Procedural aspects of central excise law and its applicability

Report
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Budget 2014 – 15
Central Excise & Service Tax
Highlights
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Rate of duty of Central Excise & Service Tax
No change in rate of Central Excise duty, except for
Cigarettes, Aerated drinks etc. The same rate of 12.36%
continues.
♦ NO change in rate of Service Tax. The same rate of 12.36%
continues.
♦
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Proposed Service Tax on Services
♦
Sale of space for advertisements is proposed to be
extended in segments like online and mobile advertising,
internet websites, out-of-home media, on film screen in
theatres, bill boards, conveyances, buildings, cell phones,
Automated Teller Machines, tickets, commercial
publications, aerial advertising, etc
♦
Service tax is proposed to be levied on services provided
by radio taxis or radio cabs, whether or not air-conditioned
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Service Tax on Services with immediate effect
♦
♦
♦
Service provided for transport of passenger by air-conditioned
contract carriage including which are used for point to point
travel, will attract service tax, with immediate effect. Services by
non-air conditioned contract carriages for purposes other than
tourism, conducted tour, charter or hire continue to be
exempted.
Services by way of technical testing or analysis of newly
developed drugs, including vaccines and herbal remedies on
human participants by a clinical research organization approved
to conduct clinical trials by the Drug Controller General of India
will attract service tax
Service provided by dharmashalas, ashram or any such entity
which offer accommodation by way of place meant for
residential or lodging purposes, having a declared tariff of a unit
of accommodation above rupees one thousand per day or
equivalent” shall be liable to service tax.
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Works Contract Service/ Services by / to Educational
Institution
Works contract entered into for,(i) maintenance or repair or reconditioning or restoration or servicing of any
goods; or
(ii) maintenance or repair or completion and finishing services such as glazing
or plastering or floor and wall tiling or installation of electrical fittings of
immovable property,
service tax shall be payable on seventy per cent. of the total
amount charged for the works contract”
Services by / to Educational Institution
Services provided,(a) by an educational institution to its students, faculty and staff;
(b) to an educational institution, by way of,(i) transportation of students, faculty and staff;
(ii) catering, including any mid-day meals scheme sponsored by the
Government;
(iii) security or cleaning or house-keeping services performed in such
educational institution; (iv) services relating to admission to, or conduct of
examination by, such institution;”
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Rate of Interest & E - payment
Extent of delay
Simple interest rate per annum
Up to six months
18%
More than six months &
upto one year
More than one year
18% for first six months, and 24% for the period
of delay beyond six months
18% for first six months, 24% for second six
months, and 30% for the period of delay beyond
one year
This new interest rate regime will become operational only on 1st October
2014. In other words, upto 1st October, 2014, the rate of interest of 18%,
presently applicable, will continue to apply. The variable interest rates will
apply only on or after 1st October, 2014
E-payment
E-payment of service tax is being made mandatory with effect from the 1st
Oct 2014. Relaxation from e-payment may be allowed by the Deputy
Commissioner/Asst. Commissioner on case to case basis.
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Time limit for taking Cenvat Credit on Inputs /
Input Services
A manufacturer or a service provider shall take credit on
inputs and input services within a period of six months from
the date of issue of invoice, bill or challan w.e.f. 1st
September,2014
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Relief from Fiat Judgement
The Central Excise Valuation (Determination of Price of
Excisable Goods) Rules, 2000 is being amended so as to
provide that in cases where excisable goods are sold at a
price below the manufacturing cost and profit and there is no
additional consideration flowing from the buyer to the
assessee directly or from a third person on behalf of the
buyer, value for the assessment of duty shall be deemed to
be the transaction value.
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Address:
Dee Cee Associates
328 Nirmal Galaxy (Avior) Opp
Johnson & Johnson, LBS Marg,
Mulund West, Mumbai –400 080
India.

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