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Comprehensive Guide to Service Tax and Cenvat Laws

Get detailed insights on statutory provisions, classification, valuation, penalties, services like consultancy, construction, and more. Understand procedures, exemptions, and important concepts in service tax. Expertly curated for a thorough understanding.

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Comprehensive Guide to Service Tax and Cenvat Laws

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  1. SERVICE TAX mail@swamyassociates.com www.swamyassociates.com

  2. Basic Features • Statutory provisions. • Levy on service provider - Exceptions. • Levy on realisation. mail@swamyassociates.com www.swamyassociates.com

  3. Classification of Service • Specific description than general description. • Essential character. • Which occurs first in the definition. mail@swamyassociates.com www.swamyassociates.com

  4. Valuation… • Gross amount. • Cum - tax. • Abatements. • Notification 12/2003. mail@swamyassociates.com www.swamyassociates.com

  5. Valuation… • Services rendered free. • Consideration in kind. • Reimbursement of expenses. Upto 18.04.2006 – No liability. Judgements and circulars. From 19.04.2006 – Concept of pure agent. Malabar Management Services VS CCE 2008(9) STR 483 mail@swamyassociates.com www.swamyassociates.com

  6. Proceedings in Service Tax • Issue of show cause notice. • Adjudication. • Appellate remedies. Commissioner (Appeals) CESTAT High Court / Supreme Court mail@swamyassociates.com www.swamyassociates.com

  7. Procedures in Service Tax… • Registration – Centralised Registration. • Issue of invoice. • Maintenance of records. mail@swamyassociates.com www.swamyassociates.com

  8. Procedures in Service Tax. • Payment of service tax. - Due date. - Advance payment. - e payment. - Self adjustment – if service not rendered. - Provisional payment. - Self adjustment of excess payments. • Filing of return – ST 3. - Due date / Half yearly. - Revised return. - Fine for delayed return. mail@swamyassociates.com www.swamyassociates.com

  9. Penalties in Service Tax. • Sec. 76 – Delayed payment of S.Tax. • Sec. 77 – General Penalty. • Sec. 78 – Suppression, etc. • Sec. 80 – Power of waiver. • Rule 7 C – Fine for delayed return. mail@swamyassociates.com www.swamyassociates.com

  10. Certain important services. mail@swamyassociates.com www.swamyassociates.com

  11. Business Auxiliary Service. • Promotional activities. • Customer care services. • Procurement of goods or services. • Production or processing. • Provision of service on behalf of client. • Manufacture – excluded. • Notification 8/2005. mail@swamyassociates.com www.swamyassociates.com

  12. Commercial / Industrial construction Service. • Exclusion for roads, airports, railways transport terminals, bridges, tunnels, dams and ports. • 67 % Abatement. mail@swamyassociates.com www.swamyassociates.com

  13. Construction of Residential Complex Service. • More than 12 units.. • Personal use - exempted. mail@swamyassociates.com www.swamyassociates.com

  14. Consulting Engineering Service. • Foreign Technological transfers. Novinon Ltd. VS CCE 2006 (3) STR 397 • To cover software too. Customs House Agents Service. mail@swamyassociates.com www.swamyassociates.com

  15. Erection, Commissioning and Installation Service. Franchise Service. mail@swamyassociates.com www.swamyassociates.com

  16. Intellectual Property Service. Management Consultant Service. Manpower recruitment / Supply agencies. mail@swamyassociates.com www.swamyassociates.com

  17. Goods Transport Agency Service. • Reverse Charge. • Abatement. • Exemption. • Payment mode. • No SSI exemption. mail@swamyassociates.com www.swamyassociates.com

  18. Renting of immovable property. Support Services for business. mail@swamyassociates.com www.swamyassociates.com

  19. Works Contract Service. • Re-classification. • Composition Scheme. • Vice of Notification 1/2006. • Diebold Systems (P) Ltd Vs CCE 2008 (9) STR 546. Air Liquide Engg. India (P) Ltd. Vs CCE 2008 (9) STR 486. mail@swamyassociates.com www.swamyassociates.com

  20. Sale Vs Service. mail@swamyassociates.com www.swamyassociates.com

  21. Small Scale exemption. • Threshold limit. • Conditions. mail@swamyassociates.com www.swamyassociates.com

  22. Commercial Concern VsAny person. mail@swamyassociates.com www.swamyassociates.com

  23. Export of Service and Import of Service. mail@swamyassociates.com www.swamyassociates.com

  24. CENTRAL EXCISE byg. natarajanadvocate & cost accountant CENTRAL EXCISE AND CENVAT mail@swamyassociates.com www.swamyassociates.com

  25. MANUFACTURE • Section 2 (f) • Deemed manufacture. • Third schedule. mail@swamyassociates.com www.swamyassociates.com

  26. VALUATION Section 4 – Transaction Value mail@swamyassociates.com www.swamyassociates.com

  27. SECTION 4 & Valuation Rules • Rule 4 - Comparable goods. • Rule 5 - Freight and Insurance. • Rule 6 - Additional consideration. • Rule 7 - Depot clearance. • Rule 8 - Captive consumption. • Rule 9 - Related person. • Rule 10 - Interconnected undertaking. • Rule 10A – Jobwork. • Rule 11 - Best judgement mail@swamyassociates.com www.swamyassociates.com

  28. SECTION 4 A • Weights and Measures. • OE Exemption. • Different MRP. mail@swamyassociates.com www.swamyassociates.com

  29. EXPORTS • Exports without payment of duty. • Exports under claim for rebate. • Protection of Cenvat Credit. mail@swamyassociates.com www.swamyassociates.com

  30. APPELLATE / OTHER REMEDIES • Commissioner (Appeals). • CESTAT. • Settlement Commission. • Pre deposit. mail@swamyassociates.com www.swamyassociates.com

  31. PENAL MEASURES • Various penalties. • Provisional attachment of property. • Prosecution. mail@swamyassociates.com www.swamyassociates.com

  32. Basic Features • Concept of Cenvat credit. • Landmarks – 1986, 1994 & 2004. • Cenvat Credit Rules, 2004. mail@swamyassociates.com www.swamyassociates.com

  33. Applicability • Manufacturers. • Service providers. mail@swamyassociates.com www.swamyassociates.com

  34. Certain terms. • Input. • Capital goods. • Input Services. • Input Service Distributor. • First / Second stage dealer. mail@swamyassociates.com www.swamyassociates.com

  35. Cenvatable duties / taxes • Basic Excise Duty. • CVD. • NCCD. • Education CESS. • Addl. Duty of Customs – Sec. 3(5). • Service Tax and CESS thereon. mail@swamyassociates.com www.swamyassociates.com

  36. Utilisation and Restrictions on utilisation • Payment of Excise duty. • Payment of Service tax. • Other payments. • Cross utilisation. mail@swamyassociates.com www.swamyassociates.com

  37. Other conditions. • Capital goods – 50 % restriction. • No to “having the cake and eating it too” - Depreciation / Cenvat Credit. • Removal of inputs / capital goods - the story “as such”. mail@swamyassociates.com www.swamyassociates.com

  38. Other conditions. • Removal for job work. • Write off. • Service Tax Credit - Pay and use. • Documents for availing credit. mail@swamyassociates.com www.swamyassociates.com

  39. Rule 6 Algebra. • Position upto 31.03.2008. • Position from 01.04.2008. mail@swamyassociates.com www.swamyassociates.com

  40. Rule 6. • Protection to certain clearances. • Protected Services. • Chandrapur Magnet Wires (P) Ltd Vs CCE. 1996 (81) ELT 3 SC - Recent developments. mail@swamyassociates.com www.swamyassociates.com

  41. Certain common disputes… • Credit for mobile phone. India Rayon Industries Ltd. Vs CCE 2006 (4) STR 79. • Credit for outdoor catering. Victor Gaskets India Ltd Vs CCE 2008 – TIOL – 409. mail@swamyassociates.com www.swamyassociates.com

  42. Certain common disputes… • Credit for outward transportation. - Gujarat Ambuja Cements Ltd. Vs CCE. 2007 (6) STR 249. - India Cements Limited Vs CCE 2007 (8) STR 43. - Master Circular and recent amendments. mail@swamyassociates.com www.swamyassociates.com

  43. CUSTOMS mail@swamyassociates.com www.swamyassociates.com

  44. Role of customs • Collection of import & export duties • enforcement of customs act • enforcing prohibitions/restrictions • prevention of smuggling mail@swamyassociates.com www.swamyassociates.com

  45. Imports • IGM (by shipping lines) • cargo declaration • Bill of Entry • assessment • duty Payment mail@swamyassociates.com www.swamyassociates.com

  46. Exports • Shipping bill, Invoice, ARE# • assessment • duty Payment (if any) • EGM (by shipping lines) mail@swamyassociates.com www.swamyassociates.com

  47. Customs Valuation Rules, 2007 • The Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 - Notfn. No. 94/2007-Cus(NT) dated 13-9-07 • The Customs Valuation (Determination of Value of Exported Goods) Rules, 2007 - Notfn. No. 95/2007-Cus(NT) dated 13-9-07 mail@swamyassociates.com www.swamyassociates.com

  48. Value of imported goods • transaction value – Section 14 (1) of CA, 1962 • deductive value – Rule 7 • computed value – Rule 8 • residual method – Rule 9 • similar goods / identical goods • related person • provisionally assessed value is not transaction value. mail@swamyassociates.com www.swamyassociates.com

  49. Value of exported goods • transaction value – Section 14 (1) of CA, 1962 • computed value – Rule 5 • residual method – Rule 6 mail@swamyassociates.com www.swamyassociates.com

  50. refunds • claim to be filed within six months. • one year for some persons. • no time limit for duty / interest paid under protest • unjust enrichment mail@swamyassociates.com www.swamyassociates.com

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