AMLEGALS is pleased to share the highlights of changes and proposals in Union Budget 2016-2017 in Indirect Taxes .
The major changes on indirect taxes under this section as the budget speech of Shri Arun Jaitley, Finance Minister today, at 11 a.m ,on 29 Feb 2016 are as below:
a. Major Export Boost by widening of Duty Drawback Scheme for many new products and new countries .
b.FY17 fiscal deficit target at 3.5%
c.Suitable changes to be made in customs and excise duty rates to boost Make In India by reduction in duties as applicable
d.Service tax exempted for general insurance schemes under Niramayi Swasthya Bima Yojna
e.Service tax exempted for housing construction of houses less than 60 sq.m
f. Levy of excise duty on readymade garments above Rs 1000 @ 6% without input tax credit
g. Excise duty on tobacco increased by 10-15%, except for beedi
h.To levy 1% infra cess on small gasoline cars
i. 11 NEW CESTAT BENCHES TO BE SET UP TO REDUCE PENDENCY OF LITIGATION
j. Cenvat Credit Rules, 2004 is being amended to effect better input tax credit flow including apportionment of credit .
k.Clean energy cess increased from RS. 200/ton to 400/ton on coal, lignite and peat
l. Any appeal pending against an order of penalty can be settled by paying 25% of the imposed penalty amount .
m. Single Member Bench of CESTAT can handle litigation upto Rs 50 Lakhs .
n. Excise duty @ 12% on Godl & Silver studded Jewellery with input tax credit .
o. 9% interest on refund ordered by appellate authorities
p. No increase in service tax
q. Krishi Kalyan Cess 0.5%to be levied on all taxable services
Shortly, we shall be further updating various other changes in Budget 2016-2017.
(Anandodaya Mishra , Founder Advocate , AMLEGALS – The author is a leading advocate who handles cases in various High Courts & Tribunals of India. He can be contacted on firstname.lastname@example.org .For more, please refer www.amlegals.com and also https://in.linkedin.com/in/anandodaya-mishra-advocate-81a61785 )