by swamy associates chennai . coimbatore . bengaluru . hyderabad . ahmedabad
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by swamy associates chennai . coimbatore . bengaluru . hyderabad . ahmedabad. BUDGET SAFARI. central excise. central excise …. 4 % increased to 8% across the board (except for food / pharma / paper products / notified medical equipments & textile machinery) - PowerPoint PPT PresentationTRANSCRIPT
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swamy associatesswamy associates
chennai . coimbatore . bengaluru . hyderabad . ahmedabadchennai . coimbatore . bengaluru . hyderabad . ahmedabad
BUDGET SAFARI
central excise
central excise …central excise …
4% increased to 8% across the board(except for food / pharma / paper products / notified medical equipments & textile machinery)
Goods of ch. hdg 68 manufactured @ site unconditionally exempted
Exemption to packaged software on the value representing “transfer of right to use”
(both under BED as well as CVD)
Notification No. 22/2009 - http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/cex2209.pdf
Notification No. 80/2009 - http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/cus8009.pdf
central excise …central excise …
Motor vehicles above 2000 cc to cost less
Petrol driven transport vehicles & its chassis to cost less ( except Dumpers)
- Notification 16 / 2009 - http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/cex1609.pdf
central excise …central excise …
Compound wall for compounding !
- one time compounding cap for Section 9 (1) offences
(except for attempt / abetment) - parallel offence under NDPA- one time compounding for any offence under CEA on goods valued more than Rs.1 crore- convicts on or after 30/12/2005
- clause 103 of Finance (No.2) Bill,2009
http://taxindiaonline.com/RC2/union_budget/ub2009-10/bud2009_10.htm
central excise …central excise …
CAs’ Budget
◦ - inclusion in special audits u/s 14 A & 14 AA of CEA along with cost accountants
◦ - certification in export refunds of service tax
- clause 104 & 105 of Finance (No.2) Bill,2009
http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill42.pdf
central excise …central excise …COD power to High Courts
◦ - Sections 35 G & 35 H of CEA amended- clause 107 & 108 of Finance (No.2) Bill,2009
http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill42.pdf
◦ - Sections 130 & 130 A of CA amended- clause 86 & 87of Finance (No.2) Bill,2009
http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill41.pdf
• Return of non – relied docs within 30 days of issue of SCN• Rule 24A of CER 2002 introduced
• Notification No. 17/2009 NT –
http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/cexnt1709.pdf
customs
customs …customs …
Remission & Refund◦ - Section 26 A of CA introduced◦ - refund on imported defective goods / not as per specs◦ - goods to be exported or relinquished or destroyed
ARA of IT ( under Section 245 – O of the ITA) to be ARA of Customs (under Section 28F of CA)
- clause 84 & 85 of Finance (No.2) Bill,2009
http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill41.pdf
customs …customs …
DGCEI is DRI too!
- Notification 27 / 2009 – Customs (N.T) revalidated
w.e.f 9/5/2000
- to have all India jurisdiction
- clause 91 of Finance (No.2) Bill,2009
http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill41.pdf
customs …customs …
Compound wall for compounding !
- one time compounding cap for Sections 135 & 135 A offences- parallel offence under NDPA / Chemical weapons
convention Act / Arms Act / Wild Life (Protection) Act- smuggling of specified goods under Appendix 3 of
Schedule 2 of ITC / prohibited items under Section 5 of FT(D&R)Act / goods or docs affecting sovereign relationship or national honour- one time compounding for any offence under CA on
goods valued more than Rs.1 crore- convicts on or after 30/12/2005
- clause 103 of Finance (No.2) Bill,2009
http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill41.pdf
customs …customs … Tariff value provision to CTA
Section 3 (2) of CTA amended
Machinery provisions to safeguard dutySections 8B (4A), 8C (5B) & 9 (7A) of CTA
Revalidations to Sections 8B,8C,9 &9A of CTA
Margin of dumping to be based on facts upon non availability of records
Sub-section 6A to section 9A of CTA
- clause 93 – 101 of Finance (No.2) Bill,2009http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill41.pdf
service tax
service tax …service tax …
new services…
Cargo transport by rail Transport of coastal cargo Cargo transport thru Inland waterways Legal consultancy (bar @ claw!) Cosmetic / plastic surgery
( effective after a notified date)
- clause 112 of Finance (No.2) Bill,2009http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill5.pdf
service tax …service tax …
amended services…
BAS to include beers!( Business Auxiliary Service to exclude only manufacture of “excisable goods”)
Sub – brokers out of service tax net.“acquiring” to become “providing” in IT service
w.e.f 16/5/2008
- ( effective after a notified date)
- clause 112 of Finance (No.2) Bill,2009
http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill5.pdf
service tax …service tax …
No more revision – only appeal
Rule making power to determine: ◦ date for rate◦ place of provision
◦ Retrospective amendment to Notfn.1/2009 from 1/1/2005
(services provided to GTA)
- clause 112 of Finance (No.2) Bill,2009
http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill5.pd
f
service tax …service tax … Works’ contracts tightened
◦ Composition only if gross value of all goods used are included
◦ FOC materials to be included in composition scheme
◦ Supply under separate contracts to be included under composition
w.e.f 7/7/2009 but not to apply for WC, which have already commenced or payment is received in part or full
Notification 23/2009 - http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/st2309.pdf
service tax …service tax …Point 2 Point bus transport spared
Notification 20/2009 w.e.f 7/7/2009
http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/st2009.pdf
Inter-bank transactions of sale/purchase of forex by scheduled banks exemptedNotification 19/2009 w.e.f 7/7/2009
http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/st1909.pdf
Notified export promotion councils exempted till 31/3/2010
service tax …service tax …Refund of service tax on exports
◦ - New modified scheme◦ - “terminal handling service” included◦ - Refund based on self certification ( up to 0.25% FOB)
or on Company’s CA certification◦ - time limit to file claim extended to one year◦ - “relevant date” is the date of export
( What if ST is paid after one year?)
Notification 17 / 2009 - http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/st1709.pdf
service tax …service tax … Exemption for exports
- GTA between place of removal to ICD / CFS / port / airport
- Foreign Commission agents
- BRC not a criterion ( slip or intentional?)
- 1% Cap on exemption for Commission paid
- Half yearly returns to be filed
- Scheme available for exports after 7/7/2009
Notification 18 / 2009 - http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/st1809.pdf
cenvat credit
cenvat credit …cenvat credit … Steel & Cement are no more inputs if used in
construction ◦ ( Explanation to rule 2(k) of CCR amended)
Cenvat to be reversed on Inputs / Capital goods, by a service provider, upon writing off in full◦ ( Rule 3(5B) of CCR amended)
• Reversal under Rule 6(3)(i) of CCR reduced:- 10% to 5% for manufacturers- 8% to 6% for service providers
Notification 16 / 2009 NT
http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/cexnt1609.pdf
THANKS
swamy associates
chennai . coimbatore . bengaluru . hyderabad . ahmedabad