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CA MANOJ BATRA
IFGL Refractories
- Benefit due to surrender of license by buyer, is additional consideration
Mazagon Dock ltd.
- Subsidy from govt is not an additional consideration but subsidy from buyer of
goods is an additional consideration even if the same is received under a policy of the government
Explanation 1
- add apportioned value of material supplied by buyer free or reduced cost.
Explanation 2
- Notional interest added if advance recieved has influenced the price. (by
charging lesser price or offering special discount) [ if price not influenced- NO NOTIONAL INT. ADDED]
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- incurred by buyer under an agreement, added to value
After sale service
- added to AV
(1) where the excisable goods are not sold by the assessee at the time and
place of
removal but are transferred to a depot/consignment agent
(2) from where the excisable goods are to be sold after their clearance from the
place of removal and
(3) where the assessee and the buyer are not related and the price is the sole
consideration for the sale
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sold to ICU
If job worker produced intermediate product which is captively consumed by Raw material Supplier
AV = DELIVERED COST OF RAW MATERIAL + JOB WORK CHARGES ( LABOUR & PROFIT)
IF JOB WORK OF MRP Notified goods AV = MRP less Abatement
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Story part-2
(1) CCR avail ( 2 + 3 + 4 + 6 + 9)
(2) IP, CG, IS definition Rule 2
(3) Rule 3(1) eligible Duties
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Note- IMMEDIATELY
2.
PREMISES RECEIPT
C,A,R,M POSSESSION
4. 3 CASES- 100% CCR IN FIRST YEAR1) SP. CVD (2) SSI (3) CG REMOVED AS SUCH
5. CG- FACTORY RECIEVE ELECTRICITY CAPTIVE USE CREDIT
6.
7.
Reverse charge
(i) Partial Reverse charge CCR ON PAYMENT of value AND s. tax
Invoice issued on or after 1-4-11 - CCR On or after the day OF RECEIPT OF INVOICE
Note- if payment of value & s. tax not made within 3 m of date of invoice
Than Pay Amt = CCR availed. (By debiting CCR or PLA )- Monthly/Quarterly
Note- if payment made AFTER 3 M, then s.provider can take credit which was paid earlier.
Associated enterprise can take CENVAT credit of the service tax paid under rule 4(7) of the CCR, 2004 if S. tax paid on basis of,
debit/credit entries in books of account
Proviso to Rule 4(1) and 4(7) has been amended to provide that a manufacturer or a service provider shall take credit on
inputs and input services within a period of 6 months from the date of issue of invoice, bill or challan with effect from 1st
September, 2014. Currently, CENVAT Credit can be claimed at any time after receipt of invoice.
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4)
1)
CCR REVERSE
181 TH DAY, IF NOT RETURNED PAY AMT= CCR related to the portion of IP/CG Not Received back (BY
DEBITING CCR OR PLA)
180 DAYS
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
RULE [5B. Refund of CENVAT credit to service providers providing services taxed on
reverse charge basis.
A PROVIDER OF SERVICE PROVIDING SERVICES
notified under sub-section (2) of section 68 of the Finance Act AND
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being unable to utilise the CENVAT credit availed on inputs and input services for
payment of service tax on such output services,
shall be allowed refund of such
UNUTILISED CENVAT CREDIT
subject to procedure, safeguards, conditions and limitations, as may be specified by the Board by
notification in the Official Gazette.]
Refund amount will be LOWER OF 3
(i) Balance available as CCR
(ii) Amount as per formula of notification
(iii) Service tax paid or payable by Recipient of service
7) exempted goods , dutiable goods , exempted goods use input
credit Rule 6
EXEMPTED GOODS
1.
2.
3.
4.
EXEMPTED SERVICE
1. 100% Exempted Services.
2. Non Taxable Services u/s 66B [ e,g- Trading of goods or securities, service provided in non taxable
territory.]
3. Services on which part of value is exempted to the condition that no CCR shall be allowed.[Abated
service]
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1) CCR OF IPEG
2) CCR OF IPES
1. 10 % of COGS
2. [S.P-COGS]
Value for trading OF Security = HIGHER OF 2
1. 1 % of purchase price
2. [S.P-PP]
7A
ISD
Input service
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1)
2)
3)
4)
invoice of Manufacturer
FSD/SSD invoice
IP/CG AS SUCH
Supplementary invoice
1.
2.
3.
4.
Invoice of ISP
Invoice of ISD
Reverse charge- GAR-7 challan
Service tax certificate for transportation of
goods by Rail ( STTG Certificate)
5. Supplementary invoice
Imported IP/CG
1)
BOE
2)
COAOC
3)
FSD/SSD INVOICE
4)
Supplementary invoice
(i) DETERMINE THE CCR OF DUTY PAID ON [IP, IP IN PROCESS , IP IN FP] IN STOCK
(ii) DEDUCT FROM CCR BAL, BALANCE IF ANY WILL LAPSE.
AT THE TIME OF TAKING CCR- IF FP IS EXEMPTED - R-3(2) &(3)
BUT SUBSEQUENTLY FP/OS IS DUTIABLE/ OS TAXABLE THEN
(i) DETERMINE THE CCR OF DUTY PAID ON [IP, IP IN PROCESS , IP IN FP] IN STOCK
(ii) TAKE CCR
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13) Pappu Tax Planning Purpose North- East State Factory - buyer purchase
, credit Rule 12
14) Govt Pappu North East Job , input/input service
Deemed Credit Rule 13
15) Dept , Pappu Credit avail and use ,
recovery Rule 14
16) input confiscate , Penalty Rule 15
CCR WRONGLY TAKEN OR UTILISED OR CONTRAVENTION OF
Rule 15
PROVISION on IP/CG/IS
Other than fraud- Confiscation and penalty (duty/TAX or 2000) w.i greater
Fraud- additional penalty equal to duty for manufacturer u/s 11AC
Fraud- additional penalty for service provider u/s 78
Story part-2
(1) CCR avail ( 2 + 3 + 4 + 6 + 9)
(2) IP, CG, IS definition Rule 2
IS
1. CONSTRUCTION, WORKS CONTRACT IS -
BUILDING OR CG FOUNDATION USE
NOTE- SERVICE RECIEVE IS
2. GENERAL INS/ SERVICING/REPAIR AND MAINTENANCE, RENTING OF MOTOR VEHICLE
SERVICE CCR- ONLY Motor Vehicle MOTOR VEHICLE CCR
ELIGIBLE
SERVICE TAX PAID ON GEN INS. AND MAINTENANCE OR REPAIR OF
ANY MOTOR VEHICLE ALLOWED TO
MANUFACTURER OF MOTOR VEHICLE
INS. COMPANIES IN RESPECT OF INS. OR REINSURANCE
3. SERVICES USE- PRIMARILY PERSONAL USE OF EMPLOYEE -
CREDIT
COST OF TRANSPORT:
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services CCR
(2) FOR SERVICE PROVIDER
(A) Motor Vehicle- OTHER THAN 8702/03/04/11 CG E .duty CCR and 4
services CCR
(B) Motor Vehicle- 8702/03/04/11- Divided into 2 parts
Final
means excisable goods manufactured or produced from input or using input service.
product
Rule 2
Means- all goods used within factory
input
Any goods + accessory + goods used for Free warranty if there value included in FP
All goods used for generation of electricity or steam for captive use
All goods used for providing output service
Excludes- (1) LDO,HSD, Motor spritit (2) any goods for const of buildg or support of cap goods ( but treated as IPfor CONSTRUCTION SERVICE/ works contract service)
(3) Cap goods ( when cap goods used as part or component then treated as input)
(4) Motor vehicle, (5) any goods for personal use, (6) any goods which have no relationship with mfr of FP.
simple analysis for construction of building etc
(i) IP ( cement, bricks etc.)
(ii) IS ( Construction / works contract service)
CCR
NOTE- IP/IS (cement, bricks etc Construction / works contract service) CCR ONLY CONSTRUCTION OR
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No 1 to 1 correlation necessary
Proviso 1 to 1 corelation
CCR Utilised for payment of (1) duty (2) AMT PAYABLE ON REMOVAL OF IP/CG AS SUCH (3)
3.
NCCD (Duty)
ONLY NCCD
4) ADE 03
ADE 03
CVD
SUMMARY
CCR of BED/SED/GSI can be utilised for payment of any ED Including EC & SHEC except H.Cess/NCCD on MP
Can CENVAT credit of duties, other than National Calamity Contingent Duty (NCCD), be used to pay NCCD?
CCEx. v. Prag Bosimi Synthetics Ltd. 2013 (295) ELT 682 (Gau.) - yes
3(7)(b) 100% EOU to DTA
CCR = CVD + Sp. CVD + EC & SHEC (excise)
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RULE 10ATRANSFER OF
CENVAT CREDIT OF
ADDITIONAL DUTY
LEVIABLE U/S 3(5)
OF CTA 1975