“CESS” ATION Central Excise – with immediate effect @ 12.5% adv. Service Tax – on a notified date @ 14% adv. Customs – Status quo. Swachh Bharat CESS on its way - @ 2% on the value!!!
PENALTIES (IR)RATIONALISED No more 1% p.m ( max 25%). 50% if found on specified records to be scrapped. To be limited from 8.4.2011 till FB’15. Sec 80 of FA omitted.
PENALTIES RATIONALISED 10% or Rs. 5000/- whichever is higher for non-suppression cases – Ref: Rama Woodcraft case - 2008 (10) S.T.R. 439 (Tri. - LB) No penalty, if paid withtin 30 days from SCN. 25% if paid within 30 days of OIO. For suppression cases, maximum penalty is 100 % 15 % if paid within 30 days of SCN. 25 % if paid within 30 days of OIO.
CENVAT CREDIT Credit in respect of inputs and capital goods, sent directly to job worker, more specifically allowed. Time limit for availing credit enhanced to one year from 6 months – extended life for dead invoices. Capital goods can remain with job workers for 2 years.
CENVAT CREDIT ST paid under partial reverse charge - credit can be availed immediately on payment of ST, without waiting for payment to service provider. Rule 6 - Exempted goods to cover non excisable goods also. No interest, if credit is not utilised - Aspect made more clear. All procedures relating to dealers, extended to importers also. Definition of Export goods – To impact SEZ/EOU Clearances?
NEW LEVIES INTAXICATED - Job work in Alcoholic Liquor - Back into service tax fold for the second time. Service provided by Aggregators - Liability to pay ST is on aggregator.
LEGISLATURE vs JUDICIARY Chit Fund and Lottery Agents - Liable to ST - Court decisions overruled - albeit prospectively. Reimbursement of Expenses liable to service tax - Statutory backing to Rule 5 of Valuation Rules - Delhi High Court decision overruled - albeit prospectively.
WITHDRAWN EXEMPTIONS Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of – (a)a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; (c)a structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment; (f)a residential complex predominantly meant for self-use or the use of their employees or other persons specified in the Explanation 1 to clause 44 of section 65B of the said Act; Services by way of construction, erection, commissioning, or installation of original works pertaining to an airport & port.
PRUNED EXEMPTIONS Exemption for performing artists, limited only upto Rs.1,00,000 per event. Negative list entry of Entry to amusement parks and entertainment events omitted with limited exemption.
MISCELLANEA Appeal against orders of C(A) in rebate matters will go before JS to Govt. Appeal filed from 28.05.2012 to the date of enactment of FB, 2015 will be transferred from Tribunal to JS. Digital Signatures and Electronic records recognised. GTA – ST on 30%.
MISCELLANEA Time limit to demand interest – date of payment of duty (CE). Advance Ruling – Extended. Registration procedures – Simplified.. Full reverse charge for security and manpower supply. Place of removal – further clarified. Arrears and Instalment facility – clarified.