Chartered Accountant practicing exclusively in the domain of Indirect Taxation i.e. Central Excise, Service Tax, VAT, Customs, FTP, SEZ, EOU. Heading NCR-Gurgaon Branch of Hiregange & Associates, Chartered Accountant.
Have been supporting Corporates, MNCs and other clients on error free compliance, value additive due diligence review, consultancy and representation service before departmental adjudicating authorities, Commissioner (Appeals), CESTAT, DGECI, Revision Authority, Settlement Commission etc. in the field of Indirect Taxation. Following philosophy of "Prevention is better than cure" to avoid/mitigate disputes.
Have been spreading awareness by contributing articles on contemporary issues under Indirect Tax in various magazines and online forums. Actively engaged in taking seminars and conferences organised by various forums including ICAI. Assisted in authoring book on service tax titled "Practical Guide Service Tax" published by Bharat Law House and updated E-Book "Understanding Service Tax Concepts-2015" by Hiregange Academy. Presently engaged in extensive research on upcoming GST in India.
Enriched with strong interpretation skills.Meritorious academic background with All India Rank in CA Final (27), CA P.E.-II (12) and CS Final (22). Also successfully completed Indirect Tax Certification Course conducted by ICAI.
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Swachh Bharat Cess adds separate service levy and raises effective service tax rate; applies to taxable services, with limited credit.
Swachh Bharat Cess is a separate levy on taxable services, raising the effective service tax rate to 14.5%. Abatements and existing valuation rules apply to SBC in the same proportion as to service tax; SBC must be charged, shown, accounted and paid separately. Services exempt from service tax remain exempt from SBC. Transitional application depends on Point of Taxation events and reverse charge payment dates. Absent amendment to Cenvat Credit rules, SBC on input services is not currently available as credit, increasing costs and compliance requirements. (AI Summary)
Service Tax
Reversal of Cenvat credit under Rule 6 requires apportionment for exempted services and ST-3 disclosure.
Applicability of Rule 6 hinges on whether inputs or input services qualify under the Rules and on their exclusive or common use for taxable versus exempted services. Commonly used inputs/input services require apportionment and reversal under alternative methods: separate records, a fixed-rate option, proportionate turnover-based reversal, or hybrid treatment. Exports, supplies to SEZs, and capital goods are excluded from reversal. ST-3 Return Section I requires disclosure of exempted turnover values and corresponding reversals, with fixed-rate disclosures final and proportionate disclosures provisionally adjusted at year end. (AI Summary)
Service Tax
Cenvat credit utilisation and reversal rules clarify permitted uses and required disclosures in service tax returns.
Utilisation and reversal of Cenvat credit must be distinguished and disclosed separately in the service tax return. Utilisation permits credit to be applied to excise duty, certain cess liabilities and service tax, with specific columns for service tax, cess, excise duty, clearance of removed inputs/capital goods, and inter unit transfers; matching of totals and constraints on using credit for reverse charge and for certain arrear payments apply. Reversal arises for wrongly availed credit, exempted turnover adjustments, non-payment to service providers within prescribed time, refunds/credit notes, pre-deposit for appeals, write-offs, job worker non-returns, and similar events, and must be disclosed with articulated reasons. (AI Summary)
Service Tax
Cenvat credit disclosure: ensure correct classification and timely availment in service tax returns to maintain eligibility and compliance.
Cenvat credit disclosure requires reconciliation of opening balance with prior returns and books; separate, timely disclosure of credits for inputs, input services, and capital goods; and strict adherence to Cenvat Credit Rules for eligibility, invoice sourcing, treatment of capital goods, reversal rules for unpaid invoices, and special disclosures for input service distributors, LTU transfers, and Rule Six adjustments. (AI Summary)
Service Tax
Supply concept under GST recasts job work taxation, requiring GST on transfers and affecting valuation and input credit.
The proposed GST replaces manufacture/service/sale with the supply concept, so transfers of goods by a principal to a job worker will be treated as supplies attracting CGST/SGST for intrastate movements or IGST for interstate movements, with reciprocal input tax credit. Critical operational issues include valuation where no consideration passes, tax treatment of supplied capital goods and additional inter-state tax on transfers other than non-sale movements, cash-flow implications from tax on high-value supplied goods, and documentary/accounting measures to distinguish non-sale supplies from sales. (AI Summary)
Goods and Services Tax - GST
GST transitional treatment for ongoing service contracts: document pre GST performance and invoice to preserve input tax credits.
Transitional treatment of ongoing service contracts at GST introduction demands explicit contractual allocation of GST, contemporaneous evidence of work completed pre GST, and pre GST invoicing where possible to preserve input tax credits. Service providers should document inventory and taxes paid, file stock declarations, reconcile accounting with tax returns, and, for exports or exempt services losing preferential treatment, amend agreements and seek refunds of accumulated credits. Works contracts require clear specification of tax components, completion certificates, registered supplier invoices, and detailed reconciliations to secure credit recovery and protect margins in the merged GST supply regime. (AI Summary)
Goods and Services Tax - GST
Cenvat credit restrictions and practical transactional strategies to protect input tax credit and apportionment rights.
The note analyzes transactional and accounting mechanisms to preserve Cenvat credit within current restrictions: treating part use motor vehicles as capital goods via renting services; opting to charge service tax instead of claiming exemption to retain credit; procuring through manufacturer/excise dealer invoices or endorsed invoices to secure credit flow; splitting contracts to isolate non works contract services; and adjusting place of removal and receipt location to establish credit nexus. It addresses the one year invoice limitation with exceptions and reverse charge strategies, the Rule 6 apportionment principles for capital goods, inputs and input services, and the evidentiary treatment of tax paid under reverse or joint charge. (AI Summary)
Service Tax
Cenvat credit eligibility narrowed by revised input service definition, affecting claims for outward transportation and employee-related services.
Cenvat credit depends on whether a service meets the amended definition of input service, which retains services used in manufacture or for providing output services but adds an exclusion schedule (works contract/construction for civil structures and foundations of capital goods; rental and certain motor vehicle related insurance/repair for non capital vehicles; and primarily personal employee services such as outdoor catering). Eligibility thus requires factual proof that the service is used directly or indirectly in manufacture or up to the place of removal; disputes commonly arise over outward transportation, catering, employee insurance, works contracts, mobile connectivity, rent a cab and sales commission. (AI Summary)
Service Tax
Service tax return scrutiny norms emphasise reconciliations, credit eligibility and reverse charge compliance to reduce penalty exposure.
Manual scrutiny norms target ST 3 returns of small assesses across tax bands, with emphasis on reconciling ST 3 and income tax returns, cross verifying TDS/26AS, and documentary proof for exempted, abated and exported services. Examiners will scrutinise input tax credit eligibility on capital goods, inputs and input services, timing and reporting in ST 3, Rule 6 adjustments and advance tax reconciliations, valuation rules, pure agent treatment, and reverse charge liabilities arising from imports and domestic ledger classifications. Exhaustive disclosure, SOPs and reconciliations are recommended to mitigate penalty risk. (AI Summary)
Service Tax
Digital signature requirement for computerized invoices enables CENVAT credit when invoices are electronically authenticated and preserved.
Rule 9 of the Cenvat Credit Rules permits taking credit on invoices issued by input service providers, and its proviso allows the Assistant/Deputy Commissioner to admit credit even if an invoice lacks particulars, including signature, where the goods or services have been received and accounted for. The Information Technology Act recognises electronic signatures as satisfying signature requirements. Finance Act 2015 and ensuing notifications permit digitally signed computerized invoices and prescribe conditions-use of Class 2/3 digital certificates, prior intimation to officers, separate electronic records per registration, preservation and production requirements-that issuers must follow to secure credit eligibility. (AI Summary)
Service Tax
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16 Nov 2015 
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