« Top Headlines » Open DEMAT Account in 24 hrs  Good news for taxpayers: ITR forms updated to allow 87A tax rebate claims, but there's a catch  Top 10 income tax changes from 2024 to look out for while filing ITR in 2025  15 income tax rule changes in 2024 that will impact your ITR filing in 2025   How to check income tax return (ITR) status  Income tax rules: How much cash can you receive in one day to avoid an I-T notice? «  Corporates line up service tax payments... Service tax on international roaming?... » Assocham for new set of Cenvat credit rules October, 03rd 2006 Chamber also seeks clarification on some provisions -------------------------------------------------------------------------------- The chamber has pointed out that confusion arises mostly in respect of availing Cenvat Credit on input services. -------------------------------------------------------------------------------- To take care of practical aspects of business across the country, the Associated Chambers of Commerce and Industry (Assocham) has suggested that the existing Cenvat Credit Rules 2004 should be replaced with new set of rules. In a representation submitted to the Finance Minister, Mr P. Chidambaram, the chamber has also sought clarification on some provisions of the Cenvat credit rules. Clarification The clarifications sought include those on service tax paid by a manufacturer on the transportation of final product from the place of removal and availability of Cenvat Credit of service tax paid on mobile phones. The chamber has also sought clarifications on service tax payable on various input services by a person or company which is engaged in trading and also manufacturing activities. Input services The chamber has pointed out that confusion arises mostly in respect of availing Cenvat Credit on input services. As is known, services are totally different from goods and it is not possible to apply the same law and logic, which is available to Cenvat Credit on inputs (Excise). Further, under the present law, no distinction has been made for availing and using Cenvat Credit in excise duty and service tax, the Chamber has said. In other words, same set of rules is applicable to service providers and manufacturers. Further, the present law has also not recognised the fact that the same person may be a provider of taxable and non-taxable services as well as manufacturer of dutiable and non-dutiable goods. The Chamber has, therefore, urged the Finance Minister to look in to the issue and come out with separate rules for service providers and manufacturers.