40 Crore. Indirect income was Rs. 2.66 Crore. Indirect income liable to service tax under authorized Service Station. First query - S

Reply to First Query: The definition of Input services under Rule 2 (l) of the Cenvat Credit Rules, 2004 provides that the services of advertising and sales promotion are in the nature of input services and therefore, service tax paid on these input servi
I have bought a two bedroom apartment with provident housing unit (purvankara builders in Chennai Pudupakkam) and the total cost of the property is 18, 44, 090/-. As per the current service tax rules if the cost of the property is less than 20 lakhs it is

Notification No. 6/2005-ST dated 01.03.2005 as amended by Notification No. 8/2008-ST dated 01.03.2008, has prescribed the threshold limit of Rs. 10 lakhs on which service tax exemption can be claimed. Under the Construction of Complex service, it has
M/s Laxmi Snacks Pvt. Limited (hereinafter has referred as querist) has approached us with a query regarding applicability of rate of duty on his products sold under the brand name of “Real”. This is to be decided in the context of the recent levy of 1% e

1. Bites:- This product comprise of bikaneri and ratlami sev, chana dal, moong dal and other mixtures. For deciding the rate of duty, first of all one has decide the classification of a product. The querist is selling various kinds of namkeens, Bhujia and
Please give me advice on Export House.

For getting the status of an Export House the provisions have been prescribed in Para 3.10 of the Foreign Trade Policy, 2009-14. Eligibility: Following person will be eligible for status of Export House: - Merchant and Manufacturer Exporters - Serv
RAM books a Flat No. G-12 in 2008. Flat is 65% completed up to 30 June 2010. RAM is not able to pay value of that 65% to builder. So he makes surrender to builder. Builder refunds the amount to RAM. After that, the builder makes fresh booking of that flat

The Budget 2010 expanded the scope of ‘Construction of Complex Service’ [Section 65(105) (zzzh)] and ‘Commercial or industrial construction service’ [Section 65(105) (zzq)]. It was provided that unless the entire consideration for the property is paid aft
If construction is 85% completed on 01-07-2010 and we obtained certificate from Architect regarding completion of construction as on 01-07-2010. Whether any service tax will be leviable on 85% portion even if payment for that is received in November 2010.

The levy of service tax is not related to raising of bill or with the receipt of amount charged in bill. For levy of service tax, it is required to be seen when the service was provided. In this regard, the Gujarat High Court in the case of Commissioner o
Contractor adopts Notification no. 1/2006, so he liable to charged service tax @3.399% after taking abatement. He raises bill to contractee as follows: Value of work done: 10 Lakh Service tax @ 3.399% 33990 Total 1033990 or he has to raise

Notification No. 1/2006-ST dated 01.03.2006 granting abatement provides as under: In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Gover
We are received the Service which comes under the ambit of Service Tax. And our unit is exempt U/s 80IC. I received below the details of the bill raised by contractor: Eg: All figures are just approximate and not real Wages

In Service Tax (Determination of Value) Rules, 2006, it has been provided as under: 5. Inclusion in or exclusion from value of certain expenditure or costs.– (1)Where any expenditure or costs are incurred by the service provider in the course of pro
Our company is established in Kala-amb(himachal pradesh ) ( and due to 50 /2003 - CENTRAL EXCISE, Dated: June 10, 2003 “G.S.R (E) .- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944) read with

The levy of service tax is not related to raising of bill or with the receipt of amount charged in bill. For levy of service tax, it is required to be seen when the service was provided. In this regard, the Gujarat High Court in the case of Commissioner o
Our company is established in Kala-amb(himachal pradesh ) ( and due to 50 /2003 - CENTRAL EXCISE, Dated: June 10, 2003 “G.S.R (E) .- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944) read with

Our company is established in Kala-amb(himachal pradesh ) ( and due to 50 /2003 - CENTRAL EXCISE, Dated: June 10, 2003 “G.S.R (E) .- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944) read with
We are Manufacturer Exporter But we are not registered with the Central Excise Act, 1944 due to our Produce is exempted in Excise act. Please advice where we file our Service Tax refund claim as per Notification No. 17/2009 in the following situation?

As provided in Para (2) of the Notification No. 17/2009-ST dated 07.07.09, you will have to file the refund claim at the Excise Division, more particularly, to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as t
I am keen to know the implication of service tax paid in case of GTA. Please reply who is the person capable of claiming credit of service tax paid and legal backing. (i) If service tax is paid by the service receiver; (ii) If service tax is paid by

As per Section 2 (1) (d) (v) of the Service Tax Rules, 1994, in case of Goods Transport Agency service the person liable to pay the service tax to the Government is the service recipient. The said Rule is reproduced hereunder for ready reference: (d) "
We received payment from buyer for Flat as per completion method. When a particular work is completed i.e. say DPC, roof, flooring etc. then we demand that money from buyer. We raised demand letter to buyer. Possession of flat will be given after completi

When the service is not provided and payment is received then it can be termed as advance. But in this case you have provided services partly and received payment for the same, it will not be advance. It will be termed as payment received for services pro
One of my friends is doing transportation business but do not have any trucks or other carrier but are hiring from private vehicles and dispatching consignments of factories on his L/R he has been registered with Service tax in the beginning of 2005 but w

You will have to login in ACES.gov.in in service tax section and take the cursor on REG. Immediately a small box will be displayed containing many option. You have to go on to the option of Amend Registration. Then a window will open and you have to c
Q1:- If the assessee has paid Service Tax wrongly (which is not to be paid), whether they are entitled for refund? Q2:- Whether they can take Credit of the same amount in Excise CENVAT?

In case, an assessee has paid service tax wrongly which was not required to be paid, then the assessee can file for refund of the amount wrongly paid under Section 11B of the Central Excise Act, 1944. The provisions of the Section 11B have been made appli
Q.1:- In which Rule, the assessee can clear the raw material (Inputs) for further process / jobwork, outside the factory premises / Warehouse? Q.2:- What kinds of Documents have to be submitted to Central Excise Range Authorities? Q.3:- Whether the

Q. 1 Reply: In case the assessee has availed cenvat credit on the inputs, then he can clear the goods to the premises of jobwork for further processing under Rule 4(5) (a) of the Cenvat Credit Rules, 2004 or under Notification no. 214/86-C.E. dated 25.03.
1. Which Cost and charges is taxable? (Basic Cost, Prime Location Charges, External Electrical Charges, Fire Fitting Charges, , External Development Charges, Open Car Parking, Covered Car Parking, Store, Shop, Power Backup Charges, Lease Rent, Club Member

In the definition of commercial construction in Section 65 of the Finance Act, 1994, it has been specified the services which will fall under the scope of construction service. The said definition is reproduced hereunder for your ready reference: (25b)
A person received Rs. 15 lakh advance in F.Y 2010-11. Can he avail basic exemption of Rs. 10 Lakh in F.Y 2011-2012? Please clarify.

As per Notification No. 6/2005-ST, dated 01.03.2005, the threshold exemption in the current financial year will be available if the aggregate value of taxable service provided does not exceed the prescribed limit of Rs. 10 lakhs in the previous financial
We would like to use dutiable materials in exempted product manufacturing by reversing the proportionate Cenvat credit before utilization in manufacture of exempted product. Hence kindly advice us whether it is possible w.r.t. Rule 6 (3) II of Cenvat Cred

Rule 6(1) of the Cenvat Credit Rules, 2004 provides as under: (1) The CENVAT credit shall not be allowed on such quantity of input or input service which is used in the manufacture of exempted goods or for provision of exempted services, except in the
We are in receipt of your query asking for the link of website for filing return. The second query asked is that one of your clients has paid service tax of Rs. 500000 above during the current year. Whether filing of service tax return is compulsory?

In this regard, we submit that the website for filing service tax return is - www.aces.gov.in. You are required to obtain user name and password for logging into the same. Regarding the second query, you have written that your client has paid service
We are Importer of all type of computer parts & Networking products from China, USA, Malaysia & Taiwan. Now we are thinking to expand our business by export of goods. We need your valued guidance of Export procedure & get more benefit of various type of I

Export Procedure: The export of goods can be done on payment of duty and under rebate claim under Rule 18 of the Central Excise Rules, 2004. Or export can be done without payment of duty under bond under Rule 19 of the Central Excise Rules, 2004. T
We are manufacturer of bathroom fitting items under Ch. No. 84819090, 84818020, 74181990. These all items are made from brass. Recently, we have imported shower from China under Chapter heading No. 39229000. Now we are selling this item in domestic market

The goods which are being imported by you are being sold in the domestic market after packing and affixing of your brand name. The said goods are not being used as inputs in the manufacture of your finished goods. Under the Cenvat Credit Rules, 2004 credi
Please send the C.E.T Subheading no. of PP Woven Fabric, PP Woven Bags, PP Woven Wastages & Pet Preform.

The Tariff Heading of the aforesaid goods under the First Schedule to the Central Excise Tariff Act are as under: Sr. No. Name of the Good Description in Tariff Tariff Heading 1. PP Woven Fabric Polypropylene articles, not elsewhere specified or inclu
1) How do we fulfill EPCG liability with 3rd party export? (2) What are the new products added SHIS as done for zero duty EPCG scheme? (3) What is new Annual EPCG Scheme for exporters?

Query-1: - As per Para 5.3 of the Foreign Trade Policy, the exports made through merchant exporter is eligible for being covered under EPCG scheme. The said para is reproduced hereunder for your ready reference: Eligibility 5.3 EPCG scheme covers m
One of your clients is Proprietary concern which is manufacturing and supplying dairy equipments to specified persons as per the Act and availing GTA service. Some of the transporters have collected Service Tax and Education cess from them and the same ha

In this matter, Rule 2(1)(d)(v) of the Service Tax Rules, 1994 is important. It says that the liability to pay the service tax in the Government exchequer is on the service recipient in case of specified class of person pays the freight amount either as c
A builder (Private Ltd Company) has 2 residential projects, one in Delhi & second in Bombay. Company book one flat of buyer say RAM in Delhi project on April 2009 and received Rs. 5 lakh. But project is cancelled or not started so company as per buyer dis

As per Explanation (a) to Section 67 of the Finance Act, ‘consideration’ includes any amount that is payable for the taxable services provided or to be provided; Thus, service tax will be payable on the amount given as advance. The amount was receiv
With the Construction of residential complex service being taxed under service tax from 01.07.2010, whether the amount received towards parking space will also be taxed? If exempt then under which notification it is exempt? Is there any limit for flats so

In the TRU letter no. 334/1/2010-TRU dated 26.02.2010, all the amendments introduced by the Budget 2010 were explained. In Annexure-A to the said letter, the amendments relating to Construction of residential complexes has been explained. In the para 8.2
We have imported some material from Spain in 2005 & 2007 out of which some items are not performing and we needs to give them replacement and the defected items to be sent letter on to Spain. Please give the comments on the following procedure: 1. If

As per Chapter 6 of the Export Promotion Capital Goods Scheme, the Capital Goods imported under the scheme and found defective or otherwise unfit for use may be re-exported and Capital Goods in replacement thereof be imported under the scheme. In such cas
I would like to clear a doubt. This is with regard to a payment made to a company in UAE as insurance commission for Referrals they made. While making the payment we had paid the service tax from our pocket. But while making the service tax payment th

You have received the service from the company in UAE therefore, there is import of service. As per import of service Rules, the liability to pay service tax is on the service recipient who is receiving service in India. Therefore, you were liable to pay
We are manufacturing of Dairy equipment, which is part of engineering industry. Our excise no is AADCS2084CXM001. Major of our product which is coming under category is 84342000. We are manufacture of Dairy equipment specialised in Ice cream Industry. A

Before applying for DEPB scheme, it is necessary to ascertain that our product is listed in the DEPB Schedule Rate. We have gone through the DEPB Schedule and found that following entries may be relevant in the Engineering Products. 588 Hermetically Sea
I am a practicing chartered accountant in Jaipur, Rajasthan. One of my client recently started a factory of making tasla from (F.Y. 08-09) and his turnover is going to cross 3.5 crore in this financial year whether he is in ambit of central excise. Please

The provisions for Small scale exemption are given in Notification No. 8/2003-CE, dated 01.03.03. It is provided that SSI exemption will be available if the clearances during the previous financial year did not exceed Rs. 4 Crores. The SSI exemption will
Is the time limit for filing the Refund claim for the Input service tax in case of the Sec 10 B companies who are 100% export and STPI companies - is one year or 60 days from the end of the quarter. Please clarify.

There are two type of refund claim available to 100% EOU. One is of unutilized Cenvat credit under Rule 5 of Cenvat credit Rule. 100% EOU can take the Cenvat credit and if the credit is utilized by them then the same can be claimed as refund. In such type
If the proprietorship firm covered under audit u/s 44AB is paying Freight on purchases, and he is not registered in service tax department, is service tax liability will be created on GTA.

As per Rule 2 (1) (d) (v) of the Service Tax Rules, 1994 only following seven categories of consignor/consignee of goods are themselves liable to pay service tax: - (a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948
We are providing services to our customers taking services from a C& F agent who falls below the threshold limit and therefore, does not charge Service Tax in his bill. We also provide other services as business auxiliary services. How the same should be

In your bill issued to your customers you are required to show the services provided under BAS as well as of C& F service. But since no service tax is charged by the C&F Agent whose services you are utilizing to provide output service, you have to mention
If few permanent employees of a Holding company is working in the Subsidiary Company for the last one year and subsidiary company is making payment of salary of employees to Holding Company. Should Holding company charge the service tax from subsidiary co

Yes, Service tax is to be charged by the Holding Company from the subsidiary company. However, under which category of service the service tax is to be charged will depend upon the type of work being rendered by the employees of the Holding Company in the
A person engaged in Hotel business is also doing Boating operation. The boating is arranged by charging the individual at a specific rate per trip. The Central Excise department official are contending that the Hotel operation is a tourism related ser

Definition of Tour Operator is given in Section 65 (115) of the Finance Act, 1944 which is as under: - (115) "tour operator" means any person engaged in the business of planning, scheduling, organising or arranging tours (which may include arrangements
I have a query regarding certification of service tax paid in context of claiming the refund of the same. For the purpose of certifying the amount of service tax paid on goods exported (To claim refund of the same under notification no.17/2009) I am check

Notification No. 17/2009-ST, dated 07.07.09 grants exemption from payment of service tax by way of refund. The refund of service tax is granted on the specified services which are utilised by the exporter for exporting their goods. The Notification pro
- How the Service Tax and VAT are applicable for sale of flats/Apartments? - Give guidance about the Accounting System of Apartment construction in the Books of Builder and owner.

In this regard we submit that we are dealing specifically in Excise, Service Tax, Customs and DGFT matters. As per the Board Circular No. 108/02/2009-ST dated 29.01.09, there is no service tax on sale of flats. Therefore, VAT is applicable on sale of
During the financial year 2008-2009, the billed amount was Rs. 950000 and the amount received was Rs. 700000. The method adopted by the Querist for accounting is cash basis. For the financial year 2009-10, the amount expected to be billed is Rs. 1200

Notification No. 6/2005-ST, dated 01.03.05 provides an option to the service provider to avail exemption from tax leviable on taxable services of aggregate value not exceeding the prescribed limit in any financial year subject to the fulfillment of the co
We are in receipt of your mail in which the following query has been raised:- What would be the rate of service tax on contract entered after July 7th, 2009 where the developer supplies steel and cement free of cost to contractor?

The Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 has been amended vide Notification No. 23/2009-ST, dated 07.07.09. The Explanation to sub-rule (3) was amended to provide that the composition scheme would be available only to
We are in receipt of query about the applicability of service tax on amount collected from the clients during period of warranty for repair and maintenance. The authorised service station (assessee) is collecting amount from the customer towards extended

In this respect we submit that in Notification No. 96/7/2007-ST dated 23.08.07 it has been clarified by the Board that In case service is provided by an authorised service station to a customer and the service provider receives the consideration for the s
The Querist is sending non-excisable scrap to M/s Universal Metals on Jobwork for manufacture of SS Ingots. Then the said SS Ingots are sent to Mangalam Alloys Limited by M/s Universal Metals on behalf of the Querist for further processing into SS Flats u

The Querist can send the SS Flats for further processing into hot rolling into SS Patta/Patti on Jobwork basis under Notification No. 241/86-C.E, dated 25.03.86 provided conditions specified thereunder are satisfied. The extract from this notification is
Whether re-imported goods can be sent to a bonded premises and any process can be done therein?

The Customs Notification No. 158/95-Cus, dated 14.11.95 provides “Exemption on goods and parts thereof, which are manufactured in India and notwithstanding whether manufactured by an Indian or foreign manufacture, when imported or re-imported for repairs,
What is the the procedure to be followed for re-import of goods by EOU.

Para 6.17 of the FTP provides for Replacement/Repair of imported/ indigenous goods. Para 6.17 (a) provides that: (a) General provisions of FTP relating to export / import of replacement / repair of goods would also apply equally to EOU / EHTP / STP / B
Under which category of service the service of advertising in a mall would fall under?

The service of advertising in a mall will not fall under the category of advertising agency’s services. We submit our reasons as below:- Advertising Agency has been defined under Section 65(3) which is reproduced hereunder for ready reference:- ‘Adv
A trust has setup a water treatment plant and has given the running of the water treatment plant to a contractor who is supplying labour as well as the chemicals for the plant. The query rose what is the category of the service provided by the contractor.

By giving the plant to the contractor the trust has outsourced the functioning of the plant to an outside agency. Normally the outsourcing comes under “Business Support Services”. But it is related to Business or commerce. But it is being provided to a ch
Is there any seprate register for maintaining the excisable sales return

Earlier there was separate register and was called D-3 register. Most of the units still follow the same. It contains the details of goods received back, process undertaken and material despatched once again.
One UNIT is MANUFACTURER OF CERAMIC MINERALS POWDER IS EXEMPTED FROM EXCISED. HE IS DOING JOB WORK THERE. THE fineshed GOODS ARE NOT EXCISABLE, AND IS NOT PAY ANY EX.DUTY ON JOB CHARGES. PL. ADVICE WHETHER HE IS LIABLE FOR SERVICE TAX ON JOB WORK PROCESES

If the manufacturing process employed by the unit amounts to manufacture (though exempted by virtue of a notificiaton or chargeable to nil rate of duty) then there is no service tax. Service tax is applicable when the process undertaken by him does not am
Sir,one of our client is registered as Transport of good by road,it is a manufacturing concern,can it avail input tax credit of srvice tax input services & inputs for setoff from the excise duty payable ,even when it is not providing any output services a

If he is a manufacturer of excisable goods and payin excise duty on his final product then he can take the credit on inputs and input services. He will be taking credit as he is manufacturing excisable goods and not due to the fact that he is paying servi
I have raise bill for service tax on 09.06.2011 and payment not recd. till date. So when i have to deposit s.tax to government

As per Point of Taxation rules, we have to pay the service tax on raising of invoice. But the option is given to service provider to opt for the same either from April 1, 2011 or from July 1, 2011. Hence, if the service provider has opted for the same fro
WHEATHER SEC 11B TIME LIMIT IS APPLICABLE TO RULE 5 OF CENVAT BECAUSE IN 11 B IN RELVANT DATE NOTHING IS MENTION ABOUT CENVAT CREDIT??

The time limit under Section 11B defines the time limit for filing of refund claim. Even notificaiton no. 5/2006 issued under Rule 5 also says that the time limit is to be determined as provided in Section 11B of Central Excise Rules. However, the rule do
When merchant exporter wish to export the excisable goods,then he has to submit B-1 General bond for security deposit. For this he has to take bank guarantee for any scheduled bank. But my question in what is the format of application of bank guarantee an

In case of export through merchant exporter, bond has to be executed. It can either be submitted by merchant exporter or manufactuer exporter. It is to be remembered that the liability to submit the proof of export is on the person who executes the bond w

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