Dear All,
Attaching herewith glimpse of the Budget 2016- Indirect Tax.
We have tried to capture all relevant aspects of the Budget which may impact on day to day business activities. Rate changes attributable to individual products and services are not covered.
Any suggestions/ feedback are most welcome.
Thanks and regards,
Nilesh Saboo
nilesh@bsllp.in
Greetings!!
Team ValuFocus is pleased to provide you a Glimpse of the Tax Proposals presented by Hon’ble Finance Minister during the Budget for the Year 2016-17. A snapshot of the changes has been covered in the note attached.
We would be pleased to hear any comments or suggestions on the same.
The Hon’ble Finance Minister presented the NDA Government’s first full-year budget before the lower house of the Parliament. With expectations rocketing sky high on the new Government and with the mandate the Government possesses, it has come up with earnest to unclog the process and put in place a strong foundation for the all new Indian Economy.
In the document attached, we have provided a glimpse of the tax proposals announced in the budget for your reference.
This presentation is an attempt to summarize the salient points of the Indian Budget 2016-17.It is a presentation with basic details and its target audience are students undertaking Graduate level and MBA courses.
Highlights of Changes in Direct & Indirect Taxes in 2016-2017 budget
Direct Tax include Income tax,CHANGES IN INDIRECT TAXES - (CUSTOMS ACT, 1962 ,CENTRAL EXCISE ACT, 1944 ,AMENDMENTS IN SERVICE TAX )
Greetings!!
Team ValuFocus is pleased to provide you a Glimpse of the Tax Proposals presented by Hon’ble Finance Minister during the Budget for the Year 2016-17. A snapshot of the changes has been covered in the note attached.
We would be pleased to hear any comments or suggestions on the same.
The Hon’ble Finance Minister presented the NDA Government’s first full-year budget before the lower house of the Parliament. With expectations rocketing sky high on the new Government and with the mandate the Government possesses, it has come up with earnest to unclog the process and put in place a strong foundation for the all new Indian Economy.
In the document attached, we have provided a glimpse of the tax proposals announced in the budget for your reference.
This presentation is an attempt to summarize the salient points of the Indian Budget 2016-17.It is a presentation with basic details and its target audience are students undertaking Graduate level and MBA courses.
Highlights of Changes in Direct & Indirect Taxes in 2016-2017 budget
Direct Tax include Income tax,CHANGES IN INDIRECT TAXES - (CUSTOMS ACT, 1962 ,CENTRAL EXCISE ACT, 1944 ,AMENDMENTS IN SERVICE TAX )
We all welcome the Union Budget 2016-17 and consider it reformist budget aimed at creating strong base for economic growth.
The budgetary proposals are built on transformative agenda standing on nine (9) pillars, which could be regarded as facilitators to the various programs of national importance (7 programs) like Start-up India, Digital India, Make in India, Smart India, Stand-up India, Skill India and Clean India.
For Salient Features of Union Budget 2017 created by Lunawat Team click at - http://lunawat.com/Uploaded_Files/Attachments/F_3558.pdf
Regards
CA Pramod Jain
This webinar is presented by Paul Byrne, Managing Director of Thesaurus Software, home of Thesaurus Payroll Manager, Thesaurus Accounts, BrightPay and Bright Contracts.
Paul discusses the main changes announced in the Irish budget on 13th October 2015 in so far as they affect payroll for 2016.
Agenda:
USC Changes
New PRSI rules and their rationale
Changes to PRD (Pension related deduction)
The new minimum wage
Other PAYE changes
For more upcoming webinars visit https://www.brightpay.ie/events/.
India Union Budget 2016 - An Overview | A BDO India PublicationOperations BDO
Dear Reader, India Budget 2016 was delivered by the Finance Minister, Mr. Arun Jaitley on February 29,2016. This Budget appears a sincere attempt to deliver on key expectations and address major challenges within the economic constraints. The budget has been spelt with fiscal consolidation at the core defining the pillars for growth of the economy and leaves a lot of the year to unfold. BDO India LLP brings together an analysis of key changes set out in the Union Budget in their proprietary: INDIA UNION BUDGET 2016 - An Overview.
Shimla is one of the famous tourist destinations of India and it is the capital of the state of Himachal Pradesh. The unique thing about this hill station is that it still retains its colonial charm and this creates an ambience that is not found anywhere else in India.
We all welcome the Union Budget 2016-17 and consider it reformist budget aimed at creating strong base for economic growth.
The budgetary proposals are built on transformative agenda standing on nine (9) pillars, which could be regarded as facilitators to the various programs of national importance (7 programs) like Start-up India, Digital India, Make in India, Smart India, Stand-up India, Skill India and Clean India.
For Salient Features of Union Budget 2017 created by Lunawat Team click at - http://lunawat.com/Uploaded_Files/Attachments/F_3558.pdf
Regards
CA Pramod Jain
This webinar is presented by Paul Byrne, Managing Director of Thesaurus Software, home of Thesaurus Payroll Manager, Thesaurus Accounts, BrightPay and Bright Contracts.
Paul discusses the main changes announced in the Irish budget on 13th October 2015 in so far as they affect payroll for 2016.
Agenda:
USC Changes
New PRSI rules and their rationale
Changes to PRD (Pension related deduction)
The new minimum wage
Other PAYE changes
For more upcoming webinars visit https://www.brightpay.ie/events/.
India Union Budget 2016 - An Overview | A BDO India PublicationOperations BDO
Dear Reader, India Budget 2016 was delivered by the Finance Minister, Mr. Arun Jaitley on February 29,2016. This Budget appears a sincere attempt to deliver on key expectations and address major challenges within the economic constraints. The budget has been spelt with fiscal consolidation at the core defining the pillars for growth of the economy and leaves a lot of the year to unfold. BDO India LLP brings together an analysis of key changes set out in the Union Budget in their proprietary: INDIA UNION BUDGET 2016 - An Overview.
Shimla is one of the famous tourist destinations of India and it is the capital of the state of Himachal Pradesh. The unique thing about this hill station is that it still retains its colonial charm and this creates an ambience that is not found anywhere else in India.
Bring the outdoors into the classroom by using an aquarium. While hosting live insects, fish, plants, or algae in the aquarium, see examples of how students' interactions with animals and plants can be used to inspire researching environmental issues and model resolving world issues. After observing the aquarium, students can apply biomimicry to research innovative practices. Students then document their findings using the Hospcotch application for the iPad.
One Squared Presentation: Brian Kavicky - Sales and Operations in Harmony: Wo...Leighton Interactive
Brian Kavicky from Lushin, Inc. gave a great presentation at One Squared about how to make sales and marketing work together to reach your businesses growth goals.
Everybody knows the pattern proxy, but how can you use it effectively?
What kind of proxy patterns are available, and how can you
build patterns more effectively with it? Why is reflection needed for this?
Importantly, we need only the core JDK in most cases.
This tutorial starts from the basics and continues on to
DynamicProxies, DynamicObjectAdapter and DynamicStaticProxies at runtime, StaticObjectAdapters, and more.
The session, based on the German book Dynamic Proxies,
by Heinz Kabutz and the session’s presenter, takes a deep dive into this pattern group.
As the Empowered Committee of Finance Ministers granted in-principle nod to the draft of Model GST Law, it was placed in the
public domain on 14th June, 2016, with the government seeking feedback and comments from trade and industry. It is a laudable
way forward with optimism to see it implemented in full swing by April 2017.
GST is a destination based value added tax which will remove trade barriers and create one common Indian market. By providing
seamless credit of input tax across entire supply chain, it will remove the cascading effects of tax, thereby reducing the cost of
indigenous goods and services and making them more competitive in the international market.
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
2. Key Highlights
No specific time line on Goods and Service Tax
No Change in median rate of Basic Customs, Excise duty and Services tax
Introduction of new cess - Krishi Kalyan Cess @ 0.5% on all taxable services (w.e.f 1 June
2016) and the credit of the same is available
Rationalization of interest rate in respect of Customs, Central Excise and Service Tax* @
15% p.a. and *24% p.a. incase of service tax collected but not deposited to Government
Revamp of Rule 6 (reversal of CENVAT credit on account of exempted activities) and Rule 7
(Input Service Distributor) of the Cenvat Credit Rules
Capital goods – goods value upto Rs 10,000/- per piece are covered in inputs
Annual Return under service tax and central excise subject to specified annual turnover
Provision for revision of return under Central Excise
Indirect Tax Dispute Resolution Scheme, 2016 to minimize litigation
11 additional benches of CESTAT
4. Goods and Service Tax
Finance Minister has not setout any time frame for implementation of GST
FM has not made any statement/remark on GST except following:
The Government shall also endeavour to continue with the ongoing reform programme and
ensure the passage of the Constitutional amendments to enable the implementation of the
Goods and Service Tax, the passage of Insolvency and Bankruptcy law and other important
reform measures which are pending before the Parliament.
However Government has introduced certain provisions to align existing provisions with GST
6. Service Tax – Legislative Changes
Definition of ‘Service’ has proposed to amend to include any activity carried out by a lottery
distributor or selling agent in relation to promotion, marketing, organizing, selling of lottery or
facilitating in organizing lottery of any kind, in any other manner, of the State Government as
per the provisions of the Lotteries (Regulation) Act, 1998
Declared Service- Assignment by the Government of the right to use the radio-frequency
spectrum and subsequent transfers thereof is being declared as a service
Section 93A of the Finance Act, 1994 is proposed to be amended so as to allow rebate by
way of notification as well as Rules
The power to arrest under the Act is proposed to be restricted only to situations where the
assessee has collected tax but not deposited it with the Central Government, and the amount
of such tax is more than Rs 2 crores from existing limit of Rs 50 Lacs
The benefit of quarterly payment of Service Tax and facility of payment of Service Tax on
receipt basis – extended to One Person Company and HUF
7. Service Tax – Exemptions (Withdrawal)
Sr No Discerption Effective date
1 • a senior advocate to an advocate or partnership firm of advocates
providing legal service; and
• a person represented on an arbitral tribunal to an arbitral tribunal
1 April 2016
2 Services - construction, erection, commissioning or installation of
original works pertaining to monorail or metro
1 March 2016
3 Transport of passengers, with or without accompanied belongings, by
ropeway, cable car or aerial tramway
1 April 2016
8. Service Tax – Exemptions (Granted)
Sr No Discerption Effective date
1 Services by way of construction etc. in respect of-
(i) housing projects under Housing For All (HFA) (Urban)
Mission/Pradhan Mantri Awas Yojana (PMAY)
(ii) low cost houses up to a carpet area of 60 square meters in a
housing project under “Affordable housing in Partnership”
component of PMAY
(iii) low cost houses up to a carpet area of 60 square meters in a
housing project under any housing scheme of the State
Government
1 March 2016
2 The service of life insurance business provided by way of annuity under
the National Pension System regulated by Pension Fund Regulatory and
Development Authority (PFRDA) of India
1 April 2016
3 Services provided by Employees’ Provident Fund Organisation (EPFO) 1 April 2016
9. Service Tax – Exemptions (Granted)
Sr No Discerption Effective date
4 Services provided by IRDA, SEBI 1 April 2016
5 The rate of Service Tax on single premium annuity (insurance) policies
is being reduced from 3.5% to 1.4% of the premium, in cases where the
amount allocated for investment, or savings on behalf of policy holder
is not intimated to the policy holder at the time of providing of service
1 April 2016
6 The services of general insurance business provided under ‘Niramaya’
Health Insurance scheme
1 April 2016
7 Services provided by National Centre for Cold Chain Development
under Department of Agriculture, Cooperation and Farmer’s Welfare,
Government of India, by way of knowledge dissemination
1 April 2016
8 Services provided by Biotechnology Industry Research Assistance
Council
1 April 2016
9 Services provided by way of skill/vocational training by training
partners under Deen Dayal Upadhyay Grameen Kaushalya Yojana
1 April 2016
10. Service Tax – Exemptions (Granted)
Sr No Discerption Effective date
10 Services of assessing bodies empanelled centrally by Directorate
General of Training, Ministry of Skill Development & Entrepreneurship
1 April 2016
11 The threshold exemption to services provided by a performing artist in
folk or classical art forms of music, dance or theatre is being enhanced
from Rs 1 lakh to Rs 1.5 lakh charged per event
1 April 2016
12 Service by stage carriage other than air conditioned stage carriage 1 June 2016
13 Services provided by the Indian Institutes of Management (IIM) by way
of 2 year full time Post Graduate Programme in Management (PGPM)
(other than executive development programme), Integrated Programme
in Management and Fellowship Programme in Management (FPM)
1 March 2016
14 Construction services provided to the Government, a local authority or
a governmental authority, in respect of construction of govt. schools,
hospitals etc. (during the period from the 1st July, 2012 to 29th
January, 2014 with consequential refund subject to unjust enrichment)
1 April 2015
11. Service Tax – Negative List
Specified educational services and the definition of ‘approved vocational education course’
are proposed to be omitted . However the same has been included in exemption list
‘Service of transportation of passengers, with or without accompanied belongings, by a stage
carriage’ is being omitted (w.e.f 1 June 2016) However, stage carriage without air-conditioned
facility exempted from service tax
Services by way of transportation of goods by an aircraft or Vessel from a place outside India
up to the customs station of clearance in India (w.e.f 1 June 2016). However, exemption has
been granted to transportation of goods by an aircraft
12. Service Tax – Abatements
Sr No Discerption Effective Tax
base
1 Transportation of Rail (Other than Transportation of goods in
containers by rail by any person other than Indian Railways)
30%
2 Transportation of goods in containers by rail by any person
other than Indian Railways
40%
3 Transportation of passengers with or without accompanied belonging
by rail
30%
4 Services of goods transport agency in relation to transportation of
goods other than used household goods
30%
5 Services of goods transport agency in relation to transportation of
used household goods
40%
6 Services provided by a foreman of chit fund in relation to chit 70%
7 Transportation of passengers with or without accompanied belongings
by a stage Carriage
40%
13. Service Tax – Abatements
Sr No Discerption Effective Tax
base
8 Transportation of goods in a vessel 30%
9 Services by a tour operator in relation to-
(i) a tour, only for the purpose of arranging or booking accommodation
for any person
(ii) Tours other than above
10%
30%
10 Construction of a complex, building, civil structure or a part
thereof, intended for sale to a buyer, wholly or partly except where
entire consideration is received after issuance of completion
certificate by the competent authority
30%
A condition mandating inclusion of cost of fuel in the consideration for availing abatement on the
services by way of renting of motor-cab is being prescribed with effect from 1 April 2016.
14. Service Tax – Other Changes
Service tax on Information Technology Software on media bearing RSP is being
exempted from Service Tax with effect from 1 March 2016 provided Central Excise
duty is paid on RSP in accordance with Section 4A of the Central Excise Act
First time, TRU circular clarified that the levy of Central Excise duty/CVD and service
tax will be mutually exclusive
The liability to pay service tax on any service provided by Government or a local
authority to business entities shall be on the service recipient (w.e.f. 1 April 2016)
16. Customs and Central Excise
The median rate of customs duty retained @ 10%
No change in median rate Excise duty rate as well
Provision for revision of Excise returns
Annual Financial Information Statement for the preceding financial year, has been
substituted with the words Annual Returns. Further, Annual installed capacity return and
ER-5 and ER-6 has been dispensed off. Effectively, the number of returns to be filed by a
central excise assessee above a certain threshold from 27 to 13 (1 annual and 12
monthly return)
Annual return is also applicable to EOU
Penalty for late filing of Annual return is Rs 100 per day subject to Maximum - Rs 20,000
Facility for single registration in case 2 or more units located within the same range of
superintendent subject to other conditions
17. Customs and Central Excise
In case of provisional assessment interest needs to be calculated from original due date and
not from the 1st day of subsequent month in which final assessment completed
Claim for rebate of duty paid on all excisable goods will now be required to be submitted
before the expiry of the time prescribed under Section 11B of the Central Excise Act
In respect of ‘media with recorded information technology software’, exemption from payment
of Excise Duty is provided to the extent of taxable value on which Service Tax is leviable
Abolished 13 different cess and introduction of Infrastructure Cess on Motor Vehicle falling
under 8703
Appointment of public warehouses and licensing of private warehouses are being substituted
to provide for licensing by the Principal Commissioner of Customs/ Commissioner of
Customs instead of AC/DC
Period for which goods may remain warehoused is proposed to be substituted to extend the
period of warehousing to EOU, EHTP and STPs. The provisions relating to period of 5 years in
respect of capital goods and 3 years in respect of goods other than capital goods is
proposed to be done away with.
19. CENVAT Credit
Amendment in
Definition
Changes
Capital goods • Wagons falling under heading 860692 have been covered in capital
goods
• The words “but does not include any equipment or appliance used in an
office” has been omitted.
• Capital Goods used for pumping of water outside the factory
Input • All goods used for pumping of water covered with in ambit of ‘inputs’
• All capital goods which have a value upto Rs 10,000 per piece included in
inputs
Input Service
Distributor
• The scope of definition has been extended to an office of an ‘outsourced
manufacturing unit’.
20. CENVAT Credit
Amendment Changes
Rule 4(5)(b) • CENVAT Credit can be allowed on jigs, fixtures moulds and dies or tools
sent to a job worker or another manufacturer without bringing the same
to the premises
Rule 4(6) • The permission issued for clearance of goods from the job worker
premises would remain valid for three year vis-à-vis earlier validity of one
year
21. CENVAT Credit
Amendment in Rule 6 – which deals with CENVAT credit with respect to exempted goods and
exempted services
As per amended Rule, following 2 options were provided
Pay 6% of exempted goods cleared or 7% incase exempted services provided subject to a maximum
of the total credit available in the account of the assessee at the end of the period to which the
payment relates or
Pay an amount as determined under sub-rule (3A) (proportionately reversal based on the turnover)
As Rule 6(3A)
Inputs/Services used exclusively for exempted goods/exempted services – credit not allowed
Inputs/Services used exclusively for non exempted goods/non exempted services – credit allowed
entirely
Balance Credit (common credit) – shall be proportionately distributed based on turnover. Credit
attributable to exempted goods/service needs to be reversed
22. CENVAT Credit
Rule 6(3A) needs to apply monthly on provisional basis based on previous year data and
True-up needs be done on Annually on or before 30 June of next year
In case previous year data is not available, 50% of common credit needs to be reversed
provisionally
Incase of option (ii) intimation in writing needs to be submitted with Excise authorities
Such option shall not be withdrawn during the remaining part of the financial year on the
turnover
Manufacturer who exclusively manufactures exempted goods or a service provider who
exclusively provides exempted services shall not be eligible for credit of any inputs and input
services
23. CENVAT Credit
No CENVAT Credit can be allowed on capital goods used exclusively for manufacturing of
exempt goods or exempted services for a period of two years from the date of commercial
production or provision of services
CENVAT credit can be availed based on invoice issued by service provider for clearance of
inputs or capital goods as such
Draconian provision with regard to utilization of CENVAT credit on FIFO basis has been
deleted
Time limit for refund claim under Rule 5 of the CENVAT Credit Rules has been provided
(service provider):
1 year from the date of receipt in convertible foreign exchange where the provision of services has
been complete prior to receipt of payment; or
1 year from the date of issue of invoice, where payment for the service has been received in
advance
24. CENVAT Credit - Input Service Distributor (ISD)
The scope of ISD has been widen and now ISD can distribute CENVAT Credit to outsourced
manufacturing units also in addition to the own units
outsourced manufacturing unit has been defined as:
“outsourced manufacturing unit means a job-worker who is liable to pay duty on the value
determined under rule 10A of the Central Excise Valuation (Determination of Price of
Excisable Goods) Rules, 2000 on the goods manufactured for the input service distributor or
a manufacturer who manufactures goods, for the input service distributor under a contract,
bearing the brand name of such input service distributor and is liable to pay duty on the
value determined under section 4A of the Excise Act.”
Credit of service tax paid on input services, available with the input service distributor, as on
the 31 March, 2016, shall not be transferred to any outsourced manufacturing unit
Provisions of rule 6 shall not apply to the input service distributor
25. CENVAT Credit - Input Distributor (ID)
New provision introduced for distribution of credit on inputs by warehouse of manufacturer
A manufacturer having one or more factories, shall be allowed to take credit on inputs
received under an invoice issued by a warehouse of the said manufacturer
The provisions of these rules or any other rules made under the Excise Act as applicable to a
first stage dealer or a second stage dealer, shall, mutatis mutandis, apply to such warehouse
of the manufacturer
27. Common Provisions
Act Existing time limit Revised time limit
Customs 1 Year 2 Years
Central Excise 1 Year 2 Years
Service Tax 18 Months 30 Months
Time limit for demand in case of no fraud, collusion, suppression etc. has been
enhanced by 1 year and accordingly revised time limits are:
Rationalization of interest rates
Act Existing Rate Revised Rate
Customs 18% p.a. 15% p.a.
Central Excise 18% p.a. 15% p.a.
Service Tax 18% p.a. to 30% p.a.* 15% p.a.
24 % p.a. in case of service tax
collected but not deposited
29. Indirect Tax Dispute Resolution Scheme 2016
Particulars Details
Eligibility Appeals pending before Commissioner (Appeals) as on 1 March 2016 in
respect of Customs, Central Excise or Service Tax
Dates for filing of
an application
From 1 June 2016 to 31 December 2016
Amount Payable Basic Tax/duties in impugned order + applicable interest + 25% penalty
Relief Get immunity from prosecution and matter to be concluded and no matter
relating to the impugned order shall be reopened
Scheme not
applicable
• the impugned order is in respect of search and seizure proceeding; or
• prosecution for any offence punishable under the Act has been instituted before
the 1st day of June, 2016; or
• the impugned order is in respect of narcotic drugs or other prohibited goods; or
• impugned order is in respect of any offence punishable under the Indian Penal
Code, the Narcotic Drugs and Psychotropic Substances Act, 1985 or the
Prevention of Corruption Act, 1988; or
• any detention order has been passed under the Conservation of Foreign
Exchange and Prevention of Smuggling Act, 1974.
30. CONTACT US
Office Address:
Flat No 6, 3rd Floor, DSK Nishigandh,
Bharat Kunj Society,
Earandwane Pune - 38
+91 94 22 624 499
CA Mahesh Bandre
+ 91 99 75 719 003
mahesh@bsllp.in
CA Nilesh Saboo
+91 99 23 595 077
nilesh@bsllp.in
31. “This communication is primarily prepared for providing general information at macro level (existing as at the time of
production) about the key changes proposed by the Union Budget 2016. Further, this presentation is not an effort to identify
all the issues or developments pursuant to any transaction which you may undertake or has undertaken. Accordingly, this
presentation should not be regarded as sufficient for the purposes of decision-making. The information provided is not, nor is
it intended to be an advice on any matter and should not be relied on as such. Professional advice should be sought before
taking action on any of the information contained in it. This communication is intended solely for the use of the individual or
entity to whom it is addressed and others authorized to receive it. It may contain confidential or legally privileged information.
If you are not the intended recipient you are hereby notified that any disclosure, copying, distribution or taking any action in
reliance on the contents of this information is strictly prohibited and may be unlawful”