BUDGET – an overview by swamy associates chennai – coimbatore – bengaluru – hyderabad – ahmedabad - rajkot

CENTRAL EXCISE

Excise duty reduced to 14 % across the board ( 14.42% with Education CESS)

Pharma gets the best tonic ! Rate of duty reduced to 8 % ( abatement reduced to 35.5 % ) - Units at Excise exempted zones are no more beneficial

Paper gets pampered. Exemption upto 3500 MTs restored (for units using non-conventional raw materials) Rate of duty reduced to 8 %

Roads to clog more. Duty for two wheelers & small cars reduced to 12 %

Software – No more soft corner. Duty on packaged software increased to 12 %

Section 4 A – gets more teeth. New Rules notified for non-declaration / incorrect /obliterating MRP - Adoption of nearest MRP - Market enquiry If MRP is altered – altered MRP

Section 11B – Interesting amendment. Refunds to cover interest also Pre deposit to be refunded in 3 months

Section 11 D – widens its wings. To cover “any person” To cover exempted / NIL rated goods

Cenvat Credit Rules, Input service definition to cover only “upto place of removal”. Credit of Service tax on outward transport – out. Master Circular – Still a ray of hope. GTA Service Tax – Cannot be paid through credit.

Rule 6 of CCR… Taxable & Exempted Service providers to pay 8 % of exempted services value. Option to reverse credit – Introduced for all Formula for provisional reversal and final reversal No more 20 % restriction - Needs another Shri. Ramanujan.

… Rule 6 of CCR First to reverse the input credit for exempted goods manufactured Next to reverse the input credit for exempted services Next to reverse the input services credit for exempted goods manufactured and exempted services rendered

Miscellanea… DTA duty for EOUs – enhanced. 1% NCCD for mobile phones - Review of orders by Committee - Measure to resolve difference of opinion

“Goods” definition redefined. … Miscellanea Labelling or relabelling and repacking changed to Labelling or relabelling or repacking. Section 3A re-introduced (Mummy Returns)

SERVICE TAX

Threshold Exemption Exemption enhanced to Rs.10 lakhs - No registration upto Rs. 9 lakhs

Disputes Resolution Scheme. Effective from to Arrears pending as on Service tax component of arrears not to exceed Rs.25,000.

GTA Abatement – made simple. No more declaration from transporter.

Works Contract Rate enhanced to 4 %

New levies / Expansion of levies… All Information Technology Services under net. Amendments in BAS / Consulting Engineering. (Classification war with Copyrights in the offing?)

… New levies / Expansion of levies… ULIP Stock Exchange Processing and Clearing houses Tour operators (To include all permits except stage carriage permit) BAS ( To include game of chance like lottery)

… New levies / Expansion of levies Supply of tangible goods Internet telecommunication Cargo handling Renting of immovable property

Miscellanea. Payment in advance Self adjustment – Upto Rs. 1 lakh Revised return – Upto 90 days More penal provisions

CUSTOMS

Project imports – Rate reduced to 5 % Iron / Aluminium melting scrap – NIL Time limit for re-export under drawback scheme reduced to 18 months

THANKS by swamy associates chennai – coimbatore – bengaluru – hyderabad – ahmedabad - rajkot