In a major relief to small companies, the government on Thursday relaxed Cenvat Credit Rules to exempt manufacturers paying excise duty of less than Rs 1 crore (Rs 10 million) from filing a declaration on the main inputs going into the finished goods
Millions of "input" tax credits are taken every day by manufactures and traders under the Cenvat Credit Rules for the purpose of paying and adjusting duty.
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At present, 70% of the mobile handsets sold in India are imported.
The doubling of Clean Energy Cess from Rs 200 to 400 per tonne would further increase the input cost for domestic producers.
Customs and excise duty rates have been amended mainly to promote Make in India.
Ministry will give relief to exporters through a mechanism that will enable a timely refund of credit balance and time-bound refund of additional duty of customs.
Excise duties on mobile phones to be 1% without CENVAT credit or 6% with CENVAT credit. This provision will have marginal impact on telcos.
Move seen as prelude to GST rollout; rules for Cenvat credit also likely to be simplified.
TDS on health insurance claim payments reimbursed to hospitals should be NIL
Meru Cabs, one of the first radio taxi services in the country, is contesting service tax notices sent to it since 2010 in the Bombay High Court.
Experts said the rate hike would improve working capital position of the manufactures as it would correct the inverted duty structure but may lead to increase in price of the finished goods.
The Institute of Chartered Accountants of India has shortlisted the changes it hopes to see in Budget 2017.
A neutral Budget for media and entertainment sector.
The key proposals from the IT industry that were not addressed included removal of dual levies on software products
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To get what it thinks are its dues, its brass have directed; construction, realty, renting of property, personnel supply, security & goods transport among those under lens
It is after the GST Network tallies invoice details with shipping bills that the refund claims can be processed. So, the refund could be delayed by over a month.
Excise duty on most products has been capped at 12.5 per cent
One of the grey areas is whether the anti-profiteering provisions can provide for a comparison of tax rates between the pre-GST and post-GST eras, says Niraj Bagri.
The government announced several incentives in the five-year Foreign Trade Policy.
Top firms get GST notices on credit claims on Friday; replies sought within hours.
Pharma body wants all excisable goods used for R&D purposes should be exempted from central excise duty.
Finance Minister Arun Jaitley had came out with a host of proposals last month.
Pushing people to litigation is a major source of tax uncertainty.
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Urban markets account for the major share of total revenues.
There are both positive and negative impacts of the tax, but the net result for India's infrastructure sector is advantageous, says Vinayak Chatterjee.
Petrol attracts a total excise duty of Rs 17.46 per litre.
Industry body Assocham has asked the government to retain both excise duty and service tax at existing rate of 10 per cent in the Budget for 2012-13.
Compliance requirements, valuation, input tax credit transfers are likely to lead to tax litigation, says Sayan Ghosal.
Official sources said such norms form the benchmark of costing, which helps in working out the price of inputs required for manufacturing or producing a certain quantity of output.
Custom duties, a major concern for the oil sector.
Indirect tax collections saw only a meagre 3.5 per cent growth, as mop-up from Customs fell sharply on account of a drop in imports.
LCD displays could be produced in India in the near future.
Appearing on Rediff Chat, G Srikanth, partner in GSV Associates, Chartered Accountants, Chennai, and member of the Institute of Cost and Management Accountants, answered readers' queries on the Goods and Services Act.
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