Monthly Archives: November 2014

  • Availment of CENVET Credit -within Six Months – A welcome Clarification

    November 20 2014

    During the Budget 2014 Central Excise and Service Tax department had amended the CENVAT credit rules prescribe that manufacturer or output service provider shall not take CENVAT credit after six months of the date of issue of any of the documents specified in sub-rule (1) of Rule 9.(Ref. Circular No. 21/2014-CE (NT) dated 11.07.2014)

    However the concern have been expressed by the Industry while taking re-credit in the following situation the limitation of six months may be hit and the entire credit cannot be taken.

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  • Service Tax on Secondment/Deputation of Employees

    November 10 2014

    Secondment/ Deputation of employees within group has been a very common feature in almost all major business houses in India. Further, the globalization of Indian economy has resulted in substantially increased presence of Multi-National Companies (MNC) in India. This gives rise to cross-border secondment/ deputation of employees within a group. The tax (income tax) controversy surrounded to such secondment/deputation is a known phenomenon amongst the industry and professionals.  Recently, the service tax department in several such secondment cases raised their hands and claimed that such secondment/deputation is chargeable to service tax (under the category "supply of manpower") as well.

    The Allahabad High Court (HC) in the case of Commissioner of Central Excise v. M/s Computer Sciences Corporation India Pvt Ltd (2014-TIOL-1896-HC-ALL-ST) held that in order for the transaction to be a taxable service within the meaning of (erstwhile) Section 65(105 )( k) of the Finance Act, the services must meet the following requirements:
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