Leaf No : 13
Month : April
Year : 2011
editor’s desk

Greetings from Team SA!

Monotony and familiarity are two well tested and widely acknowledged factors leading to boredom. As with everything else, same is true with this monthly abridged version of updates reaching you every month. To break the same, we have brought in a new template which we believe would be more user friendly. After being confident of the utility of this endeavour to our subscribers, we have also rechristened the newsletter as ‘SA Times’. Thank you all for being with us and encouraging and promoting us always!

On March 22, 2011, the  Union government has set to rest the uncertainity regarding implementation of GST, by introducing Constitution (one hundred and fifteenth amendment Bill) ,2011 in Loksabha. The Bill simply comprehended is all about addition (of new articles facilitating GST), subtraction     (of few existing articles hindering GST), division (of powers of taxation to both centre and state) and multiplication(same tax to be levied by both union and states). The bill introduced with the prominent intention of providing concurrent taxing powers to union and states, introduces some new articles (Article 246A, 269A and 279A), brings amendment to few of the existing articles (Articles 249, 250, 286, 368 and lists under seventh schedule to constitution), deletes and restricts specific powers of central government and state governments that was being exercised so far. 
The amendment bill in short grants power to both parliament and legislature of every state to make laws with respect to goods and service tax imposed by them respectively. Central government is vested with absolute power to legislate on GST in event of emergency and also when a resolution to this effect is passed prescribed majority of council of states. 

 

read more  ...

 
 
 intaxicated ... 

Can the input service credit be availed on the service tax paid on "advances"???  - Click here for the answer !!!

 

 

FINANCE BILL ENACTED ON 8th APRIL !!!

 
genie in aladdin’s lamp

#  Duty on clearace from SEZ shall not be demanded from recipient – CESTAT AHM Click here for copy of the decision

#  When SEZ Act or Rules does not provide specific provision to deal with a particular situation, the deemed fiction of SEZ being a foreign territory comes in to play and issue will have to be decided on basis of this fiction - CESTAT MUM - Click here for copy of the decision

# No requirement for proportionate distribution of credit to various units by ISD - CESTAT MAD - Click here for copy of the decision

# Mentioning of SAD component as zero in invoices can be construed as endorsement for the purpose of Cus Notification No.102/07- CESTAT MUM - Click here for copy of the decision

#  Situs of the tax would be where the taxable event occurs and not where the effect or the consequence thereof is felt - CESTAT AHM - Click here for the copy of the decision

#  Proportionate credit to be reversed in respect of input services used for manufacture of exempted goods as well as trading - CESTAT MUM - Click here for copy of the decision 

#  Conversion of shipping bills from one scheme to the other is not a matter of right - HC Delhi - Click here for copy of the judgement

#  Pendency of appeal before a judicial forum is no ground for denying refund – HC Madras - Click here for copy of the judgement

#  Limitation under Section 11 A of Central Excise Act, 1944 is not applicable to compounded levy scheme - SC - Click here for copy of the judgement

#  Export Valuation - The initial burden to establish that the value mentioned by the exporter is incorrect lies on the Revenue. Once the transaction value under Rule 4 is rejected, the value must be determined by sequentially proceeding through Rules 5 to 8 of the Rules - SC - Click here for copy of the judgement

 

 

 
before parting ...         - jk

 

"curse in disguise..."

 

 

 

 

 
latest news

  Delhi HC stays levy of service tax on lawyers!  

  Finance Act, 2011 to be effective from 01-05-2011.

  Health sector hits jackpot!!! - Levy of service tax on health sector exempted (with this the existing levy is also exempted) -  Click here for copy of the Notification 

  Transport of goods by rail to continue exempted till July, 2011 - Click here for copy of the Notification



  While Hon’ble High Court of Delhi  is to hear the petition on levy of service tax on renting on 09-05-2011,  a circular has been issued to the effect that Union of India is legally empowered to collect service tax till disposal of writ petitions by Delhi Highcourt . 

  The Hon’ble Supreme Court quashed levying of Airport Development Fee (ADF) by private airport developers in Delhi and Mumbai on international and domestic passengers. 

  Quarterly returns prescribed for units solely engaged in production of goods specified under Notification No.1/2011-CE dated 01-03-2011 - Click here for copy of the Notification 

vat spot

# As per provisions of Section 64A (1) of Sale of Goods Act, 1930, burden of any increase in price by way of additional taxes will have to be borne by customer and not manufacturer....Ravinder Raj vs. Competent Motors Co.Pvt. Ltd reported in AIR 2011 SC 1061


#  Cutting of rolls of aluminium foil in to pieces and embossing word ‘Pull’ on each piece and wrapping fixed number of cigrette in each foil and inserting to packet does not amount to manufacture ..CCE vs. GTC Industries Limited 2011 (2) AIR Bom R 2412


#  Refund of excess tax paid under sales tax law cannot be claimed by purchaser in absence of specific provision in respective sale tax act for the same .... Saraf Trading Corporation vs. State of Kerala 2011 19 KTR 173 SC.
 

 
circulars & notifications

excise & customs

#  Corrections to budgetary changes under Central Excise - Click here for copy of the Circular.

#  Clarifications to post - budgetary changes - Click here for copy of the Circular

#  Third time cess on EOU clearance to DTA - Click here for copy of the Clarification

#  Clarification on classification and assessment issues regarding import of packaged software, paper licenses etc - Click here for copy of the Circular

#  Amendment to Notification 6/06-CE - Click here for copy of the Notification

#  MRP abatements for goods notified under Notification 1/2011-CE dated 01-03-2011 - Click here for copy of the Notification

#  Various amendments to levy on Textiles - Click here for copy of the Notification

#  Exemption to waste and scrap arising during manufacture of goods having effective rate of 1% duty - Click here for copy of the Notification

#  Cenvat Credit Rules, 2004 amended - Click here for copy of the Notification

service tax

#  Account codes for new services - Click here for the codes

#  Clarifications on Budget changes - Click here for copy of the Circular

#  CBEC clarifies on Point of Taxation Rules, 2011 - Click here for copy of the Circular

#  CBEC clarifies exemption from whole of service tax means exemption from education cess and Secondary and Higher Education cess also - Click here for copy of the Circular

#  Construction, Telecom & Works Contract services notified as continous supply of service for POT Rules - Click here for copy of the Notification

#  Service Tax Rules amended to suit Budget changes - Click here for copy of the Notification

#  Point of Taxation Rules, 2011 amended - Click here for copy of the Notification

#  Abatements to restaurants & hotels notifed - Click here for copy of the Notification

#  Specific exemptions granted under commercial training and coaching service - Click here for copy of the Notification

#  Export & Import of Services Rules amended - Click here for copy of the Notifications

 
disclaimer

The views expressed and the information provided in this newsletter are of general nature and is not intended to address the circumstances of any particular individual or entity. Further the above content should neither be regarded as comprehensive nor sufficient for making decisions. Although we endeavor to provide accurate and timely information, there is no assurance or guarantee in this regard. No one should act on the information or views provided in this publication without appropriate professional advice. It should be noted that no assurance is given for any loss arising from any actions taken or to be taken or not taken by anyone based on this publication.


Should you have any feedback or require any clarifications, please do write to :

 
newsletter@swamyassociates.com
 
 
contact sa
mail@swamyassociates.com
www.swamyassociates.com
 
 
 
 
team sa
s. jaikumar +91 93400 34455
g. natarajan +91 93400 54477
m. karthikeyan +91 93400 66688
a. p. ravi +91 93400 54466
p. dwarakanath +91 93963 31929
r. subramanya +91 93759 23016
k.s. ramesh +91 93420 45442
sindhu mangat +91 93400 11034
 

chennai       •       coimbatore       •       bengaluru       •       hyderabad       •       ahmedabad