Tag: Cenvat Credit

Value added tax (VAT)

Value added tax (VAT) Introduction : The value added tax was introduced as an indirect tax into the Indian taxation system from 1 April 2005. The existing general sales tax laws were replaced with new Value Added Tax Acts and the VAT rules for proper  administration. Haryana became the fi rst state in the country …

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Other Provision Cenvat Credit

Transfer of CENVAT Credit (Rule 10) – If a manufacturer of the final products shifts his factory to another site or the factory is transferred on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the factory to a joint venture with the specific provision for transfer of …

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Input Service for Cenvat

Input Service Manufacturer as well as service provider will be eligible to get Cenvat credit of ‘input services’. Rule 2(1) of Cenvat Credit Rules reads as follows – (i) Insofar as a service provider is concerned, the term ‘input service’ means any service used by a provider of taxable service for providing an output service. …

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Highlights of Cenvat Credit Scheme

General highlights of the scheme are as follows : Credit of duty paid on input and input services The Cenvat scheme is principally based on system of granting credit of duty paid on inputs and input services. A manufacturer or service provider has to pay excise duty and service tax as per normal procedure on …

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Demands and Penalties

• If duty is short paid or not paid or erroneously refunded, show cause notice can be issued u/s 11A(1) of CEA within one year from ‘relevant date’. • In case of allegation of suppression of facts, willful misstatement, fraud or collusion, the show cause notice can be issued within five years. • Show cause …

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Other procedure in Central Excise

Some procedures are basic, which every assessee is required to follow. Besides, some procedures are required to be followed as and when required. Basic Procedures (1) Every person who produces or manufactures excisable goods, is required to get registered, unless exempted. [Rule 9 of Central Excise Rules]. If there is any change in information supplied …

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Excise on small scale industries

Small Scale Industries The contribution of Small Scale Sector in the industrial growth of the Indian economy and to the Gross Domestic Product is significant, besides the potential for employment generation. Keeping this into consideration, special provisions of Central Excise are applicable to small-scale units. Exemption to SSI • SSI are eligible for exemption from …

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Assessment under Central Excise Law

The expressions ‘assessment’ and ‘assessee’ have been defined in the Central Excise Rules, 2002. Assessment, as per Rule 2(b), includes self-assessment of duty made by the assessee and provisional assessment under Rule 7 of the said Rules Assessee, as per Rule 2(c), means any person, who is liable for payment of duty assessed or a …

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MRP based valuation

Same product partly sold in retail and partly in wholesale – CBE&C has further clarified in circular No. 737/ 53/2003-CX dated 19-8-2003 that when goods covered u/s 4A are supplied in bulk to large buyer (and not in retail), valuation is required to be done u/s 4. Provisions of section 4A apply only where manufacturer …

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Valuation in case of Job work – Rule 10A

MEANING OF JOB WORKER Job-worker means a person engaged in the manufacture or production of goods on behalf of a principal manufacturer, from any inputs or goods supplied by the said principal manufacturer or by any other person authorised by him. According to Rule 10A, the value of goods manufactured on job work shall be …

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