This document provides an overview of various indirect taxes in India including excise duty, customs duty, VAT, CST and service tax. It explains key concepts like excisable goods, manufacture, tariff, cenvat credit, works contracts etc. regarding these taxes. It also discusses the applicability of these taxes to defense sector and highlights that defense units cannot claim cenvat credit or set-off since their final products are exempt from duty. The document provides useful information on indirect tax compliance for defense procurement.
This document provides an overview of excise duty in India. It defines excise duty as a tax on goods manufactured in India and intended for domestic consumption. It is payable by manufacturers at the time of production or removal of goods. The key points covered include the types of excise duties, eligible duties for CENVAT credit, valuation methods, the excise control code number system, and requirements for central excise invoicing.
The document discusses India localization with respect to SAP, including an introduction to Indian taxes, CENVAT concepts, tax procedures, registers, and configurations needed in SAP. It covers the Indian tax structure of direct and indirect taxes, types of excise duties, CENVAT rules, and how CENVAT credit is availed. It also discusses sales processes, tax procedures, excise registers, and transactions codes relevant for India localization in SAP.
This document provides information about various direct and indirect taxes in India. It begins with defining the key differences between direct and indirect taxes such as who bears the tax burden and issues of tax evasion. It then discusses some major direct taxes like income tax and indirect taxes like excise duty, customs duty, sales tax etc. It also explains the concepts of Central Sales Tax (CST), Value Added Tax (VAT), Modified Value Added Tax (MODVAT) and Central Value Added Tax (CENVAT) and provides details about their rates and rules. In conclusion, it summarizes the obligations of manufacturers producing both taxable and exempted goods under CENVAT rules.
How to do Excise Accounting for Manufacturers in Tally.ERP 9Shailendra Yadav
This tally presentation is a Apni Tally tutorial about How to do excise accounting for Manufacturers in Indian Accounting software Tally.ERP 9. Visit www.apnitally.com to
Get full list of Tally Tutorials about Tally ERP 9
The document provides an overview of excise duty in India. It defines excise duty as a tax on goods manufactured in India and intended for domestic consumption. It is levied when goods are produced or manufactured. The key points covered include:
- Excise duty is an indirect tax paid by manufacturers and passed on to consumers.
- Duty is collected under the Central Excise Act at rates specified in the Central Excise Tariff Act.
- Goods must meet certain criteria like being movable and marketable to be considered excisable.
- There are different types of excise duties including basic excise duty, special excise duty, and education cess on excise duty.
- Valuation
This document provides an overview and introduction to implementing SAP's Country India Version (CIN) for companies operating in India. It discusses why CIN needs to be implemented to calculate taxes according to Indian law. It then covers the Indian taxation system including direct and indirect taxes. It provides details on central excise duty, additional excise duty, special excise duty, and value-added tax. It also discusses tax procedures, condition types, registers and accounts that need to be maintained, and internal processing keys for automatic tax calculation in SAP according to Indian regulations.
Central excise duty is levied on goods manufactured in India. The key points are:
1. Excise duty is an indirect tax collected on domestic production and consumption of goods. The manufacturer passes the duty to the consumer.
2. Duty is collected under the Central Excise Act at rates specified in the Central Excise Tariff Act. Additional duties may also apply to some goods.
3. Manufacturers must register with central excise authorities. The CENVAT scheme allows manufacturers to claim credit for duties paid on inputs.
This document provides an overview of excise duty in India. It defines excise duty as a tax on goods manufactured in India and intended for domestic consumption. It is payable by manufacturers at the time of production or removal of goods. The key points covered include the types of excise duties, eligible duties for CENVAT credit, valuation methods, the excise control code number system, and requirements for central excise invoicing.
The document discusses India localization with respect to SAP, including an introduction to Indian taxes, CENVAT concepts, tax procedures, registers, and configurations needed in SAP. It covers the Indian tax structure of direct and indirect taxes, types of excise duties, CENVAT rules, and how CENVAT credit is availed. It also discusses sales processes, tax procedures, excise registers, and transactions codes relevant for India localization in SAP.
This document provides information about various direct and indirect taxes in India. It begins with defining the key differences between direct and indirect taxes such as who bears the tax burden and issues of tax evasion. It then discusses some major direct taxes like income tax and indirect taxes like excise duty, customs duty, sales tax etc. It also explains the concepts of Central Sales Tax (CST), Value Added Tax (VAT), Modified Value Added Tax (MODVAT) and Central Value Added Tax (CENVAT) and provides details about their rates and rules. In conclusion, it summarizes the obligations of manufacturers producing both taxable and exempted goods under CENVAT rules.
How to do Excise Accounting for Manufacturers in Tally.ERP 9Shailendra Yadav
This tally presentation is a Apni Tally tutorial about How to do excise accounting for Manufacturers in Indian Accounting software Tally.ERP 9. Visit www.apnitally.com to
Get full list of Tally Tutorials about Tally ERP 9
The document provides an overview of excise duty in India. It defines excise duty as a tax on goods manufactured in India and intended for domestic consumption. It is levied when goods are produced or manufactured. The key points covered include:
- Excise duty is an indirect tax paid by manufacturers and passed on to consumers.
- Duty is collected under the Central Excise Act at rates specified in the Central Excise Tariff Act.
- Goods must meet certain criteria like being movable and marketable to be considered excisable.
- There are different types of excise duties including basic excise duty, special excise duty, and education cess on excise duty.
- Valuation
This document provides an overview and introduction to implementing SAP's Country India Version (CIN) for companies operating in India. It discusses why CIN needs to be implemented to calculate taxes according to Indian law. It then covers the Indian taxation system including direct and indirect taxes. It provides details on central excise duty, additional excise duty, special excise duty, and value-added tax. It also discusses tax procedures, condition types, registers and accounts that need to be maintained, and internal processing keys for automatic tax calculation in SAP according to Indian regulations.
Central excise duty is levied on goods manufactured in India. The key points are:
1. Excise duty is an indirect tax collected on domestic production and consumption of goods. The manufacturer passes the duty to the consumer.
2. Duty is collected under the Central Excise Act at rates specified in the Central Excise Tariff Act. Additional duties may also apply to some goods.
3. Manufacturers must register with central excise authorities. The CENVAT scheme allows manufacturers to claim credit for duties paid on inputs.
Excise duty is an indirect tax imposed on goods manufactured in India. It is levied when goods are produced and becomes payable when goods are removed from the factory. The key laws governing excise duty are the Central Excise Act 1944, Central Excise Tariff Act 1985, and CENVAT Credit Rules 2004. Excise duty can be specific (based on quantity) or ad valorem (based on percentage of transaction value). The manufacturer is liable to pay the duty, which is calculated on assessable value after deducting allowances from the transaction value. Current excise duty rates in India range from 0-16% depending on the goods.
This document discusses excise duty in India. It defines excise duty as a tax on goods produced or manufactured in India and intended for home consumption. Excise duty is an indirect tax charged on manufacturers and passed on to consumers. The key points covered are:
- Types of excise duties including basic excise duty, special excise duty, and education cess
- Eligibility and conditions for goods to be subject to excise duty
- Definition of an excisable good and manufacturer
- Methods of valuing excisable goods for duty assessment
- CENVAT credit scheme allowing manufacturers to claim credit for duty paid on inputs
- Registration requirements for manufacturers of excisable goods
VAT is a tax on consumption that is charged on supplies at each stage of production and distribution. It is collected by businesses from customers and submitted to the tax authority, along with a return calculating the net VAT amount owed or refunded. The GCC plans to implement a standard 5% VAT across countries, applying the tax to imports and local supplies with exports being zero-rated and some sectors exempt. Businesses over a certain turnover must register and will charge VAT on supplies while deducting VAT on purchases. Cross-border transactions within the GCC will have specific rules regarding tax treatment.
This document provides an overview of the Maharashtra Value Added Tax (MVAT) system. It discusses the introduction of VAT globally and in India, as well as an overview of MVAT in Maharashtra. The key aspects covered include the MVAT Act and rules, registration requirements, tax invoices, rates and classifications, input credit/set off rules, payment requirements, returns, and TDS requirements. Methods of calculating VAT liability for normal dealers and works contractors are also summarized.
This document discusses various types of taxes in India including direct taxes, indirect taxes, customs duty, and excise duty. It provides details on the collection and growth of indirect taxes like customs, central excise, and service tax between 2011-12 and 2012-13. Similarly, it mentions the collection and growth of direct taxes like corporate tax and income tax during the same period. Charts are included to illustrate the percentage growth of these taxes over the years. The document also discusses the classification of taxes under the Indian constitution and the laws governing customs duty and excise duty in India. Key aspects like charging of duty, scope, and basic concepts are explained for customs duty and excise duty.
VAT is an indirect tax applied at each stage of production and distribution of goods and services, with taxpayers able to claim a credit for VAT paid on inputs. It is ultimately borne by the final consumer. Key characteristics of VAT include that it is charged on value addition at each stage, has various rates including zero-rating, and exemptions. VAT aims to broaden the tax base and mobilize more revenue, while eliminating cascading effects of taxes. The document outlines definitions, persons liable, determination of value, payment and adjustment of advance tax, and time of payment under Bangladesh's VAT law.
The document provides an overview of Value Added Tax (VAT) in India. It explains that VAT is a broad-based tax levied at multiple stages of production, intended as a tax on consumption. It is preferable to sales tax as it generates more revenue, has in-built compliance incentives, and minimizes tax cascading. The key differences between VAT and other taxes like CST are explained. State and central governments gain increased revenue collection under VAT, while industry gains from reduced interactions with tax authorities and lower costs. All dealers with an annual turnover over Rs. 5 lakh must register for VAT.
This document discusses the laws related to central excise duty in India. It outlines the Central Excise Act of 1994, Central Excise Tariff Act of 1985, and Central Excise Rules of 1944 as the basic laws governing the levy and collection of central excise duties. It also describes the conditions for goods to be subject to central excise duty, which are that the goods must be movable, marketable, excisable as defined in the Tariff Act, and manufactured/produced in India. Finally, it discusses the different bases for valuation of excise duty, including specific duty, tariff duty, maximum retail price, and ad valorem basis, with ad valorem being the most common
VAT is a multi-point tax system applied at each stage of production and distribution to avoid cascading of indirect taxes. It allows tax paid at one stage to be credited at the next stage so only the value added is taxed. VAT reduces discrimination and makes the tax burden more equal while also being simpler to administer through a self-policing system of invoices. Most countries have adopted VAT to reduce prices through a progressive taxation system.
This document provides an overview of indirect taxes in India including excise duty, VAT, and GST. It discusses the legislative authority to levy these taxes and defines key terms. Excise duty applies to goods manufactured in India and is levied by the central government. VAT applies to goods sold within a state and is levied by state governments. GST was introduced to replace other indirect taxes and avoid cascading taxes. It is levied as CGST, SGST on intra-state sales and IGST on inter-state sales. The constitution was amended to implement GST beginning in April 2017.
New Export Promotion Scheme RoDTEP : Implemented without Rates Announced - By...SN Panigrahi, PMP
The document discusses India's new Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. The key points are:
1) RoDTEP is a new scheme to refund unrefunded taxes and duties on exported products to make them competitive globally. It replaces the MEIS scheme which was found to violate WTO rules.
2) The scheme aims to refund all taxes and duties that are not currently exempted or rebated by any other mechanism, including certain state and central levies.
3) Exporters can claim refunds under the scheme as a percentage of the export product's FOB value. However, rates under the scheme are yet to be
The document discusses key aspects of introducing the Goods and Services Tax (GST) in India such as the proposed dual GST model, administrative issues, and the need for an IT infrastructure to support GST implementation. It recommends a dual GST model with a central and state component that is implemented through a common IT network to streamline compliance. The network aims to simplify tax administration, respect state autonomy, and enable automation to reduce leakages while unifying the domestic market.
#New Scheme of Export Incentive RoDTEP - By SN Panigrahi & CA Rishabh Sawansu...SN Panigrahi, PMP
India has implemented various export promotion schemes to refund or rebate taxes in order to make exports competitive. These schemes include MEIS, Advance Authorization Scheme, EPCG, and Duty Drawback Scheme. However, some taxes are still incurred in the export process and are not refunded.
To address this, the government plans to introduce a new Remission of Duties and Taxes on Export Products (RoDTEP) scheme. An inter-ministerial committee will determine the rates and items eligible for reimbursement. The scheme aims to refund unrefunded taxes like state taxes on power, oil, transportation, and other levies.
The document discusses various aspects of the textile industry in India including the GST tax structure, indirect tax benefits and incentives, special economic zone (SEZ) setup structures, and details of the Production Linked Incentive (PLI) scheme for the textile sector. Key points include:
- The GST rates for yarn, fabric and garments and the inverted duty structure issue in the textile industry.
- Indirect tax benefits such as RoSCTL, RoDTEP, ATUFS, and refund of accumulated input tax credit.
- Comparison of SEZ, DTA and MOOWR setup structures in terms of import/export duties and compliances.
- Overview of
Value Added Tax (VAT) is a multi-point tax collected on the value added at each stage of production and distribution. In India, VAT was introduced in 2005 and is governed by state laws like the West Bengal VAT Act of 2003. Under VAT, a dealer pays tax on sales (output tax) and claims a credit for tax paid on purchases (input tax) in the same tax period, usually a month. This eliminates the cascading effect of taxes being applied to previous taxes. While VAT streamlines taxation, India's federal structure restricts a pure VAT system, with the center and states collecting different taxes.
This document provides an overview of import duty calculation in India. It discusses the key components of import duty - Basic Customs Duty (BCD), Social Welfare Surcharge (SWS), Integrated Goods and Services Tax (IGST), and Compensation Cess. It also outlines various exemptions and reductions available, such as Special Economic Zones, Bonded Warehouses, and Free Trade Agreements. Government websites and tools for researching applicable import duties are also referenced.
If you go through this whole document very carefully, then it will helps you to understand the overall concept of GST, which is the new taxation system of India.
The document provides information about input tax credit (ITC) under the Goods and Services Tax (GST) system in India. Some key points:
1. ITC allows businesses to offset taxes paid on inputs against output tax liability. It is claimed on goods, capital goods, and services used for business purposes.
2. There are conditions for claiming ITC, such as possessing valid documents and ensuring taxes are paid. ITC must also be adjusted if related outputs are exempt.
3. Not all purchases are eligible for ITC, such as most motor vehicles, food/beverages, health services, and property construction. Transition provisions allow ITC for stock under certain conditions.
This presentation is made to give a brief of changes that are likely to happen in GST and impact of such changes on some of the sectors. It contains a compairison of present and proposed structure of taxation. We have aslo added place of supply rules, treatment of composite supplies, transitional issues and global experience for GST.
The document discusses the implementation of a Local Area Network (LAN) project across Customs, Central Excise, and Service Tax buildings in India. The LAN will connect thin clients and peripherals to applications hosted in centralized data centers. Hardware will be delivered and installed by HP over several phases with support from local offices. The network is aimed at improving access to key applications like ICES and ACES while adhering to security protocols.
This document discusses the introduction of a negative list for service tax in India through amendments made in the Finance Act of 2012. It provides background on the existing complex tax structure for goods and services in India. The key changes introduced include switching from a selective approach to taxing services to a negative list approach, where all services are taxable unless specifically exempted. A negative list of 17 services now exempted from tax is provided. The document discusses the rationale for introducing a negative list to simplify compliance and widen the tax base. It is estimated to potentially increase tax revenues substantially.
Excise duty is an indirect tax imposed on goods manufactured in India. It is levied when goods are produced and becomes payable when goods are removed from the factory. The key laws governing excise duty are the Central Excise Act 1944, Central Excise Tariff Act 1985, and CENVAT Credit Rules 2004. Excise duty can be specific (based on quantity) or ad valorem (based on percentage of transaction value). The manufacturer is liable to pay the duty, which is calculated on assessable value after deducting allowances from the transaction value. Current excise duty rates in India range from 0-16% depending on the goods.
This document discusses excise duty in India. It defines excise duty as a tax on goods produced or manufactured in India and intended for home consumption. Excise duty is an indirect tax charged on manufacturers and passed on to consumers. The key points covered are:
- Types of excise duties including basic excise duty, special excise duty, and education cess
- Eligibility and conditions for goods to be subject to excise duty
- Definition of an excisable good and manufacturer
- Methods of valuing excisable goods for duty assessment
- CENVAT credit scheme allowing manufacturers to claim credit for duty paid on inputs
- Registration requirements for manufacturers of excisable goods
VAT is a tax on consumption that is charged on supplies at each stage of production and distribution. It is collected by businesses from customers and submitted to the tax authority, along with a return calculating the net VAT amount owed or refunded. The GCC plans to implement a standard 5% VAT across countries, applying the tax to imports and local supplies with exports being zero-rated and some sectors exempt. Businesses over a certain turnover must register and will charge VAT on supplies while deducting VAT on purchases. Cross-border transactions within the GCC will have specific rules regarding tax treatment.
This document provides an overview of the Maharashtra Value Added Tax (MVAT) system. It discusses the introduction of VAT globally and in India, as well as an overview of MVAT in Maharashtra. The key aspects covered include the MVAT Act and rules, registration requirements, tax invoices, rates and classifications, input credit/set off rules, payment requirements, returns, and TDS requirements. Methods of calculating VAT liability for normal dealers and works contractors are also summarized.
This document discusses various types of taxes in India including direct taxes, indirect taxes, customs duty, and excise duty. It provides details on the collection and growth of indirect taxes like customs, central excise, and service tax between 2011-12 and 2012-13. Similarly, it mentions the collection and growth of direct taxes like corporate tax and income tax during the same period. Charts are included to illustrate the percentage growth of these taxes over the years. The document also discusses the classification of taxes under the Indian constitution and the laws governing customs duty and excise duty in India. Key aspects like charging of duty, scope, and basic concepts are explained for customs duty and excise duty.
VAT is an indirect tax applied at each stage of production and distribution of goods and services, with taxpayers able to claim a credit for VAT paid on inputs. It is ultimately borne by the final consumer. Key characteristics of VAT include that it is charged on value addition at each stage, has various rates including zero-rating, and exemptions. VAT aims to broaden the tax base and mobilize more revenue, while eliminating cascading effects of taxes. The document outlines definitions, persons liable, determination of value, payment and adjustment of advance tax, and time of payment under Bangladesh's VAT law.
The document provides an overview of Value Added Tax (VAT) in India. It explains that VAT is a broad-based tax levied at multiple stages of production, intended as a tax on consumption. It is preferable to sales tax as it generates more revenue, has in-built compliance incentives, and minimizes tax cascading. The key differences between VAT and other taxes like CST are explained. State and central governments gain increased revenue collection under VAT, while industry gains from reduced interactions with tax authorities and lower costs. All dealers with an annual turnover over Rs. 5 lakh must register for VAT.
This document discusses the laws related to central excise duty in India. It outlines the Central Excise Act of 1994, Central Excise Tariff Act of 1985, and Central Excise Rules of 1944 as the basic laws governing the levy and collection of central excise duties. It also describes the conditions for goods to be subject to central excise duty, which are that the goods must be movable, marketable, excisable as defined in the Tariff Act, and manufactured/produced in India. Finally, it discusses the different bases for valuation of excise duty, including specific duty, tariff duty, maximum retail price, and ad valorem basis, with ad valorem being the most common
VAT is a multi-point tax system applied at each stage of production and distribution to avoid cascading of indirect taxes. It allows tax paid at one stage to be credited at the next stage so only the value added is taxed. VAT reduces discrimination and makes the tax burden more equal while also being simpler to administer through a self-policing system of invoices. Most countries have adopted VAT to reduce prices through a progressive taxation system.
This document provides an overview of indirect taxes in India including excise duty, VAT, and GST. It discusses the legislative authority to levy these taxes and defines key terms. Excise duty applies to goods manufactured in India and is levied by the central government. VAT applies to goods sold within a state and is levied by state governments. GST was introduced to replace other indirect taxes and avoid cascading taxes. It is levied as CGST, SGST on intra-state sales and IGST on inter-state sales. The constitution was amended to implement GST beginning in April 2017.
New Export Promotion Scheme RoDTEP : Implemented without Rates Announced - By...SN Panigrahi, PMP
The document discusses India's new Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. The key points are:
1) RoDTEP is a new scheme to refund unrefunded taxes and duties on exported products to make them competitive globally. It replaces the MEIS scheme which was found to violate WTO rules.
2) The scheme aims to refund all taxes and duties that are not currently exempted or rebated by any other mechanism, including certain state and central levies.
3) Exporters can claim refunds under the scheme as a percentage of the export product's FOB value. However, rates under the scheme are yet to be
The document discusses key aspects of introducing the Goods and Services Tax (GST) in India such as the proposed dual GST model, administrative issues, and the need for an IT infrastructure to support GST implementation. It recommends a dual GST model with a central and state component that is implemented through a common IT network to streamline compliance. The network aims to simplify tax administration, respect state autonomy, and enable automation to reduce leakages while unifying the domestic market.
#New Scheme of Export Incentive RoDTEP - By SN Panigrahi & CA Rishabh Sawansu...SN Panigrahi, PMP
India has implemented various export promotion schemes to refund or rebate taxes in order to make exports competitive. These schemes include MEIS, Advance Authorization Scheme, EPCG, and Duty Drawback Scheme. However, some taxes are still incurred in the export process and are not refunded.
To address this, the government plans to introduce a new Remission of Duties and Taxes on Export Products (RoDTEP) scheme. An inter-ministerial committee will determine the rates and items eligible for reimbursement. The scheme aims to refund unrefunded taxes like state taxes on power, oil, transportation, and other levies.
The document discusses various aspects of the textile industry in India including the GST tax structure, indirect tax benefits and incentives, special economic zone (SEZ) setup structures, and details of the Production Linked Incentive (PLI) scheme for the textile sector. Key points include:
- The GST rates for yarn, fabric and garments and the inverted duty structure issue in the textile industry.
- Indirect tax benefits such as RoSCTL, RoDTEP, ATUFS, and refund of accumulated input tax credit.
- Comparison of SEZ, DTA and MOOWR setup structures in terms of import/export duties and compliances.
- Overview of
Value Added Tax (VAT) is a multi-point tax collected on the value added at each stage of production and distribution. In India, VAT was introduced in 2005 and is governed by state laws like the West Bengal VAT Act of 2003. Under VAT, a dealer pays tax on sales (output tax) and claims a credit for tax paid on purchases (input tax) in the same tax period, usually a month. This eliminates the cascading effect of taxes being applied to previous taxes. While VAT streamlines taxation, India's federal structure restricts a pure VAT system, with the center and states collecting different taxes.
This document provides an overview of import duty calculation in India. It discusses the key components of import duty - Basic Customs Duty (BCD), Social Welfare Surcharge (SWS), Integrated Goods and Services Tax (IGST), and Compensation Cess. It also outlines various exemptions and reductions available, such as Special Economic Zones, Bonded Warehouses, and Free Trade Agreements. Government websites and tools for researching applicable import duties are also referenced.
If you go through this whole document very carefully, then it will helps you to understand the overall concept of GST, which is the new taxation system of India.
The document provides information about input tax credit (ITC) under the Goods and Services Tax (GST) system in India. Some key points:
1. ITC allows businesses to offset taxes paid on inputs against output tax liability. It is claimed on goods, capital goods, and services used for business purposes.
2. There are conditions for claiming ITC, such as possessing valid documents and ensuring taxes are paid. ITC must also be adjusted if related outputs are exempt.
3. Not all purchases are eligible for ITC, such as most motor vehicles, food/beverages, health services, and property construction. Transition provisions allow ITC for stock under certain conditions.
This presentation is made to give a brief of changes that are likely to happen in GST and impact of such changes on some of the sectors. It contains a compairison of present and proposed structure of taxation. We have aslo added place of supply rules, treatment of composite supplies, transitional issues and global experience for GST.
Similar to Indirect Taxes – a review_Defence.ppt (20)
The document discusses the implementation of a Local Area Network (LAN) project across Customs, Central Excise, and Service Tax buildings in India. The LAN will connect thin clients and peripherals to applications hosted in centralized data centers. Hardware will be delivered and installed by HP over several phases with support from local offices. The network is aimed at improving access to key applications like ICES and ACES while adhering to security protocols.
This document discusses the introduction of a negative list for service tax in India through amendments made in the Finance Act of 2012. It provides background on the existing complex tax structure for goods and services in India. The key changes introduced include switching from a selective approach to taxing services to a negative list approach, where all services are taxable unless specifically exempted. A negative list of 17 services now exempted from tax is provided. The document discusses the rationale for introducing a negative list to simplify compliance and widen the tax base. It is estimated to potentially increase tax revenues substantially.
This document provides an overview of central excise law in India, including:
1. It defines manufacture and excisability under central excise law, outlining key concepts like actual substantive manufacture and deemed manufacture. Leading court cases that define manufacture are also discussed.
2. It covers the basic ingredients required for excisability - fact of manufacture, entry availability in the tariff, and marketability.
3. Key valuation concepts like transaction value, valuation rules, and exclusions/inclusions from value are explained. Special valuation situations like job work and MRP-based valuation are also covered.
4. Refunds and rebates under central excise law are briefly discussed.
VAT Basics provides an overview of VAT (Value Added Tax) in the UK, including: how VAT works and is calculated; the roles of Customs and the EU Directive; rates of VAT including standard, lower and zero rates; the treatment of inputs, outputs, invoices and returns; and non-business vs business supplies. It also outlines exemptions, responsibilities and the services of the local VAT & Taxation Advice Office for addressing any VAT questions.
The document discusses various definitions and concepts relating to service tax in India, including the definition of "service", exemptions, negative list of services, declared services, works contracts, renting, point of taxation rules, and place of provision of service rules. It analyzes issues and problem areas with the broad statutory definitions and how various activities may fall within or outside the scope of taxation. Key topics of discussion include taxable persons, works contracts valuation, demarcation with VAT, and taxation of assignments of actionable claims.
The document summarizes key information about service tax in India, including:
- Service tax was introduced in 1994 on three services: stockbroker brokerage, telephone services, and general insurance premiums.
- It is now applicable to over 100 taxable services and is levied by the central government under the Finance Act of 1994.
- The provider of a taxable service is generally responsible for paying the service tax, though in some cases the recipient is responsible under "reverse charge" rules.
- Registration is required if the aggregate value of taxable services provided exceeds Rs. 9 lacs annually.
This document summarizes key aspects of the Finance Bill 2012 in India. It discusses changes and amendments to direct taxes like income tax, indirect taxes including GST, service tax and customs duty. Some key points include retrospective amendments to tax indirect transfer of assets and software royalty payments, expansion of transfer pricing rules, introduction of GAAR and APA, increase in excise and customs duty rates, expansion of service tax ambit and exemptions.
CTD and ECTD provide harmonized structures for new drug applications to regulatory agencies in the US, EU, and Japan. The Common Technical Document (CTD) organizes information into five modules covering administrative data, summaries, quality, nonclinical studies, and clinical studies. The Electronic Common Technical Document (eCTD) is the electronic version with XML formatting. It allows for increased transparency, searchability, and review efficiency compared to the paper CTD. Both CTD and eCTD aim to streamline the drug approval process across different regions.
The document provides an overview of hospital pharmacy, including its definition, functions, objectives, location and layout, flow charts, personnel and space requirements, and the qualifications and responsibilities of hospital pharmacists. Some key points:
- Hospital pharmacy deals with procurement, storage, manufacturing, testing, packaging and distribution of drugs, and is concerned with education and research.
- Its functions include providing drug specifications, proper storage, manufacturing medications, dispensing prescriptions, managing stores, and establishing a drug information center.
- Objectives are to ensure availability of the right medication at the right time at minimum cost and to professionalize pharmaceutical services.
- Location is in the hospital premises for easy access, and layout
The document discusses different types of taxes on consumption and wealth. It describes retail sales taxes, value-added taxes, flat taxes, cash-flow taxes, and analyzes the efficiency and fairness of personal consumption taxes. It also discusses wealth taxes, which tax accumulated savings, and gift and estate taxes, which tax the transfer of wealth between generations.
The document discusses administrative issues related to introducing a value-added tax (VAT) in small countries and islands. It provides background on the global adoption of VAT, highlighting that over 120 countries have implemented it and it raises $18 billion or 25% of total tax revenues. The document then covers considerations for introducing VAT such as deciding on tax rates and thresholds, administrative structures, taxpayer education, registration procedures, filing and payments, and developing audit procedures. It emphasizes the importance of preparation, including establishing an implementation team, developing training and manuals, and testing IT systems, to help ensure a smooth transition to VAT.
This document discusses different brands and the effect of their advertisements, focusing on Vicks products. It outlines Vicks' top brands like Vaporub and cough drops, and their popular advertisements targeting emotions. The conclusion is that Vicks' advertisements have greatly increased sales of their products like Vaporub and cough drops by up to 130% over 3-5 years, though some products like Vicks inhaler have seen no effect of ads on constant sales.
The Universal Account Number (UAN) by EPFO centralizes multiple PF accounts, simplifying management for Indian employees. It streamlines PF transfers, withdrawals, and KYC updates, providing transparency and reducing employer dependency. Despite challenges like digital literacy and internet access, UAN is vital for financial empowerment and efficient provident fund management in today's digital age.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
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5 Tips for Creating Standard Financial ReportsEasyReports
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Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
New Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy VisaAmit Kakkar
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Unlock Your Potential with NCVT MIS.pptxcosmo-soil
The NCVT MIS Certificate, issued by the National Council for Vocational Training (NCVT), is a crucial credential for skill development in India. Recognized nationwide, it verifies vocational training across diverse trades, enhancing employment prospects, standardizing training quality, and promoting self-employment. This certification is integral to India's growing labor force, fostering skill development and economic growth.
Enhancing Asset Quality: Strategies for Financial Institutionsshruti1menon2
Ensuring robust asset quality is not just a mere aspect but a critical cornerstone for the stability and success of financial institutions worldwide. It serves as the bedrock upon which profitability is built and investor confidence is sustained. Therefore, in this presentation, we delve into a comprehensive exploration of strategies that can aid financial institutions in achieving and maintaining superior asset quality.
Enhancing Asset Quality: Strategies for Financial Institutions
Indirect Taxes – a review_Defence.ppt
1. Indirect Taxes – a review
Applicability of Duties / Taxes -
Excise Duty
Customs duty.
VAT / CST
Service tax
2. Indirect Taxes – a review
Excise duty is manufacture of goods.
Customs duty is paid on imported goods. Along with
customs duty, other duties like CVD, Addl. Duty are
also paid.
VAT is applicable for purchase and sale within a
state.
CST is applicable for inter state purchase and sale.
Service tax is applicable for services provided.
3. Indirect Taxes – a review
Modus operandi of each tax is different and every
Act is independent having its own peculiar
provisions.
The Customs Act, Excise and Service tax are within
the jurisdiction of Central Govt while VAT is regulated
by respective State Government.
These provisions are in the Constitution.- Union List
Though every state has its own VAT Act, the rates of
VAT have been tried to be kept at uniform level in
each state, barring a few items.
4. Indirect Taxes – a review
Excise duty is payable on Manufacture of
products.
If the activity does not amount to
manufacture, the same will not be covered
under Central Excise.
Duty payable on manufacture of products,
but collected at the time of clearance of
goods for the sake of convenience.
5. Indirect Taxes – a review
Excisable Event :
Goods must be marketable – being capable
of being brought to the market for being
bought and sold.
Goods must be movable. Immovable goods
are not excisable.
Mentioned in the Tariff.
Manufactured / produced in India.
6. Indirect Taxes – a review
Manufacture – Important concept
Definition of Manufacture – Sec. 2(f)
A)Manufacture includes process Incidental or
Ancillary to the completion of manufacture of
product.
Incidental means occassional or casual
process. Ancillary means important
processes without which manufacuture is not
complete.
7. Indirect Taxes – a review
B) Deemed manufacture – processes
defined in Central Excise Tariff as “amounting
to manufacture”. Eg. Labelling / relabelling of
containers from bulk packs to retail packs of
pan masala, yeast, soups, sauces etc.
(Chapter 21 – Note 4). Strictly these are not
manufacturing processes. However for the
purpose of the goods covered under this
chapter these processes are manufacture.
8. Indirect Taxes – a review
C) In respect of goods covered under the
Weights and Measures (Packed commodity
Rules) where the goods are covered under
Third Schedule of the Tariff and processes
like packing, repacking, labelling, relabelling,
putting MRP, changing MRP etc. are carried
out, the goods will be charged to duty on
MRP less abatement.
9. Indirect Taxes – a review
Assembly of CKD/SKD packs is not
manufacture.
Assembly of various parts and components
may amount to manufacture if new product
emerges.
Plant and Machinery assembled at site – If
emerges as Immovable property – not
excisable.
Fabrication of steel structure is exempt.
10. Indirect Taxes – a review
Repairs does not amount to manufacture.
However, various judgements are available
where it has been held that if the same
operations are carried out on the product, the
same is treated as manufacture.
11. Indirect Taxes – a review
Tariff contains list of all goods manufactured /
produced in India.
Based on HSN – Harmonised system of
Nomenclature – Internationally accepted format
suitably changed by respective countries.
The tariff contains – 20 sections and 96 chapters.
Sections divided into chapters and chapters in sub
chapters.
Tariff contains rates of duty applicable to goods
manufactured.
12. Indirect Taxes – a review
Similarly, the Customs Tariff contains 21 Sections
and 99 Chapters.
The Central Excise and Customs tariffs are identical
except certain items.
The Customs tariff gives the rates of customs duties
and other duties applicable for goods imported.
It also specifies exemptions to specified goods.
13. Indirect Taxes – a review
Along with manufacturers, the dealers are
also registered under the Excise Act if they
want to pass on the excise duty benefit.
This is useful for manufacturers availing set
off benefit (Cenvat Scheme)
The dealers do not pay the duty as they are
not manufacturers but only pass on the
proportionate duty credit.
14. Indirect Taxes – a review
First Stage Dealers and Second Stage
dealers are registered and allowed to pass
on cenvat benefit.
The Cenvat Scheme allows to claim the set
off of duty paid on raw material, capital goods
and it is adjusted against the liability of
finished goods.
Hence, if the final product is not dutiable, the
set off is not allowed.
15. Indirect Taxes – a review
In Defence, wherever manufacturing activity is done,
the excise duty is applicable. However, this is
exempt vide Notification No. 62/95, 63/95, 64/95,
74/93. The details of these exemption notifications
are as under :
Notfn. 62/95 – Exemption to goods manufactured in
Central Govt. factories – All goods produced in
Ordnance Factories, Arms and Ammunition falling
under Chapter 93 etc.
16. Indirect Taxes – a review
Notfn. 63/95 – goods manufactured by
specified units / institutions for use by Govt.
Departments or defence.
Covers goods manufactured by Hindustan
Aeronautics Ltd, Bharat Electricals Ltd,
Bharat Dynamics Ltd. BEML etc.
Notfn. 64/95 – Exemption to goods supplied
for defence and other specified purposes -
17. Indirect Taxes – a review
This covers – All goods donated for welfare
of defence personnel, donated to National
Defence Fund, All goods other than
cigarettes – if supplied as stores for
consumption on board a vessel of the Indian
Navy or Coastal Guard, Components, raw
material, tools etc. meant for launch vehicle
project etc.
18. Indirect Taxes – a review
Notfn. 74/93 – Exemption to goods
manufactured in a State Govt factory and
intended for use in any of its department –
Covers all goods under chapter 86 (Railway,
tramway etc.)
19. Indirect Taxes – a review
Since the final product is exempt, there is no
set off benefit available to defence.
Apart from manufacturing, the defence units
are also procuring the material from various
sources and supplying to their organisations
for consumption. In such cases, the goods
are duty paid and no set off is available.
20. Indirect Taxes – a review
The taxation depends upon one important
factor – from whom the goods are procured ?
A manufacturer, a dealer registered under
central excise or simply a dealer not
registered under central excise.
If the goods are purchased from a
manufacturer, he will charge excise duty over
the basic price.
21. Indirect Taxes – a review
If the goods are procured from a dealer
registered under central excise, he will pass
on proportionate credit. However, this is a
cost to Defence.
If the goods are procured from a
manufacturer working under SSI benefit, the
taxation will depend upon whether he is
paying full tax or claiming exemption.
22. Indirect Taxes – a review
In Central Excise, the SSI units are those
who have achieved their turnover less than
4 crores during the preceding year.
If this condition is fulfilled, the SSI unit has
two options –
a) To claim exemption upto Rs. 1.50 crores
turnover and pay full duty onwards. Or
b) Claim Cenvat benefit and pay full duty from
Re.1 sale.
23. Indirect Taxes – a review
The above provisions will definitely make a
difference on cost of material procured from
different sources.
The Customs duty is paid if the goods are
imported. Calculation of Duties is very
important. CVD, Additional duty are also
added and all this becomes a cost because
no set off is available.
24. Indirect Taxes – a review
If the Government has issued specific
notification, the goods will be exempt under
Excise / Customs.
25. Indirect Taxes – a review
Similar to Excise Tariff, there is Customs
Tariff which determines the rates of customs
duty applicable for various products
imported.
If Defence is purchasing the goods from a
dealer, he will recover the duties and taxes
paid by him from defence. It is a cost to
defence.
26. Indirect Taxes – a review
Taxation with reference to Defence :
All goods are inclusive of all taxes, duties.
No set off benefit available.
If taxes are not charged, the reasons should
be analysed. The supplier may charge duty
subsequently. In such cases, the supplier
should not be compensated subsequently.
The comparison should be with all inclusive
taxes.
27. Indirect Taxes – a review
Service tax –
Service tax is levied on services provided.
About 125 services are taxable.
Major services are – Repairs and
maintenance, Telephone, Consultants, Works
Contract, General Insurance, Banking and
Financial services etc.
28. Indirect Taxes – a review
Service tax paid – Cenvat credit is available
as set off.
The set off is available only after payment of
services.
Service tax is also applicable for Government
organisations.
Service tax on Goods Transport Agencies –
The liability is on Govt. organisations.
29. Indirect Taxes – a review
Service tax on Information Technology services – In
the budget for 2008, services relating to IT Software
such as development, designing, programming,
upgradation, providing advice etc. were brought
under service tax. However, it was limited to IT
softwares used in the course of business or
commerce. However, in the budget for 2010, this has
been extended to all cases whether for business or
not. Hence, the softwares are chargeable to service
tax on the total value of service.
30. Indirect Taxes – a review
Works Contract –
Works Contract is chargeable under Service tax and
under VAT.
Works Contract means a contract wherein transfer of
property in goods involved in the execution of
contract is leviable as sale of goods and such
contract is for carrying out erection, commissioning,
installation of plant, machinery, construction of new
building, repairs, alteration etc.
31. Indirect Taxes – a review
The Works Contract is a composite contract
for supply of goods and services. A
Composite works contract is vivisected and
(i) VAT / sales tax is leviable on transfer of
property and (ii) service tax is levied on
services provided.
The essential part is that the contractor
should be able to bifurcate the contract in
two parts – material and service.
32. Indirect Taxes – a review
The contractor is liable to pay service tax as –
Pay full service tax @ 10.30% on the gross amount
charged less value of transfer of property in goods
involved. He is allowed to claim set off on inputs,
input services and capital goods, Alternatively
Pay service tax @ 4.12% on the total value. No set
off is allowed on inputs. Set off is allowed on input
services and capital goods used. (Composite
Scheme)
33. Indirect Taxes – a review
The value will include – labour charges,
amount paid to sub-contractor, charges for
planning, designing etc., charges for
obtaining hire purchase, cost of consumables
viz. water, electricity, fuel used in execution
of works contract, cost of establishment,
profit earned by service provider relating to
supply of labour and services.
34. Indirect Taxes – a review
VAT is charged as per the state VAT Act.
Whenever the sale of goods is within the
state, state VAT is charged as per prescribed
rate. Set off is available to the dealer /
manufacturer of such VAT which is adjusted
against the liability. Similar to Cenvat
Scheme.
When the sale of goods is outside the state,
CST @ 2% is charged. This is not allowed
35. Indirect Taxes – a review
as set off to the buyer. It is a cost to the buyer.
C Form – The buyer can procure the goods
at concessional rate in respect of inter state
transactions. Not allowed for defence as
there is no sale of goods.
D form – For Govt. purchases. Not allowed
after 1.4.2007.
36. Indirect Taxes – a review
Works Contract under VAT –
Where a dealer is liable to pay tax on sales effected
by way of transfer of property in goods involved in
execution of works contract, he is liable to pay lump
sum by way of composition –
- Equal to 5% of the total contract value in case of
construction contracts and
- Equal to 8% in other contracts.
37. Indirect Taxes – a review
Octroi – It is levied on material received within the
Corporation limits. It is mandatory for all material.
The rates vary from Corporation to Corporation.
PMC Rates –
- 3% on all machinery parts and castings.
- 2% on stationery, diesel.
- 4% on oils.
- Exempted for material purchased for social activities
as per notified list.
38. Indirect Taxes – a review
Corporation can grant exemption to material
purchased by Defence. An application to the
authorities be made and the facts should be
explained to the authorities. The Corporation
will grant exemption and this certificate can
be given to the supplier and no octroi will be
charged when the material is received within
corporation limits.