Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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: empanelment :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: TDS :: ACCOUNTING STANDARD :: form 3cd :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: VAT Audit :: cpt :: list of goods taxed at 4%
« General »
 India’s GST among most complex in world, and it is 0% tax rate that is hurting the idea
 Can’t overrule courts with retrospective amendments, says Supreme Court
 Why tax planning should be an all-year round activity
 8 financial tasks you should do in the next 30 days
 Income Tax department may defend CPC in returns fraud case
  Income tax department sends notices to investors over tax treaty gains
 Seven months after GST rollout: Time for handholding over, Centre to intensify efforts to curb tax evasion
 Individual angels may get tax relief too
 The differences between tax and cess
 Startups that raised funds from angel investors face tax scrutiny
 Tax collection assumptions in India's budget ambitious

Input tax credit ruling baffles
April, 27th 2010

A tax tribunal has delivered a ruling that could force the government to amend the Finance Act of 1994 to try and solve a vexed problem that has resulted in disputed service tax claims of thousands of crores.

The Custom Excise & Service Tax Appellate Tribunal said in a recent ruling that the wording of the Act is such that exporters of services such as software and business process outsourcing companies cannot claim credit for taxes paid on inputs used by them.

The government has amended the rules governing the export of services and issued a number of circulars to clarify the issue but the tribunal said that only a change to 1994 enactment will meet the case.

The rules and notifications issued under the enabling power under the Act cannot expand the mandate given under the enactment and cannot make provision for allowing credit in excess of what is stipulated under the law, the tribunal wrote while deciding on an appeal by Kbace Tech.

Input tax refunds on services has been a contentious issue for a while, with the main point of dispute being the proof of linkage between the input services used and the output services exported.

The latest attempt to untangle the problem was in January, when the Central Board of Excise and Customs (CBEC) issued a circular to make it easier for companies to get refund for accumulated input credit after intense lobbying by the software industry body Nasscom.

It cleared the ambiguity over the definition of services used as inputs by technology and BPO companies. Service tax paid on inputs such as transportation of staff, telecom facilities, software maintenance and upgrades, hiring of recruitment agencies and other related services was made eligible for refund. It also directed its field officials to make pending service tax refunds within 30 days.

Industry will take this up. I am sure the CBEC, which had only clarified the interpretation of the law, will itself take care, Nasscom president Som Mittal said.

Prasad Paranjpe, a partner at PDS Legal, was of the view that the tribunals decision unsettles the principle of allowing Cenvat credit by challenging the existence of the rule which allows the credit and which has been tested and held to be favourable by the Supreme Court and the high courts.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Vision

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