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Suvidha Digest
A One Stop Consultancy House

May 2014
          Issue VII

Indirect Tax:
Refund Of Service Tax
Mitigation or Discrimination
under Rule 5B of Cenvat
Credit Rules of Service Tax

Direct Tax:
Elucidating the Unexplained
Subsidy :
A Brief of Venture Capital
Assistance Scheme
Lifting of Moratorium By MoEF

Our Gamut of Services:

•  Indirect Tax
•  Direct Tax
•  Financial Consultancy
(Central/ State
Governments Subsidy &
•  Project Consultancy &
Loan Syndication
•  Empanelled Valuer ( with
various banks/ FI’s)
•  Placement
•  Insurance
•  Mutual Funds
•  Advisory
•  Broking
•  Depository
•  Valuation Real Estate


In case a Service provider has made an excess payment to the Central Government in respect of Service Tax than what is actually required to be paid, then the assessee can avail any of the following options:
  • Self Adjustment of excess service tax paid against the future liability of the assessee.
  • Claim service tax refund.
In this issue of Suvidha Digest, we will discuss about
  • The various rules and notifications in which Service Tax refund can be claimed.
  • Assessee who can claim the refund
  • The list of documents required for filing those refunds.

more >

•  Mitigation or Discrimination under Rule 5B of Cenvat Credit Rules of Service Tax

Service Tax is generally paid by the Service Provider, but in a few cases the government finds it easier to collect the tax, either partially or fully, from the Service Receiver. Therefore clause (2) of Section 68 was amended w.e.f 1st July 2012 which provided that in certain Services, tax will be paid partially by the service provider and partially by the receiver. This amendment gave rise to another problem being that of the unutilized credit in the hands of the Service Provider due to the Partial Reverse Charge. Therefore at the time of introducing partial reverse charge the Central Government had also introduced Rule 5B under CENVAT Credit Rules, 2002 which provides for the refund of CENVAT credit to service providers who provide services taxed on reverse charge basis.

The Government vide Notification 12/2014-CE (NT) dated 3.3.2014 has laid down the procedures, safeguards, conditions and limitations for the refund of CENVAT credit.

more >

•  Elucidating the Unexplained

Section 115BBE as inserted via Finance Act 2012 (hereinafter referred to as Act) aims to confront the public discourse on the issue of corruption and black money. This section applies to incomes referred to in sections 68 to 69D of the Act and is designed to impose greater tax burden on the assessees who fail to explain the "nature and source" of their income, investments, expenses, etc.

Prior to amendment, certain unexplained items such as cash credits, investment, expenditure etc. were deemed as income under Sections 68, 69, 69A, 69B, 69C and 69D of the Act and were subject to tax as per the tax rate applicable to the assessee. In case of individuals, HUF, etc., no tax is levied up to the basis exemption limit. Therefore, in such cases, no tax was levied up to the basic exemption limit and even if it was taxable, it could be levied at the slab rate.

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•  A Brief of VENTURE CAPITAL ASSISTANCE SCHEME For    Agribusiness Development

Provided by Small Farmers’ Agribusiness Consortium (SFAC).

The SFAC, an agency of Govt. of India, has brought a venture capital assistance scheme for agribusiness development.

  • To facilitate setting up of agribusiness ventures in close association with banks mentioned below, preferably near the farm gate.
  • To catalyze private investment in agribusiness projects and thereby providing assured market to producers for increasing rural income and employment.
  • To strengthen backward linkages of agribusiness projects with producers.
  • To assist farmers, producer groups, and agriculture graduates to enhance their participation in the value chain through Project Development Facility.
  • To augment and strengthen present set up of Central and State SFAC.

more >

•   Lifting of Moratorium By MoEF

Lifting of moratorium by MoEF, Government Of India, on environmental clearance of Industrial Projects in the Industrial belts / Cluster Zones of Asonsal, Howrah & Haldia, West Bengal

Vide office Memo No. J-11013/5/2010-IA.II (1) date 17.09.2013, The Ministry of Environment and Forest (MoEF), Government of India, has recently lifted the Moratorium, earlier enforced by it declaring as critically polluted areas, on environmental clearance of industrial project proposed to be located in the industrial cluster zones / belts of Asansol, Howrah and Haldia on the basis of CEPI score monitored by Central Pollution Control Board (CPCB).

more >

Indirect Tax: Direct Tax: Project Consultancy & Loan Syndication Empanelled valuer, Subsidy/Incentives Recruitment Solutions
Shilpi Bajoria
R.B Mandal
Sourav Gupta
9830016263 / 9836599200
Sunil Bhoruka (Projects) - - 9830158714
Dindayal Jajodia (Subsidy) - 9830550018
Mr. Sandeep Agarwal
9339144910 / 033 22150852/53
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