Amendment by Taxation Laws (Amendment Act)

CA Dilip Jain

IN CUSTOM ACT

1. The bill seeks to include “Warehouse ” in the definition of Custom Area to ensure that an importer is not asked to pay IGST at the time of removal of Goods from Custom Station to Warehouse.

2. A new Section 108A and 108B inserted which cast responsibility on Banking Company, Stock Exchange, Financial Institution, Register, Co Operative Bank etc  to Furnish information to Proper Officer. Penalty Rs 100 per day will be imposed in case of failure to Furnish Information.

In Custom Tariff Act

1. Amendment in Section 3 :

* Any Article imported in India in addition to Basic Custom Duty(BCD), be liable to IGST.

* Computation of IGST : Value of Imported Article Determine Under Section 14  (1) of Custom Act, 1962  OR  Tariff Value Under Section 14 (2) + Basic Custom Duty + Any sum Chargeable on that Article (But does not include IGST and GST Compensation Cess)

2. Any Article imported in India in addition to Basic Custom Duty(BCD), be liable to GST Compensation Cess.

3. Computation of GST Compensation Cess :

Value of Imported Article Determine Under Section14  (1) of Custom Act, 1962  OR  Tarrif Value Under Section 14 (2) + Basic Custom Duty + Any sum Chargeable on that Article (But does not include IGST and GST Compensation Cess).

In Excise Act

1. New Fourth Schedule is Inserted in place of First and Second Schedule Central Excise Tarrif Act 1985.

2. Earlier Factory means  factory”  means any premises, including the precincts thereof, wherein or in any part of which excisable goods other than salt are manufactured, or wherein or in any part of which any manufacturing process connected with the production of these goods is being carried on or is ordinarily carried on. Now the word “Other than Salt” Shall be Omitted.

3. Substitution of New Section for Section 3 :

* Duty of Excise to be called Central Value added tax will be levied on all excisable goods which are produced or manufacture in India (Excluding goods produced or manufacture in SEZ) at the rate set forth in Fourth Schedule.

* In case 100 Percent EOU, Custom duty will be levied on such goods.

4. Insertion of New Section 3B and 3C : Emergency power of CG to Increase Duty of Excise

* Where rate of Excise Duty is Currently Nil, A rate of duty not exceeding 50 per cent, ad Valorem.

* In any other case, Rate of shall not be more than twice of the rate of duty in Force.

* Central Government may amend the Fourth Schedule  ( Section 3C)

CENTRAL SALES TAX:

1. Section 2(C) Declared Goods shall be omitted.

2. Section 2(d) shall be Substituted

Goods means Petroleum Crude, High Speed Oil , Motor Sprit, Natural Gas, Aviation Turbine Fuel and Alcoholic Liquor for Human Consumption.

3. Section 14 and 15 shall be Omitted.

Miscellaneous;

1. The Beddi Workers Welfare Cess Act 1975 is Repeal.

2. The Water( Prevention and Control of Pollution) Cess Act 1977 is Repeal.

3. The Sugar Cess Act, 1982 is Repeal.

4. The Jute Manufacturers Cess Act is Repeal.

5. Repeal of Section 6, 7 and 8 of  The Coal Mines Conservation and Development) Act, 1974 : No more  Excise Duty and Custom Duty on Coal.

6. Repeal of Clause(C) of Section 3, and Section 25, 26 and Clause(a) of Sub Section(1) of Section 27: No more Cess on Tea Produced in India.

7. Repeal of Section 9 of The Industrial( Development and Regulation) Act, 1951 : No more Cess on Goods Produce or Manufacture in India.

8. Repeal of  Clause(b) of Sub Section(1) of Section 9 and 12 : No more Cess on Ruber Produced in India.

9. Repeal of Chapter VII of Finance Act 2010 : No more Clean Energy Cess.

10. Repeal of Chapter VI of Finance Act 2015 : No more SBC.

11. Repeal of Chapter VI and VII of Finance Act 2016 : No more KKC and Infrastructure Cess.

12. Section 138 of Finance Act 2017 :  Secondary and Higher Education Cess on excisable goods.

13. Section 93 of Finance Act 2004 : Education Cess on Exciseable Goods.