1. SERVICE TAX mail@swamyassociates.com www.swamyassociates.com

2. Basic Features  Statutory provisions.  Levy on service provider - Exceptions.  Levy on realisation. mail@swamyassociates.com www.swamyassociates.com

3. Classification of Service  Specific description than general description.  Essential character.  Which occurs first in the definition. mail@swamyassociates.com www.swamyassociates.com

4. Valuation…  Gross amount.  Cum - tax.  Abatements.  Notification 12/2003. mail@swamyassociates.com www.swamyassociates.com

5. Valuation…  Services rendered free.  Consideration in kind.  Reimbursement of expenses. Upto 18.04.2006 – No liability. Judgements and circulars. From 19.04.2006 – Concept of pure agent. Malabar Management Services VS CCE 2008(9) STR 483 mail@swamyassociates.com www.swamyassociates.com

6. Proceedings in Service Tax  Issue of show cause notice.  Adjudication.  Appellate remedies. Commissioner (Appeals) CESTAT High Court / Supreme Court mail@swamyassociates.com www.swamyassociates.com

7. Procedures in Service Tax…  Registration – Centralised Registration.  Issue of invoice.  Maintenance of records. mail@swamyassociates.com www.swamyassociates.com

8.  Payment of service tax. - Due date. - Advance payment. - e payment. - Self adjustment – if service not rendered. - Provisional payment. - Self adjustment of excess payments. Procedures in Service Tax.  Filing of return – ST 3. - Due date / Half yearly. - Revised return. - Fine for delayed return. mail@swamyassociates.com www.swamyassociates.com

9. Penalties in Service Tax.  Sec. 76 – Delayed payment of S.Tax.  Sec. 77 – General Penalty.  Sec. 78 – Suppression, etc.  Rule 7 C – Fine for delayed return.  Sec. 80 – Power of waiver. mail@swamyassociates.com www.swamyassociates.com

10. Certain important services. mail@swamyassociates.com www.swamyassociates.com

11. Business Auxiliary Service.  Promotional activities.  Customer care services.  Procurement of goods or services.  Production or processing.  Provision of service on behalf of client.  Manufacture – excluded.  Notification 8/2005. mail@swamyassociates.com www.swamyassociates.com

12. Commercial / Industrial construction Service.  Exclusion for roads, airports, railways transport terminals, bridges, tunnels, dams and ports.  67 % Abatement. mail@swamyassociates.com www.swamyassociates.com

13. Construction of Residential Complex Service.  More than 12 units..  Personal use - exempted. mail@swamyassociates.com www.swamyassociates.com

14. Consulting Engineering Service.  Foreign Technological transfers. Novinon Ltd. VS CCE 2006 (3) STR 397  To cover software too. Customs House Agents Service. mail@swamyassociates.com www.swamyassociates.com

15. Erection, Commissioning and Installation Service. Franchise Service. mail@swamyassociates.com www.swamyassociates.com

16. Intellectual Property Service. Management Consultant Service. Manpower recruitment / Supply agencies. mail@swamyassociates.com www.swamyassociates.com

17. Goods Transport Agency Service.  Reverse Charge.  Abatement.  Exemption.  Payment mode.  No SSI exemption. mail@swamyassociates.com www.swamyassociates.com

18. Renting of immovable property. Support Services for business. mail@swamyassociates.com www.swamyassociates.com

19. Works Contract Service.  Re-classification.  Composition Scheme.  Vice of Notification 1/2006.  Diebold Systems (P) Ltd Vs CCE 2008 (9) STR 546. Air Liquide Engg. India (P) Ltd. Vs CCE 2008 (9) STR 486. mail@swamyassociates.com www.swamyassociates.com

20. Sale Vs Service. S.NoCitationDecision 1BSNL Vs UOI – 2006 (2) STR 161 SC It has been held that the sale value of goods shall not be subjected to the levy of service tax. 2Idea Mobile Communications Limited VS CCE – 206 (4) STR 132 Tri – Bang Levy of sales tax and service tax are constitutionally mutually exclusive. 3BPL Mobile Communications Limited VS CCE – 2007 (7) STR 440 Sale of SIM cards is sale and sales tax is paid. Hence service tax is not payable. 4Imagic Creative (P) Limited Vs CCE – 2008 (9) STR 337 SC Service tax and VAT are mutually exclusive. 5Thermax Limited Vs CCE – 2007 (8) STR 487 Service tax not leviable when sales tax is paid. mail@swamyassociates.com www.swamyassociates.com

21. Small Scale exemption.  Threshold limit.  Conditions. mail@swamyassociates.com www.swamyassociates.com

22. Commercial Concern Vs Any person. mail@swamyassociates.com www.swamyassociates.com

23. Export of Service and Import of Service. mail@swamyassociates.com www.swamyassociates.com

24. CENTRAL EXCISE by g. natarajan advocate & cost accountant CENTRAL EXCISE AND CENVAT mail@swamyassociates.com www.swamyassociates.com

25. MANUFACTURE  Section 2 (f)  Deemed manufacture.  Third schedule. mail@swamyassociates.com www.swamyassociates.com

26. VALUATION Section 4 – Transaction Value mail@swamyassociates.com www.swamyassociates.com

27. SECTION 4 & Valuation Rules  Rule 4 - Comparable goods.  Rule 5 - Freight and Insurance.  Rule 6 - Additional consideration.  Rule 7 - Depot clearance.  Rule 8 - Captive consumption.  Rule 9 - Related person.  Rule 10 - Interconnected undertaking.  Rule 10A – Jobwork.  Rule 11 - Best judgement mail@swamyassociates.com www.swamyassociates.com

28. SECTION 4 A  Weights and Measures.  OE Exemption.  Different MRP. mail@swamyassociates.com www.swamyassociates.com

29. EXPORTS  Exports without payment of duty.  Exports under claim for rebate.  Protection of Cenvat Credit. mail@swamyassociates.com www.swamyassociates.com

30. APPELLATE / OTHER REMEDIES  Commissioner (Appeals).  CESTAT.  Settlement Commission.  Pre deposit. mail@swamyassociates.com www.swamyassociates.com

31. PENAL MEASURES  Various penalties.  Provisional attachment of property.  Prosecution. mail@swamyassociates.com www.swamyassociates.com

32. Basic Features  Concept of Cenvat credit.  Landmarks – 1986, 1994 & 2004.  Cenvat Credit Rules, 2004. mail@swamyassociates.com www.swamyassociates.com

33. Applicability  Manufacturers.  Service providers. mail@swamyassociates.com www.swamyassociates.com

34. Certain terms.  Input.  Capital goods.  Input Services.  Input Service Distributor.  First / Second stage dealer. mail@swamyassociates.com www.swamyassociates.com

35. Cenvatable duties / taxes  Basic Excise Duty.  CVD.  NCCD.  Education CESS.  Addl. Duty of Customs – Sec. 3(5).  Service Tax and CESS thereon. mail@swamyassociates.com www.swamyassociates.com

36. Utilisation and Restrictions on utilisation  Payment of Excise duty.  Payment of Service tax.  Other payments.  Cross utilisation. mail@swamyassociates.com www.swamyassociates.com

37. Other conditions.  Removal of inputs / capital goods - the story “as such”.  Capital goods – 50 % restriction.  No to “having the cake and eating it too” - Depreciation / Cenvat Credit. mail@swamyassociates.com www.swamyassociates.com

38. Other conditions.  Removal for job work.  Write off.  Service Tax Credit - Pay and use.  Documents for availing credit. mail@swamyassociates.com www.swamyassociates.com

39. Rule 6 Algebra.  Position upto 31.03.2008.  Position from 01.04.2008. mail@swamyassociates.com www.swamyassociates.com

40. Rule 6.  Protection to certain clearances.  Protected Services.  Chandrapur Magnet Wires (P) Ltd Vs CCE. 1996 (81) ELT 3 SC - Recent developments. mail@swamyassociates.com www.swamyassociates.com

41. Certain common disputes…  Credit for mobile phone. India Rayon Industries Ltd. Vs CCE 2006 (4) STR 79.  Credit for outdoor catering. Victor Gaskets India Ltd Vs CCE 2008 – TIOL – 409. mail@swamyassociates.com www.swamyassociates.com

42. Certain common disputes…  Credit for outward transportation. - Gujarat Ambuja Cements Ltd. Vs CCE. 2007 (6) STR 249. - India Cements Limited Vs CCE 2007 (8) STR 43. - Master Circular and recent amendments. mail@swamyassociates.com www.swamyassociates.com

43. CUSTOMS

44. mail@swamyassociates.com www.swamyassociates.com Role of customs Collection of import & export duties enforcement of customs act enforcing prohibitions/restrictions prevention of smuggling

45. mail@swamyassociates.com www.swamyassociates.com Imports IGM (by shipping lines) cargo declaration Bill of Entry assessment duty Payment

46. mail@swamyassociates.com www.swamyassociates.com Exports Shipping bill, Invoice, ARE# assessment duty Payment (if any) EGM (by shipping lines)

47. mail@swamyassociates.com www.swamyassociates.com Customs Valuation Rules, 2007 The Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 - Notfn. No. 94/2007-Cus(NT) dated 13-9-07 The Customs Valuation (Determination of Value of Exported Goods) Rules, 2007 - Notfn. No. 95/2007-Cus(NT) dated 13-9-07

48. mail@swamyassociates.com www.swamyassociates.com Value of imported goods transaction value – Section 14 (1) of CA, 1962 deductive value – Rule 7 computed value – Rule 8 residual method – Rule 9 similar goods / identical goods related person provisionally assessed value is not transaction value.

49. mail@swamyassociates.com www.swamyassociates.com Value of exported goods transaction value – Section 14 (1) of CA, 1962 computed value – Rule 5 residual method – Rule 6

50. mail@swamyassociates.com www.swamyassociates.com refunds claim to be filed within six months. one year for some persons. no time limit for duty / interest paid under protest unjust enrichment

51. mail@swamyassociates.com www.swamyassociates.com RE-IMPORT OF EXPORTED GOODS indigenously manufactured 1. cancellation of export order 2. return from overseas exhibition 3. completion of overseas contract imported 1. sent abroad for repairs 2. for special processes UNLESS a specific exemption is issued, import duties are leviable – Section 12 of CA, 1962.

52. mail@swamyassociates.com www.swamyassociates.com RE-EXPORT OF IMPORTED GOODS 98% of Customs duties drawback within 2 years from the date of import

53. mail@swamyassociates.com www.swamyassociates.com Export promotion schemes

54. mail@swamyassociates.com www.swamyassociates.com duty drawback all india industry rate brand rate simplified scheme

55. mail@swamyassociates.com www.swamyassociates.com Advance licence actual user condition physical exports intermediate supplies deemed exports invalidation export obligation

56. mail@swamyassociates.com www.swamyassociates.com Other export promotion schemes DFRC DEPB EPCG

57. mail@swamyassociates.com www.swamyassociates.com export oriented units customs bonded ware house duty free imports B-17 bond procurement of indigenous goods – CT-3 procedure DTA sale - valuation – section 3 of CA, 1962.

58. mail@swamyassociates.com www.swamyassociates.com export oriented units sale of surplus / un-utilised goods clearance under ARO/inland letter/DFRC sub-contracting inter-unit transfer de-bonding

59. SPECIAL ECONOMIC ZONES mail@swamyassociates.com www.swamyassociates.com

60. Basic Features  duty free imports  indigenous procurement  sub-contracting  DTA clearances  Exports mail@swamyassociates.com www.swamyassociates.com

61. duty free imports of goods and services  exempt from customs duties – customs act.  exempt from service tax – finance act, 04  securities transaction tax – finance act, 04  exempt from most cesses. mail@swamyassociates.com www.swamyassociates.com

62. Indigenous procurement  exempt from excise duty (from 11-5-2004), service tax and most Cesses.  DTA supplier’s benefit – export entitlements  Cenvat credit on materials used in goods supplied to SEZ units. (Rule 6(6) of CCR) mail@swamyassociates.com www.swamyassociates.com

63. Sub-contracting – Rules 41 to 44 of SEZ rules can under take job-work of DTA units (for exports only) trading units not allowed SEZ developer/Co-developer/contractor– may subcontract a process into DTA permission of DC/AC Customs required.

64. mail@swamyassociates.com www.swamyassociates.com DTA Clearance– Section 30 of SEZ Act.  to be cleared on payment of customs duties as if imported.  valuation as per CV(DoPoI)R,88  quantity or value - no limit on sale

65. mail@swamyassociates.com www.swamyassociates.com exports  direct exports  through third parties

66. mail@swamyassociates.com www.swamyassociates.com 39/2001-CE dated 31-7-2001 Exemption to excisable goods manufactured in Kutchh (Gujarat)

67. mail@swamyassociates.com www.swamyassociates.com  applicable to new industrial units  commercial production before 31- 12-2005  not applicable to SSI units  exceptions

68. mail@swamyassociates.com www.swamyassociates.com  pay excise duty through cenvat credit account  after exhausting cenvat account, pay through PLA (cash)  take re-credit of PLA amount on 15 th of next month.

69. mail@swamyassociates.com www.swamyassociates.com 1 st amendment – 42/2001-CE dated 21-9-2001 Original value of plant & machinery to be as certified by CA (under head fixed assets)

70. mail@swamyassociates.com www.swamyassociates.com 2nd amendment - 5/2003-CE dated 13-2-2003 ‘refund shall not exceed the amount of duty paid LESS the amount of cenvat credit availed of, used in relation to the manufacture of goods’.

71. mail@swamyassociates.com www.swamyassociates.com 3 rd amendment - 16/2003-CE dated 1-3-2003 ‘refund shall not exceed the amount of duty paid LESS the amount of cenvat credit availed of, used in relation to the manufacture of goods’.

72. mail@swamyassociates.com www.swamyassociates.com 4th amendment - 65/2003-CE dated 6-8-2003 ‘para 1A (i) to (iii), para 2A (a) to g, inserted’

73. mail@swamyassociates.com www.swamyassociates.com 5 th amendment - 16/2008-CE dated 27-3-2008 new words replaces old words – “to the duty payable on the value addition undertaken in the manufacture of the said goods by the said unit.”

74. mail@swamyassociates.com www.swamyassociates.com rebate of excise duty on exports  682/73/2002-CX dated 19-12-2002 – refund of duty paid in cash.  842/19/2006-CX dated 8-12-2006 – contents of circular dated 19-12-2002 applies to kutchh also.  209/11/2005-CX-6 dated 8-12-2006 – rebate on goods manufactured in kutchh.

75. mail@swamyassociates.com www.swamyassociates.com  209/11/2005-CX-6 dated 3-4-2007 – clarification to board’s instruction dated 8-12-2006  37/2007-CE(NT) dated 17-9-2007 – bans rebate on export for units availing benefits of 39/2001.  209/11/2005-CX-6 dated 13-10-2007 – board’clarifies – export after 17-9-2007 may be done only under bond. rebate of excise duty on export

76. mail@swamyassociates.com www.swamyassociates.com  Rule 18 of CER, 2001 amended - Rebate allowed from 1-7-2001 to 28-2-2002 – Fifth schedule of Finance Bill enacted on 10-5-2008  Rule 18 of CER, 2002 amended - Rebate allowed from 1-3-2002 upto 7-12-2006 – Sixth schedule of Finance Bill enacted on 10-5-2008 rebate of excise duty on export

77. mail@swamyassociates.com www.swamyassociates.com thanks … ASK SA: Chennai - #21, rams flats, ashoka avenue, directors colony, Kodambakkam, chennai – 600024 : tel: 044-24811147 Ahmedabad - #B-8, satya triveni tower, opp. karnavati club, s.g. highway, ahmedabad – 380052 : tel/fax: 079-26920291 Bengaluru - # G-8, Fortuna Icon Apartments, Jodidar Ashwathappa Farm, Saharkaranagar, bengaluru – 560092 : tel/fax: 080-41303434 Coimbatore - #402, presidium woods vale, no. 1, bharathi Park 1st cross, sai baba colony, coimbatore-641043 : tel/fax: 0422-4378622 Hyderabad - #307, block B, sri sai land mark, street no. 8, habshiguda, hyderabad – 500007 : tel/fax: 040-65526879 Rajkot - #401, shukan flats, limbudiwadi, b/h neptune towers, kalawad road, rajkot – 360007 : tel/fax: 0281-2451547