Indirect tax Digest - April 19, 2016

• Amendment in the Mega Exemption Notification No. 25/2012-ST dated June 20, 2012 to exempt certain services provided by Government or a Local authority to a Business entity

• Proviso inserted in Rule 6(2)(iv) of the Service Tax (Determination of Value) Rules, 2006, to include in value of taxable services, payment of interest/ other consideration payable on Governmental services, when payment is allowed to be deferred on such payment of interest/ other consideration

• Point of Taxation under Reverse Charge in case of Governmental services – Proviso inserted in Rule 7 of the Point of Taxation Rules, 2011

• Cenvat credit of Service tax paid on assignment of right to use of natural resources by Government, Local Authority or any other persons and related amendment made in the fifth, sixth, seventh and eighth proviso of Rule 4(7) of the Cenvat Credit Rules, 2004

• Clarification on taxability of Governmental services & Illustration explaining how the Cenvat credit is to be availed on Service tax paid for assignment of right to use natural resources and related changes

• Commissioner cannot demand Service tax on services rendered beyond his jurisdiction, only because the assessee was maintaining centralised accounting

• Refund of Cenvat credit cannot be denied without questioning the eligibility of credit taken

• Construction services are eligible input service for rendering renting of immovable property services

• Business Support services provided to Business entity outside India on principal to principal basis would fall under Rule 3 of the Place of Provision of Services Rules, 2012 and thus will be treated as export of service 

• Refund of accumulated Cenvat credit is allowed, even if finished goods are supplied to deemed export area

• Cenvat credit on capital goods cannot be denied merely because at the time of availing Cenvat credit, the assessee was not in possession of such capital goods

• There is no restriction forcross utilization of common credit availed on inputs/ input services for payment of Excise duty or Service tax - Hence, input service credit cannot be denied on ground that it was shown in ER-1 return and not shown in ST-3 return

• Amendment in Rule 6(3) and Rule 7B of the Cenvat Credit Rules, 2004

• For further facilitating Ease of doing business, the CBEC has issued detailed guideline which is to be followed while adjudicating the Show Cause Notices

• SAD Refund would be admissible notwithstanding the fact that the trader-importer made no endorsement that “credit of duty is not admissible” on the commercial invoices

• When the Excise duty is exempt, there is no question of payment of Additional Customs duty

• Detailed procedure laid down for the implementation of “Integrated Declaration” by CBEC

• The Bill of Entry (Electronic Declaration) Regulation, 2011 got amended by bringing the “Bill of Entry (Electronic Declaration) (Amendment) Regulations, 2016”

• No fee shall be levied for taking service from specified officers, if it is prescribed as “twenty- four hours on all days for customs clearance” on Customs ports or Customs airports 

• DVAT: Amendment in Form DVAT-16 and Form DVAT-17, Form DVAT-30 and Form DVAT-31

• Issuance of C Forms cannot be denied on ground that the assessee has not disclosed inter-state purchases even in revised return filed

• When the foundation work or installation work is itself treated as part of Works contract by the Assessing officer, no Sales tax can be levied by treating them as “goods”

• Thousands rally against Malaysia's Goods and Services Tax
• GST a key factor in improving ease of doing business: Shaktikanta Das
• GST rate will go up if Kejriwal keeps luxury item out of budget: Jaitley
• Better to wait till April 1, 2017 for better GST: Debroy
• Proposed GST in India is of paramount importance: US
• Tea industry seeks special rate under GST
• GST key to India’s entry to APEC: US study

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