Indirect Taxes – Analysis of Union Budget 2013-14

Report
Baroda Branch of WIRC of ICAI
March 2, 2013
Indirect Taxes –
Analysis of
Union Budget
2013-14
&
Recent Issues
Presented by : CA Anirudh Sonpal
• No direction towards GST
• Has largely ignored concerns
and recommendations of trade
& industry
CA Anirudh Sonpal
CA Anirudh Sonpal
“Clarity in Tax Laws, a Stable
Tax Regime, a non-adversarial
Tax Administration, a Fair
Mechanism
for
Dispute
Resolution, and an Independent
Judiciary will provide great
assurance.”
CA Anirudh Sonpal
No Change in Peak Rate Of
• Customs – 10%
• Central Excise – 12%
• Service Tax – 12%
CA Anirudh Sonpal
Customs
Products
Existing
(BCD) Rate
BCD Revised
Hazel Nuts
30%
10%
De-Hulled Oat
30%
15%
Bituminous Coal
5% + 6% CVD
2% + 2% CVD
Steam Coal
Nil + 1% CVD
2% + 2% CVD
Raw Silk
5%
15%
Pre-Forms of Precious and Semi-Precious
Stones
10%
2%
20 Specified machinery for
use in leather or footwear
industry
7.5 %
5%
Textile machinery and parts
Thereof
7.5%
5%
Change
CA Anirudh Sonpal
Customs
Products
Existing
(BCD) Rate
BCD Revised Change
Set Top box
5%
10%
Cars/motor vehicles with CIF value > US $ 75%
40,000 or with engine capacity > 3000 cc
for petrol-run vehicles and > 2500 cc for
diesel-run vehicles or with both
100%
Import of old cars
100%
125%
New motorcycles with engine
capacity of 800cc or more
60%
75%
Yachts and other vessels
10%
25%
CA Anirudh Sonpal
Customs
•
Validity Period of Exemption granted to Identified
Parts of Hybrid and Electric Vehicles – Extended
up to 31-3-2015.
•
Exemption from Education Cess and Secondary
and Higher Education Cess withdrawn on
Aeroplanes, Helicopters and their Parts.
•
Time period for Consumption/installation of Parts
and testing Equipment imported for maintenance,
repair and overhaul(“MRO”) of Aircraft by units
engaged in such activities increase from 3 month
to 1 Year.
CA Anirudh Sonpal
Customs
•
Limit of Jewellery allowed duty free to an Indian
Passengers who has been residing abroad for
more than 1 Year or coming to India for residency
has been increased:
Gentleman
Passenger
Lady Passenger
Old Value allowed
duty free
Rs. 10,000
Revised Value
allowed duty free
Rs.50,000
Rs. 20,000
Rs.1,00,000
CA Anirudh Sonpal
Excise
Products
Existing BED
Revised BED
Marble Slabs and Tiles
30 Per Sq.
Meter
60 Per Sq.
Meter
Silver Produced or Manufactured during
the Process of Zinc or lead smelting
starting from the stage of Zinc or lead
ore or concentrate
Nil
4%
Compounded duty Rate on Stainless
steel “patta – Patti”
Rs. 30,000
per Machine
per Month
Rs. 40,000
per Machine
per Moth
Mobile Handsets including cellular
Phones having Sales Price > Rs.2,000
1%
6%
SUV/Utility Vehicles – Under Tariff
Heading 8703 and Engine capacity
>1500 CC
27%
30%
Chassis of diesel mother vehicles for the 14%
transport of good
13%
Change
CA Anirudh Sonpal
Excise
•
•
•
•
Exemption- All handmade carpets and carpets
and other textile floor coverings of Coir and Jute,
weather or not hand made
Branded
Aruvedic
Medicaments
and
medicaments of Unani, Siddha, Homeopathy or
Bio-Chemic system are brought under “MRP”
based assessment with an abatement of 35%
from MRP.
Validity Period of Concessional Excise duty of 6%
granted to Specified Parts of Hybrid and Electric
Vehicles – Extended by 31-3-15.
Excise duty on Cigarettes and other products –
increased.
CA Anirudh Sonpal
Service Tax – Changes in Negative List
•
Approved Vocational Course with also include
Courses Conducted by State Council for
Vocational Training.
•
“Process Amounting to Manufacture or
Production” with also include processes under
the Medicinal & Toilet Preparations(Excise
Duties) Act, 1955.
•
Services in relation to Agriculture or Agricultural
Produce will include all testing in relation to
Agriculture or Agricultural Produce.
CA Anirudh Sonpal
•
Abatement for Construction
of Complex, Building, Civil
Structures(Notification
2/2013, w.e.f. 1-3-2013)
•
Issue – Rate under
Works Contract?
•
Residential Unit having
Carpet area upto 2000
sq. feet or
Amount
charged is < Rs. 1 Crore
– 75%
Other than above –
70%.
CA Anirudh Sonpal
Modifications in Exemptions
• Exemptions withdrawn
• Services
Provided
by
an
Educational Institution by way of
Auxiliary Educational Services and
Renting of Immovable Property.
• Vehicle Parking to General Public
CA Anirudh Sonpal
Exemptions
• Temporary Transfer or Permitting
use or enjoyment of copyright –
only to films exhibited in cinema
halls
• Restaurant/Eating Joint/ Mess –
Taxable if having facility of Air
Conditioning or Central Air
Heating.
CA Anirudh Sonpal
Exemptions
• Transportation by Rail or Vessel –
Exemption withdrawn for Petroleum,
Postal Mails & Household effects;
Few Harmonized with Exemption to
GTA.
• Service by Entities Registered under
Section 12 AA of the I.T Act –
Charitable Activities will not include
Advancement of any other Object for
General Public Utility.
CA Anirudh Sonpal
Customs & Central Excise – Other Changes
• Vacation of Stay order – Max 365
days
• Power of Single Bench to hear
and Dispose Appeals – limit
increased from Rs.10 lacs to
Rs.50 lacs.
• Excise – Modes of Recovery –
from Refund and Third Party.
CA Anirudh Sonpal
Service Tax – Recovery & Penalties
•
Recovery (Section 73) – if demand for intended
period fails on account of charges not having
been established, the CEO will determine tax
for 18 months(Normal Period)
•
Penalty (Section 77) – Restricted to Rs.10,000.
•
Penalty (Section 78A) – Upto 1 lacs on
directors/Manager/Secretory/Officer in charge –
specified contraventions by Company – Wilful
Actions
CA Anirudh Sonpal
Service Tax - Offences
•
Monetary limit increased from Rs. 30 lacs
to Rs. 50 lacs for Specified offences
inviting imprisonment (Section 89) –
similar changes also incorporated under
Central Excise
•
Section 90 - Offence cognizable(Failure
to deposit tax collected);
- Other specified offences
Non Cognizable & Bailable
CA Anirudh Sonpal
Service Tax - Offences
• Section 91
• Power to Arrest
- CCE to
authorize Superintendent;
• Release by Asst/Deputy Com for noncognizable and bailable offences
CA Anirudh Sonpal
Advance Ruling
• Custom & Excise – New Activity /
Business
by
Existing
Eligible
Applicants.
• Excise – Cenvat Credit of Service
Tax on Input Service used in
Manufacture.
• Excise & Service Tax – Resident
Public Limited Company – Eligible.
CA Anirudh Sonpal
Service Tax – Voluntary Compliance
Encouragement Scheme, 2013
Amnesty
or
Facilitation for Non-Filers and
Stop-Filers, as claimed?
CA Anirudh Sonpal
Service Tax – Voluntary Compliance
Encouragement Scheme, 2013
• Declaration of Tax Dues
• Payable
from
1-10-2007
to
31-12-2012 but not paid till
1-3-2013.
• Conditions
• No Notice till 1-3-2013
• Not Eligible if Return Filed but Tax
Disclosed and Not Paid.
CA Anirudh Sonpal
Service Tax – Voluntary Compliance
Encouragement Scheme, 2013
• Liable to be rejected vide an order if
Enquiry/Summons/Audit etc. pending
as on 1-3-2013.
• Declaration before 31-12-2013
CA Anirudh Sonpal
Service Tax – Voluntary Compliance
Encouragement Scheme, 2013
• Payment
• Not less than 50% before 31-122013
• Balance -before 30-6-2014 without
interest
-till 31-12-2014 with interest
• Immunity from Penalty/Interest etc.
• Acknowledgement & Discharge
CA Anirudh Sonpal
Other Issues
• Revised ST 3 Return – Due date
25-3-13 for the period JulySeptember 2012
• Reimbursement of Expenses –
Delhi High Court in the matter of
Intercontinental
Consultants
Technocrats Pvt. Ltd.
CA Anirudh Sonpal
Other Issues
• POT- Circular 158/9/2012 dated
8-5-2012 – Rate of Tax - Delhi
High Court – in the matter of
Delhi Chartered Accountants
Society
• Recovery even if stay application
not disposed of – CBEC Circular
976/01/2013 dated 1-1-2013
CA Anirudh Sonpal
TAMSO MA JYOTIRGAMAYA
CA Anirudh Sonpal

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