Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Tally On Cloud Tally on Cloud: Ready for the Daily Backup Requirement
Keep your Tally books accessible from anywhere while supporting your Rule 46(8) obligations. With daily backups configured on servers physically located in India, Tally on Cloud helps you maintain the backup arrangement required for electronic books of account under the Income-tax Rules, 2026. Move your Tally to the cloud with confidence.
Open DEMAT Account with in 24 Hrs and start investing now!
« Top Headlines »
Open DEMAT Account in 24 hrs
 Mock Test Papers Series - I & II for Students appearing in CA Foundation January 2027 Examination.
 Income Tax Rules 2026: CBDT Introduces Revised Form 161 for Penalty Waiver, Clarifies Misreporting Categories and Taxpayer Relief
 ITR Filing and Income Tax Audit Deadline Extended: 5 Critical Things Taxpayers Must Know
 Filing Belated ITR for AY 2026-27? Know Which Losses You Can Carry Forward and Which You May Lose
 CBDT Extends Tax Audit Report Deadline to October 21, ITR Filing Last Date to November 21 for AY 2026-27
 CBDT Extends AY 2026-27 ITR Filing Deadline for Tax-Audit Cases: New Dates and Key Compliance Details
 Foreign Assets Missing From Your ITR? Income Tax Department Opens One-Time Disclosure Window
 Tax Audit Deadline September 30: Why AIS, TDS and GST Figures May Not Match Your ITR and What Taxpayers Should Do
 Tax audit deadline September 30: Common mistakes taxpayers should avoid
 Your ITR says ‘verified’, but the refund hasn’t arrived? 5 reasons why your money could be stuck
 Missed the ITR Deadline but TDS Refund Is Due? Here’s How You Can Still Claim Your Money

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 2026 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting