Service Tax-Budget impact, 2016

SERVICE TAX CHANGES
Prepared by Pooja Jajwani, Sandesh
Mundra & Associates

EXPECTATIONS FROM THE SERVICE TAX
BUDGET
•FM has done his job. GST dark clouds ? Imagine
the plight of FM.
•New house vs old house
•Role of opposition
•Rationalisation vs stability
•Still effort is made to please all
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LEVY OF “KRISHI KALYAN CESS” [KKC] OF 0.5%
TO MAKE EFFECTIVE SERVICE TAX RATE @ 15%
• KKC paid eligible as CENVAT
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•KKC of 0.5% to make effective tax @ 15%.
•CENVAT against output liability of KKC.
ALLOWED
•Going near the GST target
•Shortly invoice will have more line items from
government than your actual bill
•Cess why – no fund sharing with the states
W.E.F. 01-06-2016
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• This cess has no cascading effect as credit is available
• Changes are yet to be incorporated in Rule 3 of the Cenvat
Credit Rules, 2004 to provide requisite legal backing for
availment of Cenvat credit. Further as per the TRU letter the
credit seems to have been restricted for the service provider
• Event budget speech says – Input Tax credit of the cess will be
available for payment of cess
• Mallya cess ??
W.E.F. 01-06-2016
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MALLYA CESS
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NEGATIVE LIST AMENDMENTS
1. Specified Education Services
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SPECIFIED EDUCATION SERVICES (CONT.)
• This entry is deleted from negative list but exemption continues by entry in
Mega Exemption Notification w.e.f. bill enactment
• Educational institution is not defined by common sense but by babus
• Govind Rao committee – certain things like education and health can-not be
taxed
• Constant efforts to tweak the negative list
i. Article 46/47 – directive principles of state policy – public interest
ii.Why do we have private schools in india ? They may have become teaching
shops ? But still ?
iii.No new additions in the negative list ? Only deletions
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2. TRANSPORTATION OF PASSENGERS
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• Transportation of passenger by Ac Stage Carriage like GSRTC shall be liable
to Service Tax at an abated rate of 60% [with Swachh Bharat Cess (SBC) +
Krishi Kalyan Cess (KKC)]. w.e.f. 01-06-2016. without CENVAT
• Services of transportation of passengers with or without baggage by
Ropeway, Cable car or Aerial Tramway @ 14.5% [with SBC] w.e.f. 01-04-
2016.
• Contract carriage vs stage carriage
• Contract of carriage is a contract between goods/passenger carrier and
consignor, consignee or passenger. It typically define the rights, duties and
liabilities of parties, addressing topics such as acts of God and including
clauses such as force majeure.
• Stage carriage means a motor vehicle which can carry more than six
passengers excluding the driver for hire or reward at separate fares paid by
or for individual passengers, either for the whole journey or for stages of
2. TRANSPORTATION OF PASSENGERS
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3. TRANSPORTATION OF
GOODS
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TRANSPORTATION OF GOODS
• Services of transportation of goods from outside India up to
custom station of clearance in India is deleted from negative
list.
• Transportation of goods by aircraft exempted by amendment in
exemption notification.
• But Service tax at an abated rate of 4.5% [with SBC + KKC]
applicable on goods transportation by vessel under RCM. w.e.f.
01-06-2016
• Importation is taxable, exportation is exempt
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EXEMPTIONS WITHDRAWN / SERVICE TAX
SCOPE INCREASED
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• Service tax would be applicable on services provided by
way of construction, erection, commissioning, or
installation of original works pertaining to Monorail and
Metrorail where contract is entered on or after
01.03.2016. w.e.f. 01-03-2016
• Some big corporate seems to have influenced this
change for the purpose of establishment of cenvat chain
• Appropriate stamp duty was paid – different languages
in each exemption
EXEMPTIONS WITHDRAWN / SERVICE TAX
SCOPE INCREASED
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2. LEGAL SERVICES
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LEGAL SERVICES
• Legal services by senior advocate to other advocate or law firm is withdrawn.
Levy is under forward charge w.e.f. 01-04-2016.
• Lawyers started in 2009, then gone away, then came back as reverse charge
in 2012.
• Confusion in notification and TRU circular. Advocate act bars senior
advocate from joining a firm and directly filing a vakalatnama. – section 16
of advocate act
• So advocates are now divided into following categories :-
Junior, junior advocate of a firm, junior to junior, junior to partnership, junior
to senior, junior and senior to non business, and to business (It is to be noted
that section 16 of the Advocates Act, 1961 grants discretion to the advocate
to be or not to be senior advocate as per his consent)
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RESTRICTIONS ON SENIOR ADVOCATES
RESTRICTIONS ON SENIOR ADVOCATES (Rules under Sections 16(3) and 49(1)(g) of the
Act)
(a) A Senior Advocate shall not file a vakalatnama or act in any Court, or Tribunal, or
before any person or other authority mentioned in Section 30 of the Act.
Explanation: "To Act" means to file an appearance or any pleading or application in any
court, to Tribunal or before any person or other authority mentioned in Section 30 of
the Act, or to do any act other than pleading required or authorised by law to be done
by a party in such Court, or Tribunal, or before any person or other authority mentioned
in the said Section either in person or by his recognised agent or Py an advocate or an
attorney on his behalf.
(b) (i) A senior Advocate shall not appear without an Advocate on Record in the Supreme
Court or without an Advocate in Part II of the State Roll in any court, or tribunal, or
before any person or other a,uthorities mentioned in Section 30 of the Act.
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ii). Where a Senior Advocate has been engaged prior to the coming into force of the Rule in this
Chapter, he shall not continue thereafter unless an Advocate in Part II of the State Roll is engaged
along with him. Provided that a Senior Advocate may continue to appear without an Advocate in
Part II of the State Roll in cases in which he had been briefed to appear for the prosecution or the
defence in a criminal case, if he was so briefed before he is designated as a Senior Advocate or
before coming into operation of the rules in this Chapter as the case may be
(c) He shall not accept instructions to draft pleading or affidavits, advice on evidence or to do any
drafting work of an analogous kind in any Court or Tribunal, or before any person or other
authority mentioned in Section 30 of the Act or undertake conveyancing work of any kind
whatsoever. This restriction however shall not extend to settling any such matter as aforesaid in
consultation with an Advocate in Part II of the State Roll.
(cc) A Senior Advocate shall, however, be free to make concessions or give undertakings in the
course of arguments on behalf of his clients on instructions from the junior Advocate.
(d) He shall not accept directly from a client any brief or instructions to appear in any Court or
Tribunal, of before any person or other authority in India.
(e) A Senior Advocate who had acted as an Advocate (Junior) in a case, shall not after he has been
designated as a Senior Advocate advise
RESTRICTIONS ON SENIOR ADVOCATES
(CONTI)
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3. ARBITRAL TRIBUNAL
Services provided by Representor in Arbitral Tribunal to an Arbitral Trib
taxable @ 14.5% [with SBC]. w.e.f. 01-04-2016
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NEW EXEMPTIONS GRANTED / SERVICE TAX
SCOPE REDUCED
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• Services provided by Indian Institute of Management (IIM) by
way of 3 specified programs (except Executive Development
Programme) to their students will be exempt from service tax
w.e.f. 1.3.2016.
• Certain exemptions by way of finance act and certain by way of
notifications
IIM is ___________ - as per service tax department it is mandap
keeper, recruitment agency, caterer, lessor, hotel, management
consulting agency – everything except post office and reserve
bank
• Recognised by law - ???
• What about XLRI / Jamnalal Bajaj of Institute
NEW EXEMPTIONS GRANTED / SERVICE TAX
SCOPE REDUCED
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2. . ENTRY NO 12A IS INSERTED TO RESTORE
EXEMPTION WHICH WAS WITHDRAWN EARLIER
AND CONSTRUCTION ABATEMENT
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• Entry no 12A is inserted to restore exemption which was withdrawn earlier
and would be applicable up to 31.03.2020 on services provided to
Government, a Local Authority or a Governmental Authority for construction,
erection, repair, maintenance, renovation, or alteration of:
a.any civil structure or any other original works predominantly used for non
commercial purpose.
b.structure meant for use as educational, clinical, art or cultural
establishment
c.residential complex of Government employees and specified persons. under
a contract which has been entered prior to 01.03.2015. w.e.f. 01.03.2016
2. ENTRY NO 12A IS INSERTED TO RESTORE
EXEMPTION WHICH WAS WITHDRAWN EARLIER
AND CONSTRUCTION ABATEMENT
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CANAL, DAM IRRIGATION
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• Governmental authority – Because of the above amendment,
only the services of canal, dam or other irrigation works
provided to the Government, a local authority or a
governmental authority is covered. Thus, other services as
listed under entry 12 and 25 as on 1.7.2012 provided to the
Government, a local authority or a governmental authority
should also be treated at par for the purpose of granting this
retrospective exemption.
• Suggestion
• It is suggested that the said benefit be extended to all the
items covered under Sr No 12 and 25 of Notification No
CANAL, DAM IRRIGATION
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ENTRY 14A – WORKS PERTAINING TO
AIRPORT
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1. Entry no 14A is inserted to restore exemption withdrawn
earlier and would be applicable up to 31.03.2020 on services
provided by way of construction, erection, commissioning or
installation of original works pertaining to an Airport or Port
provided that Ministry of Civil Aviation / Shipping certifies that
contract had been entered prior to 01.03.2015 . w.e.f. 01-03-
2016. Refund shall be made within period of 6 months from the
date of the assent of Finance Bill, 2016.
• Prove unjust enrichment, what if charged in invoice and not
collected
• 2. Services by an aircraft will continue to be outside service tax
net by way of exemption through exemption notification after
deletion from negative list entry w.e.f. 01-06-2016
ENTRY 14A – WORKS PERTAINING TO
AIRPORT
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3. EXEMPTION TO CONSTRUCTION
SERVICES FOR SLUM REHABILITATION /
LOW COST HOUSING
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1.Exemption is given to services provided by way of construction, erection, repair,
maintenance, etc. of civil structure or any other original works pertaining to the In-situ
rehabilitation of existing slum dwellers using land as a resource under private
participation under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana.
w.e.f. 1.3.2016
• 2. Exemption is given to services provided by way of construction, erection, repair,
maintenance, etc. of civil structure or any other original works pertaining to the
Beneficiary led individual house construction / enhancement under the Housing for All
(Urban) Mission/Pradhan Mantri Awas Yojana. w.e.f. 01-03-2016
• 3. Exemption is given to services provided by way of construction of original works
pertaining to low cost houses up to a carpet area of 60 sq. mtr. in a housing project under
"Affordable housing in Partnership" component of PMAY or under any housing scheme of
the State Government. w.e.f. 01-03-2016
• The purpose of such project is rehabilitation of slum dwellers, whether the development is
done on the same land or at other land.
• In the event if few of slum dwellers do not agree to accept houses build for their
3. EXEMPTION TO CONSTRUCTION SERVICES FOR SLUM
REHABILITATION / LOW COST HOUSING
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5 MISCELLANEOUS EXEMPTIONS
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• 1. Threshold exemption to services provided by a performing artist in folk
or classical art form of (i) music, (ii) dance, or (iii) theater is increased from
Rs. 1,00,000/- per event to Rs. 1,50,000/- per event w.e.f. 01-04-2016
• 2. Service provided by Employees' Provident Fund Organisation [EPFO],
Insurance Regulatory and Development Authority of India [IRDA], Security
Exchange Board of India [SEBI] and National Centre for Cold Chain
Development [NCCCD] will be exempt from Service Tax w.e.f. 01-04-2016
• 3. Exemption from Service Tax provided to software recorded on media on
which affixation of Retail Sale Price [RSP] is required under Legal Metrology
Act, 2009 subject to following condition: -
Value of the package has been determined under Section 4A of the Central
Excise Act, 1944. - Appropriate duty of excise/CVD has been paid by
manufacturer / importer. - Declaration from service provider that no excess
amount over the RSP has been recovered. w.e.f. 01-03-2016
5 MISCELLANEOUS EXEMPTIONS
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GOVERNMENT SERVICES
Consequently, notification No. 30/2012-ST is being amended so
as to delete the words “by way of support services‟ appearing at
Sl. No. 6 of the Table in the said notification with effect from 1st
April, 2016.
• Thus, charges/ Fess/ amount charged by DGFT, MCA for
various services provided to business entities have been
inadvertently proposed to be made liable to Service Tax. This
also leads to the conclusion that sovereign functions of the
Government will also be liable to service tax which cannot be
the intention ofthe legislature.
• Suggestion:
• It is suggested that an appropriate clarification in this regard
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AMENDMENT IN 26/2012-ST
1. Indian Railway
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INDIAN RAILWAY
• Services of transport of goods by Indian Railway shall be liable to Service
Tax @ 4.5% [with SBC + KKC] after abatement of 70% allowing CENVAT
credit of input services.
• However, transport of goods in container by rail by private sector shall be
liable to Service Tax @ 6% [with SBC + KKC] after abatement of 60% with
credit of input services.
• Services of transportation of passengers by rail service in A.C. Coach and
First Class shall be liable to Service Tax @ 4.5% [with SBC + KKC] after
abatement of 70% by additionally allowing CENVAT Credit of input services.
w.e.f. 01-04-2016 and effect of KKC from 01-06-2016
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2. TRANSPORT RELATED PROVISIONS
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• New Entry for allowing abatement @ 60% on transport
of used household goods by a Goods Transport
Agency (GTA) is being inserted without CENVAT credit.
• Abatement on transportation of goods in a vessel @
70% is continued by allowing CENVAT Credit of input
services.
• Both w.e.f. 01-04-2016 and effect of KKC from 01-
06-2016
2. TRANSPORT RELATED PROVISIONS
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3. CHIT FUNDS
New Entry for allowing abatement @ 30% on services provided by forem
chit fund under the Chit Funds Act, 1982 is being inserted without CEN
w.e.f. 01-04-2016 and effect of KKC from 01-06-2016
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4. SERVICES OF TOUR OPERATOR
• Tour operator providing services solely for
arranging/booking accommodation for tour, abatement of
90% is available if cost of accommodation is included in
invoice.
• For any other service provided by Tour operator;
abatement changed to 70% from 75% / 60%.
w.e.f. 01-04-2016 and effect of KKC from 01-
06-2016
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5. MOTOR CAB SERVICES
An explanation is inserted for availing abatement of
60% on renting of motor cab services which states
that amount charged by service provider shall
include cost of goods (including fuel) and services
supplied by the service recipient. w.e.f. 01-04-2016
and effect of KKC from 01-06-2016
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TAX ON UNDER CONSTRUCTION PROPERTY
IN INDIA
Uniform abatement at the rate of 70% is
prescribed for Construction services. Hence, for
all commercial or residential construction
services abatement rate of 70% will be applicable
and effective rate of service tax shall be 4.50%
[with SBC + KKC] w.e.f. 01-04-2016 and effect
of KKC from 01-06-2016
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AMENDMENT REGARDING PAYMENT OF TAX
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1. Benefit of quarterly payment of service tax is extended to HUF.
2. Benefit of quarterly payment of service tax is extended to One Person
Company (OPC) whose aggregate value of taxable services provided is up to
Rs. 50 Lakhs in the previous financial year.
3. One Person Company (OPC) having taxable services up to Rs. 50 Lakhs in
the previous financial year has an option to make payment on receipt basis up
to the turnover of Rs. 50 Lakhs in current financial year.
All above w.e.f 1.4.2016
SUGGESTION - Facility to pay service tax on cash basis may be extended to
HUFs also.
AMENDMENT REGARDING PAYMENT OF
TAX
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AMENDMENT IN REVERSE CHARGE
MECHANISM
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1. After deletion of ‘support Services’ from Rule 2(1)(d)(i)(E) of
Service Tax Rules, the Service Recipient under RCM shall be liable
to pay service tax on 'any services' provided by the Government
or local authorities to business entity.
2. RCM on Mutual Fund Agent / distributor is deleted hence he
shall be liable to pay Service Tax @15% [with SBC + KKC] subject
to benefit of Rs. 10 Lacs Basic Exemption Limit for services
provided to Mutual Fund / AMC.
3. For single premium annuity policies, an insurer carrying on life
insurance business shall be liable to pay service tax @ 1.40% of
the single premium charged from the policy holder.
AMENDMENT IN REVERSE CHARGE
MECHANISM
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SERVICE TAX RETURNS
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• Service tax assessees above a certain threshold limit as may be
notified will be required to file an Annual Return on or before
30/11/2016. Annual return can be revised within a period of
one month from the date of filling of said return.
• Late fees of Rs. 100 per day subject to maximum limit of Rs.
20,000 will be required to be paid for delay in filling of Annual
Service Tax Return.
• w.e.f. date of enactment of Finance Bill, 2016
SERVICE TAX RETURNS
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POT RULES, 2011 (POTR)
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POTR
• Point of Taxation Rules has been made by Central Government pursuant to section
67A (2) of the Act. Thus, any doubt about the applicability of service tax rate or
apparent contradiction between Section 67A and PoTR would be taken care of. .
w.e.f. date to be notified
• Rule 5 of PoTR is applicable for PoT in case of new services. An explanation is being
inserted in Rule 5 stating that the rule shall be applicable in case of new levy as well
w.e.f. 01-03-2016.
• Where a service is taxed for the first time, then, -
• no tax shall be payable to the extent the invoice has been issued and the
payment received against such invoice before such service became taxable;
• no tax shall be payable if the payment has been received before the service
becomes taxable and invoice has been issued within fourteen days of the date when
the service is taxed for the first time.
• Another explanation is inserted stating that in case of new levy other than two
situation specified in Rule 5, the new levy or tax shall be payable w.e.f. 01-03-2016
Further, in the case of Collector of C.Ex Hyderabad VsVazir Sultan Tobacco Co Ltd
1996 (83) E.L.T. 3 (SC), it has been held that manufacturing is a taxable event whereas
payment of excise duty is at the time of the removal of goods, therefore in a case
Prepared by Pooja Jajwani, Sandesh Mundra &

AMENDMENT IN CENVAT CREDIT RULES
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CENVAT ON FOLLOWING GOODS ARE
ALLOWED
Railway wagons as capital goods
Appliances used in office located in factory as capital goods
Inputs and capital goods for pumping of water for captive use in factory
Capital goods of value upto Rs.10 k per piece allowed in single year
Job worker eligible to take ITC of tools used
Associates

CENVAT ON SERVICES
Service of transportation from custom station to
outside India not eligible
Credit of infrastructure cess not available
Circular says KKC not eligible but no changes
notified
Service tax charged on right assignment of natural
resource to be spread over period of right
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RULE 6 OF CENVAT
Associates

1.Rule 6 redrafted
2.Reversal of credit cannot exceed the value of total credit
taken.
3.Under proportionate reversal option, CENVAT Credit of only
common inputs / input services will have to be reversed.
4.Manufacturer/provider of output service who failed to give
prior intimation, may be allowed by a Central Excise officer to
follow proportionate reversal option and pay the amount
alongwith interest calculated at the rate of 15% per annum from
the due date of each month till payment date.
5.Existing Rule 6 would continue to be in operation up to
30.06.2016, for the units who are required to discharge the
obligation in respect of financial year 2015-16.
RULE 6 OF CENVAT
Associates

RULE 6 OF CENVAT
1.Banks and other financial institutions has been given option to
reverse CENVAT Credit in respect of exempted service either on
the basis of 7% of value of exempted service or proportionate
reversal in addition to the option of 50% reversal.
2.Exempt service will include activity which is not a 'service‘
3.CENVAT Credit of Capital Goods used for the manufacture of
exempted goods or provision of exempted service for two years
from the date of commencement of commercial production or
provision of service shall not be allowed. Similar provision is
being made for capital goods installed after the date of
commencement of commercial production or provision of
service.
Associates

INPUT SERVICE DISTRIBUTOR AND
MISCELLANEOUS
Associates

INPUT SERVICE DISTRIBUTOR
1.Input Service Distributor (ISD) can distribute CENVAT to an outsourced
manufacturing units also.
2.Credit attributable to more than one unit but not all the units shall be distributed to
attributable units only and not to all units.
3.Outsourced Manufacturing unit shall maintain separate account of credit received
from ISD and shall use it for payment of duty on goods manufactured for ISD.
Provision of Rule 6 of CENVAT Credit Rules shall not apply to ISD.
4.As per newly inserted Rule 7B, manufacturers having multiple manufacturing units
can take credit of inputs received under the cover of an invoice issued by warehouse
of the manufacturer following provisions as made applicable to first / second stage
dealer.
5.Manufacturer or provider of output service shall submit an Annual Return of CENVAT
Credit for each financial year by 30th November of the succeeding year in Form to be
specified. xxi. Rule 14 (2) which prescribes a procedure based on First In First Out
(FIFO) method for determining utilization of CENVAT credit has been omitted.Prepared by Pooja Jajwani, Sandesh Mundra &
Associates

AMENDMENT IN FINANCE ACT, 1994
Normal period of limitation
extended to 30 months
On non-deposit of tax interest @
24% on non-collection @ 15%
CORRESPONDING CREDIT FOR INPUT SERVICES SHOULD ALSO BE INCREASED
12 MONTHS TO 30 MONTHS
Associates

Associates

[There is a big chance for disputes, as section
67(2) of Finance Act, 1994 says that Where the
gross amount charged by a service provider, for
the service provided or to be provided is
inclusive of service tax payable, the value of
such taxable service shall be such amount as,
with the addition of tax payable, is equal to the
gross amount charged. Hence, officers are likely
to impose 24% interest rate in most of cases by
saying that assessee has already collected
service tax but not paid to Govt.]
Associates

LETS TAKE TWO EXAMPLES IN INTEREST
• For example, where an invoice has been made for INR 1,00,000.00 and tax rate is
14.5% (including SBC), in such case, total value of invoice is INR 1,14,500.00. The
invoice has been made in December 2016. The due date is 6th January, 2016. The
amount is collected in 15th August, 2017 and tax has been deposited to the
Government on 30th September, 2017. In this case, whether the interest will be 15%
from 6th January,2016 to 15th August, 2017 and 24% from 16th August, 2017 to 30th
September, 2017 or will it be 24% from 6th January,2016 to 30th September, 2017.
• Further, what will be the situation where only a part of the amount is collected and
remaining amount is not collected? Say a client pays only Rs100000specifically stating
that the amount towards service tax has been withheld in such case, whether the
interest rate will be 15% or 24%.
Associates

Service of lottery distributor not an “Transaction in money”
Transfer of Right of frequency spectrum is a declared service
In main offence and penalty is closed then, penalty on director
will be closed
Monetary limit for filling complaints enhanced from Rs.50 L to Rs.2
Cr
Associates

SUGGESTION TIME
• Suggestion
• It is suggested that constitutional validity for levying
tax on right to use the radio-frequency spectrum and
subsequent transfers thereof needs to be checked.
Further, even if it is decided that service tax is to be
levied on right to use the radio-frequency spectrum
and subsequent transfers thereof, in such case, a
provision is to be introduced in the budget which
clearly states that in such a case, state should not tax
the same otherwise these seems to be a clear case ofPrepared by Pooja Jajwani, Sandesh Mundra &
Associates

Power to arrest only if tax collected but not deposited and amount > Rs.2 Cr
Powers to allow Service tax rebate introduced
Service provided to govt. authority like SSNL is exempted from July, 12 to
Jan, 2014. Refund allowed
No service tax for April, 2015 to Feb 2016 for service to local/ government
authority
(CONT.)
Prepared by Sandesh Mundra &
Associates

AMENDMENT IN FINANCE ACT
• No service tax shall be levied for the period from 01-04-2015 to 29-02-
2016 in respect of taxable services provided to Government, a local
authority or a Governmental Authority for construction, erection, repair,
maintenance, renovation, or alteration of:
a.any civil structure or any other original works predominantly used for non
commercial purpose.
b.structure meant for use as educational, clinical, art or cultural
establishment
c.residential complex of Government employees and specified persons under
a contract which has been entered prior to 01.03.2015. Refund shall be
made within a period of 6 months from the date of the assent of Finance
Bill, 2016.
Associates

AMENDMENTS FOR REFUNDS
• Time for application for refund of CENVAT for export of service
One year from –
(a)receipt of payment in convertible foreign exchange, if service
completed prior to payment; or
(b)date of issue of invoice, where advance is received
w.e.f 1.03.2016
• Refund of service tax is allowed on services used beyond the
place of removal for export of goods retrospective effect from
01-07-2012.
w.e.f. enactment of Finance Bill
Associates

INDIRECT TAX DISPUTE RESOLUTION
SCHEME, 2016
Designated authority to pass order in 15 days of intimation
Payment with interest and penalty equal to 25% of tax in 15 days and intimate
authority in 7 days
Declaration before 31.12.2016 has to be made
If appeal pending before Commissioner (Appeals) (Demand<50 L)
Associates

• On receiving order of authority, declarant get immunity from all proceedings under
the Act, in respect of tax declared under the scheme.
• Any amount paid in pursuance of the declaration under the scheme shall not be
refunded.
• Order passed by Designated Authority under the scheme shall not be deemed to be
an order on merits and has no binding effect.
• This Scheme will not be applicable for
(a)Search and Seizure proceedings; or
(b)Prosecution for offence punishable under the Act instituted before 01-06-2016
(c)order in respect of narcotic drugs or other prohibited goods
(d)order in respect of any offence punishable under Indian Penal Code, the Narcotic
Drugs and Psychotropic Substances Act, 1987 or the Prevention of Corruption Act,
1988; or (d) any detention order has been passed under the Conservation of Foreign
Exchange and Prevention of Smuggling Act, 1974.
INDIRECT TAX DISPUTE RESOLUTION
SCHEME, 2016
Associates

•Ready Mix Concrete (RMC) manufactured at site
Vide Notification No. 12/2016 effective 1.3.2016 RMC manufactured at site has been
exempted prospectively by way of substitution of below entry.
Suggestion –
Excise duty exemption, which was earlier limited to Concrete Mix (CM) only, now being
extended to Ready Mix Concrete (RMC) manufactured at construction site for
construction work.
Associates

Service Tax-Budget impact, 2016

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