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GST - Govt notifies fresh tax rates for GTA + renting of motor cab + jobwork of printing of newspapers & journals + composite supply of works contract to Govt agencies + exempts services provided by and to FIFA + services by Fair Price Shop + Crop Insurance Schemes + LLP to be construed as Partnership firm + services of plumbing & house-keeping through e-commerce platforms liable to registrationNITI Aayog To Launch 'Mentor India' CampaignFM reviews macro economic stability of economyMoS, PMO calls for 'Make in India' health moduleI-T - Whether Explanation to Sec 37(1) gets attracted even if there is no specific material to suggest participation of assessee in alleged kickbacks - NO: HCTreading the GST Path XXX What is "cab"?Apex Court rules Triple Talaq is unconstitutionalTrump warns Pakistan against providing shelter to terror groupsITC claim on Railway Receipt in lieu of Tax InvoiceComposite and mixed supply under GST - Golmaal ReturnsHM launches Digital Police Portal; FIRs can now be filed online in 34 States & UTsI-T - Contributions to provident fund not recognized as valid deduction u/s 80C(2)(vi), is deemed as short-deductions u/s 192 and hence taxable as 'Income from other sources' : ITATIndia's exclusive rights to explore polymetallic nodules from seabed extendedCX - Being busy with procedural requirement under GST is no ground to grant adjournment: CESTATChennai Airport Customs seizes gold worth Rs 4.6 Crore; One person arrestedGovt appoints CISF ADG Dharmendra Kumar as DG of Railway Protection ForceGlobal Forum releases compliance ratings for 10 tax jurisdictions (See 'Brief' in 'TII')PM for soil testing by hand-held devices; calls for involving startupsST - Warehouses are specifically covered under term Railways and they need not necessarily belong to railways - no tax liability on construction of warehouse for CWC in railway premises: CESTATTourism earns about Rs 15000 Cr in July monthPM congratulates OPS being sworn as TN Dy CM; to be Finance Minister alsoI-T - Whether even if assessee returns no exempt income in a particular AY, disallowance of certain expenditure incurred to earn such exempt income is warranted u/s 14 rw Rule 8D - NO: HCImport policy of Urad / Moong dal is revised from 'free' to ‘restricted’CX - When Tribunal decides that goods are exempted under notf. 50/2003, it would have direct impact on rate of duty, therefore, appeal would lie before SC: HCI-T - Remuneration paid to Artist for loss of business occasioned by virtue of non-compete agreement, is revenue receipt, if she is allowed to work elsewhere subject to payment of 5% of her earnings: HCPower Minister calls for 3Ds approach - De-carbonisation, decentralisation & digitalisationMAT Report - CBDT notifies New Form 29B with exhaustive AnnexureWhether the Government has allowed Tax payable under reverse charge to be paid through ITC? (See 'TOG Insight' in Taxongo.com)Domestic Airlines carried 657 lakhs pax between Jan to July, 2017 - A growth of 17% in trafficInter-state supply-who is liable to pay IGST?Rosneft, Russian energy giant, wraps up deal to buy 49% stake in Essar OilStreet Lighting Scheme illuminates 50,000 km of roadsI-T - Whether if a conditional grant comes from abroad, a foreign country is to be construed as a person or authority as per Explanation 10 to Section 43(1) - NO: ITAT
 
Beneficial provisions related to job work in Budget 2016

MARCH 05, 2016

By Pratik Shah CA, Lucky Ahuja, CA & Anurag Hans, CA

AS a part of Government's ambitious initiative 'Ease of doing business in India', certain procedural reforms have been introduced for job-work process vide notification no. 13/2016-CE, with effect from 01 st day of April, 2016 which are as follows.

Extended Permission for goods sent out for job-work

As per the provisions of sub-rule 6 of rule 4 of CENVAT Credit Rules, 2004, a manufacturer, desirous of sending inputs or partially processed inputs outside its factory for the purpose of job-work, is required to obtain permission from jurisdictional Deputy/Assistant Commissioner, which is valid for a financial year .

Now, validity of permission has been extended to three financial years with effect from April 01st, 2016 to done away with the hassles of frequent renewals.

Inclusion of 'Tools for CENVAT Credit, sent to job-worker  

A manufacturer, sending out jigs, fixtures, moulds and dies for the purpose of further manufacturing according to his specifications to another manufacturer; or a job worker, is allowed to take CENVAT credit as per clause (b) of sub-rule 5 of rule 4 of CENVAT credit Rules, 2004. However, no such credit was available for Tools.

With effect from April 01 st 2016, tools falling under Chapter 82 sent to another manufacturer/job-worker for the production of the goods would also be eligible for CENVAT Credit besides jigs, fixtures, moulds, and dies.

CENVAT Credit distribution by Input Service Distributor (ISD) to Job-worker

With effect from 01st April 2016, Input Service Distributor can distribute the input service credit to an outsourced manufacturing unit which is defined to mean either a job-worker or a manufacturer who manufactures goods for the Input Service Distributor under a contract and are required to pay duty on specified value as per Central Excise Act and rules made thereunder.

Earlier ISD could distribute credit of input services only to its manufacturing units or units providing output services. Rule 7 of the CENVAT Credit Rules, 2004 has been suitably substituted with the new rule to accommodate these changes.

With these procedural, yet important changes, Government's intention and thrust to bring the necessary reforms and provide the conducive environment for growth of business is quite visible. These little changes should certainly be seen as an attempt by the government to restore the faith and confidence of the business community.  

(The authors are from SKP Business Consulting LLP.)

(DISCLAIMER : The views expressed are strictly of the author and Taxindiaonline.com doesn't necessarily subscribe to the same. Taxindiaonline.com Pvt. Ltd. is not responsible or liable for any loss or damage caused to anyone due to any interpretation, error, omission in the articles being hosted on the sites)

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Sub: Job work permission not reuired

The permission is required only in case where the finished goods manufactured on job work basis are to be cleared from factory of the job worker without bringing back to factory of the supplier. No permission is required to be obtained for sending inputs for processing and return. Please correct the article which is misleading.

Posted by suresh hanamshet