First Stage Dealer means a dealer, who purchases the goods directly from (i) the manufacturer under the cover of an invoice issued in terms of the provisions of Central Excise Rules, 2002 or from the depot of the said manufacturer, or from premises of the consignment agent of the said manufacturer or from any other premises from where the goods are sold by or on behalf of the said manufacturer, under cover of an invoice.

In 2012 budget, there has been a paradigm shift in the Service Tax Laws. The shift is affecting all businesses- whether they are in manufacturing, service providing, NGOs, Trading or even Government departments. Even individuals are not immune from payment of service tax if their revenue is above the exemption limit- i.e. 10 lakhs. Thus it is important to understand the basic changes in law so that the changes can be implemented smoothly after the enactment of Finance Bill, 2012.

It was a realist budget in the difficult economic and political environment. Effort was made towards fiscal consolidation, infrastructure development, revival of manufacturing sector, easing of credit facilities, direct transfer of subsidy etc. Major Tax proposals are as follows: