Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: list of goods taxed at 4% :: VAT RATES :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: ACCOUNTING STANDARD :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: empanelment :: VAT Audit :: Central Excise rule to resale the machines to a new company
 
 
« News Headlines »
 Should you file revised Income Tax returns; find out here
 Tax Deducted at Source (TDS) in Goods & Services Tax (GST)
 10 companies that blamed GST for soft June quarter
 How will GST impact the Indian economy
 10 days left to file your first GST return. This is how you do it
 What is property tax and how is it calculated…
 File income tax returns in time to carry forward losses
 Missed the deadline to file income tax returns? Here is what you should do
 Who has to report foreign assets in Indian income tax return and how to do it
 How to file income tax return after due date
 Why you should not rely solely on your income tax return filer, chartered accountant when filing ITR

Goods used indirectly can get tax benefit: SC
January, 27th 2007

The Supreme Court has held that goods used indirectly in the manufacture of finished products will be considered as raw material and can get sales tax concession given on direct inputs.

The ruling came while deciding whether diesel used for generating electricity in the manufacture of a final product can be considered as raw material for availing tax benefits.
 
"Diesel is being used for running a generator set for the production of the ultimate product, which is also required for the purpose of manufacturing the end product. Diesel can only be termed as raw material and not otherwise," a Bench of Justice A R Lakshmanan and Justice Altamas Kabir held.

The case pertained to a polyester yarn manufacturing unit which used diesel to generate electricity through DG sets.

Rajasthan Taxchem Ltd had purchased diesel and availed tax benefit under Section 10 (1) of Rajasthan Sales Tax Act, 1994 claiming diesel was a raw material used to manufacture the final product - polyester yarn.

As per the Act, purchase of raw material for manufacture of final product is entitled to a concessional tax rate of three per cent instead of the usual four per cent sales tax.

However, the state government opposed the benefit given to the manufacturer on the ground that diesel is being used to manufacture an intermediate product - electricity.

It was, therefore, not entitled to benefits, the state government had said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Achievements

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions