In the new regime which taxes all services, except those that are in the negative list, are artists exempted? I do bit roles in films (we are called extras) and television. As an artist, am I required to charge service tax?
The activities performed by a performing artist in folk or classical art forms of music, dance or theatre are not subjected to service tax. All other activities by artist in other art forms e.g. magic shows, mimicry, western music or dance, modern theatres, performance of actors in films or television serials would be taxable. Services provided by such an artist as brand ambassador is also taxable. This point is covered in Para 6.9.1 of the Draft Guidance Paper released by the Central Board of Excise and Customs (CBEC).
Our supplier in China has sent us wrong goods that are not as per sample. The bill of entry has been filed. Can we re-export the goods back to the supplier?
You have not mentioned whether the supplier is willing to take back the goods, whether you have paid for the goods, whether the bill of entry is assessed or whether the duty has been paid. Anyway, if the customs have assessed the goods and you have cleared the goods on duty payment, you may obtain GR waiver from bank and re-export the goods, filing the shipping bill with the claim of drawback under section 74 of the Customs Act, 1962 and follow the procedures and conditions given in Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995.
Can we use Rule 6 (3)(i) of Cenvat Credit Rules, 2004 for clearance of Synthetic yarn (chapter 52 & 55) and pay an amount of 6 per cent, when we are availing the benefit of exemption notification no. 30/2004-CE dated 9.7.2004?
The said notification no. 30/2004-CE clearly says that nothing contained in this notification shall apply to the goods in respect of which credit of duty on inputs has been taken under the provisions of the Cenvat Credit Rules, 2004. Rule 6(3)(i) mentioned by you comes into play when you have taken Credit of duty paid on common inputs used in the manufacture of dutiable as well as exempted products. Since the exemption notification mentioned is available only when you do not take the Credit, the question of taking Cenvat Credit on common inputs and then paying 6 per cent does not arise.
Has any notification been issued after the substitution of Rule 5 of Cenvat Credit Rules, 2004 on Budget Day? If not, does the notification 5/2006-CE dated 14.3.2006 still hold good?
Also, does the quantum of refund of Credit remain the same under old and new methods? So far, no fresh notification has been issued under the said Rule 5. The old notification holds good for refund claims for the periods prior to 1.4.2012. The quantum of refund may be more or less under the two methods, depending on various factors, e.g., domestic sales, exports, etc.
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