Akshay Garg & Sumit Goel
Key Regulatory Proposals
Personal Tax Proposals
Indirect Tax – Rates
Indirect Tax – Proposals
- free baggage allowance limit raised from Rs. 35,000/- to 45,000/-
- duty free allowance of cigarettes reduced from 200 to 100
- duty free allowance of cigars reduced from 50 to 25
- duty free allowance of tobacco reduced from 250 gms to 125 gms
CENTRAL EXCISE DUTY
- Exemption to sale of space or time for advertisements other than print media withdrawn.
- Radio taxis or radio cabs (whether AC or Non AC) will be taxable and abatement @ 60% allowed.
- Exemption extended to air-conditioned contract carriages withdrawn and abatement of 60% allowed.
- Exemption extended to services provided by clinical research organizations on human participants withdrawn.
- Scope of exemption for services provided to Government or local authority or governmental authority curtailed.
- Only specified services received by educational institutions exempted from tax.
- Exemption from service tax is only available to hotel, inn, guest house, club or campsite and will not include any commercial places.
- Life micro-insurance schemes for the poor, approved by IRDA, where sum assured does not exceed Rupees Fifty Thousand exempted from service tax.
- Transport of organic manure by vessel, rail or road (by GTA) exempted.
- Loading, unloading, packing, storage or warehousing, transport by vessel, rail or road (GTA), of cotton, ginned or baled, exempted.
- Services provided by common bio-medical waste treatment facility operators to clinical establishments exempted.
- Services received by RBI from outside India in relation to management of foreign exchange reserves.
- Services provided by Indian tour operators to foreign tourists in relation to a tour wholly conducted outside India exempted.
- Retrospective exemption from service tax has been granted to service provided by Employees’ State Insurance Corporation (ESIC) during the period prior to 01.07.2012.
However, where invoice was issued prior to 01.10.2014, but payment has not been made, in that case, point of taxation shall be:
- If payment is made within six months of the date of invoice, the date of payment.
- If payment is not made within six months, be determined as per the provisions of rule 7.
|Extent of delay||Simple interest rate per annum|
|For the period up to six months||18%|
|For the period from six months and upto one year||24%|
|For the period after one year||30%|
- Provision for prescribing conditions for determination of place of provision of repair services carried out on temporarily imported goods is being omitted.
- The definition of intermediary is being amended to include the intermediary of goods in its scope.
- Hiring of vessels or aircrafts, irrespective of whether short term or long term, will be covered by the general rule, which is place of location of the service receiver.
GENERAL PROVISIONS (As applicable to Customs, Central Excise and Service Tax)
Annexure 1 – Changes in the effective rates of Customs Duties
|Products||Duty Type||Existing Effective Rate||Proposed Rate|
|Fatty Acids used in manufacturing of soaps and oelochemicals as actual user||BCD||7.5%||Nil|
|Crude Palm Sterian||BCD||7.5%||Nil|
|RBD Palm Sterian||BCD||7.5%||Nil|
|Other Palm Sterian||BCD||7.5%||Nil|
|Specified Industrial grade crude oils||BCD||7.5%||Nil|
|Denatured ethyl Alcohol||BCD||7.5%||5%|
|De-oiled soya extract,||BCD||7.5%||Exempt|
|Oil cake/ Oil Cake meal||BCD||7.5%||Exempt|
|Sunflower Oil cake/ Oil Cake meal||BCD||7.5%||Exempt|
|Canola Oil cake/ Oil Cake meal||BCD||7.5%||Exempt|
|Mustard or rice Oil cake/ Oil Cake meal||BCD||7.5%||Exempt|
|Cigarettes of length exceeding 75 mm||12% or Rs. 1738 per thousand, whichever is higher|
|Steel grade dolomite and steel grade limestone||BCD||5%||2.5%|
|Steam coal and bituminous coal||BCD||2%||2.5%|
|Anthracite coal and other coal||BCD||5%||2.5%|
|Reformate and other goods under sub-heading 2707 50 00||BCD||10%||2.5%|
|Coal tar pitch||BCD||10%||5%|
|Re-gasified LNG for supply to Pakistan||BCD & CVD||Exempt|
|Liquefied Propane and Butane mixture, Liquefied Propane, Liquefied Butane and Liquefied Petroleum Gas (LPG) imported by IOCL, HPCL, BPCL for supply to NDEC||All Customs duty||Exempt|
|Ethane and other goods under sub heading 2901 10 00, ethylene, propylene and butadiene||BCD||5%||2.5%|
|Raw materials for manufacture of spandex yarn viz. Diphenyl methane 4,4di-isocyanate (MDI) and Polytetramethylene ether glycol (PT MEG)||BCD||5%||Nil|
|Raw materials used in the manufacture of solar backsheet and EVA sheet used in manufacture of solar PV cells or modules as per actual user condition||BCD||Exempt|
|Security fibre, security threads and M-feature imported by Bank Note Paper Mill India Private Limited||All Customs duty||Exempt|
|Raw materials required for manufacture of security threads and security fiber||BCD and CVD||Nil|
|Polystyrene (other than moulding powder)||BCD||1.15%||7.5%|
|Wire rolls required by handicraft exporters (inclusion in list of specified goods)||Custom Duty||Exempt|
|Non-fusible embroidery motifs or prints imported by manufacturer of garments for export (inclusion in list of specified goods)||Custom Duty||Exempt|
|Specified goods imported for use in the manufacture of textile garments for export||BCD & CVD||Exempt|
|Pre-forms of precious and semi-precious stones||BCD||Exempt|
|Half-cut or broken diamonds||BCD||Nil||2.5%|
|Cut & polished diamonds including lab-grown diamonds and colored gemstones||BCD||2%||2.5%|
|Stainless steel flat products (CTH 7219 and 7220)||BCD||5%||7.5%|
|Forged steel rings used in the manufacture of bearings of wind operated electricity generators||BCD||10%||5%|
|Flat copper wire used in the manufacture of PV ribbons (tinned copper interconnect) for solar PV cells or modules||BCD||Exempt|
|Machinery, equipments, etc. required for initial setting up of compressed biogas plant (Bio-CNG).||BCD||5%|
|Machinery, equipments, etc. required for initial setting up of solar energy production projects||BCD & CVD||5%|
|Parts and raw materials used in the manufacture of wind operated electricity generators||SAD||Exempt|
|Electrolysers and their parts/spares required by caustic soda or caustic potash units and membranes||BCD||5%||2.5%|
|Other parts (other than membranes and parts thereof)||BCD||7.5%||2.5%|
|LCD and LED TV panels (below 19 inches)||BCD||10%||Nil|
|Color picture tubes used in manufacturing of Cathod Ray TVs||BCD||10%||Nil|
|Specified parts of LCD and LED panels for TVs||BCD||Exempt|
|Battery waste and battery scrap||BCD||10%||5%|
|Specified telecommunication products not covered under the ITA (Information Technology Agreement)||BCD||Nil||10%|
|Inputs/Components of Personal Computers||SAD||Exempt|
|Certain Electronic goods||Cess & SHEC Leviable on CVD||Exemption Withdrawn|
|Specified Inputs(PVC sheet & Ribbon) used in manufacturing of smart cards||SAD||Exempt|
|Ships imported for breaking up||BCD||5%||2.5%|
|Portable X-ray machine / system||CVD||Exemption Withdrawn|
|Specified HIV/AIDS drugs and diagnostic kits imported under National AIDS Control Programme (NACP) funded by the Global Fund to Fight AIDS, TB and Malaria (GFATM)||Custom Duty||Exempt|
|Goods imported by National Technical Research Organization (NTRO)||BCD||Exempt|
Annexure 2 – Changes in the effective rates of Central Excise Duties
|Products||Duty Type||Existing Effective Rate||Proposed Rate|
|Waters including aerated waters, containing added sugar||Add. Duty||12%||17%|
|Cigars, cheroots, cigarollos and cigarattes, of tobacco or of tobaco substitutes
|Description||BED||Rs. per 1000||Rs. per 1000|
|(length in mm)||sticks||sticks|
|Non filter not exceeding 65||669||1150|
|Non-filter exceeding 65 but not exceeding 70||2027||2250|
|Filter not exceeding 65||669||1150|
|Filter exceeding 65 but not exceeding 70||1409||1650|
|Filter exceeding 70 but not exceeding 75||2027||2250|
|Filter exceeding 75 but not exceeding 85||2725||Tariff Item omitted|
|Jarda Scented Tobacco, Guthka and Chewing tobacco||BED||60%||70%|
|Branded Petrol||BED||Rs. 7.5 per litre||Rs. 2.35 per litre|
|Goods for use in manufacture of EVA sheets or backsheet for manufacture of solar photovoltaic cells or modules namely EVA resin, EVA masterbatch, PEL film, PVF, PVD adhesive resin and hardner
|Matches, in or in relation to the manufacture of which, any or all processes of pasting of labels on match boxes, venners or cardboards, and packaging are carried out with aid of power||BED||12%||6%|
|DDT manufactured by Hindustan Insecticides Limited for supply to the NVBDCP||BED||12%||Nil|
|Plastic material reprocessed in India out by the scrap or the goods falling within Chapters 39,54,56,59,64,84,85,86,87,90,91,92,93,94,95 and 96 by Export Oriented Unit .||BED||12%||Nil|
|EVA sheets or backsheet for use in the manufacture of solar photovoltaic cells or modules||BED||12%||Nil|
|Gloves specially designed for use in sports ( no CENVAT credit of input or input services allowed)||BED||12%||2%|
|Gloves specially designed for use in sports ( CENVAT credit allowed)||BED||12%||6%|
|Polyster staple fibre and polyster fillamanet yarn manufactured from plastic scrap or plastic waste including waste||BED||12%||2%|
|Footwear of retail price exceeding Rs 500 per pair but not exceeding 1000||BED||12%||6%|
|Solar tempered glass for use in the manufacture of solar photovoltaic cells or modules, solar power generating equipments or systems and flat plate solar collectors||BED||12%||Nil|
|Forged steel rings for manufacture of special bearings for use in wind operated electricity generators||BED||12%||Nil|
|Flat copper wire used in the manufacture of PV ribbons (tinned copper interconnect) for use in the manufacture of solar cells or modules||BED||12%||Nil|
|Winding wires of copper||BED||10%||12%|
|The following goods used in the processing and packaging of agricultural, apiary, horticulture, diary, aquatic and marine produce and meat , namely:
(i) machiney for cleaning or drying bottles or other containers;
|Presses, crushers and similar machinery used in the manufacture of wine, cider, fruit juices or similar beverages
|(i) machinery for the preparation of meat or poultry;
(ii) machinery for preparation of fruits, nuts or vegetables;
(iii)parts of machinery at (i) or (ii)
|Sewing machines with attachable electric motors||BED||2%||12%|
|LED driver and MCPCB for use in the manufacture of LED lights and fixtures or LED lamps||BED||12%/10%||6%|
|Parts consumed within the factory of production for the manufacture of non-conventional energy devices, and when such use in elsewhere than in the factory of production||BED||Exempt|
|RO membrane element used in household type filters||BED||12%/10%||6%|
|Reverse osmosis (RO) membrane element for water filtration or purification equipment (other than household type filter)||BED||Exempt|
|Specified HIV/AIDS drugs and diagnostic kits supplied under National AIDS Control Programme (NACP) funded by the Global Fund to Fight AIDS, TB and Malaria (GFATM)||BED||Exempt|
|Goods supplied to National Technical Research Organisation (NTRO).||BED||Exempt|
|Intermediate goods manufactured and consumed captively for further manufacture of matches||BED||Exempt|
|Goods cleared by an EOU into the DTA||EC and SHEC (Customs Component)||Exempt|
|Excise duty on Polyester Staple Fiber (PSF) and Polyester Filament Yarn (PFY) ( including intermediate products manufactured in the production of PSF and PFY) manufactured from plastic waste or scrap now being exempted retrospectively w.e.f 29.06.2010||BED||Exempt|
|Un-branded articles of precious metals are being exempted from excise duty retrospectively for the period 01.03.2011 to 16.03.2012||BED||Exempt|
|Full exemption from excise duty is being granted in respect of machinery, equipments, etc. required for initial setting up of solar energy production projects||BED||Exempt|
|Full exemption from excise duty is being provided on machinery, equipments, etc. required for initial setting up of compressed biogas plant (Bio-CNG).||BED||Exempt|
|Excise duty is being exempted on parts of tractors removed from one or more factories of a tractor manufacturer to another factory of the same manufacturer for manufacture of tractors||BED||Exempt|