“There is no significant loss or gain in my indirect tax proposals. – para 181 of FM Speech on 01.02.2017
This entire presentation is linked with English, Hindi and Tamil Film Titles for the purpose of creativity and humor and has no connection with the film or its contents.
Background
Even though Union Budget, 2017 is supposed to be on 01.02.2017, the Government has introduced significant changes to service tax law through the issue of Notification No. 01/2017, 02/2017, 03/2017 and 04/2017 dated 12.01.2017.
Budget 2017-18 - analysis of direct tax proposalsoswinfo
No change in tax slabs
The rate of income tax for individuals and HUF within the slab of 2.5 lakhs to Rs. 5 lakhs reduced from 10% to 5%.
Additional surcharge of 10% on the tax payable by a person having total income exceeding Rs. 50 lakhs but not exceeding Rs. 1 crore.
Tax Quest
Finance Act, 2016 has effected a number of changes that are effective from 01.06.2016 and this
alert seeks to provide a brief view on such changes.
1. Service Tax on Ocean Freight – Import Segment
Background
Even though Union Budget, 2017 is supposed to be on 01.02.2017, the Government has introduced significant changes to service tax law through the issue of Notification No. 01/2017, 02/2017, 03/2017 and 04/2017 dated 12.01.2017.
Budget 2017-18 - analysis of direct tax proposalsoswinfo
No change in tax slabs
The rate of income tax for individuals and HUF within the slab of 2.5 lakhs to Rs. 5 lakhs reduced from 10% to 5%.
Additional surcharge of 10% on the tax payable by a person having total income exceeding Rs. 50 lakhs but not exceeding Rs. 1 crore.
Tax Quest
Finance Act, 2016 has effected a number of changes that are effective from 01.06.2016 and this
alert seeks to provide a brief view on such changes.
1. Service Tax on Ocean Freight – Import Segment
There are so many changes done by Finance Bill, 2016 in various Act's. Provisions for service tax has also been amended or proposed to be amended. This budget was much awaited because a massive change is awaiting in the form of GST. Looking, to the large number of changes, we have consolidated changes with respect to Service tax in one presentation. Changes are classified according to subject in order to ensure ease of understanding.
Coverage
Zero Rated Supplies
Detailed Analysis of Section 54
Types of Export Refunds under GST
Export of Goods upon Payment of IGST
Export of Services upon Payment of IGST
Export of Goods/services under BOND/LUT
Export of Goods/Services to SEZ
Refund if any for Supplies to Merchant Exporter
Refund for Deemed Exports
Procedural Aspects relating to Refund claims
Interest for delayed Refunds
Credit of Amount Rejected as Refund Claims
Hello Friends ,
This slides contains
1) Service Tax Amendments Finance Act 2016
2) CENVAT Rules Amendments Fiance Act 2016
3) Case Laws-
a) No Service Tax on FLats where value of land is included.
b) No Service Tax Audit by Departmental Person
Enrolment Plan for your State
The schedule of the enrolment activation drive for states is given below. We encourage you to complete the enrolment during the specified dates. However, the window will be open till 31/01/2017 for those who miss the chance.
There are so many changes done by Finance Bill, 2016 in various Act's. Provisions for service tax has also been amended or proposed to be amended. This budget was much awaited because a massive change is awaiting in the form of GST. Looking, to the large number of changes, we have consolidated changes with respect to Service tax in one presentation. Changes are classified according to subject in order to ensure ease of understanding.
Coverage
Zero Rated Supplies
Detailed Analysis of Section 54
Types of Export Refunds under GST
Export of Goods upon Payment of IGST
Export of Services upon Payment of IGST
Export of Goods/services under BOND/LUT
Export of Goods/Services to SEZ
Refund if any for Supplies to Merchant Exporter
Refund for Deemed Exports
Procedural Aspects relating to Refund claims
Interest for delayed Refunds
Credit of Amount Rejected as Refund Claims
Hello Friends ,
This slides contains
1) Service Tax Amendments Finance Act 2016
2) CENVAT Rules Amendments Fiance Act 2016
3) Case Laws-
a) No Service Tax on FLats where value of land is included.
b) No Service Tax Audit by Departmental Person
Enrolment Plan for your State
The schedule of the enrolment activation drive for states is given below. We encourage you to complete the enrolment during the specified dates. However, the window will be open till 31/01/2017 for those who miss the chance.
Latest Key Features of Budget 2017-2018 on each topics discussed in Union Bud...Youth Apps
Latest Key Features of Budget 2017-2018 on each topics discussed in Union Budget 2017.
INTRODUCTION
CHALLENGES IN 2017-18
DEMONITISATION
ROADMAP & PRIORITIES
FARMERS
RURAL POPULATION
YOUTH
INFRASTRUCTURE
FINANCIAL SECTOR
DIGITAL ECONOMY
PUBLIC SERVICE
PRUDENT FISCAL MANAGEMENT
PROMOTING AFFORDABLE HOUSING AND REAL ESTATE SECTOR
PROMOTING DIGITAL ECONOMY
EASE OF DOING BUSINESS
GOODS AND SERVICES TAX
RAPID (Revenue, Accountability, Probity, Information and Digitisation)
Missed out on the Union Budget 2017 Presentation?
Indian Finance Minister, Mr. Arun Jaitely has once again taken the nation by wave with his pro-poor, pro-growth, pro-middle class, pro-youth & paradigm shifting Budget. Read the highlights of the Budget here.
This presentation has been prepared to give a glimpse of Union Budget 2017-18. It will come handy for management students who have Finance as one of their subjects.
A series of modules on project cycle, planning and the logical framework, aimed at team leaders of international NGOs in developing countries.
New improved version of Writing Project Proposals in February 2014.
An attempt to compile relevance of contractual clauses, technique of claiming back lost exemptions through doctrine of promissory estoppel, effect of repeals and omission and related judgments, is made. An overview of legal aspects for ongoing contracts is included.
INCOME TAX – INTERNATIONAL TAXATION
Tax Residency Certificate – DTAA Benefits
The Punjab and Haryana High Court, has held that Tax Residency Certificate issued by a foreign country can be considered valid for the purpose of claiming benefit under the Indo – Mauritius DTAA. The Court reversed the AAR Ruling and relied upon CBDT Circular No. 789 to the effect that certificate of residence issued by the Mauritius Authorities constitute sufficient evidence for residential status.
Honourable Finance Minister Nirmala Sitharaman has presented her second Union Budget in the Parliament on 01 February 2020.This Budget focused on bringing a series of measures aimed at promoting investments in the country, creating a world class infrastructure and stimulating economic growth.
Newsletter on daily professional updates- 20/03/2020CA PRADEEP GOYAL
“Knowledge is power only when put to use –
and then only when the use made of it is constructive”
Here is your Daily dose of professional updates 20.03.2020
Newsletter on daily professional updates- 07/01/2020CA PRADEEP GOYAL
“If four things are followed –
having a great aim,
acquiring knowledge,
hard work, and
perseverance –
then anything can be achieved.”
Here is your Daily dose of professional updates 07.01.2020
Newsletter on daily professional updates- 08/04/2020CA PRADEEP GOYAL
“Ideas are knowledge.
When we share knowledge in the written or verbal form, amazing things can happen.”
Here is your Daily dose of professional updates 08.04.2020
Newsletter on daily professional updates- 05/02/2020CA PRADEEP GOYAL
Sharing knowledge is the most fundamental act of friendship.
Because it is a way you can give something without loosing something.
Here is your Daily dose of professional updates 05.02.2020
ABSTRACT
Chemical is right at the core of advance industrial systems, which is why it has attained a serious concern for disaster management. Chemical disasters are often traumatic in impact on humans usually resulting in casualties along with damage to nature and property. Unlike natural disasters, preventive and regulatory measures assume greater significance when we talk about chemical disasters. India too, has witnessed several chemical disasters in the past 50 years, highlighting the need for safeguards against such events. This paper’s focus lies on two of the most dangerous gas leaks India has witnessed until this date, i.e. the Bhopal Gas Leak and the Vizag Gas Leak. The author discusses in detail what went wrong prior to and during the Bhopal Gas leak, which is followed by an explanation on how the safety initiatives have evolved after the 1984 incident. In the next section, the author tries to decode the Vizag leak of 2020 with emphasis on how the company could bypass the safety norms in place. The author then discusses the gap in the present framework governing Chemical Disasters (including gas leaks) and proposes certain measures that could be implemented for effective management of such disasters.
VAT driven local purchases
Cost driven CST purchases
Duty burden on imports
Complex State Laws
Ever changing tax landscape
Different decisions on the same issue
Border controls
VAT driven local purchases
Cost driven CST purchases
Duty burden on imports
Complex State Laws
Ever changing tax landscape
Different decisions on the same issue
Border controls
On 12th January 1946, Rs. 500 was demonetized and people were given 10 days for exchange. After this period explanation was required as to why exchange was not done in the first 10 days.
The Scheme was a failure as out of the total issue of Rs. 143.97 crores of High Denomination Notes, Rs. 134.90 crores were exchanged. Thus only Rs. 9 crores were demonetized.
1946 exercise turned out to be only an exchange.
The Goods & Service Tax regime is most likely to become a reality from April 2017. The Government of India has been taking a number of steps at unbelievable speed to implement the new regime. Following the Model Law, the Draft Rules for registration, payment, invoice, returns and refunds were released. The Government has also released an FAQ on GST.
The mood is positive for GST with the Congress appearing to soften its stand and press reports indicating a possible five hour debate in the Parliament on the 122nd Constitutional Amendment.
Section 206AA – Rule 37BC
Central Board of Direct Taxes vide Notification No. 53/2016 dated 24.06.2016 has amended the Income Tax Rules, 1962 by inserting a new Rule 37BC through the IT (17th Amendment) Rules, 2016.
The e-commerce boom was marked by multiple players, rosy valuations and now slowly reality has set in and the price wars have taken their toll. The VAT authorities across the country have had their tryst with this industry with notices, demands, levy of entry tax and litigation. Currently whenever there is a tax or a business problem, the immediate response from the industry or the administrator or the media is that GST is the only solution.
Section 65(105)(zzzh) provides for a levy of service tax on services in relation to ‘construction of complex’ and an explanation was added by Finance Act, 2010.
The new law provides for an equalisation levy of 6% on the amount of consideration received, or receivable on specified services carried on by a non-resident not having a permanent establishment in India.
Article co-owners of house property - dt & dt implicationsoswinfo
When more than one person owns a property and the said property realizes revenue in the form of rent and interest on loan is involved, direct and indirect tax implications require examination in the light of relevant statutory provisions and judicial precedents.
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
ZGB - The Role of Generative AI in Government transformation.pdfSaeed Al Dhaheri
This keynote was presented during the the 7th edition of the UAE Hackathon 2024. It highlights the role of AI and Generative AI in addressing government transformation to achieve zero government bureaucracy
A process server is a authorized person for delivering legal documents, such as summons, complaints, subpoenas, and other court papers, to peoples involved in legal proceedings.
Russian anarchist and anti-war movement in the third year of full-scale warAntti Rautiainen
Anarchist group ANA Regensburg hosted my online-presentation on 16th of May 2024, in which I discussed tactics of anti-war activism in Russia, and reasons why the anti-war movement has not been able to make an impact to change the course of events yet. Cases of anarchists repressed for anti-war activities are presented, as well as strategies of support for political prisoners, and modest successes in supporting their struggles.
Thumbnail picture is by MediaZona, you may read their report on anti-war arson attacks in Russia here: https://en.zona.media/article/2022/10/13/burn-map
Links:
Autonomous Action
http://Avtonom.org
Anarchist Black Cross Moscow
http://Avtonom.org/abc
Solidarity Zone
https://t.me/solidarity_zone
Memorial
https://memopzk.org/, https://t.me/pzk_memorial
OVD-Info
https://en.ovdinfo.org/antiwar-ovd-info-guide
RosUznik
https://rosuznik.org/
Uznik Online
http://uznikonline.tilda.ws/
Russian Reader
https://therussianreader.com/
ABC Irkutsk
https://abc38.noblogs.org/
Send mail to prisoners from abroad:
http://Prisonmail.online
YouTube: https://youtu.be/c5nSOdU48O8
Spotify: https://podcasters.spotify.com/pod/show/libertarianlifecoach/episodes/Russian-anarchist-and-anti-war-movement-in-the-third-year-of-full-scale-war-e2k8ai4
Many ways to support street children.pptxSERUDS INDIA
By raising awareness, providing support, advocating for change, and offering assistance to children in need, individuals can play a crucial role in improving the lives of street children and helping them realize their full potential
Donate Us
https://serudsindia.org/how-individuals-can-support-street-children-in-india/
#donatefororphan, #donateforhomelesschildren, #childeducation, #ngochildeducation, #donateforeducation, #donationforchildeducation, #sponsorforpoorchild, #sponsororphanage #sponsororphanchild, #donation, #education, #charity, #educationforchild, #seruds, #kurnool, #joyhome
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
Canadian Immigration Tracker March 2024 - Key SlidesAndrew Griffith
Highlights
Permanent Residents decrease along with percentage of TR2PR decline to 52 percent of all Permanent Residents.
March asylum claim data not issued as of May 27 (unusually late). Irregular arrivals remain very small.
Study permit applications experiencing sharp decrease as a result of announced caps over 50 percent compared to February.
Citizenship numbers remain stable.
Slide 3 has the overall numbers and change.
Up the Ratios Bylaws - a Comprehensive Process of Our Organizationuptheratios
Up the Ratios is a non-profit organization dedicated to bridging the gap in STEM education for underprivileged students by providing free, high-quality learning opportunities in robotics and other STEM fields. Our mission is to empower the next generation of innovators, thinkers, and problem-solvers by offering a range of educational programs that foster curiosity, creativity, and critical thinking.
At Up the Ratios, we believe that every student, regardless of their socio-economic background, should have access to the tools and knowledge needed to succeed in today's technology-driven world. To achieve this, we host a variety of free classes, workshops, summer camps, and live lectures tailored to students from underserved communities. Our programs are designed to be engaging and hands-on, allowing students to explore the exciting world of robotics and STEM through practical, real-world applications.
Our free classes cover fundamental concepts in robotics, coding, and engineering, providing students with a strong foundation in these critical areas. Through our interactive workshops, students can dive deeper into specific topics, working on projects that challenge them to apply what they've learned and think creatively. Our summer camps offer an immersive experience where students can collaborate on larger projects, develop their teamwork skills, and gain confidence in their abilities.
In addition to our local programs, Up the Ratios is committed to making a global impact. We take donations of new and gently used robotics parts, which we then distribute to students and educational institutions in other countries. These donations help ensure that young learners worldwide have the resources they need to explore and excel in STEM fields. By supporting education in this way, we aim to nurture a global community of future leaders and innovators.
Our live lectures feature guest speakers from various STEM disciplines, including engineers, scientists, and industry professionals who share their knowledge and experiences with our students. These lectures provide valuable insights into potential career paths and inspire students to pursue their passions in STEM.
Up the Ratios relies on the generosity of donors and volunteers to continue our work. Contributions of time, expertise, and financial support are crucial to sustaining our programs and expanding our reach. Whether you're an individual passionate about education, a professional in the STEM field, or a company looking to give back to the community, there are many ways to get involved and make a difference.
We are proud of the positive impact we've had on the lives of countless students, many of whom have gone on to pursue higher education and careers in STEM. By providing these young minds with the tools and opportunities they need to succeed, we are not only changing their futures but also contributing to the advancement of technology and innovation on a broader scale.
Understanding the Challenges of Street ChildrenSERUDS INDIA
By raising awareness, providing support, advocating for change, and offering assistance to children in need, individuals can play a crucial role in improving the lives of street children and helping them realize their full potential
Donate Us
https://serudsindia.org/how-individuals-can-support-street-children-in-india/
#donatefororphan, #donateforhomelesschildren, #childeducation, #ngochildeducation, #donateforeducation, #donationforchildeducation, #sponsorforpoorchild, #sponsororphanage #sponsororphanchild, #donation, #education, #charity, #educationforchild, #seruds, #kurnool, #joyhome
Budget 2017-2018 - analysis of indirect tax proposals - general
1. K.VAITHEESWARAN
ADVOCATE &TAX CONSULTANT
‘VENKATAGIRI’
Flat No.8/3 & 8/4, Ground Floor,
No.8 (Old No.9), Sivaprakasam Street,
T. Nagar, Chennai - 600 017, India
Tel.: 044 + 2433 1029 / 4048
402, Front Wing,
House of Lords,
15/16, St. Marks Road,
Bengaluru – 560 001, India
Tel : 080 22244854/ 41120804
Mobile: 98400-96876
E-mail : vaithilegal@yahoo.co.in / vaithilegal@gmail.com
www.vaithilegal.com
2. “There is no significant loss or gain in
my indirect tax proposals. – para 181
of FM Speech on 01.02.2017
This entire presentation is linked with English, Hindi and Tamil Film Titles for
the purpose of creativity and humor and has no connection with the film or
its contents.
3. 2016-2017
(Budget Estimates
(Rs. in Crores)
2016-2017
(Revised Budget
Estimates
(Rs. in Crores)
2017-2018
(Budget Estimates
(Rs. in Crores)
CorporationTax 493923.55 493923.50 538755.73
Taxes on income 353173.68 353173.70 441255.27
Customs 230000.00 217000.00 245000.00
Excise 318669.50 387368.58 406900.00
ServiceTax 231000.00 247500.00 275000.00
Swach Bharath Cess 10000.00 12500.00 13300.00
Krishi Kalyan Cess 5000.00 7000.00 8800.00
Infrastructure Cess 3000.00 4000.00 4050.00
If GST is on track and is to be implemented from 01.07.2017, how correct are the estimates for excise,
customs and service tax for the whole year?
Assuming, the numbers are estimates based on existing assessees, without any change in the rate or
levy, how can service tax increase by Rs.30,000 crores.
4. Any process amounting to manufacture or production of
goods found place in the Negative List through Section
66D(f) from 01.07.2012.
Finance Act, 2015, w.e.f. 01.06.2015 substituted Section
66D(f) to provide for services by way of carrying out any
process amounting to manufacture of production of goods
excluding alcoholic liquor for human consumption.
Finance Bill, 2017 seeks to omit Section 66D(f).
When the Finance Bill, 2017 receives the assent of the
President, any process amounting to manufacture or
production of goods excluding alcoholic liquor for human
consumption would be exempt from service tax under Entry 30,
Notification No.25/2012.
5. Process amounting to manufacture or production of goods
means a process on which duties of excise are leviable under
Section 3 of the Central Excise Act, 1944 or the Medicinal and
Toilet Preparation (Excise Duties) Act, 1955 or any process
amounting to manufacture of opium, Indian hemp and other
narcotic drugs and narcotics on which duties of excise are
leviable under any State Act for the time being in force.
6. Intoxicating liquors, that is to say, the productions, manufacture, possession, transport,
purchase and sale of intoxicating liquors’ falls under Entry 8 of the State List.
The Delhi High Court in the case of Carlsberg India Pvt. Ltd.Vs. UoI has held that
A manufacturing activity undertaken by an entity for itself cannot be said to be a service
provided to anyone and definitely not to itself.
Activity of manufacture by the brand-owner who is also a license holder cannot be said
to be liable to service tax.
Where manufacture of liquor for human consumption is not manufactured by license
holder but by another entity holding the license and the cost of manufacture is
reimbursed by the brand-owner, there is a service.
Manufacture of alcohol for human consumption on a contract basis has to be viewed as
services rendered by one party to another and liable to service tax.
Power can be traced to Entry 97, Union List and does not fall within the State List.
Entry 51, State List envisages manufacture liquor for consumption but does not
contemplate a situation of manufacture of liquor by one person or entity for another.
Taxable event is manufacture under Entry 51 which attracts State excise duty.
However when it is manufacture for another, in pith and substance, it is a service
performed by one for another and does not fall under Entry 51 of the State List.
7. Does the amendment intend to cover plain manufacture of alcohol in
addition to contract manufacture?
If that is the intention it would run counter to Entry 51, State List.
Manufacture of excisable goods other than alcohol for human
consumption moves from Negative List to Exemption List.
Manufacture is now considered as an exempted service.
Rule 6 of the Cenvat Credit Rules and Rule 2(e) of the Cenvat Credit
Rules?
Can a manufacturer discharging excise duty be considered as
providing exempt services for the purpose of cenvat credit?
Unintended consequences?
8. Authority for Advance Ruling was introduced for the first
time in the Income Tax Act by Finance Act, 1993 through
Chapter XIX-B as a facility for non-residents to obtain
advance ruling.
Advance Ruling for Indirect Taxes was introduced in Excise
and Customs in 1999.
The provisions were extended to ServiceTax in May 2003.
The scope was widened to cover wholly owned subsidiaries,
public sectors, resident public limited company, private
limited company and finally to firms, LLPs and even sole
proprietors.
9. All applications pending before AAR (Central Excise,
Customs and Service Tax) to be transferred to the AAR
constituted under Section 245-O of the Income Tax Act
from the stage at which such proceedings stood as on the date
on which the Finance Bill, 2017 receives the assent of the
President.
Member of IRS (Customs and Excise) qualified to be a
Member of Board shall be the Revenue Member of the AAR.
Increase in free from Rs.2,500 to Rs.10,000/-.
Changes in time limit for the AAR to pronounce order.
10. “The sovereign right of the Government to undertake
retrospective legislation is unquestionable. However, this
power has to be exercised with extreme caution and
judiciousness keeping in mind the impact of each such measure
on the economy and the overall investment climate. This
Government will not ordinarily bring about any change
retrospectively which creates a fresh liability.”
FM’s Speech on 10.07.2014 – Para 10.
11. Nullification of the decision of the Delhi High Court in Suresh Kumar Bansal.
The Delhi High Court in the landmark judgment of Suresh Kumar Bansal Vs.
Union of India (2016) 43 STR 3 has set aside the explanation introduced by
Finance Act, 2010 to Section 65(105)(zzzh) in the context of construction of
complex on the ground that the levy itself would fail if it does not provide for a
mechanism to ascertain the value of the service component which is the subject
of the levy. In order to sustain the levy of service tax on services, it is essential
that the machinery provisions provide for a mechanism for ascertaining the
measure of tax that is the value of services which are charged to service tax. The
Delhi High Court applied the principles laid down by the Supreme Court in the
case of Govind Saran Ganga Saran Vs. CST (1985) 155 ITR 144; Mathuram
Agrawal Vs. State of MP (1999) 8 SCC 667 and CIT Vs. B.C. Srinivasa Shetty
(1981) 2 SCC 460.
12. Section 128 of the Finance Bill, 2017 seeks to amend the Valuation Rules with
retrospective effect from 01.07.2010.
Any action taken or done at any time during the period specified in column 4 of
the Sixth Schedule relating to the provisions as amended shall be deemed to be
and deemed always to have been for all purposes as validly and effectively taken or
done as if the amendment made by sub-section (1) had been in force at all material
times.
Attempt to identify value of service element by excluding value of goods and
land or undivided share of land as the case may be.
If the value cannot be determined and the gross amount include value of goods
as well as value of land or undivided share of land, service tax on 25% of the gross
amount subject to non-availment of cenvat credit and benefit under Notification
No.12/2013 for the period 01.07.2010 to 30.06.2012.
Similar amendments for subsequent period including identification of 30% as the
value from 01.03.2013 onwards.
Notification No.1/2006 and Notification No.26/2012 abatements now form part
of theValuation Rules.
13. Section 128(3) provides that Central Government shall have and shall be deemed to
have the power to make Rules with retrospective effect as if the Central Government
had the power to make Rules under Section 94 retrospectively at all material times.
Whether Section 128 of the Finance Bill can be considered as a validating amendment?
Section 38A of the Central Excise Act.
Positions taken based on Sureshkumar Bansal ?
Whether retrospective amendment is correctly worded ?
Whether categorization of the activity as works contract indicates death of the concept of
‘construction of complex’ ?
When measure of tax is relevant, would levy of service tax on restaurants be valid given the
fact that there is no adequate mechanism for identifying the value of services is the
question.
Rule 2C of the Service Tax Valuation Rules, presumes the value to be 40% without an
alternate option of identification of actual value of services.
Can it be said that an arbitrary value without an option of ascertained value runs counter to
the ratio laid down by the Supreme Court in the case of Wipro Ltd. Vs. AC (2015) 319 ELT
177 in the context of CustomsValuation?
14. Service tax exemption to taxable services provided or agreed to be
provided by the Army, Naval and Air Force Group Insurance Funds by
way of life insurance to members of the Army, Navy and Air Force
under the Group Insurance Schemes of the Central Government, w.e.f.
02.02.2017.
Section 105 of the Finance Bill, 2017 seeks to provide retrospective
exemption in respect of the aforesaid services for the period
10.09.2004 to 01.02.2016.
15. Upfront payment by way of premium or development charge to State
Government Industrial Development Corporations for long term lease of
industrial plots.
Questions arose as to whether the amounts constitute consideration
towards renting of immoveable property.
Notices issued to various corporations.
Demands raised by the corporation on licensees for service tax for the
past period.
Views expressed by professionals that lump sum amount does not
constitute rent based on decisions such as Panbari Tea Co. Ltd.,
SindhuraniChaudhrani.
Divergent views on the same issue in the context of Section 194-I.
16. Allahabad High Court in the case of Greater Noida Industrial
Development Authority Vs. CCE (2015) 40 STR 95 held that
we may not enter into the issue as to whether premium paid
along with rent should form part of the total consideration for
levy of service tax or not. If the Tribunal had held that only rent
charged be considered for service tax it will not mean that the
Tribunal has held that part of the same transaction was
taxable and part of it was not taxable. The Tribunal has rightly
held that for computation consideration should be confined to
periodical rent.
17. Section 104 of the Finance Bill, 2017 provides that no service tax is
leviable from 01.06.2007 to 21.09.2016 on one time upfront
amount (premium, salami, cost price, development charge or by
whatever name called) in respect of taxable service provided or
agreed to be provided by a State Government Industrial
Development Corporation or Undertaking to industrial units by way
of grant of long term lease of 30 years or more.
From 22.09.2016, exemption is available in terms of Notification
No. 41/2016.
18. Existing exemption for specified courses of IIM expanded.
Originally exemption available for 2 year full time residential PG
Programme in management.
Now even such courses which are non-residential are exempt.
Service tax exemption in respect of services provided to the Government
by way of transfer of passengers by air embarking or terminating in the
airport under regional connectivity scheme against consideration in the
form of viability gap funding.
Exemption for 1 year from the date of commencement of operations of
airport under the regional connectivity scheme as notified by the
Ministry of Civil Aviation.
19. BCD, CVD, SAD and ED exemption in respect of
Micro ATMs as per standard version 1.5.1
Fingerprint reader / scanner
Iris scanner
Miniaturized POS card reader for mPOS (other than
mobile phone or tablet computers)
Parts and components for manufacture of these devices are
also exempted subject to actual user condition.
POS devices and all goods for manufacture of POS devices
subject to actual user condition exempt from excise duty.
20. BCD on LNG reduced from 5% to 2.5%.
BCD reduced from 5% to NIL on solar tempered glass for manufacture of solar panels,
cells, etc. subject to actual user conditions.
Postal parcel packets and letters of CIF value not more than Rs.1,000/- per consignment
exempted from BCD, CVD and SAD.
Concessional excise duty of 6% for various items required for initial setting up of fuel cell
based system for generation of power for demonstration purposes subject to condition.
ED on motor vehicles falling under 8702 90 21, 90 22, 90 28 and 90 29 reduced from 29%
to 12.5% retrospectively from 01.01.2017. From 11.01.2017, Entry 277A, Notification
No.12/2012 provides for 12.5% duty.
Articles of silver excluded from scope of CVD exemption under Notification No.12/2012.
BCD on cashew nut roasted, salted or roasted and salted increased from 30% to 45% by
increasing the tariff rate from 30% to 45% w.e.f. 02.02.2017.
15% effective export duty on other aluminium ores and concentrates falling under 2606
00 90 w.e.f. 02.02.2017.
Excise exemption for solar tempered glass used for manufacture of solar cells, solar
power equipment, etc. is withdrawn and duty imposed at 6%. Duty on parts for
manufacture of these items reduced from 12.5% to 6%.
21. Additional duty of excise on cigarettes under FA2005 (known
as ‘health cess’) increased
Excise duty on tobacco products increased.
Duty on handmade paper rolled biris and machine made
paper rolled biris increased.
AED on jarda scented tobacco, gutkha and chewing tobacco
increased.
AED on pan masala and unmanufactured tobacco increased.
Excise duty payable under compounded levy scheme in
respect of these products modified accordingly.
22. The person in-charge of a conveyance that enters India from any place
outside India or any other person as may be specified shall deliver to the
proper officer
Passenger and crew arrival manifest before the arrival of an aircraft or vessel
Passenger and crew arrival manifest upon the arrival of a vehicle
Passenger name record information of arriving passengers
Passenger name record information means records prepared by an
operator of aircraft / vessel / vehicle or his authorised agent for each
journey booked by or on behalf of any passenger.
Penalty not exceeding Rs. 50,ooo for violation.
Similar provisions for conveyance that departs from India to a place
outside India.
23. Importer is required to present bill of entry before the
end of the next day following the day (excluding
holidays) on which the aircraft or vessel or vehicle
arrives at the customs station where the goods are to be
cleared – Amendment to Section 46
Availability of information and data for filing of bill of
entry?
Impact on customs brokers.
Bill of entry requires data from import manifest such as
rotation number, line number, receipt of carrier etc.
24. Importer shall pay the import duty
On the date of presentation of bill of entry in the case of self
assessment or
Within one day (excluding holidays) from the date on which the bill of
entry is returned by the proper office for payment of duty in the case
of assessment, re-assessment or provisional assessment.
By such due date as may be specified in the case of deferred payment.
Non-payment within time would attract interest
Earlier provisions provided for payment within two days
25. Transportation of goods by vessel – Changes prior to budget.
Notification Nos. 02 to 04 of 2017 w.e.f. 22.01.2017.
A Japanese car manufacturer enters into a global arrangement with a
Japanese Liner.
Cars move from Japan to India by sea.
Agent of the Japanese Liner in India files the IGM and issues DO under
Section 29 read with Section 148 of the Customs Act, 1962.
Agent of the Japanese Liner in India is required to pay service tax under
reverse charge mechanism on the ocean freight.
How to determine ocean freight amount in a CIF transaction between
supplier and customer?
How to determine freight element when an agent of a feeder vessel files
IGM for the entire journey?
26. Section 17(3) of the Customs Act Proposed Section 17(3)
For verification of self assessment under
sub-Section (2), the proper officer may
require the importer, exporter or any
other person to produce any contract,
broker’s note, insurance policy, catalogue
or other document whereby the duty
leviable on the imported goods or export
goods as the case may be can be
ascertained and furnish any information
required for such ascertainment which
is in his power to produce or furnish and
thereupon the importer, exporter or such
other person shall produce such document
or furnish such information.
For verification of self assessment under
sub-Section (2), the proper officer may
require the importer, exporter or any
other person to produce any document or
information, whereby the duty leviable
on the imported goods or export goods
as the case may be can be ascertained
and thereupon the importer, exporter or
such other person shall produce such
document or furnish such information.
27. Concept of ‘importer on record’
Companies provide services to foreign companies who do not
have a base in India in order to take care of their supply chain in
India; delivering the goods when the customer wants.
Goods are warehoused and then cleared as and when required.
Beneficial owner means any person on whose behalf the goods are
being imported or exported or who exercises effective control
over the goods being imported or exported.
Importer / exporter include beneficial owner.
VAT?
28. Section 7 amended whereby certain post offices alone shall
be considered as foreign post offices for clearance of goods.
Section 7 amended whereby certain places shall be identified
as international courier terminals for clearance of goods.
Definition of customs station amended to include foreign
post office and international courier terminals.
If international courier terminal is considered as a customs
station in terms of Section 2(13), what would be the impact on
Section 2(ab) of the CST Act?
Can there be a high sea sale of goods imported by courier?
Can there be a document of title that can be transferred?
29. Research and Development Cess Act, 1986 proposed to be
repealed w.e.f. 01.04.2017
R&D Cess at the rate of 5% has been discharged on Import of
technology
Service tax relief by adjusting the 5% paid but resulting in
lower cenvat credit
After enactment of Finance Act, 2017, exemption from
service tax under Notification No.14/2012 amount equivalent
to cess payable under R&D Cess Act will no longer be
available
Service tax would be payable in full if applicable and credit
will be available in full if eligible
30. The Tribunal in the case of HPCL Vs. CC (2015) 328 ELT 490
had held that where excess payment of duty has been made
due to incorrect assessment, refund under Section 27 can be
filed. CA certificate must explain how incidence of duty was
not passed on to the buyer showing cost structure etc.
Section 27 of the Customs Act amended whereby unjust
enrichment would not apply where there is excess payment
of duty
Which is evident from the bill of entry in case of self assessed bill of
entry
Duty actually payable is reflected in the reassessed bill of entry in the
case of reassessment
31. Karnataka High Court in the case of CC Vs. Hewlette Packard India Sales Ltd.
has held that prior permission is not required for transfer of credit.
Gujarat High Court in the case of Hindustan Coco Cola Beverages has held that
on merger, unutilised cenvat credit gets automatically transferred to the
amalgamated company and there is no necessity to file a refund claim.
Rule 10(4) inserted to Cenvat Credit Rules, to provide that transfer of cenvat
credit shall be allowed within a period of 3 months from the date of receipt of
application by the DC or AC
Extension for a further period not exceeding 6 months by the principal
commissioner or commissioner
Rule 21 of Central Excise Rules amended to provide that the authority shall
decide on remission of duty within a period of 3 months from the date of receipt
of application by the DC or AC
Extension for a further period not exceeding 6 months by a higher authority
32. Explanation defining ‘value’ for the purpose of Rule 6(3) and 6(3A)
amended.
Clause (e) to explanation provides that value shall not include value of
services by way of extending deposits / loans / advances where
consideration is represented by way of interest or discount.
Proviso added to this clause to provide that the said clause shall not
apply to a banking company and a financial institution including a NBFC
engaged in providing services by way of extending deposits / loans or
advances.
The effect of the amendment is that interest or discount will also have to be
considered as value of exempted services for applying the formula.
Option to reverse 50% of cenvat on input and input services under Rule
6(3B)
33. It is my privilege to inform this august house that the GST Council has
finalized its recommendation on almost all the issues based on consensus
and after spirited debates and discussions. The preparation of IT systems
for GST is also on schedule. The extensive reach out efforts to trade and
industry for GST will start from 1st April 2017 to make them aware of the
new taxation system.” – para 178
“Centre through the Central Board of Excise and Customs shall continue to
strive to achieve the goal of implementation of GST as per Schedule
without compromising the spirit of cooperative federalism. Implementation
of GST is likely to bring more taxes both to Central and State Government
because of widening of tax net. I have preferred not to make many changes
in the current regime of excise and service tax because the same are to be
replaced by GST soon.” – para 179
34. As on date there is no legislation
The June Model Law went through major changes in November
and still under discussions
Pressure to migrate by referring to a non-existent Section 166
Can a business take a decision on registering various locations
when it has not yet taken a decision with reference to retaining or
closing the location?
Can a service provider migrate and identify additional places in
different States when the business model itself could shift to an
IGST mode?
Is the industry ready?
Is the administration solution viable?
35. InputTax Credit contingent upon
Possession of tax invoice / debit note/supplementary invoice or such other
prescribed document
Receipt of goods and or services
Tax charged in respect of supply and has been actually paid to the credit
of the appropriate government either in cash or through utilization of
admissible input tax credit
Furnishing of return
Time Limits
Supplier and recipient should match their outward and inward supply.
Input credit for inward supply that matches with corresponding output
supply would be finally accepted and communicated.
If there are discrepancies, they would be communicated.
If not rectified, it shall become the output liability of the recipient.
36. Model law uses the term ‘prescribed’ in 262 places indicating a complex maze of
Rules.
Model law uses the term ‘recommendation’ of the GST Council at 38 places
indicating a massive set of notifications which would make the law very
complicated.
Notifications under Section 3(4) based on recommendation of GST Council.
Place of supply
Time of supply
29 State + 7UT GST Laws and Rules
CGST Law and Rules
IGST Law and Rules
Multiple returns
A service provider who files two returns in a year is expected to go online and
provide data 37 times in a year. If TDS is applicable, it becomes 49 times in a
year.
Is Indian trade ready for such technology based frequent data uploads with
complexities of mismatch, loss of credit, downtime, power shortage and slow
speeds.
37. IGST as a vehicle for movement of credit
Elimination of tax as a cost
Elimination of unwarranted business structures
Equitable levy of tax across the supply chain
Possible elimination of goodsVs. services dispute
Freedom to source goods from any location
Better credits
Credits for traders and dealers in respect of services
Better investment climate
Higher compliance
Increase in transparency
38. K.VAITHEESWARAN
ADVOCATE &TAX CONSULTANT
‘VENKATAGIRI’
Flat No.8/3 & 8/4, Ground Floor,
No.8 (Old No.9), Sivaprakasam Street,
T. Nagar, Chennai - 600 017, India
Tel.: 044 + 2433 1029 / 4048
402, Front Wing,
House of Lords,
15/16, St. Marks Road,
Bangalore – 560 001, India
Tel : 080 22244854/ 41120804
Mobile: 98400-96876
E-mail : vaithilegal@yahoo.co.in vaithilegal@gmail.com
www.vaithilegal.com