News Update

IT Sector urges FM to lower GST on telecom services to 12%NIC CERT launched to predict cyber attacksConnectivity with ASEAN is India's priority: GovtTreading GST Path - XXXIX - Tribunal at crossroadsST - Denial of CENVAT credit on ground of failure to deposit tax by service provider is not correct in equity when there is no express condition to that effect in CCR, 2004: CESTATI-T - Reopening of concluded assessment by invoking provision of section 147 will not fall under ambit of change of opinion where AO formed an opinion contrary to binding decision of Apex Court: ITATCus - A court is expected to make an overall assessment of fact situation and test same on touchstone of law to reach to its conclusion: CESTATVice President calls for ranking of legislatures & notifying disruptors on daily basisOnline exam portal of IAF launchedPre-Budget Meet - Economists ask FM to lower MAT & spell out roadmap for tax reformsNadda launches Operational Guidelines for HDUs & ICUsRahul Gandhi formally elected unopposed Congress President; PM congratulates him on his elevationCBDT Task Force for reviewing Income Tax Law to hold its first meeting on Dec 14, 2017NCLT Favoring takeover of Unitech Management- Apex court to hear case tomorrowRyan Row- SC Declines to repose trust in trustees in bail applicationReal Estate- ITC a double edged sword under GSTI-T - Assessees cannot avail Post decisional hearing if their case is transferred u/s 127 to some other I-T Officer located in same city: HCST - Service of taking repossession of vehicle from borrower is a part of 'security' service which is specifically included in definition of input service: CESTATCX - Tribunal, not being court of equity, it is difficult to entertain prayer of appellant for grant of interest from date of deposit made in accordance with HC order: CESTATWTO Meet in Buenos Aires - India hopeful of support on food security issueOver 15 mn girls aged between 15 to 19 experienced forced sex: UNICEF
 
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)

 RECENT DISCUSSION(S) POST YOUR COMMENTS
   
 
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
 
Shemaleup.net x-comics.org vr-porn360.net