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: empanelment :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: form 3cd :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: cpt :: articles on VAT and GST in India :: due date for vat payment
 
 
News Headlines »
 Integrated Goods and Services Tax (IGST) Rules, 2017 (As on 15.11.2017)
 Central Goods and Services Tax (CGST) Rules,2017 (As on 15.11.2017)
  101st Constitution Amendment Act, 2016
 Pr. Commissioner Of Income Tax-6 Vs. Mccain Foods India Pvt. Ltd.
 Section 10 of the Income-tax Act, 1961
 Income tax returns filing: No tax on gift received from relatives in form of cash
 Income tax returns (ITR): Here is why you need to pay higher tax on other incomes
 GST Update On Issuance Of Debit Notes And Credit Notes
 How Mutual Fund Investments Can Help Save Income Tax
 Income tax returns (ITR) filing: Why small service providers need to get this benefit
 How NRIs can avoid tax troubles

Taxmen rap Vodafone, Bharti for Cenvat misuse
May, 12th 2008

Telecom biggies including Bharti Airtel and Vodafone are being hauled up by the taxmen for misusing Central value added tax (Cenvat) credit on capital goods and in turn paying lower service tax.

While Bharti Airtel has been issued a demand cum show cause notice for misusing Cenvat credit amounting to Rs 46.26 crore, Vodafone-Essar has been given a similar notice to pay Rs 4.93 crore.

Other issues in both the notices include taking Cenvat credit twice on the basis of the same invoice and also availing the tax credit on the strength of non specified documents.

The notices come in the wake of the Central Board of Excise and Customs (CBEC) finding them responsible for misusing Cenvat credit. Sources said that even the state-owned Bharat Sanchar Nigam Ltd (BSNL) and BK-Modi-led Spice Telecom have also been issued similar demand cum show cause notices for the same issue.

The matter is expected to drag on as the telecom Companies have maintained that there's no misuse and they are entitled to such credit. Industry sources said that the Cellular Operators Association of India (COAI) would take up the matter on the industry's behalf.

The Board has also informed its field formations that many mobile service providers have been availing Cenvat credit for equipment used for erecting transmission towers and those used for housing and storage of generating sets and other equipment claiming that these are items are "inputs."

However the Board has stated that since these goods including angles, channels, beams, pre-fabricated building, shelters and PUF panels are inputs for civil structures that are not excisable goods, so they are not chargeable to excise duty. It has also directed field formations to recover such irregularly availed credit.

The issue came to the notice of the CBEC after it was found that service tax collections from the telecom sector was especially low all through 2007-08, despite the sector doing well. Service tax collections fell about 40% from the sector, although overall collections of the tax rose by 35% in the fiscal. Initial estimates reveal that over Rs 49,500 crore as service tax was collected last fiscal.

 
 
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