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The Interest liability is amplified in all the sections of custom, excise and service tax to 18% as from earlier of 13% per annum from this budget. This is one of highest increase in the rates of interest ever. In Central Excise the notification no. No. 6/2011-Central Excise (N.T.) dt. 01.03.2011 has brought an amendment for the purpose of the section 11AB of the Central Excise Act, 1944 by fixing the interest rate at 18% p.a. The similar amendment is made in the section 75 of Service Tax Act vide notification No. 14/2011-Service Tax dt. 01.03.2011 and 15/2011-Service Tax dated 01.03.2011 in which also the rate of interest is increased to 18% p.a. from 13% p.a. The new rate of interest of 18% will be applicable from 1st April, 2011.
In respect to the service tax Law, the Central Government of India, as always, has come with lots of amendments and clarifications in the Budget, 2011. When a particular service will be taxed is the major aspect in the service tax law. As on date the service tax is payable on the receipt of payment towards the service provided, but now government has notified the “Point of Taxation Rules, 2011” which prescribe the procedure for determination of point of taxation, i.e. when the service tax will be payable. For prescribing these rules, Notification No. 18/2011-Service Tax dated 1st March, 2011 has been issued which will be effective as from 1.4.2011.
Major amendments have been brought in Ready made garments and made-up articles through the budget 2011-12. These goods fall under chapter 61 of the Central Excise Tariff Act, 1985. Earlier these goods were exempted vide serial no. 16 of Notification no. 30/2004-CE dt. 09.07.2004. The entry at this serial no. exempted all the goods falling in chapter 61 subject to the condition of non availment of cenvat credit on inputs. This notification is amended vide notification no. 12/2011-CE dated 1.3.2011 the impact of which is that after budget, only those goods of chapter 61 will be exempted that neither bear the brand name nor are sold under the brand name.
Candidates Appearing In Cs Examinations Scheduled From 2nd To 9thjune, 2011 May Note The Change In Timings For Morning Session Of Examinations, Which Will Be Held From 9.00 A.M. To 12.00 Noon (Instead Of 9.30 A.M. To 12.30 P.M.) And After-Noon Session Of Examinations, As Before, Will Be Held From 1.30 P.M. To 4.30 P.M., As Per Examination Time-Table & Programme Hosted On Institute’s Website: Www.Icsi.Edu And Published In Students’ Bulletins.
Sixty-three people, including promoters and chief executive officers of 10 telecom firms have come under its scanner in the 2G spectrum case, the CBI on Friday told the Supreme Court which expressed satisfaction over the ongoing probe.
Banking and other Financial Services: Money changing services [Section 65(105)(zm and zzk)]: There is no change in the scope of the levy of these services. However, the following changes have been made in the actual collection of tax:(a) A new rule 2B has been introduced in the Service tax (Determination of Value) Rules, 2006 prescribing the value of the service in terms of section 67 of the Act. The value shall be as follows:
Ludhiana’s readymade garment makers today announced shutting down of operations for a day on March 4, perturbed by the latest budget proposal, making 10 per cent excise duty on branded apparels mandatory. The garment makers have also threatened closing down of units indefinitely, if the government does not review its decision.
The government has collected over Rs 300 crore in penalties from new telecom service providers that failed to roll-out their networks within the stipulated timeframe after getting licences and spectrum.”As of last Friday, we have received Rs 300.04 crore penalties, as against total claim of Rs 370.55 crore,” Department of Telecom Secretary R Chandrasekhar told PTI.
Leading drug makers today said that higher excise duty proposed in the Budget 2011-12 would make medicines costlier and hurt the common man. Further, pharmaceutical industry players also feared that imposition of Minimum Alternate Tax (MAT) on Special Economic Zones would adversely impact their profits, since most export units of drug firms are located in various SEZs.
Allaying fears of the industry over introduction of harsh provisions in the service tax rules, a senior Finance Ministry official has said they will be used sparingly against willful defaulters.
