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BUDGET – 2008 - an overviewBUDGET – 2008 - an overview
by
swamy associates chennai – coimbatore – bengaluru – hyderabad – ahmedabad - rajkotchennai – coimbatore – bengaluru – hyderabad – ahmedabad - rajkot
CENTRAL EXCISE
Excise duty reduced to 14 % across the board
( 14.42% with Education CESS)
Pharma gets the best tonic !
Rate of duty reduced to 8 % ( abatement reduced to 35.5 %
)
- Units at Excise exempted zones are
no more beneficial
Paper gets pampered.
Exemption upto 3500 MTs restored(for units using non-conventional raw materials)
Rate of duty reduced to 8 %
Roads to clog more.
Duty for two wheelers & small cars reduced to 12 %
Software – No more soft corner.
Duty on packaged software increased to 12 %
Section 4 A – gets more teeth.
New Rules notified for non-declaration / incorrect
/obliterating MRP
- Adoption of nearest MRP- Market enquiry
If MRP is altered – altered MRP
Section 11B – Interesting amendment.
Refunds to cover interest also
Pre deposit to be refunded in 3 months
Section 11 D – widens its wings.
To cover “any person”
To cover exempted / NIL rated goods
Cenvat Credit Rules, 2004.
Input service definition to cover only “upto place of removal”.
Credit of Service tax on outward transport – out.
Master Circular – Still a ray of hope.
GTA Service Tax – Cannot be paid through credit.
Rule 6 of CCR…
Taxable & Exempted Service providers to pay 8 % of exempted services
value.
Option to reverse credit – Introduced for all
Formula for provisional reversal and final reversal
No more 20 % restriction
- Needs another Shri. Ramanujan.
… Rule 6 of CCR
First to reverse the input credit for exempted goods manufactured
Next to reverse the input credit for exempted services
Next to reverse the input services credit for exempted goods manufactured and
exempted services rendered
Miscellanea…
DTA duty for EOUs – enhanced.
1% NCCD for mobile phones
- Review of orders by Committee - Measure to resolve difference of opinion
“Goods” definition redefined.
… Miscellanea
Labelling or relabelling and repacking changed to
Labelling or relabelling or repacking.
Section 3A re-introduced(Mummy Returns)
SERVICE TAX
Threshold Exemption
Exemption enhanced to Rs.10 lakhs- No registration upto Rs. 9 lakhs
Disputes Resolution Scheme.
Effective from 01.07.2008 to 30.09.2008
Arrears pending as on 01.03.2008Service tax component of arrears not to exceed Rs.25,000.
GTA Abatement – made simple.
No more declaration from transporter.
Works Contract
Rate enhanced to 4 %
New levies / Expansion of levies…
All Information Technology Services under net.
Amendments in BAS / Consulting Engineering.
(Classification war with Copyrights in the offing?)
… New levies / Expansion of levies…
ULIP
Stock Exchange
Processing and Clearing houses
Tour operators(To include all permits except stage carriage permit)
BAS( To include game of chance like lottery)
… New levies / Expansion of levies
Supply of tangible goods
Internet telecommunication
Cargo handling
Renting of immovable property
Miscellanea.
Payment in advance
Self adjustment – Upto Rs. 1 lakh
Revised return – Upto 90 days
More penal provisions
CUSTOMS
Project imports – Rate reduced to 5 %
Iron / Aluminium melting scrap – NIL
Time limit for re-export under drawback scheme reduced to 18 months
THANKS
by
swamy associates chennai – coimbatore – bengaluru – hyderabad – ahmedabad - rajkot