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Budget 2011
Budget 2011
Highlights
Published on March 4, 2016
R K Hasija
FollowR K Hasija
Chief Advisor at GSTaxperts
Budget 2016-17
1. Textiles
Now RMG with a RSP of Rs. 1000/- will be assessed to excise duty @
Rs. 600/-. However SSI Notification would apply.
Abatement rate from RSP, for all categories of footwear has been
increased from 25% to 30%.
Footwear with a RSP of Rs. 1000/-, assessed to excise duty @ Rs. 750/-
will now be assessed at Rs. 700/-.
Basic Excise Duty on rubber sheets & resin rubber sheets for soles and
heels [4008 29 10] has been reduced from 12.5% to 6%.
SSI threshold exemption for the above has been specified at Rs. 6 crore
in a year, with an eligibility limit of Rs. 12 crore in the preceding
financial year. For the month of March, 2016, the SSI exemption for
such articles of jewellery is being restricted to Rs. 50 lakh.
Basic Excise duty on silver in any form, except silver coins of purity
below 99.9%, produced during the process of copper smelting has been
increased from 8% to 8.5%.
Basic Excise duty on silver produced during the process of zinc or lead
smelting has been increased from 8% to 8.5%.
The existing area based exemptions for production of gold and silver
from gold dore, silver dore or any other raw material has been
withdrawn. Thus, a new industrial unit engaged in production of refined
gold from gold dore, silver dore or any other raw material, which
commences commercial production on or after 1st day of March, 2016,
shall not be eligible for the exemption. Also, an existing industrial unit
as on 1st of March, 2016, which undertakes substantial expansion of
existing capacity or installs fresh plant, machinery or capital goods for
production, by using such expanded capacity or such fresh plant,
machinery or capital goods, and commences commercial production
from such expanded capacity, on or after 1st March, 2016, shall not be
eligible for the exemption.
1. Food Products
Soft drinks duty increased from 18% to 21%.
Basic excise duty on pan masala increased from 16% to 19%. Rate of
compounding of excise duty also revised accordingly.
1. Petroleum
Basic Excise Duty rate on aviation turbine fuel [ATF] has been
increased from 8% to 14%. However, ATF for supply to Scheduled
Commuter Airlines [SCA] from the Regional Connectivity Scheme
[RCS] airports shall attract 8%.
Excise duty on tools and tool kits for maintenance, repair, and
overhauling of aircraft has been exempted. Further, the exemption under
S.No.305 of notification No.12/2012-Central Excise, dated 17.03.2012
on parts and testing equipment has been made subject to actual user
condition, along with simplified procedure.
1. Agriculture/ Fertilizers
1. Construction
The above amendment has been made to overcome the effect of the
Supreme Court judgment in the case of Larsen & Toubro Ltd. v.
Commissioner — 2015 (324) E.L.T. 646 (S.C.) wherein the Hon’ble
Supreme Court has held that RMC and Concrete Mix are two different
items and there is no exemption to RMC manufactured at site.
1. Plastics
1. Machinery
Basic Excise duty on all goods falling under 8607 (parts of railway or
tramway locomotives or rolling stock) and 8608 (railway or tramway
track fixtures and fitting, etc.) has been reduced to 6%.
(iii) Set-top boxes for gaining access to internet [tariff item 8517 69 60]
Further, excise duty has been exempted on inputs and parts for use in
manufacture of charger/adapter, battery and wired headsets/speakers of
mobile handsets including cellular phone. Excise duty has also been
exempted on inputs and sub-parts for use in manufacture of parts of
charger/adapter, battery and wired headsets/speaker of mobile handsets
including cellular phone subject to actual user condition.
Software
Transactions involving supply of software on media bearing RSP, not
amounting to sale/deemed sale, service tax is being exempted.
1. Automobiles
Excise duty on Capital goods and spare thereof, raw materials, parts,
material handling equipment and consumable for repairs of ocean-going
vessels by a ship repair unit has been exempted subject to actual user
condition.
1. Energy / Environment
Solar lamp [tariff item 9405 50 40] has been exempted from excise duty.
Schedule Rate of Clean Energy Cess, levied on coal, lignite and peat,
has been increased from Rs.300 per tonne to Rs.400 per tonne.
1. Health
Ocean Freight
1. General
Revised return can be filed under Central Excise Rules, 2002 within the
same month under which it was filed.
Dispute Resolution
ISD
Credit of service tax attributable as input service to more than one unit
but not to all the units shall be distributed only amongst such units to
which the input service is attributable and such distribution shall be pro
rata on the basis of the turnover of such units, during the relevant period,
to the total turnover of all such units to which such input service is
attributable and which are operational in the current year, during the said
relevant period.
Credit of service tax attributable as input service to all the units shall be
distributed to all the units pro rata on the basis of the turnover of such
units during the relevant period to the total turnover of all the units,
which are operational in the current year, during the said relevant period.
Credit of service tax paid on input services, available with the input
service distributor, as on the 31st of March, 2016, shall not be
transferred to any outsourced manufacturing (Job-worker) unit and such
credit shall be distributed amongst the units excluding the outsourced
manufacturing units.
Common warehouse
Cesses
Cess withdrawn
1. Cess under the Mica Mines Labour Welfare Fund Act, 1946.
2. Cess under the Salt Cess Act, 1953.
3. Passenger Welfare Cess under the Merchant Shipping Act,
1958
4. Cess under the Textiles Committee Act, 1963.
5. Cess under the Limestone and Dolomite Mines Labour
Welfare Fund Act, 1972.
6. Cess under the Tobacco Cess Act, 1975.
7. Cess under the Iron Ore, Manganese Ore Mines and Chrome
Ore Mines Labour Welfare Cess Act, 1976.
8. Cess under The Cine-workers Welfare Cess Act, 1981Oil
Industries Development Cess reduced from 4500 PMT to
20% ad valorem.Infrastructural Development Cess on cars.
Cess increased Advocate,rkhasija@gmail.com
9.
10. + 91 84277 55344, +91 98113 86064
11. R K Hasija,
12. Clean Environment Cess increased from Rs 300 to Rs.
400 per tonne.
13. Krishi Kalyan Cess @ 0.5% on value of taxable
services with effect from 01.06.2016.
14. Cess Imposed
15. Cess Reduced
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