1. BUDGET – an overview by
swamy associates
chennai – coimbatore – bengaluru – hyderabad – ahmedabad - rajkot

2. CENTRAL EXCISE

3. Excise duty reduced to 14 % across the board ( 14
Excise duty reduced to 14 % across the board ( 14.42% with Education CESS)

4. Pharma gets the best tonic !
Rate of duty reduced to 8 % ( abatement reduced to 35.5 % )
- Units at Excise exempted zones are no more beneficial

5. Paper gets pampered.
Exemption upto 3500 MTs restored (for units using non-conventional raw materials)
Rate of duty reduced to 8 %

6. Duty for two wheelers & small cars reduced to 12 %
Roads to clog more.
Duty for two wheelers & small cars reduced to 12 %

7. Software – No more soft corner.
Duty on packaged software increased to 12 %

8. Section 4 A – gets more teeth.
New Rules notified for non-declaration / incorrect /obliterating MRP
- Adoption of nearest MRP - Market enquiry
If MRP is altered – altered MRP

9. Section 11B – Interesting amendment. Refunds to cover interest also
Pre deposit to be refunded in 3 months

10. Section 11 D – widens its wings.
To cover “any person”
To cover exempted / NIL rated goods

11. Input service definition to cover only “upto place of removal”.
Cenvat Credit Rules, 2004.
Input service definition to cover only “upto place of removal”.
Credit of Service tax on outward transport – out.
Master Circular – Still a ray of hope.
GTA Service Tax – Cannot be paid through credit.

12. - Needs another Shri. Ramanujan.
Rule 6 of CCR…
- Needs another Shri. Ramanujan.
Taxable & Exempted Service providers to pay 8 % of exempted services value.
No more 20 % restriction
Option to reverse credit – Introduced for all
Formula for provisional reversal and final reversal

13. … Rule 6 of CCR First to reverse the input credit
for exempted goods manufactured
Next to reverse the input credit
for exempted services
Next to reverse the input services credit
for exempted goods manufactured and
exempted services rendered

14. Miscellanea… DTA duty for EOUs – enhanced. 1% NCCD for mobile phones
- Review of orders by Committee
- Measure to resolve difference of opinion

15. … Miscellanea “Goods” definition redefined. Section 3A re-introduced
(Mummy Returns)
Labelling or relabelling and repacking
changed to
Labelling or relabelling or repacking.

16. SERVICE TAX

17. Exemption enhanced to Rs.10 lakhs - No registration upto Rs. 9 lakhs
Threshold Exemption
Exemption enhanced to Rs.10 lakhs
- No registration upto Rs. 9 lakhs

18. Disputes Resolution Scheme.
Effective from to
Arrears pending as on
Service tax component of arrears not to exceed Rs.25,000.

19. GTA Abatement – made simple. No more declaration from transporter.

20. Works Contract
Rate enhanced to 4 %

21. New levies / Expansion of levies…
All Information Technology Services under net.
Amendments in BAS / Consulting Engineering.
(Classification war with Copyrights in the offing?)

22. … New levies / Expansion of levies…
ULIP
Stock Exchange
Processing and Clearing houses
Tour operators
(To include all permits except stage carriage permit)
BAS
( To include game of chance like lottery)

23. … New levies / Expansion of levies
Supply of tangible goods
Internet telecommunication
Cargo handling
Renting of immovable property

24. Miscellanea. Payment in advance Self adjustment – Upto Rs. 1 lakh
Revised return – Upto 90 days
More penal provisions

25. CUSTOMS

26. Project imports – Rate reduced to 5 %
Iron / Aluminium melting scrap – NIL
Time limit for re-export under drawback scheme
reduced to 18 months

27. THANKS by
swamy associates
chennai – coimbatore – bengaluru – hyderabad – ahmedabad - rajkot