- Excise duty of 2% without CENVAT credit or 12.5% with CENVAT credit is levied on readymade garments and textile articles over Rs. 1000 retail price that bear a brand name.
- Job workers who use materials supplied by brand owners are not required to register for excise, but brand owners must register and pay duty. Brand owners can authorize job workers to pay duty instead, requiring the job worker to register.
- If a brand owner gets goods made without supplying materials, manufacturers pay no duty until the brand owner labels goods with the retail price, triggering manufacture and duty.
This document is a summary of a court case from the Madras High Court regarding the revision of minimum wage rates for employees in the tailoring industry in Tamil Nadu. The petitioners challenged the government order revising wages, arguing it violated principles of natural justice and procedures outlined in the Minimum Wages Act. The court examined arguments from both petitioners and the state government. It ultimately dismissed the petitions and allowed the government's appeal, upholding the revised minimum wage rates.
Certain free zone areas in the UAE will be selected as “designated zones”. Such areas are treated as outside the UAE for the purposes of supplies of certain goods. Although an area might be identified as a Designated Zone, it is not automatically treated as being outside the UAE for VAT purposes.
SHORTFALL IN NOTICE PAY TO A TERMINATED EMPLOYEE, GUILTY OF DELINQUENCY JUSTI...ADP India
The document provides a compliance calendar and important legal judgements for February 2015. It summarizes remittance due dates for professional tax, labour welfare funds, ESI, and PF. It also outlines key rulings related to contractual appointments amounting to unfair labour practice, gratuity payment timelines, performance allowances qualifying as wages under ESI, and more. Additionally, it notes recent developments regarding declining 'Inspector Raj' in labour laws, amendments to the Apprentices Act, and new laws to reduce compliance burdens for small factories.
This document provides the contents and preamble of the Industrial Employment (Standing Orders) Act, 1946 of India, as amended over time. Some key points:
- The Act requires employers in industrial establishments to formally define employment conditions for workers in the form of standing orders.
- It applies to establishments employing 100+ workers, or fewer as notified by the government. Some types of establishments are exempt.
- Draft standing orders covering matters like wages, work hours, leave etc. must be submitted by employers to certifying officers for certification.
- Certifying officers review drafts, hear objections from unions/workers, and certify orders as long as required matters are covered and they conform to the Act.
This document provides an overview of the Trade Union Act of 1926 in India. It discusses key aspects of the act such as:
1. The objective of the act was to provide trade unions and their members protection from certain civil and criminal liabilities and to control expenditures of union funds for specified purposes.
2. It defines what constitutes a trade union and a trade dispute. It also outlines the process for registration of trade unions, requirements for trade union rules, and powers of the registrar.
3. The act established trade unions as corporate bodies with perpetual succession, the ability to own property, enter contracts, and sue or be sued. It has since undergone several amendments to expand protections for unions.
Employees State Insurance Law In IndiaSumit Sanyal
The High Court found in favor of ESIC in its appeal against Vijay Grover. It determined that Vijay Grover's factory and sales office should be considered a single establishment under the ESI Act since they were functionally integrated, had common ownership and management, and worked toward the same purpose of manufacturing and selling ayurvedic medicines. When the employees of both were counted together, the total number exceeded 10, making Vijay Grover subject to the ESI Act over the disputed period from 1984-1987. The High Court therefore overturned the lower court's decision and directed Vijay Grover to pay outstanding ESI contributions of Rs. 49,015.55 plus interest.
This document is a registration application for firms to be enlisted as approved contractors to supply goods to South Central Railway. It contains a 20 question form requesting information about the applicant firm such as name, address, products/services, financial details, manufacturing and storage facilities, accounts and tax details, and other qualifications. Instructions are provided on how to complete the form, required documents, payment, and registration process. Firms must meet the criteria to be considered for the approved supplier list for various categories of goods and services.
This document is a summary of a court case from the Madras High Court regarding the revision of minimum wage rates for employees in the tailoring industry in Tamil Nadu. The petitioners challenged the government order revising wages, arguing it violated principles of natural justice and procedures outlined in the Minimum Wages Act. The court examined arguments from both petitioners and the state government. It ultimately dismissed the petitions and allowed the government's appeal, upholding the revised minimum wage rates.
Certain free zone areas in the UAE will be selected as “designated zones”. Such areas are treated as outside the UAE for the purposes of supplies of certain goods. Although an area might be identified as a Designated Zone, it is not automatically treated as being outside the UAE for VAT purposes.
SHORTFALL IN NOTICE PAY TO A TERMINATED EMPLOYEE, GUILTY OF DELINQUENCY JUSTI...ADP India
The document provides a compliance calendar and important legal judgements for February 2015. It summarizes remittance due dates for professional tax, labour welfare funds, ESI, and PF. It also outlines key rulings related to contractual appointments amounting to unfair labour practice, gratuity payment timelines, performance allowances qualifying as wages under ESI, and more. Additionally, it notes recent developments regarding declining 'Inspector Raj' in labour laws, amendments to the Apprentices Act, and new laws to reduce compliance burdens for small factories.
This document provides the contents and preamble of the Industrial Employment (Standing Orders) Act, 1946 of India, as amended over time. Some key points:
- The Act requires employers in industrial establishments to formally define employment conditions for workers in the form of standing orders.
- It applies to establishments employing 100+ workers, or fewer as notified by the government. Some types of establishments are exempt.
- Draft standing orders covering matters like wages, work hours, leave etc. must be submitted by employers to certifying officers for certification.
- Certifying officers review drafts, hear objections from unions/workers, and certify orders as long as required matters are covered and they conform to the Act.
This document provides an overview of the Trade Union Act of 1926 in India. It discusses key aspects of the act such as:
1. The objective of the act was to provide trade unions and their members protection from certain civil and criminal liabilities and to control expenditures of union funds for specified purposes.
2. It defines what constitutes a trade union and a trade dispute. It also outlines the process for registration of trade unions, requirements for trade union rules, and powers of the registrar.
3. The act established trade unions as corporate bodies with perpetual succession, the ability to own property, enter contracts, and sue or be sued. It has since undergone several amendments to expand protections for unions.
Employees State Insurance Law In IndiaSumit Sanyal
The High Court found in favor of ESIC in its appeal against Vijay Grover. It determined that Vijay Grover's factory and sales office should be considered a single establishment under the ESI Act since they were functionally integrated, had common ownership and management, and worked toward the same purpose of manufacturing and selling ayurvedic medicines. When the employees of both were counted together, the total number exceeded 10, making Vijay Grover subject to the ESI Act over the disputed period from 1984-1987. The High Court therefore overturned the lower court's decision and directed Vijay Grover to pay outstanding ESI contributions of Rs. 49,015.55 plus interest.
This document is a registration application for firms to be enlisted as approved contractors to supply goods to South Central Railway. It contains a 20 question form requesting information about the applicant firm such as name, address, products/services, financial details, manufacturing and storage facilities, accounts and tax details, and other qualifications. Instructions are provided on how to complete the form, required documents, payment, and registration process. Firms must meet the criteria to be considered for the approved supplier list for various categories of goods and services.
This document provides an overview of the key sections and provisions of the Indian Standing Orders Act, 1946. It summarizes each section of the Act, including:
- The scope and objectives of the Act are to minimize industrial conflict and define employment conditions for workers.
- It requires employers in establishments with 100+ workers to submit draft standing orders to certifying officers for approval.
- The certifying officer evaluates the draft and can modify it before certification. Appeals can be made.
- Once certified, standing orders must be displayed and registered. Modification requires following the same process.
- It establishes penalties for non-compliance and provides powers to exempt establishments. Overall the Act aims to bring uniformity
The document summarizes key aspects of the Trade Union Act of 1926 in India. It outlines how the Act established a framework for the registration of trade unions to protect bona fide union activities. Some key points covered include requirements for union registration; rights and responsibilities conferred to registered unions including corporate entity status; provisions regarding funds, membership, and dissolution; and the establishment of registrars to oversee compliance. The document also reviews chapters and sections of the Act governing its title, definitions, registration process, and regulations.
Tax Alerts cover significant tax news, developments and changes in legislation that affect Indian businesses. They act as technical summaries to keep you on top of the latest tax issues. For more information, please contact your EY advisor. For more information : http://www.ey.com/in/en/services/ey-goods-and-services-tax-gst
This landmark Supreme Court case elaborated on the rights of employees after resigning from their jobs. The Court ruled that while an ex-employee can be prevented from disclosing former employer's trade secrets, they cannot be barred from competing with the company. The Court determined that Section 27 of the Indian Contract Act declares restrictions on lawful profession or trade as void. However, partial restrictions during employment are valid to protect proprietary information, but not to bar use of general skills or knowledge acquired on the job.
This document discusses various transactions between employers and employees and analyzes whether they would constitute a supply under GST law. It summarizes the key judgements of the Authority for Advance Rulings, Kerala in the Caltech Polymers case. According to the summary, services provided by an employee to the employer in the course of employment are excluded from GST as per Schedule III. However, recovery of food expenses from employees would be taxable as consideration is involved. Transactions like transport allowance and uniform allowance would not attract GST.
This document provides an overview of central excise duties in India. It discusses the governing legislation, constitutional basis, territorial jurisdiction, taxable events, conditions for levy of excise duty, and key definitions. Central excise duties are governed by the Central Excise Act of 1944 and apply to goods manufactured or produced in India if they are movable, marketable, and specified under the Central Excise Tariff Act. The taxable event is the manufacture or production of excisable goods in India.
The document summarizes the key aspects of the Trade Union Act of 1926 in India. It defines what a trade union is and outlines the objectives of forming trade unions. It discusses the registration process for trade unions including the requirements for registration, application process, and certificate provided upon registration. The document also covers the rights and privileges of registered trade unions such as protections from legal liability, and rights to own property and enter into contracts. It concludes by describing the liabilities of trade unions regarding proper use and auditing of funds.
This document defines key terms related to VAT in Kerala, India. It defines a dealer as anyone who buys, sells, supplies, or distributes goods as part of their business. It provides examples of what is considered a dealer. It defines other terms like goods, capital goods, input tax, input tax credit, and turnover. It describes how input tax credit works and the eligibility requirements. It also provides examples of manufacturing dealer VAT returns and sections related to input tax credit. The overall document provides definitions and explanations of important VAT concepts in Kerala.
The document summarizes key aspects of the Trade Union Act of 1926 in India. It discusses the objectives of establishing legal protections for trade unions, how unions are defined, and requirements for registration. Key points include:
- The Act aimed to provide legal status to trade unions by establishing a registration system.
- A trade union is defined as a combination of workers/employers formed to regulate their relations or impose conditions on businesses.
- At least 7 members can apply to register a union, providing details like member names and addresses, union name and rules.
- Registered unions must operate within certain duties like notifying address changes and submitting annual audited financial reports.
- Funds are raised
The document discusses various aspects of indirect taxation in India, including:
1. The general rate of central excise duty on non-petroleum products has increased from 10% to 12%. Education cess and other duties are also imposed.
2. The taxable event for central excise duty is the manufacture or production of excisable goods in India, not their removal from factory.
3. Central excise duty can be collected via either physical control procedure (for cigarettes) or self-removal procedure (for other goods). Under self-removal, the assessee determines duty liability and clears goods.
4. Examples are provided to illustrate calculation of assessable value and duty payable under different
This document provides an overview of central excise duty in India. It discusses the three main laws governing central excise - the Central Excise Act of 1994, the Central Excise Tariff Act of 1985, and the Central Excise Rules of 1944. It also defines key terms like levy, collection, excisable goods, manufacture, and manufacturer. The document outlines the conditions for liability of central excise duty and concludes that the provisions and procedures related to central excise have remained largely stable in recent years.
The Trade Unions Act, 1926 provides the legal framework for the registration of trade unions in India. Some key points:
1) Before this act, trade union activities were considered unlawful but this act was passed to protect bona fide trade union activities.
2) It establishes procedures for registering trade unions with registrars appointed by state governments. Registered trade unions are provided certain legal protections.
3) The act defines important terms like "trade union", "workman", sets rules for maintenance of funds, and provides immunity from civil suits for registered trade unions involved in trade disputes.
4) It has been amended several times since introduction to update definitions and processes for unions to follow.
The document outlines the standard steps to start a business in India, which include obtaining necessary registrations and licenses from various government agencies. Some key procedures are:
1) Obtaining a Director Identification Number online in 1 day for INR 100.
2) Reserving the business name with the Registrar of Companies in 2 days for INR 500.
3) Stamping company documents like Memorandum of Association at the State Treasury in 1 day for INR 1,300.
The process takes about 30 days and costs around INR 15,000 to incorporate a business and obtain necessary registrations in Mumbai. Requirements vary slightly across states.
Aspecte relevante in cazul entitatilor economice care se incadreaza in prevderile art. care reduc activitatea ca urmare a efectelor epidemiei COVID-19, portivit prevderilor art. XI, alin. (2) lit b) din OUG 30/2020, pentru a se putea beneficia de plata indemnizatiei din bugetul asigurarilor pentru somaj este necesar sa aveti in vedere.
The document discusses the Employee State Insurance Act of 1948, which is a social security scheme run by the Government of India. It currently covers over 2 crore employees and 7.5 crore family members. Eligible employers and employees receive benefits by contributing a portion of wages to the ESI fund. The Act applies to factories, shops, hotels and other establishments employing 10 or more people. Benefits include sickness, maternity, disability and death cover. Employers contribute 4.75% of wages while employees contribute 1.75% to the fund. Registration requires providing documents online to obtain an ESI number.
Central excise duty is levied on goods manufactured in India under the Central Excise Act of 1944. Four conditions must be met for excise duty to apply: 1) goods must be movable and marketable, 2) goods must be listed as excisable in the Central Excise Tariff Act of 1985, 3) goods must be manufactured in India, and 4) manufacture must involve production or deemed production activities. Excise duty is calculated based on the excise rate and assessable value/quantity of goods. Liability for payment arises upon manufacture but is collected upon removal of goods. Payment is typically made monthly along with a CENVAT credit for prior duty paid on inputs.
This document discusses the different types of central excise duties in India. It outlines five main types: basic excise duty, special excise duty, additional excise duty, cess, and national calamity contingent duty. For each type, it provides a brief description of what it is and how it is applied. It also discusses some key aspects of excisable goods, including what qualifies as goods for excise duty purposes, the distinction between excisable and non-excisable goods, and different categories of dutiable, non-dutiable, exempted, and nil-rated goods.
Service tax exemption for transport of goods by rail
Notifications have been issued to continue the exemption for service tax on transport of goods by rail. See http://www.servicetax.gov.in/notifications/notfns-2k11/st49-52-2k11.pdf.
The document discusses key aspects of registering a trade union under the Trade Unions Act of 1926 in India. It defines important terms like trade union, trade dispute, and registrar. It outlines the process for registering a trade union including submitting an application with details of members and rules to the registrar. It specifies certain required provisions to be included in the trade union rules. If satisfied, the registrar will register the trade union and issue a certificate of registration. The registration can later be cancelled if the trade union violates provisions of the Act.
This document provides an overview of the operations of Shepherd Textile (BD) Ltd, a textile mill in Bangladesh. It discusses the mill's history, divisions its report into the technical and management systems, and describes the technical processes from knitting to garment making. It also outlines the mill's management departments including marketing, accounting, administration, store, and commercial and provides production statistics.
GST series 06 Dec 16 "Capital goods & ITC"R K aggarwal
1. The definition of capital goods has been simplified under the revised GST law compared to the previous law, defining it as goods whose value is capitalized in the books of accounts and used in the course of business.
2. Registered taxpayers can claim input tax credit on unavailed cenvat or VAT credit on capital goods not previously claimed, subject to certain conditions.
3. Input tax credit cannot be claimed for tax component on capital goods if depreciation has already been claimed on the tax portion under the Income Tax Act.
Taxguru.in gst compliance calendar oct 21 important legal developmentstaxguru4
The summary provides an overview of the key points from the GST compliance calendar and legal developments for October 2021:
1. Important circulars were issued clarifying that refund of wrongly paid CGST/SGST/IGST can be claimed within 2 years and that for debit notes issued on or after January 1, 2021, the date of debit note will determine the financial year for ITC availment.
2. The October 2021 GST compliance deadlines include filing GSTR-1, GSTR-3B, annual returns and reconciliation statements.
3. The GST portal was updated to allow fetching of bill of entry details and generating e-way bills for supply of services with movement of goods.
This document provides an overview of the key sections and provisions of the Indian Standing Orders Act, 1946. It summarizes each section of the Act, including:
- The scope and objectives of the Act are to minimize industrial conflict and define employment conditions for workers.
- It requires employers in establishments with 100+ workers to submit draft standing orders to certifying officers for approval.
- The certifying officer evaluates the draft and can modify it before certification. Appeals can be made.
- Once certified, standing orders must be displayed and registered. Modification requires following the same process.
- It establishes penalties for non-compliance and provides powers to exempt establishments. Overall the Act aims to bring uniformity
The document summarizes key aspects of the Trade Union Act of 1926 in India. It outlines how the Act established a framework for the registration of trade unions to protect bona fide union activities. Some key points covered include requirements for union registration; rights and responsibilities conferred to registered unions including corporate entity status; provisions regarding funds, membership, and dissolution; and the establishment of registrars to oversee compliance. The document also reviews chapters and sections of the Act governing its title, definitions, registration process, and regulations.
Tax Alerts cover significant tax news, developments and changes in legislation that affect Indian businesses. They act as technical summaries to keep you on top of the latest tax issues. For more information, please contact your EY advisor. For more information : http://www.ey.com/in/en/services/ey-goods-and-services-tax-gst
This landmark Supreme Court case elaborated on the rights of employees after resigning from their jobs. The Court ruled that while an ex-employee can be prevented from disclosing former employer's trade secrets, they cannot be barred from competing with the company. The Court determined that Section 27 of the Indian Contract Act declares restrictions on lawful profession or trade as void. However, partial restrictions during employment are valid to protect proprietary information, but not to bar use of general skills or knowledge acquired on the job.
This document discusses various transactions between employers and employees and analyzes whether they would constitute a supply under GST law. It summarizes the key judgements of the Authority for Advance Rulings, Kerala in the Caltech Polymers case. According to the summary, services provided by an employee to the employer in the course of employment are excluded from GST as per Schedule III. However, recovery of food expenses from employees would be taxable as consideration is involved. Transactions like transport allowance and uniform allowance would not attract GST.
This document provides an overview of central excise duties in India. It discusses the governing legislation, constitutional basis, territorial jurisdiction, taxable events, conditions for levy of excise duty, and key definitions. Central excise duties are governed by the Central Excise Act of 1944 and apply to goods manufactured or produced in India if they are movable, marketable, and specified under the Central Excise Tariff Act. The taxable event is the manufacture or production of excisable goods in India.
The document summarizes the key aspects of the Trade Union Act of 1926 in India. It defines what a trade union is and outlines the objectives of forming trade unions. It discusses the registration process for trade unions including the requirements for registration, application process, and certificate provided upon registration. The document also covers the rights and privileges of registered trade unions such as protections from legal liability, and rights to own property and enter into contracts. It concludes by describing the liabilities of trade unions regarding proper use and auditing of funds.
This document defines key terms related to VAT in Kerala, India. It defines a dealer as anyone who buys, sells, supplies, or distributes goods as part of their business. It provides examples of what is considered a dealer. It defines other terms like goods, capital goods, input tax, input tax credit, and turnover. It describes how input tax credit works and the eligibility requirements. It also provides examples of manufacturing dealer VAT returns and sections related to input tax credit. The overall document provides definitions and explanations of important VAT concepts in Kerala.
The document summarizes key aspects of the Trade Union Act of 1926 in India. It discusses the objectives of establishing legal protections for trade unions, how unions are defined, and requirements for registration. Key points include:
- The Act aimed to provide legal status to trade unions by establishing a registration system.
- A trade union is defined as a combination of workers/employers formed to regulate their relations or impose conditions on businesses.
- At least 7 members can apply to register a union, providing details like member names and addresses, union name and rules.
- Registered unions must operate within certain duties like notifying address changes and submitting annual audited financial reports.
- Funds are raised
The document discusses various aspects of indirect taxation in India, including:
1. The general rate of central excise duty on non-petroleum products has increased from 10% to 12%. Education cess and other duties are also imposed.
2. The taxable event for central excise duty is the manufacture or production of excisable goods in India, not their removal from factory.
3. Central excise duty can be collected via either physical control procedure (for cigarettes) or self-removal procedure (for other goods). Under self-removal, the assessee determines duty liability and clears goods.
4. Examples are provided to illustrate calculation of assessable value and duty payable under different
This document provides an overview of central excise duty in India. It discusses the three main laws governing central excise - the Central Excise Act of 1994, the Central Excise Tariff Act of 1985, and the Central Excise Rules of 1944. It also defines key terms like levy, collection, excisable goods, manufacture, and manufacturer. The document outlines the conditions for liability of central excise duty and concludes that the provisions and procedures related to central excise have remained largely stable in recent years.
The Trade Unions Act, 1926 provides the legal framework for the registration of trade unions in India. Some key points:
1) Before this act, trade union activities were considered unlawful but this act was passed to protect bona fide trade union activities.
2) It establishes procedures for registering trade unions with registrars appointed by state governments. Registered trade unions are provided certain legal protections.
3) The act defines important terms like "trade union", "workman", sets rules for maintenance of funds, and provides immunity from civil suits for registered trade unions involved in trade disputes.
4) It has been amended several times since introduction to update definitions and processes for unions to follow.
The document outlines the standard steps to start a business in India, which include obtaining necessary registrations and licenses from various government agencies. Some key procedures are:
1) Obtaining a Director Identification Number online in 1 day for INR 100.
2) Reserving the business name with the Registrar of Companies in 2 days for INR 500.
3) Stamping company documents like Memorandum of Association at the State Treasury in 1 day for INR 1,300.
The process takes about 30 days and costs around INR 15,000 to incorporate a business and obtain necessary registrations in Mumbai. Requirements vary slightly across states.
Aspecte relevante in cazul entitatilor economice care se incadreaza in prevderile art. care reduc activitatea ca urmare a efectelor epidemiei COVID-19, portivit prevderilor art. XI, alin. (2) lit b) din OUG 30/2020, pentru a se putea beneficia de plata indemnizatiei din bugetul asigurarilor pentru somaj este necesar sa aveti in vedere.
The document discusses the Employee State Insurance Act of 1948, which is a social security scheme run by the Government of India. It currently covers over 2 crore employees and 7.5 crore family members. Eligible employers and employees receive benefits by contributing a portion of wages to the ESI fund. The Act applies to factories, shops, hotels and other establishments employing 10 or more people. Benefits include sickness, maternity, disability and death cover. Employers contribute 4.75% of wages while employees contribute 1.75% to the fund. Registration requires providing documents online to obtain an ESI number.
Central excise duty is levied on goods manufactured in India under the Central Excise Act of 1944. Four conditions must be met for excise duty to apply: 1) goods must be movable and marketable, 2) goods must be listed as excisable in the Central Excise Tariff Act of 1985, 3) goods must be manufactured in India, and 4) manufacture must involve production or deemed production activities. Excise duty is calculated based on the excise rate and assessable value/quantity of goods. Liability for payment arises upon manufacture but is collected upon removal of goods. Payment is typically made monthly along with a CENVAT credit for prior duty paid on inputs.
This document discusses the different types of central excise duties in India. It outlines five main types: basic excise duty, special excise duty, additional excise duty, cess, and national calamity contingent duty. For each type, it provides a brief description of what it is and how it is applied. It also discusses some key aspects of excisable goods, including what qualifies as goods for excise duty purposes, the distinction between excisable and non-excisable goods, and different categories of dutiable, non-dutiable, exempted, and nil-rated goods.
Service tax exemption for transport of goods by rail
Notifications have been issued to continue the exemption for service tax on transport of goods by rail. See http://www.servicetax.gov.in/notifications/notfns-2k11/st49-52-2k11.pdf.
The document discusses key aspects of registering a trade union under the Trade Unions Act of 1926 in India. It defines important terms like trade union, trade dispute, and registrar. It outlines the process for registering a trade union including submitting an application with details of members and rules to the registrar. It specifies certain required provisions to be included in the trade union rules. If satisfied, the registrar will register the trade union and issue a certificate of registration. The registration can later be cancelled if the trade union violates provisions of the Act.
This document provides an overview of the operations of Shepherd Textile (BD) Ltd, a textile mill in Bangladesh. It discusses the mill's history, divisions its report into the technical and management systems, and describes the technical processes from knitting to garment making. It also outlines the mill's management departments including marketing, accounting, administration, store, and commercial and provides production statistics.
GST series 06 Dec 16 "Capital goods & ITC"R K aggarwal
1. The definition of capital goods has been simplified under the revised GST law compared to the previous law, defining it as goods whose value is capitalized in the books of accounts and used in the course of business.
2. Registered taxpayers can claim input tax credit on unavailed cenvat or VAT credit on capital goods not previously claimed, subject to certain conditions.
3. Input tax credit cannot be claimed for tax component on capital goods if depreciation has already been claimed on the tax portion under the Income Tax Act.
Taxguru.in gst compliance calendar oct 21 important legal developmentstaxguru4
The summary provides an overview of the key points from the GST compliance calendar and legal developments for October 2021:
1. Important circulars were issued clarifying that refund of wrongly paid CGST/SGST/IGST can be claimed within 2 years and that for debit notes issued on or after January 1, 2021, the date of debit note will determine the financial year for ITC availment.
2. The October 2021 GST compliance deadlines include filing GSTR-1, GSTR-3B, annual returns and reconciliation statements.
3. The GST portal was updated to allow fetching of bill of entry details and generating e-way bills for supply of services with movement of goods.
Taxmann's Daily Tax Digest | 24th July 2020Taxmann
Taxmann's Daily Tax Digest:
A Daily Section-wise digest of Judgments & Statutes on Income-Tax, GST, Company Laws, FEMA, Banking & Insurance Laws, Accounts & Audit, International Taxation, and Transfer Pricing.
The document provides an overview of export refunds under GST. It discusses key concepts like zero rated supplies, which include exports and supplies to SEZ. It outlines the different types of export refunds available under GST such as export of goods/services upon payment of IGST or under bond/LUT. The document then analyzes section 54 of the CGST Act regarding refund procedures. It discusses refund eligibility for zero rated supplies and supplies with an inverted tax structure. Key points like time limits for refund claims and restrictions are also summarized.
Taxguru.in gst compliance calendar oct 21 important legal developmentstaxguru4
The refund under section 77 of CGST Act! Section 19 of IGST Act, 2017 can be claimed
before the expiry of two years from the date of payment of tax under the correct head, i.e. integrated tax paid in respect of subsequently held inter-State supply, or central and state tax in respect of subsequently held intra-State supply, as the case may be..
Read more athttps://taxguru.in/goods-and-service-tax/gst-compliance-calendar-oct-21-important-legal-developments.html
Presentation on Indirect Proposal of Budget 2023.
Our Partner Ramandeep Singh Bhatia presented the same before the august gathering of members from trade and profession.
#GST #tax #gstupdates #gstindia #gstind
#budget2023 #budget
Income Tax Amendments Applicable to AY 2020-21 (FY 2019-20)AmitJain910
This document discusses important amendments to consider while filing income tax returns for assessment year 2020-21 relating to rebates, surcharges, tax rates, deductions, depreciation, TDS provisions, capital gains exemption, and more. Key points include a reduced MAT rate of 15%, option to purchase two homes for capital gains exemption, increased standard deduction and TDS limits on rent and cash withdrawals.
The document summarizes key highlights of India's Foreign Trade Policy 2015-2020. Some key points include:
1) Simplification and merger of various export reward schemes into a single Merchandise Exports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) with simplified procedures.
2) Incentives under MEIS and SEIS will be extended to Special Economic Zones to boost 'Make in India'.
3) Initiatives to facilitate trade and ease of doing business through online applications, paperless processing, and inter-ministerial consultations.
4) New initiatives to support exports of SCOMET items, defense goods, and e-commerce exports
The document discusses changes made by the Central Board of Direct Taxes to Form 3CD, which is used for tax audit reports. Key changes include the addition of GST registration numbers under indirect tax laws (Clause 4) and the addition of new reporting requirements for deductions claimed under Section 32AD and deemed profits/gains from Section 32AD (Clauses 19 and 24). New Clauses 29A and 29B were also added related to reporting income from forfeiture of advances for capital asset transfers and deemed gifts under Section 56(2)(x). Guidance is provided on implementation of the new and modified clauses.
Newsletter on daily professional updates- 24/03/2020CA PRADEEP GOYAL
“Your mind is a powerful thing.
When you fill it with positive thoughts, your life will start to change.”
Here is your Daily dose of professional updates 24.03.2020, it contains all summary of all 20 GST non-tariff notifications, 2 circulars dated 23/03/200 issued by CBIC. Also contain various updates on Income Tax, Corporate Laws, RBI and others.
The document discusses key provisions related to exports of goods in the GST regime, including definitions, rules and procedures for claiming refunds on zero-rated supplies. It provides details on sections and rules governing zero-rated supplies, input tax credit, blocked credits, and the options and processes for claiming refunds on exports - either without payment of tax by furnishing a letter of undertaking or bond, or by paying tax upfront and then claiming refund. It also summarizes the relevant circulars issued with respect to furnishing letters of undertaking or bonds for exports.
The document summarizes three recent announcements from the Central Board of Direct Taxes in India:
1. It relaxes the requirement to provide Unique Identification Numbers for tax forms from the last two quarters of 2015 due to operational constraints faced by stakeholders.
2. It seeks comments on draft rules and forms for determining fair market value of assets and reporting requirements related to the taxation of indirect transfers of Indian assets under section 9(1) of the Income Tax Act.
3. It notifies the formation of a committee to examine applications made under Rule 10VA of the Income Tax Rules regarding the approval of funds for the purpose of section 9A.
Karnataka Industrial Policy 2014 -19, Incentives for women entrepreneurseMERG
The document summarizes the Karnataka Industrial Policy for 2014-2019. Some key points:
- It aims to promote industrial areas and reservations for women entrepreneurs. Low interest loans and training programs will be provided.
- Data on MSME units established during 2009-2014 shows more men's units than women's, but women provided more employment.
- Subsidies are provided differently based on zone and region. More developed zones receive less support. Women and SC/ST entrepreneurs receive higher subsidies.
- Incentives include investment subsidies, stamp duty and tax exemptions, interest subsidies, grants for certification, technology and environmental programs. Amounts vary by zone.
- Terms and conditions define eligibility
This document provides a summary of updates related to indirect taxes in India for the month of March 2016. Key points include:
- Changes proposed to the negative list for service tax, including removing certain education and transportation services.
- Updates to excise rules regarding interest calculation, CENVAT credit availability, and exemptions.
- Cases related to service tax applicability, CENVAT credit eligibility, and refunds.
- Proposed changes to customs warehousing, import policies, and valuation rules.
- Updates on efforts to pass nationwide GST legislation and state-level VAT changes.
Mega Factories: Ethanol Project
Department For Promotion Of Industry And Internal Trade has created NSWS portal, Government of India is promoting blending of Ethanol with Petrol products so that there is saving in import of crude oil and also conservation of valuable foreign exchange.
N.S.EPC Consultants India Pvt. Ltd. an Engineering, Procurement, and Construction Company, has been leading the change in providing Green Energy Solutions to an extensive and diverse array of industry areas. Well equipped with large infrastructure, vast experience and expertise we have undertaken and accomplished large turnkey projects and variety of integrated comprehensive Design to Delivery solutions to diverse polymers, chemical and process industries with a major emphasis on the continuous improvement, development and application of Biodegradable products Biofuels, Bioethanol and Biomass driven processes. As turnkey project suppliers, we are single point solutions provider for the entire spectrum of Plant Design & Build; right from evaluation, assessment, planning of business opportunity and financing to pre-construction feasibility studies to complete installation including commissioning, operation & maintenance assistance.
Here, flexibility is one benefit that we can deliver as our technical team is capable of developing a generalized engineering concept for working out unusual designs and in carrying engineering knowledge from one field to another.
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Strictly adhering to our ethos, we strive to achieve excellence in project delivery and customer satisfaction!
We provide overseas/ indigenous solutions for sourcing automatic machines for PE, PS and PU plants, Fuel Ethanol plants, Multi fiber based biodegradable table ware projects complete line with manufacturing of Pulp from many natural fibers
N.S.EPC Consultants India Pvt. Ltd. has been extremely successful in all its State of Art projects which as a matter of fact is the outcome of continuous efforts, hard work and expertise of some of the best consultants in the Industry, Originated from India, we have now progressed and crossed the boundaries and now function and work together, in harmony with different teams across the globe. We deliver significant values to our clients and strive to achieve consistent customer satisfaction through a group of experienced technocrats across the nation providing quick response without delay after implementation of plants.
N.S. Consultants was Co-founded by Mr. Sushil Sharma, M.A., M.B.A, who has excelled in Techno-Commercial interactions over a span of 28 years, holds Dynamic Knowledge Base in Machinery Sourcing & implemented many projects successfully, Mr. N. Nagaraja, a Polymer Technologist & Mentor, who holds vast 28 years experience in various Plastic Industries, possessing expertise in technical and project implementation field. Hundreds of these Consultant jun
The document summarizes key changes made in the Finance Act of 2016 relating to various Pakistani tax laws, including:
- The Customs Act was amended to add new clauses on data sharing and confidentiality of information. Alternative dispute resolution timelines were also extended. Tariff rates and the 5th Schedule were changed.
- The Sales Tax Act amendments included a zero rated regime for 5 export sectors, disallowance of input tax paid under provincial laws, different return due dates, and an increased cottage industry threshold. Alternative dispute resolution changes were also made.
- Income tax changes and amendments to the Federal Excise Act are also briefly noted but not described in detail.
Taxmann’s Ultimate Best-Seller for Indirect Taxes – ‘GST Ready Reckoner', is a ready referencer for all provisions of the GST Law. It covers all important topics of GST along with relevant Case Laws, Notifications, Circulars, etc.
The Present Publication is the 15th Edition, authored by Mr. V.S. Datey & Updated till 1st February 2021. This book follows the Six-Sigma approach to achieve the benchmark of ‘zero-error’.
The book has been divided into 55 chapters in respect of all-important-provisions of GST, including the following:
•GST – An Overview
•IGST, CGST, SGST and UTGST
•Taxable Event in GST
•Supply of Goods or Services or both
•Classification of Goods and Services
•Value of Taxable Supply of Goods or Services or both
•Valuation Rules if value for GST not ascertainable
•VAT concept and its application in GST
•Input Tax Credit
•Input Tax Credit – Other Issues
•Input Tax Credit when exempted as well as taxable supplies made
•Input Service Distributor
•Persons liable to tax
•Place of supply of goods or services or both other than exports or impacts
•Place of supply in case of export or import of goods or services or both
•Exports and Imports
•Special Economic Zones and EOU
•Time of Supply of Goods and Services
•Reverse Charge
•Exemption from GST by issue of Notification
•Concession to small enterprises in GST
•Construction and Works Contract Services
•Real Estate Services relating to residential and commercial apartments
•TDR/FSI/Upfront amount in long term lease in real estate transactions
•Distributive Trade Services
•Passenger Transport Services
•Financial and related services
•Leasing or rental services and licensing services
•Software and IPR Services
•Business and production services
•Job Work
•Telecommunication, broadcasting and information supply
Community social, personal and other services
Government related activities
•Basic procedures in GST
•Registration under GST
•Tax Invoice, Credit and Debit Notes
•E-way Bill for transport of goods
•Payment of taxes by cash and through input tax credit
Returns under GST
•Assessment and Audit
•Demands and recovery
•Refund in GST
•Powers of GST Officers
•Offences and penalties
•First Appeal and revision in GST
•Appeal before Appellate Tribunal
•Appeals before High Court and Supreme Court
•Prosecution and compounding
•Provisions relating to evidence
•Electronic Commerce
•Miscellaneous issues in GST
•GST Compensation Cess
•Transitory Provisions
•Constitutional Background of GST
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[14th Edition] of Taxmann’s GST Tariff with GST Rate Reckoner
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[2nd Edition] of Taxmann’s GST Case Laws Digest (A Section-wise Case Book of 1,900+ Judgements)
Taxmann's GST Tariff with GST Rate Reckoner (Set of 2 Volumes)Taxmann
Taxmann’s GST Tariff contains GST Tariff for Goods and Services. It provides HSN-wise and SAC-wise Tariff of all the Goods and Services.
The Present Publication is the 14th Edition, authored by Taxmann’s Editorial Board, is amended up to 1st February 2021, with the following noteworthy features:
Taxmann's series of Bestseller Books on GST Tariff
Follows the six-sigma approach, to achieve the benchmark of 'zero error'
The Present Publication is published in two volumes & divided into 6 divisions, which are listed as follows:
•GST Tariff for Goods with HSN Code
Rates Specified in other Acts
•GST Rate Reckoner for Goods/Commodity Index
•GST Tariff for Services
Services Index
•GST Tariff Notifications (Rate of Tax and Exemptions)
The details coverage of the book is as follows:
•GST Tariff for Goods with HSN Code
•Arrangement of Chapters
•GST Tariff for Goods with HSN Code
•General Rules for the Interpretation of this schedule
•Rates Specified in other Acts
•Rates specified in Central Excise Act
•National Calamity Contingent Duty
•Additional Duty on Tobacco
•Additional Duty on Motor Spirit (Petrol)
•Additional Duty on High Speed Diesel Oil
•Special Additional Excise Duty on Motor Spirit and High Speed Diesel Oil
•Road & Infrastructure Cess
•Agriculture Infrastructure and Development Cess
•GST Rate Reckoner for Goods/Commodity Index
•GST Tariff for Services
•Arrangement of Services
•Central Goods & Services Tax/State Goods & Service Tax Tariff for Services
•Integrated Goods & Services Tax Tariff for Services
•Compensation Cess
•Rate of Tax and Exemption Notifications for Services
•Reverse Charge in case of intra-State supplies of services
•Reverse Charge in case of inter-State supplies of services
•Notified categories of services the tax on intra-State/inter-State supplies of which shall be paid by electronic commerce operator
•No refund of unutilised Input Tax Credit
•Notified registered persons who shall pay tax on reverse charge basis on certain specified supplies of goods or services or both received from an unregistered supplier
•Notified rate of tax to be levied on specified first intra-State supplies of goods or services
•Latest Clarifications
•Latest Case Laws
•Explanatory Notes
•Services Index
•GST Tariff Notifications (Rate of Tax and Exemptions)
The Present Publication is the 57th Edition & Updated till Income-tax (20th Amendment) Rules, 2020 with the following noteworthy features:
·Taxmann’s series of Bestseller Books for more than Five
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· Incorporates all the changes made till the Income-tax (20th
Amendment) Rules, 2020
· Follows the Six Sigma Approach to Achieve the Benchmark of
‘Zero Error’
· Coverage of this book includes:
o All Rules and Schemes, which are either notified under the Income-tax Act or are referred to in different provisions of the Income-tax Act, are covered
o Contains 23 divisions covering all Rules relevant under the Income-tax Act i.e.,
§ Income-tax Rules
§ ICDS
§ STT Rules
§ Equalisation Levy Rules
§ Small Saving Schemes, etc.
· All Forms Carry Action Points that explains the Relevant
Provisions and Process of Filing
· All Redundant and e-Forms are Marked for Quick
Identifications
This document discusses various aspects of section 195 of the Indian Income Tax Act, which deals with tax deducted at source (TDS) for payments made to non-residents. Some key points discussed include:
- Section 195 mandates any person making payments such as interest, royalty or fees for technical services to non-residents to deduct TDS at the time of payment.
- The rate of TDS depends on factors such as whether a lower treaty rate can be applied based on a tax residency certificate.
- Non-compliance can attract penalties for the payer such as interest, fines and in some cases prosecution.
- Exceptions apply when a lower or nil withholding certificate is obtained
Similar to Compulsory Registration under Excise for Readymade Garment manufacturer (20)
The document discusses the requirements and procedures for filing Form 15CA and Form 15CB for making payments to non-residents in India.
Form 15CA is a declaration that must be filed by the remitter along with a certificate from a chartered accountant in Form 15CB when making remittances exceeding Rs. 50,000 or an aggregate of over Rs. 2,50,000 in a year. Form 15CA captures details of the remitter, recipient and remittance amount, while Form 15CB contains the chartered accountant's determination of taxability.
Specific information to be provided in each form is outlined, including the remitter and recipient's identification details, bank transfer information
The Income Tax Department of India has introduced a new facility called the "E-filing Vault" to provide additional security for taxpayer e-filing accounts. The E-filing Vault allows taxpayers to add multi-factor authentication for logging into their accounts by requiring OTPs through Aadhaar linkage, net banking login, or using a digital signature certificate. It also allows taxpayers to add additional security to the password reset process. This provides a higher level of security than just a username and password. Soon, additional options using ATM, bank account, or demat account validation will be added to the E-filing Vault as well.
The document discusses the establishment of a Central Registration Centre (CRC) in India for registering companies. Key points:
- The CRC was initially launched as a pilot project in January 2016 to process name reservations, but was recently converted into a full-fledged central registration center.
- The CRC has jurisdiction across India and has been granted powers to complete the entire incorporation process, issuing certificates of incorporation.
- This recentralizes company registration powers back to the central government from regional registrars of companies. The evolution of the CRC is outlined from initial notifications establishing it.
This document provides important financial year-end due dates and compliance requirements for taxes in India. Key dates include March 31st for paying service tax, excise duty, and advance tax. March 30th is the due date for TDS deducted in March. Other notable dates are May 15th for filing TDS returns, May 31st for issuing Form 16, and various April and May dates for other tax compliance activities. The document emphasizes ensuring all tax payments and filings are completed by their due dates at the end of the financial year.
The document provides guidance on registering a resident welfare society in Uttar Pradesh, India under the Societies Registration Act of 1860. It outlines the requirements for the memorandum of association, which must include the society's name, address, objectives, and names of governing body members. It also describes the necessary components of the rules and regulations document, including membership rules, meeting procedures, and roles of the managing committee. Finally, it lists the registration process and supporting documents required, such as minutes book, membership records, and proof of publishing a registration notice in a newspaper.
The document discusses the statutory requirements for a newly incorporated company in India. It covers various compliances that must be completed, including obtaining a common seal and company stamp, registering the company name and address, obtaining a PAN and TAN numbers, appointing statutory auditors, and more. It provides details on validating the digital signature on the certificate of incorporation and using the common seal and company stamp appropriately on legal documents.
The government intends to introduce new rules to ease the trademark registration process. The proposed Trade Marks (Amendment) Rules 2015 would reduce the number of forms, delete redundant provisions, introduce electronic filing and service of documents to expedite processing, and simplify procedures for registered user trademarks. The changes aim to make registration more user-friendly by simplifying procedures, providing online filing and search capabilities, and increasing transparency through online information and communications.
The document provides an overview of the Foreign Contribution (Regulation) Act of 2010 in India. Some key points:
- The act regulates acceptance and use of foreign donations by certain individuals, organizations, and companies in India. Its objectives are to prevent foreign funding from affecting national interests or creating communal tensions.
- Registration or prior permission from the government is required for any person or organization to legally accept foreign contributions. Requirements include being a registered entity for at least 3 years with at least 10 lakh rupees spent on activities.
- Strict rules govern opening and use of foreign currency accounts, annual reporting on funds received and used, and penalties for non-compliance which include imprisonment, fines, or
The document discusses tax liability for registered dealers in Delhi under the DVAT Act. It notes that registered dealers are liable to pay tax on all goods sold by them at rates specified in the Act. The document also provides lists of goods exempt from tax including various food items, agricultural implements, goods for disabled persons. It further lists Harmonized System codes for various textiles and furnishing items as well as dealers that are exempt from paying tax on sale of goods.
The document discusses various medical expense deductions and exemptions available to employees in India. It provides details on:
1) Medical expenses fully exempt from tax if provided by employer-owned hospitals or certain approved private hospitals.
2) Health insurance premiums paid by employer or reimbursed to employee are fully exempt up to Rs. 15,000 per year of other medical expenses.
3) Various tax deductions are available under Section 80D, 80DD, 80DDB for medical insurance premiums, treatment of disabled dependents, and medical expenditures respectively.
This document provides information about forming a Limited Liability Partnership (LLP) under Indian law. It outlines the key steps in the LLP formation process, including deciding on partners and designated partners, obtaining digital signatures and Director Identification Numbers, checking name availability, drafting an LLP agreement, and filing incorporation documents with the Registrar of LLPs. It also compares LLPs with partnerships and private companies, describing advantages such as limited partner liability and greater flexibility in management structures for LLPs.
More from VAPS Value Added Professional Services (11)
Compulsory Registration under Excise for Readymade Garment manufacturer
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VALUE ADDED PROFESSIONAL SERVICES LLP
Corp Office: 404 I, 4th Floor, Devika Towers I Chander Nagar I Ghaziabad, U.P. -201011, Telephone: +91 120 4264301
Applicability of Excise duty in
respect of Readymade Garments
Excise duty of 2% (without CENVAT credit) or 12.5% (with CENVAT credit) is being
levied on readymade garments and made up articles of textiles falling under
Chapters 61, 62 and 63 (heading Nos. 6301 to 6308) of the Central Excise Tariff
except those falling under 6309 and 6310 of retail sale price (RSP) of Rs.1000 and
above when they bear or are sold under a brand name.
This optional levy would apply to such readymade garments and made up articles of
textiles regardless of the composition of the garment / article. However, in respect of
readymade garments and made up articles of textiles other than those mentioned
above, the optional levy of “Nil (without CENVAT credit) or 6% (with CENVAT credit)”
in case of garments / articles of cotton, not containing any other textile material and
“Nil (without CENVAT credit) or 12.5% (with CENVAT credit)” in case of garments /
articles of other composition, as the case may be, shall continue.
The tariff value for readymade garments and made up articles of textile is also being
increased from 30% to 60% which shall apply to all goods mentioned in the
notification No.20/2001CentralExcise (N.T.) dated 30.04.2001. It may be noted that
the new levy is similar to the levy of mandatory excise duty of 10% on readymade
garments and made up articles of textiles [goods falling under Chapters 61, 62 and
63 (heading Nos. 63.01 to 63.08)] when they bear or are sold under a brand name,
which was introduced in Budget 2011-12 except that:
a. The present levy is an optional levy, i.e. domestic manufacturers will have the
option to pay excise duty of 2% (without CENVAT) or 12.5% (with CENVAT),
b. The levy is restricted to articles which have RSP of Rs.1000 and above, and
c. The tariff value is being revised from 30% of RSP to 60% of the RSP.
In this regard, It is worth discussing the instructions issued vide Budget letter
F.No.334/3/2011TRU dated 28.02.2011, Instruction D.O. F.No.334/3/2011TRU,
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VALUE ADDED PROFESSIONAL SERVICES LLP
Corp Office: 404 I, 4th Floor, Devika Towers I Chander Nagar I Ghaziabad, U.P. -201011, Telephone: +91 120 4264301
dated 4.03.2011 and Instruction D.O. F.No. B1/3/2011TRU, dated 25.03.2011. The
said instructions shall apply mutatis mutandis to the new levy.
Salient features of these instructions are as under:
(i) The levy shall not apply to retail tailoring establishments that stitch garments in
a customized manner to the size and style specifications of individual
customers, whether out of fabric purchased by the customer from the same
establishment or fabric supplied by the customer.
(ii) The brand name owner, who gets the goods manufactured on his own account
on job work, shall pay the duty leviable on such goods as if the goods were
manufactured by him. The brand name owner (and not the job worker) shall be
required to register and comply with all the provisions of Central Excise law.
Rule 4 (1A) of the Central Excise Rules, 2001 and Para 1, clause (vi) of
notification No.36/2001C.E. (N.T.), dated 26.06.2001 refers.
(iii) However, the brand name owner will be given the option to authorise his job
worker to pay the duty leviable on the goods. If such an authorisation is given,
then the job worker would have to obtain registration. Proviso to rule 4 (1A) of
the Central Excise Rules, 2001 and proviso to Para 1, clause (vi) of notification
No.36/2001C.E. (N.T.), dated 26.06.2001 refers.
(iv) A unit which manufactures goods bearing the brand name of another person
out of inputs or raw materials which have been purchased independently and
not supplied by the brand owner, does not satisfy the definition of “job worker”
and would, therefore, have to obtain registration and discharge the duty liability.
(v) In cases where the brand name owner gets goods bearing its brand
manufactured from other manufacturers (normally small units) without providing
the raw materials or inputs, and if the RSP is not affixed or marked on such
goods when they are cleared in the course of sale from the factory of a
manufacturer to the brand owner, then no excise duty would be payable by
such a manufacturers since the RSP of such goods is not disclosed to them by
the brand owner. However, since the process of labelling or relabelling
constitutes a process of “manufacture”, duty on the tariff value (based on the
RSP) would be payable as and when the brand owner labels the goods with the
RSP of Rs.1000 or above and clears them for further sale.
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VALUE ADDED PROFESSIONAL SERVICES LLP
Corp Office: 404 I, 4th Floor, Devika Towers I Chander Nagar I Ghaziabad, U.P. -201011, Telephone: +91 120 4264301
(vi) The value for computing the eligibility as well as the exemption limit for
purposes of SSI exemption would be the tariff value of the goods. Explanation
(C) to notification No.8/2003C.E., dated 1st March, 2003 refers.
(vii) The SSI exemption for the month of March, 2016 will be Rs.12.5 lakh, subject
to fulfilment of other conditions of the notification No.8/2003C.E., dated
01.03.2003. For this purpose, notification No.8/2003C.E., dated 1st March,
2003 is being amended suitably.
(viii) The eligibility for availing of the SSI exemption in 2015-16 for the month of
March 2016 is that the value of clearances for home consumption from one or
more manufacturer from one or more unit should not have exceeded Rs. 4
crore in the financial year 2014-15. The computation for this purpose shall be
done in accordance with the provisions of Para 3A of notification No.
8/2003C.E. For this purpose, a certificate from a Chartered Accountant based
on the books of accounts for 2014-15 shall suffice.
(ix) Excisable goods which were produced on or before 29.02.2016 but lying in
stock as on 29.02.2016 shall attract excise duty upon clearance. Manufacturers
shall keep a stock declaration of finished goods, goods-in-process and inputs
as on 29.02.2016 in their records duly certified by a Chartered Accountant so
as to enable the manufacturers to claim CENVAT credit on inputs or inputs
contained in goods lying in stock as already provided for in Rule 3(2) of the
CENVAT Credit, Rules, 2004, if he so desires. No stock declaration, will,
however, be required to be made to the jurisdictional central excise authorities.
(x) Full exemption from Central Excise duty will be available to duty paid goods
returned to the manufacturer during a financial year up to an aggregate ceiling
not exceeding 10% of the value of clearances for home consumption made in
the preceding financial year. The manufacturer would be required to observe
the following procedure for this purpose:
(a) To submit an intimation within 48 hours of the receipt of the returned goods about
the value of returned goods received in his factory / registered premises;
(b) To maintain proper accounts/record of the receipt, finishing operations, and
dispatch of returned stock indicating the monthly and cumulative value of the
returned stock received during the financial year and to produce the same as and
when required. Notification No. 31/2011C.E., dated 24th March, 2011 refers. This
facility has been provided since it is a common practice in this industry that the duty
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VALUE ADDED PROFESSIONAL SERVICES LLP
Corp Office: 404 I, 4th Floor, Devika Towers I Chander Nagar I Ghaziabad, U.P. -201011, Telephone: +91 120 4264301
paid stock cleared to the wholesale dealer/retailer on consignment basis that
remains unsold is returned to the manufacturer either at the end of the season or
from time to time. Such returned goods are cleared either as such or after
“refinishing” operations to another wholesaler or retailer for sale (often at reduced
prices). The refinishing operations could involve cleaning, ironing, refolding,
repacking or relabelling, some of which constitute “manufacture” in terms of the
relevant Chapter Notes. This facility obviates the need to pay excise duty twice on
the same goods.
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VALUE ADDED PROFESSIONAL SERVICES LLP
Corp Office: 404 I, 4th Floor, Devika Towers I Chander Nagar I Ghaziabad, U.P. -201011, Telephone: +91 120 4264301
Applicability of Registration under
Central Excise in respect of
Readymade Garments
Issue in respect of Readymade Garment brand relating to who is to obtain
registration under central excise, the job working units or the brand name owners
COMPULSORY COVERAGE UNDER CENTRAL EXCISE
Readymade garments and made up articles of textiles falling under Chapters
61, 62 and 63 (heading Nos. 6301 to 6308) of the Central Excise Tariff except
those falling under 6309 and 6310* (these articles / garments may be of cotton
or any other textile material) of
Retail sale price (RSP) of Rs.1000 and above;
and;
When they bear or are sold under a brand name
Option 1
• Pay excise duty of 2% of Tariff value
• Do not avail CENVAT credit
Option 2
• Pay excise duty of 12.5% of Tariff value
• Do not avail CENVAT credit
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VALUE ADDED PROFESSIONAL SERVICES LLP
Corp Office: 404 I, 4th Floor, Devika Towers I Chander Nagar I Ghaziabad, U.P. -201011, Telephone: +91 120 4264301
VOLUNTARY COVERAGE UNDER CENTRAL EXCISE
Thus the first category, i.e. ‘Branded’ Readymade garments and made up articles of
Retail Sales Price of Rs. 1000/- or more of textiles falling under Chapters 61, 62 and
63 (heading Nos. 6301 to 6308) Excise Duty has now COMPULSARILY been
Readymade garments and made up articles of textiles falling under Chapters 61,
62 and 63 (heading Nos. 6301 to 6308) of the Central Excise Tariff except those
falling under 6309 and 6310 of
Retail sale price (RSP) of less than Rs.1000;
or;
When they do not bear the brand name or are not sold under a brand name
If the Garment / Article is of Cotton and
doesn’t contain any other Textile
material
If the Garment / Article is of other
composition i.e. not pure Cotton
Option 1
• Avail benefit of
Nil rate Excise
duty
And
• Do not avail
CENVAT
credit
Option 2
• Pay Excise
duty @ 6% of
Tariff value
And
• Do not avail
CENVAT
credit
Option 1
• Avail benefit of
Nil rate Excise
duty
And
• Do not avail
CENVAT
credit
Option 2
• Pay Excise
duty @ 12.5%
of Tariff value
And
• Do not avail
CENVAT
credit
7. -----------------------------------------------------------------------------------
Page 7
VALUE ADDED PROFESSIONAL SERVICES LLP
Corp Office: 404 I, 4th Floor, Devika Towers I Chander Nagar I Ghaziabad, U.P. -201011, Telephone: +91 120 4264301
covered under Central Excise with effect from 1st
of March, 2016. Two options have
been given to pay Excise duty, i.e.
1. either pay 12.5% excise and take CENVAT
Or
2. pay 2% excise and don’t avail CENVAT.
In respect of ‘Unbranded’ Readymade garments and made up articles or
Readymade garments and made up articles of Retail Sales Price of ‘less than Rs.
1000/-, there is still an option available either to be covered under Central Excise or
not to be covered under Central Excise.
When Registration is to be taken by the Job Worker
Vide Notification No. 214/86 – CE dated 25th of March, 1986, “job work” means
In context with Readymade Garments and Made Ups, keeping in view the above
explanation and Rule 4 (1A) of the Central Excise Rules, 2001, the job working units
that carry job on the material supplied by the Brand Owner, shall be Job Workers.
These units will not be required to obtain Central Excise Registration if they don’t use
their own material and rather use the material supplied by the brand name owner.
Exception: It is to be noted that as per Proviso to rule 4 (1A) of the Central Excise
Rules, 2001 and proviso to Para 1, clause (vi) of notification No.36/2001C.E. (N.T.),
dated 26.06.2001, the Job Worker may be authorised by the Brand Name Owner to
Processing or working upon of raw materials or semi-finished goods supplied to
the job worker / so as to complete a part or whole of the process resulting in the
manufacture or finishing of an article or any operation which is essential for the
aforesaid process.
Who to obtain registration, Brand Name Owner or the Job Worker
8. -----------------------------------------------------------------------------------
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VALUE ADDED PROFESSIONAL SERVICES LLP
Corp Office: 404 I, 4th Floor, Devika Towers I Chander Nagar I Ghaziabad, U.P. -201011, Telephone: +91 120 4264301
pay the duty leviable on the goods. If that case, the job worker would have to obtain
registration.
In case, they use their own material and carry work on that material, they cease to
be the beneficiary as job workers. In this case, they will have to obtain Central
Excise Registration.
For the sake of brevity, we are not here discussing the provisions and conditions
relating to availability of SSI benefits / basic exemption limit to Job Work Units.
When Registration to be taken by the Brand Owner
In case, the brand name owner, supplies the raw material / goods to the job workers
and gets the goods manufactured on his own account on job work, the brand name
owner shall pay the duty leviable on such goods as if the goods were manufactured
by him as per the Rule 4 (1A) of the Central Excise Rules, 2001 and Para 1, clause
(vi) of notification No.36/2001C.E. (N.T.), dated 26.06.2001 refers.
Though as per Proviso to rule 4 (1A) of the Central Excise Rules, 2001 and proviso
to Para 1, clause (vi) of notification No.36/2001C.E. (N.T.), dated 26.06.2001 the
brand name owner has the option to authorise his job worker to pay the duty leviable
on the goods. If that case, the job worker would have to obtain registration
Further an explanation has been provided by the Tax Research Unit, Ministry of
Finance, Department of Revenue, Government of India in its post budget letter dated
29.02.2016 that “In cases where the brand name owner gets goods bearing its brand
manufactured from other manufacturers (normally small units) without providing the
raw materials or inputs, and if the RSP is not affixed or marked on such goods when
they are cleared in the course of sale from the factory of a manufacturer to the brand
owner, then no excise duty would be payable by such a manufacturers since the
RSP of such goods is not disclosed to them by the brand owner. However, since the
process of labelling or relabelling constitutes a process of “manufacture”, duty on the
tariff value (based on the RSP) would be payable as and when the brand owner
labels the goods with the RSP of Rs.1000 or above and clears them for further sale”
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VALUE ADDED PROFESSIONAL SERVICES LLP
Corp Office: 404 I, 4th Floor, Devika Towers I Chander Nagar I Ghaziabad, U.P. -201011, Telephone: +91 120 4264301
It is to be noted that Tailoring Establishments are not covered
Keeping in view, the tiny scale of operations of retail tailoring establishments, the
same have been kept out of preview of compulsory coverage under Central Excise.
These tailoring units stitch garments in a customized manner,(as per the demand of
the customer), to the size and style specifications of individual customers. These
units shall be exempt even in cases, the fabric out of which readymade garment
made, is purchased by the customer from the same establishment or fabric is
supplied by the customer.
Calculation of Excise Duty is to be made on Tariff Value
Central Excise Duty on Readymade garments and made up articles Duty is to be
paid at the specified rate of 2% or 6% or 12.5% as the case may be on the “Tariff
Value”.
“Tariff Value” shall be 60% of the “Retail Sales Price”.
“Retail Sales Price” finds its definition in Explanation 1 to Section 4A (pertaining to
Valuation of excisable goods with reference to retail sale price) of Central Excise Act,
1944 defines it to mean “the maximum price at which the excisable goods in
packaged form may be sold to the ultimate consumer and includes all taxes, local or
otherwise, freight, transport charges, commission payable to dealers, and all charges
towards advertisement, delivery, packing, forwarding and the like and the price is the
sole consideration for such sale:”
Examples on Calculation of Central Excise Duty
Calculation of Excise Duty on Readymade Garments / Made Ups Branded and
RSP equal to or more than Rs. 1000/- that are compulsorily covered
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VALUE ADDED PROFESSIONAL SERVICES LLP
Corp Office: 404 I, 4th Floor, Devika Towers I Chander Nagar I Ghaziabad, U.P. -201011, Telephone: +91 120 4264301
Option 1, Without CENVAT
Details Amount (Rs.)
Retail Sales Price (RSP) 1200.00
Tariff Value 60% of RSP 720.00
2% Excise Duty on Tariff Value 14.40
CENVAT Credit available 0.00
Excise Duty Payable 14.40
Any Item Cotton or Not, Branded & Retail Sale Price => Rs. 1000 without CENVAT
Option 2, With CENVAT
Details Amount (Rs.)
Retail Sales Price (RSP) 1200.00
Tariff Value 60% of RSP 720.00
12.5% Excise Duty on Tariff Value 90.00
CENVAT Credit available (Presumed) 30.00
Excise Duty Payable 60.00
Any Item Cotton or Not, Branded & Retail Sale Price => Rs. 1000 with CENVAT
Calculation of Excise Duty on Readymade Garments / Made Ups whether of
cotton or not Non Branded and RSP less than Rs. 1000/- that are not
compulsorily covered
Option 1, Without CENVAT
Details Amount (Rs.)
Retail Sales Price (RSP) 1200.00
Tariff Value 60% of RSP 720.00
As no CENVAT is availed, rate of duty will be Nil 00.00
CENVAT Credit available 0.00
Excise Duty Payable 00.00
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VALUE ADDED PROFESSIONAL SERVICES LLP
Corp Office: 404 I, 4th Floor, Devika Towers I Chander Nagar I Ghaziabad, U.P. -201011, Telephone: +91 120 4264301
Any Item Cotton or Not, Branded & Retail Sale Price < Rs. 1000 without CENVAT
Option 2, With CENVAT – Pure Cotton items
Details Amount (Rs.)
Retail Sales Price (RSP) 1200.00
Tariff Value 60% of RSP 720.00
6% Excise Duty on Tariff Value 44.00
CENVAT Credit available (Presumed) 30.00
Excise Duty Payable 14.00
Pure Cotton, Un-Branded & Retail Sale Price < Rs. 1000 with CENVAT
Option 2, With CENVAT – Other than Pure Cotton items
Details Amount (Rs.)
Retail Sales Price (RSP) 1200.00
Tariff Value 60% of RSP 720.00
12.5% Excise Duty on Tariff Value 90.00
CENVAT Credit available (Presumed) 30.00
Excise Duty Payable 60.00
Other than Pure Cotton, Un-Branded & Retail Sale Price < Rs. 1000 with CENVAT