Business Daily from THE HINDU group of publications
Tuesday, Oct 03, 2006
ePaper
Business Daily from THE HINDU group of publications Tuesday, Oct 03, 2006 ePaper |
|
|
|
|
|
|
|
Industry & Economy
-
Taxation Assocham for new set of Cenvat credit rules Our Bureau
The chamber has pointed out that confusion arises mostly in respect of availing Cenvat Credit on input services.
New Delhi , Oct. 2 To take care of practical aspects of business across the country, the Associated Chambers of Commerce and Industry (Assocham) has suggested that the existing Cenvat Credit Rules 2004 should be replaced with new set of rules. In a representation submitted to the Finance Minister, Mr P. Chidambaram, the chamber has also sought clarification on some provisions of the Cenvat credit rules.
Clarification
The clarifications sought include those on service tax paid by a manufacturer on the transportation of final product from the place of removal and availability of Cenvat Credit of service tax paid on mobile phones. The chamber has also sought clarifications on service tax payable on various input services by a person or company which is engaged in trading and also manufacturing activities.
Input services
The chamber has pointed out that confusion arises mostly in respect of availing Cenvat Credit on input services. As is known, services are totally different from goods and it is not possible to apply the same law and logic, which is available to Cenvat Credit on inputs (Excise). Further, under the present law, no distinction has been made for availing and using Cenvat Credit in excise duty and service tax, the Chamber has said. In other words, same set of rules is applicable to service providers and manufacturers. Further, the present law has also not recognised the fact that the same person may be a provider of taxable and non-taxable services as well as manufacturer of dutiable and non-dutiable goods. The Chamber has, therefore, urged the Finance Minister to look in to the issue and come out with separate rules for service providers and manufacturers.
More Stories on : Taxation | Industry Associations
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|