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swamy associates chennai . coimbatore . bengaluru . hyderabad . ahmedabad BUDGET SAFARI
swamy associates
chennai . coimbatore . bengaluru . hyderabad . ahmedabad
swamy associates
chennai . coimbatore . bengaluru . hyderabad . ahmedabad
BUDGET SAFARI
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
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 …
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
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 …
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
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 …
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
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 …
COD power to High Courts- Sections 35 G & 35 H of CEA amendedclause 107 & 108 of Finance (No.2) Bill,2009http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill42.pdf
- Sections 130 & 130 A of CA amendedclause 86 & 87of Finance (No.2) Bill,2009http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill41.pdf
Return of non relied docs within 30 days of SCNRule 24A of CER 2002 introducedNotification No. 17/2009 NT http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/cexnt1709.pdf
COD power to High Courts- Sections 35 G & 35 H of CEA amendedclause 107 & 108 of Finance (No.2) Bill,2009http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill42.pdf
- Sections 130 & 130 A of CA amendedclause 86 & 87of Finance (No.2) Bill,2009http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill41.pdf
Return of non relied docs within 30 days of SCNRule 24A of CER 2002 introducedNotification No. 17/2009 NT http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/cexnt1709.pdf
central excise …
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,2009http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill41.pdf
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,2009http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill41.pdf
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
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 …
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,2009http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill41.pdf
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,2009http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill41.pdf
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 recordsSub-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
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 recordsSub-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
customs …
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
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 …
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,2009http://taxindiaonline.com/RC2/union_budget/ub2009-10/f
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,2009http://taxindiaonline.com/RC2/union_budget/ub2009-10/f
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.pdf
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.pdf
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
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 …
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
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 …
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
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
service tax …
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
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
cenvat credit …
swamy associatesswamy associates
chennai . coimbatore . bengaluru . hyderabad . ahmedabadchennai . coimbatore . bengaluru . hyderabad . ahmedabad
swamy associatesswamy associates
chennai . coimbatore . bengaluru . hyderabad . ahmedabadchennai . coimbatore . bengaluru . hyderabad . ahmedabad
THANKS
