Background Section 8(1) [Rates of Tax on Sales in the course of Inter-State Trade or Commerce] of Central Sale Tax Act, 1956 (“CST Act”) provides that whenever goods are sold in the course of inter-state trade and commerce then CST is charged at the rate of 2% or at the rate applicable to sale or … Continue reading Restrictions on input tax credit under Haryana VAT only to the extent of Output Tax in case of Interstate Sale

In continuation to earlier trade circulars namely Trade Circular No. 4T of 2015 Mumbai dated 09/03/2015, Trade Circular No. 5T of 2015 Mumbai dated 06/05/2015, Trade Circular No. 7T of 2015 Mumbai dated 19/05/2015, the office of the Commissioner of Sales Tax vide Trade Circular No. 13T of 2015 Mumbai dated 14/08/2015 has laid the … Continue reading Processing of Registration Applications submitted along with scanned documents

Companies with an annual turnover up to Rs 25 lakh might be exempted from the proposed national Goods and Services Tax (GST). The Centre and States are likely to settle for this threshold as they finalize the GST laws. According to Finance Ministry officials, the draft of these laws is expected to be ready by … Continue reading Firms with annual turnover of Rupees Twenty Five Lakhs might not attract GST

BACKGROUND The Appellant is engaged in manufacture of motorcycle (two wheelers) and procures the service of advertising agency for the purpose of advertising their final product. They pay the value of the services to the advertising agency along with the amount of Service Tax leviable thereon. Consequently, they are entitled to the CENVAT Credit of … Continue reading CENVAT CREDIT ELIGIBLE EVEN IF EXPENSES ARE REIMBURSED BY PARENT COMPANY- CESTAT DELHI

The Assessee is engaged in manufacture of plastic articles/components and parts by using injection moulding machines. In the present matter the moulds, used to manufacture, in this case cabinets for television sets the finished product, were supplied to the Assessee by the Original Equipment Manufacturers. A show cause notice (“SCN”) issued alleging that the assessee … Continue reading OWNERSHIP OF CAPITAL GOODS NOT REQUIRED FOR AVAILING CENVAT CREDIT-BOMBAY HC