By swamy associates chennai. coimbatore. bengaluru. hyderabad. ahmedabad BUDGET SAFARI.

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swamy associatesswamy associates

chennai . coimbatore . bengaluru . hyderabad . ahmedabadchennai . coimbatore . bengaluru . hyderabad . ahmedabad

BUDGET SAFARI

central excise

central excise …central excise …

4% increased to 8% across the board(except for food / pharma / paper products / notified medical equipments & textile machinery)

Goods of ch. hdg 68 manufactured @ site unconditionally exempted

Exemption to packaged software on the value representing “transfer of right to use”

(both under BED as well as CVD)

Notification No. 22/2009 - http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/cex2209.pdf

Notification No. 80/2009 - http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/cus8009.pdf


Motor vehicles above 2000 cc to cost less

Petrol driven transport vehicles & its chassis to cost less ( except Dumpers)

- Notification 16 / 2009 - http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/cex1609.pdf


Compound wall for compounding !

- one time compounding cap for Section 9 (1) offences

(except for attempt / abetment) - parallel offence under NDPA- one time compounding for any offence under CEA on goods valued more than Rs.1 crore- convicts on or after 30/12/2005

- clause 103 of Finance (No.2) Bill,2009

http://taxindiaonline.com/RC2/union_budget/ub2009-10/bud2009_10.htm


CAs’ Budget

◦ - inclusion in special audits u/s 14 A & 14 AA of CEA along with cost accountants

◦ - certification in export refunds of service tax

- clause 104 & 105 of Finance (No.2) Bill,2009

http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill42.pdf

central excise …central excise …COD power to High Courts

◦ - Sections 35 G & 35 H of CEA amended- clause 107 & 108 of Finance (No.2) Bill,2009


◦ - Sections 130 & 130 A of CA amended- clause 86 & 87of Finance (No.2) Bill,2009


• Return of non – relied docs within 30 days of issue of SCN• Rule 24A of CER 2002 introduced

• Notification No. 17/2009 NT –

http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/cexnt1709.pdf

customs

customs …customs …

Remission & Refund◦ - Section 26 A of CA introduced◦ - refund on imported defective goods / not as per specs◦ - goods to be exported or relinquished or destroyed

ARA of IT ( under Section 245 – O of the ITA) to be ARA of Customs (under Section 28F of CA)

- clause 84 & 85 of Finance (No.2) Bill,2009



DGCEI is DRI too!

- Notification 27 / 2009 – Customs (N.T) revalidated

w.e.f 9/5/2000

- to have all India jurisdiction




Compound wall for compounding !

- one time compounding cap for Sections 135 & 135 A offences- parallel offence under NDPA / Chemical weapons

convention Act / Arms Act / Wild Life (Protection) Act- smuggling of specified goods under Appendix 3 of

Schedule 2 of ITC / prohibited items under Section 5 of FT(D&R)Act / goods or docs affecting sovereign relationship or national honour- one time compounding for any offence under CA on

goods valued more than Rs.1 crore- convicts on or after 30/12/2005



customs …customs … Tariff value provision to CTA

Section 3 (2) of CTA amended

Machinery provisions to safeguard dutySections 8B (4A), 8C (5B) & 9 (7A) of CTA

Revalidations to Sections 8B,8C,9 &9A of CTA

Margin of dumping to be based on facts upon non availability of records

Sub-section 6A to section 9A of CTA

- clause 93 – 101 of Finance (No.2) Bill,2009http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill41.pdf

service tax

service tax …service tax …

new services…

Cargo transport by rail Transport of coastal cargo Cargo transport thru Inland waterways Legal consultancy (bar @ claw!) Cosmetic / plastic surgery

( effective after a notified date)

- clause 112 of Finance (No.2) Bill,2009http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill5.pdf


amended services…

BAS to include beers!( Business Auxiliary Service to exclude only manufacture of “excisable goods”)

Sub – brokers out of service tax net.“acquiring” to become “providing” in IT service

w.e.f 16/5/2008

- ( effective after a notified date)




No more revision – only appeal

Rule making power to determine: ◦ date for rate◦ place of provision

◦ Retrospective amendment to Notfn.1/2009 from 1/1/2005

(services provided to GTA)


http://taxindiaonline.com/RC2/union_budget/ub2009-10/fb/bill5.pd

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service tax …service tax … Works’ contracts tightened

◦ Composition only if gross value of all goods used are included

◦ FOC materials to be included in composition scheme

◦ Supply under separate contracts to be included under composition

w.e.f 7/7/2009 but not to apply for WC, which have already commenced or payment is received in part or full

Notification 23/2009 - http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/st2309.pdf

service tax …service tax …Point 2 Point bus transport spared

Notification 20/2009 w.e.f 7/7/2009

http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/st2009.pdf

Inter-bank transactions of sale/purchase of forex by scheduled banks exemptedNotification 19/2009 w.e.f 7/7/2009

http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/st1909.pdf

Notified export promotion councils exempted till 31/3/2010

service tax …service tax …Refund of service tax on exports

◦ - New modified scheme◦ - “terminal handling service” included◦ - Refund based on self certification ( up to 0.25% FOB)

or on Company’s CA certification◦ - time limit to file claim extended to one year◦ - “relevant date” is the date of export

( What if ST is paid after one year?)

Notification 17 / 2009 - http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/st1709.pdf

service tax …service tax … Exemption for exports

- GTA between place of removal to ICD / CFS / port / airport

- Foreign Commission agents

- BRC not a criterion ( slip or intentional?)

- 1% Cap on exemption for Commission paid

- Half yearly returns to be filed

- Scheme available for exports after 7/7/2009

Notification 18 / 2009 - http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/st1809.pdf

cenvat credit

cenvat credit …cenvat credit … Steel & Cement are no more inputs if used in

construction ◦ ( Explanation to rule 2(k) of CCR amended)

Cenvat to be reversed on Inputs / Capital goods, by a service provider, upon writing off in full◦ ( Rule 3(5B) of CCR amended)

• Reversal under Rule 6(3)(i) of CCR reduced:- 10% to 5% for manufacturers- 8% to 6% for service providers

Notification 16 / 2009 NT

http://taxindiaonline.com/RC2/union_budget/ub2009-10/cen/cexnt1609.pdf

THANKS

swamy associates

chennai . coimbatore . bengaluru . hyderabad . ahmedabad

By swamy associates chennai. coimbatore. bengaluru. hyderabad. ahmedabad BUDGET SAFARI.

Documents

nt http

budgetub200910fbbill41

time compounding cap

cta section

specified goods

ftdract goods

defective goods

specs goods