Notifications

 

Central Excise Duty Amendments - Interim Budget 2014 [Dated 17.02.2014]

1. Mobile Handsets: The excise duty structure on mobile handsets has been restructured so as to provide that all mobile handsets will attract 1% excise duty if CENVAT benefit is not availed of. The duty will  be 6% if CENVAT benefit is availed of. Consequently, all imported mobile handsets shall attract 6% CV.

Amendment: [Sl.No.263A of the Table of notification No.12/2012-Cental Excise, dated 17.03.2012 as amended by notification No.4/2014- Central Excise, dated 17.02.2014 refers].

2. Manufacturing Industry: The general excise duty on all machinery & equipment, appliances etc and parts thereof falling under Chapters 84 and 85 of the Central Excise Tariff has been reduced from 12% to 10%.

Amendment:The existing duty concessions, whether by way of tariff entry or notifications, will continue to be available as before [Sl.No.345 and 346 of the Table of notification No.12/2012-Cental Excise, dated 17.03.2012 as amended by notification No.4/2014- Central Excise, dated 17.02.2014 refers]. Note: The duty rates notified against Sl.Nos.345 and 346 for the above goods are valid up to 30-06-2014 only. After this date, the rates applicable would be the rates as mentioned elsewhere in the Table of the notification or in the Tariff against the respective items.

3. Automobile Industry:The excise duty on small cars, motor cycles, scooters, commercial vehicles and trailers has been reduced from 12% to 8% and on SUVs from 30% to 24%. The excise duties on large and mid segment cars have been reduced from 27% and 24% to 24% and 20% respectively. In line with the duty reduction on commercial vehicles, the excise duty on chassis has been reduced appropriately. Duty has also been reduced on hybrid motor vehicles, hydrogen vehicles, etc.

Amendment:The existing duty concessions (e.g. on tractors) by way of notification will continue to be available as before [Sl.No.347 to 369 of the Table of notification No.12/2012-Cental Excise, dated 17.03.2012 as amended by notification No.4/2014- Central Excise, dated 17.02.2014 refers]. Note: The duty rates notified against Sl.Nos.347 to 369 for the automobile items are valid up to 30-06-2014 only. After this date, the rates applicable would be the rates as mentioned elsewhere in the Table of the notification or in the Tariff against the respective items.

Custom Duty Amendments - Interim Budget 2014 [Dated 17.02.2014]

1) Custom Duty On Pulses: Full exemption from customs duty on pulses valid till 31.03.2014 has been extended by another 6 months i.e. up to 30.09.2014.

Amendment: Notification dated 17.03.2012, [Clause (a) of the proviso to the notification No.12/2012-Customs is amended by notification No.5/2014-Customs, dated 17.02.2014.

2) Custom on Construction Machinery: CVD exemption hitherto available on specified road construction machinery has been withdrawn. These specified machinery will henceforth attract CVD and SAD. Exemption from the basic customs duty will however continue.

 Amendment: Notification dated 17.03.2012, Sl.No.368A of the Table read with List 16A of notification No.12/2012-Customs is amended as notification No.5/2014-Customs, dated 17.02.2014.

3) Customs on Industrial oils and its fractions: The basic customs duty structure on non-edible grade industrial oils and its fractions, palm stearin, fatty acids and fatty alcohols has been rationalised at 7.5%.

Amendment: Notification dated 17.03.2012, [Sl.No.51, 187A and 230 of the Table of notification No.12/2012-Customs is amended by notification No.5/2014-Customs, dated 17.02.20 14.

4) LNG: LNG consumed in the authorized operations in the ONGC SEZ unit at Dahej and the remnant LNG cleared into the domestic tariff area (DTA) has been exempted from basic customs duty and CVD.

 Amendment: Notification dated 17.03.2012, Sl.Nos.138A and 138B of the Table of notification No.12/2012-Customs is amended by notification No.5/2014-Customs, dated 17.02.2014.

5) Capital goods imported by Bank Note Paper Mill India Private India Limited: A concessional basic customs duty of 5% [CVD (Nil) + SAD (Nil)] has been provided to capital goods imported by Bank Note Paper Mill India Private Limited. The exemption is valid up to 3 1.12.2014.

Amendments:

Notification dated 17.03.2012, in [Sl.No.394A of the Table read with clause (j) of the proviso to the notification No.12/2012-Customs, amended by notification No.5/2014-Customs, dated 17.02.2014.

Notification dated 17.03.2012, in Sl.No.83A of the Table of notification No.21/2012-Customs, amended by notification No.6/2014-Customs, dated 17.02.2014.

6)Human Embryo

Human embryo has been fully exempted from customs duty.

Amendment:

Notification dated 17.03.2012, [Sl.No.16A of the Table of notification No.12/2012-Customs is amended by notification No.5/2014-Customs, dated 17.02.2014.

 

Service Tax Amendments - Interim Budget 2014 [Dated 17.02.2014]

In the Interim Union Budget, in Service Tax, two amendments have been made.

1.1 Handling, storage or warehousing of rice:

To rationalize the levy and to equate paddy and rice, an exemption has been extended to handling, storage and warehousing of rice also becausue the definition of ‘agricultural produce’ in section 65B(5) of the Finance Act, 1994, leads to a differential treatment between paddy and rice.

Amendment: The mega exemption notification dated Notification No.4/2014-ST dated 17th February 2014] has been amended to insert an entry at sl.no. 40 which reads as “services by way of loading, unloading, packing, storage or warehousing of rice”.

1.2 Transportation of rice:

Amendment: A clarification has been issued by way of circular [Circular No. 177/3/2014 dated 17th February 2014] that “food stuff” includes rice and hence service tax on transportation of rice by rail or a vessel or by a Goods Transport Agency by way of transport in a goods carriage, is exempt as per sl.nos. 20(i) and 21(d) of notification number 25/2012-ST.

1.3 Milling of rice:

Amendment:In the same circular referred above in para 1.2, it is also clarified that milling of paddy into rice carried out as job work is covered by the exemption at sl.no.30 of notification number 25/2012-ST , since such milling of paddy into rice is an intermediate production process.

1.4 Services provided by cord blood banks:Health Ministry had recommended that services provided by the cord blood banks should be treated as health care services and should be exempted.

Amendment:By inserting entry sl.no.2A in the exemption notification number 25/2012-ST , which reads as “2A. Services provided by cord blood banks by way of preservation of stem cells or any other service in relation to such preservation”, an exemption has been extended. This would cover services provided by cord blood banks, such as collection of umbilical cord blood, processing the same for segregation of stem cells, testing and cryo-preservation of stem cells.

 Why sign up With

Tax Chanakya ?

Please note that you do not have to pay to register, or for usage of the system. It is only when you actually want to e-file or use our tax planning services that a payment has to be made.
  • Easy and user-friendly interface
  • Environment-friendly filing option using Digital Signature
  • Professional help and tools to help you file returns accurately
  • Elaborate FAQs section to help out with your tax queries
  • 128-bit encryption SSL technology to ensure your data is 100% secure