Leaf No : 15
Month : June
Year : 2011
editor’s desk

Greetings from Team SA!

"If I were asked to give what I consider the single most useful bit of advice for all humanity it would be this: Expect trouble as an inevitable part of life and when it comes, hold your head high, look it squarely in eye and say, 'I will be bigger than you. You cannot defeat me.'”

- Ann Landers (American Advice columnist)

We human beings are so adapted to ‘ set patterns’ that anything in nature of a change is first viewed as ‘trouble’. If so, our taxation laws are to be viewed not just as ‘troubles’ but as ‘dangers’ since there happens an unexpected revamping of even the basic concepts most of the times. The Point of Taxation Rules, 2011 is one such legislation which transforms the basis of taxation by shifting liability under Service tax from ‘receipt’ to ‘accrual’ basis. The Point of Taxation Rules, 2011 coming in to effect from 01-07-2011 does not leave much choice than to acquaint and familiarise ourselves with myriad permutation and combinations prescribed on the point at which service tax is to be discharged on provision of various services.

... Click for FAQ on POT


Whether Works Contracts are liable to service tax prior to 01.06.2007 under any other category of service tax or not?

...  Click here for answer


swamy associates  @  PUNE 

launching this monsoon...

genie in aladdin’s lamp

#  Tribunal has no jurisdiction to entertain appeals in rebate matters holds Karnataka High Court ...   Click here for copy of the judgement

#  Clearance to 100% EOU cannot be considered as ‘exports’ outside India holds CESTAT ...  Click here for copy of the decision

#  Tribunal hold that the penalty of 25% in case of voluntary payment of duty and interest before SCN can be paid within 30 days of receipt of CESTAT order ...  Click here for copy of the decision

#  HC Karnataka holds that Credit of service tax paid on GTA from place of removal till delivery point available prior to 01-04-08 ...  Click here for copy of the judgement

#  Madras HC hold the Circular dated 07-10-2005 for taxing maintenance of software prior to amendment in relevant section (Section 65 (105) (zzg)) under maintenance and repair as ultravires ...  Click here for copy of the judgement

#  Manufacturer of non excisable goods also providing output service is eligible to use 100% credit on input services holds CESTAT ... Click here for copy of the decision

before parting ...         -jk
latest news

 CBI exempt under RTI - but why???

 DEPB scheme extended till September 2011 - Govt working on a replacement scheme thereafter... Click here for copy of the Notification

 Salaried tax payers upto 5 lakhs exempted from filing IT returns... Click here for copy of the Notification

 Indirect tax ombudsman guidelines, 2011 issued for addressing  issues as delay in issue of refunds, adjudication, registration, disbursement of drawback , unwarranted rude behaviour etc ... Click here for the guidelines


When central excise duty is reimbursed by government as cash assistance and same is not collected from buyer, such excise duty will not form part of ‘sale price’ and no tax need be paid on value including excise duty ..... Audco India Ltd vs. CCE 2011 41 VST 9 (Mad)

No deduction of depreciation of machinery available from computation of taxable turnover under Works contract ... State of Kerala vs. Thampi & Company 2011 41 VST 107 (Ker)

circulars & notifications


# Board clarifies on certain issues relating to Branded Readymade garments... Click here for copy of the Circular

#  Instruction issued on extension of warehousing period... Click here for copy of the Instruction

#  Committee constituted for writing off central excise duty and customs duty arrears... Click here for copy of the Circular

#  Customs duty on Petroleum products reduced.... Click here for copy of the Notification

#  Centralised registration facility for manufactures of smart cards... Click here for copy of the Notification



# Rule 7 (c) of POT Rules amended to include " consulting Engineers" also ... Click here for copy of the Notifiation

#  Exemption from payment of service tax on transport of goods by rail extended up to January 2012... Click here for copy of the Notification

#  Clarification on processing of agricultural products under Business Auxiliary Service ... Click here for copy of the Circular


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.

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team sa
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m. karthikeyan +91 93400 66688
a. p. ravi +91 93400 54466
p. dwarakanath +91 93963 31929
r. subramanya +91 93759 23016
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