what we do

Setting Up your Import and export business. Suggesting most economical way to import and export goods through Post, Courier, Baggage, Air cargo & Sea cargo. Documentation and follow up action for import and export clearance at Ports. Optimize your Supply chain as 4PL Company through our 3PL partners. Refund of duty/ credit/interest at Customs, Service Tax and Central Excise. Appellate Service related to Customs, Central Excise and Service Tax. Licenses and IEC from DGFT.

Wednesday, February 01, 2017

Passenger name record information and crew manifest

Passenger name record information and crew manifest

providing the passenger and crew manifest for arrival and departure and passenger name record information.

Section 157 is being amended so as to empower Board to make regulations for
specifying the form, particulars, manner and time of providing the passenger and crew
manifest for arrival and departure and passenger name record information and penalty
in the case of delay in delivering the information.

New procedures for settlement Commission

Change in Settlement Commission procedures
Section 127B is being amended so as to insert a new sub-section (5) therein to enable
any person, other than applicant, referred to in sub-section (1) to make an application
to the Settlement Commission.

Sub-section (3) of section 127C is being amended so as to substitute certain words
therein. It further seeks to insert a new sub-section (5A) therein to enable the
Settlement Commission to amend the order passed by it under sub-section (5), to
rectify any error apparent on the face of record.

Warehouse facility for imported and exported goods

Storage / Warehouse facility for imported goods
Section 49 is being amended to extend the facility of storage under section 49 to
imported goods entered for warehousing before their removal. 

Storage / Warehouse facility for Exported goods

Section 69 relating to clearance of warehoused goods for exportation is being
amended to align it with the proposed omission of section 82.

Mandatory filing of B/E and duty and interest

Mandatory to file the bill of entry before the end of the next day
Sub-section (3) of section 46 is being substituted so as to make it mandatory to file the
bill of entry before the end of the next day following the day (excluding holidays) on
which the vessel or aircraft or vehicle carrying the goods arrives at a customs station
at which such goods are to be cleared for home consumption or warehousing and to
provide for imposition of such charges for late presentation of the bill of entry as may
be prescribed.

Payment of duty and interest thereon
Sub-section (2) of section 47 is being amended so as to provide the manner of 
payment of duty and interest thereon in the case of self-assessed bills of entry or, as
the case may be, assessed, reassessed or provisionally assessed bills of entry.

Obligatory for person-in charge Of a conveyance

Obligatory on the person-incharge of a conveyance
A new section 30A is being introduced so as to make it obligatory on the person-incharge
of a conveyance that enters India from any place outside India or any other person as may be specified by the Central Government by notification in the Official Gazette, to deliver to the proper officer the passenger and crew arrival manifest before arrival in the case of an aircraft or a vessel and upon arrival in the case of a vehicle; and passenger name record information of arriving passengers in such form, containing such particulars, in such manner and within such time as may be prescribed. The section also intends to provide for imposition of a penalty not exceeding fifty thousand rupees as may be prescribed, in the case of delay in delivering the information.

A new section 41A is being introduced so as to make it obligatory on the person-incharge of a conveyance that departs from India to a place outside India or any other person as may be specified by the Central Government by notification in the Official Gazette, to deliver to the proper officer the passenger and crew departure manifest and passenger name record information of departing passengers before the departure of the conveyance in such form, containing such particulars, in such
manner and within such time as may be prescribed. The section also intends to provide for a penalty not exceeding fifty thousand rupees as may be prescribed in the case of delay in delivering the information.

Global Tax Guru: Same Advance Ruling Authority for Customs & Income...

Global Tax Guru: Same Advance Ruling Authority for Customs & Income...: Same Advance Ruling Authority for Customs & Income Tax Clause (e) of section 28E is being amended so as to substitute the definiti...

Same Advance Ruling Authority for Customs & Income Tax and new procedures

Same Advance Ruling Authority for Customs & Income Tax

Clause (e) of section 28E is being amended so as to substitute the definition of
“Authority” to mean the Authority for Advance Ruling asconstituted under section 245-O of the Income-tax Act, 1961.
. Section 28F is being amended so as to provide that the Authority for Advance Rulings
constituted under section 245-O of the Income-tax Act shall be the Authority for giving
advance rulings for the purposes of the Customs Act. It further seeks to provide that
the Member of the Indian Revenue Service (Customs and Central Excise), who is
qualified to be a Member of the Board, shall be the revenue Member of the Authority
for the purposes of Customs Act. It also seeks to provide for transferring the pending
applications before the Authority for Advance Rulings (Central Excise, Customs and
Service Tax) to the Authority constituted under section 245-O of the Income-tax Act
from the stage at which such proceedings stood as on the date on which the Finance
Bill, 2017 receives the assent of the President.

Procedurals amendments in working of Authority

Section 28G relating to vacancies not to invalidate proceedings is being omitted.
Sub-section (3) of section 28H is being amended so as to increase the application fee
for seeking advance ruling from rupees two thousand five hundred to rupees ten thousand on the lines of the Income-tax Act.
Sub-section (6) of section 28I is being amended so as to provide time of limit of six months by which Authority shall pronounce its ruling on the lines of the Income-tax Act.

Refund & No Unjust enrichment -if assessment / reassessment before Out of Charge is given



Sub-section (2) of section 27 is being amended so as to keep outside the ambit of
unjust enrichment, the refund of duty paid in excess by the importer before an order
permitting clearance of goods for home consumption is made, where-
(i) such excess payment is evident from the bill of entry in the case of selfassessed bill of entry 
or
         (ii) the duty actually payable is reflected in the reassessed bill of entry in the case of reassessment.

Self assessment-documents

Documents for verification of self assessment.
Section 17 is being amended to rationalize the requirement of documents for 
verification of self assessment 

Change in Indian postal customs

Change in Postal customs & procedures- New regulation for entry
Section 82 relating to label or declaration accompanying goods to be treated as entry
is being omitted.
Section 84 is being amended to empower the Board to make regulations to provide for
the form and manner in which an entry may be made in respect of goods imported or
to be exported by post.

Foreign Post office & international courier terminal will be Custom station

Changes  in Foreign Post Office and International Courier Terminal. 
Foreign Post Office and International Courier Terminal are now in the Customs Station ( Section 7 of THE CUSTOMS ACT, 1962)
Section 7 is being amended to empower the Board to notify Foreign Post Offices and International Courier Terminals.  

#GlobalTaxGuru a new category of Beneficial owner

#Beneficial owner - A beneficial owner as any person on whose
behalf the goods are being imported or exported or who exercises effective
control over the goods being imported or exported clause (3A)of Section 2 of THE CUSTOMS ACT, 1962

Beneficial owner - new in THE CUSTOMS ACT, 1962

Beneficial owner - A beneficial owner as any person on whose
behalf the goods are being imported or exported or who exercises effective

control over the goods being imported or exported  [clause (3A)  of Section 2 of THE CUSTOMS ACT, 1962]

#EaseOfDoing business and Export Promotion - personal import- Free duty allowance is now upto CIF Rs 1000 per consignment

De-minimis customs duties exemption limit for goods imported through parcels, packets and letters- 

It is now CIF value not exceeding Rs.1000 per consignment

#Budget2017withGlobalTaxGuru now personal import benefits available to courier import too.


Chapter Note (4) of Chapter 98 is being amended so as to remove the non-applicability of headings 9803 and 9804 to goods imported through courier service.

 Also, heading 9804 is being amended so as to extend the classification of personal imports by courier, sea, or land under this heading.

#Budget2017withGlobalTaxGuru on CBEC

No Change in CBEC functioning and no major change in Customs & Excise duty, as same will be  covered by GST.


#Budget2017withGlobalTaxGuru on personal income tax

Reduce income tax rate by 5 % , for Income between 2.5 lakhs to 5 lakhs. 

#Budget2017withGlobalTaxGuru on political funding

Maximum cash deposit from any individual only Rs 2000/
 Electrol bond can be purchased
 Conditions for Income Tax exemption to political party.

#Budget2017withGlobalTaxGuru on Income tax

Not to permit more than Rs 3 lakhs as cash from Bank.

#Budget2017withGlobalTaxGuru on SME

Income tax by 5% reduced on company turnover less than Rs 50 Crore .

#Budget2017withGlobalTaxGuru on Tax

India tax to GDP ratio is low
Very low tax compliance , more tax avoidance as compared to income generation.
Changing colour of money
Stimulate growth, simplification of tax, affordable house
Capital gain to reduce from three years to two years in housing & land.

#Budget2017withGlobalTaxGuru Head Post office will also be used for Transport


#Budget2017withGlobalTaxGuru on education

No entrance exam by CBSE
Separate body for IIT & Medical examination

#Budget2017withGlobalTaxGuru on Indian Railway

Railway focus on
Passenger safety
Joint sectors with 9 states
Swachch Railway

#Budget2017withGlobalTaxGuru. Discontinue of Railway budget a colonial practice


#Budget2017withGlobalTaxGuru #Demonitaztion impact will not spillover in next year


#Budget2017withGlobalTaxGuru lot of expectation after demonitisation

First time it is on 1st Feb.
First time Railway budget is part of general budget.

Wednesday, August 31, 2016

Good news for importing consumer electronics goods for personal use

Foreign trade policy - enhanced limit from C.I.F Rs 2000 to Rs 50,000 for importing consumer electronics goods through Postal Channel or personal use.

Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Notification No. 22/2015-2020
New Delhi, Dated 12 August, 2016
S.O. - In exercise of powers conferred by Section 3 of the Foreign Trade (Development and Regulation) Act, 1992, the Central Government hereby amends Clause 3(1)(i)(h) of Foreign Trade (Exemption from application of Rules in certain cases) order, 1993 as under:
Existing provisionAmended provision
Consumer electronic items (except hearing aids and life-saving equipments, apparatus and appliances and parts thereof): Provided that the c.i.f. value of goods imported as aforesaid at any one time shall not exceed rupees two thousandConsumer electronic items (except hearing aids and life-saving equipments, apparatus and appliances and parts thereof): Provided that the c.i.f. value of goods imported as aforesaid at any one time shall not exceed rupees fifty thousand
Effect of the notification: C.I.F. value of import of consumer electronic items at any one time by any person through post or otherwise for personal use is enhanced to Rs. 50,000.
(Anup Wadhawan)

Director General of Foreign Trade
E-mail: dgft[at]nic[dot]in
Issued from F. No. 01/93/180/16/AM-16/PC-2(B)

Good news for importing consumer electronics goods for personal use

Foreign trade policy - enhanced limit from C.I.F Rs 2000 to Rs 50,000 for importing consumer electronics goods through Postal Channel or personal use.

Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Notification No. 22/2015-2020
New Delhi, Dated 12 August, 2016
S.O. - In exercise of powers conferred by Section 3 of the Foreign Trade (Development and Regulation) Act, 1992, the Central Government hereby amends Clause 3(1)(i)(h) of Foreign Trade (Exemption from application of Rules in certain cases) order, 1993 as under:
Existing provisionAmended provision
Consumer electronic items (except hearing aids and life-saving equipments, apparatus and appliances and parts thereof): Provided that the c.i.f. value of goods imported as aforesaid at any one time shall not exceed rupees two thousandConsumer electronic items (except hearing aids and life-saving equipments, apparatus and appliances and parts thereof): Provided that the c.i.f. value of goods imported as aforesaid at any one time shall not exceed rupees fifty thousand
Effect of the notification: C.I.F. value of import of consumer electronic items at any one time by any person through post or otherwise for personal use is enhanced to Rs. 50,000.
(Anup Wadhawan)

Director General of Foreign Trade
E-mail: dgft[at]nic[dot]in
Issued from F. No. 01/93/180/16/AM-16/PC-2(B)

Friday, April 01, 2016

Foreign Trade Policy 2015-2020 Announcement on 1.4.2015


Foreign Trade Policy 2015-2020 Announcement on 1.4.2015

                            Speech of CIM

1. I am happy to release the Foreign Trade Policy for the period 2015-2020.
2. India is now significantly more integrated with the global economy than 15
years ago. Foreign trade today plays an important part in the Indian economy.
3. We must now aim higher. We want to make India a significant participant in
world trade by the year 2020. India must assume a position of leadership in the
international trade discourse.
4. The state of the external environment and new features of the global trading
landscape such as mega regional agreements and global value chains will
profoundly affect India’s trade.
5. But our biggest challenge is to address constraints within the country such as
infrastructure bottlenecks, high transaction costs, complex procedures, and
constraints in manufacturing. While the external factors are largely outside our
control, there is a lot we can do to strengthen our own capabilities and set our
house in order.
6. Government has taken a number of very important initiatives such as ‘Make in
India’, ‘Digital India’ and ‘Skills India’. The foreign trade policy is closely
integrated with these initiatives. The new Policy provides a framework for
increasing exports of goods and services as well as generation of employment
and increasing value addition in the country, in keeping with the ‘Make in India’
vision of Hon’ble Prime Minister. The focus of the new policy is to support both
the manufacturing and services sectors, with a special emphasis on improving
the ‘ease of doing business’.
7. Our objective is to provide a stable and sustainable policy environment for
foreign trade in both merchandise and services.
8. We aim to help various sectors of the Indian economy to gain global
competitiveness.
2
9. We want India to be known for its world class products. So we must focus on
quality and standards and produce zero defect products. ‘Brand India’ must be
synonymous with quality and reliability.
10. Foreign trade policy cannot be formulated or implemented in isolation of other
government economic policies or by any one department in isolation. Going
forward, a ‘whole-of-government’ approach will be required.
11. We have taken a major initiative to mainstream State and UT Governments and
various Departments and Ministries of the Government of India in the process
of international trade. The Department of Commerce is helping State
Governments to prepare export strategies. Many of the State Governments
have nominated Export Commissioners. Senior officials have been appointed
as designated focal points for exports and imports in several Central
Government departments.
12. This will bring in much needed coordination and policy coherence across the
Government and across the country.
13. Market diversification is a key aspect of the policy. In future when we enter into
various forms of trade agreements, we will look for promising markets and
sources of critical inputs. To our traditional markets in the developed world we
will focus on exporting products with a higher value addition, supplying high
quality inputs for the manufacturing sector in these markets and optimizing
applied customs duties on inputs for India’s manufacturing sector. This will
strengthen backward manufacturing linkages which are vital for India’s
participation in Global Value Chains.
14. In the ongoing Doha Round of trade negotiations, India will continue to work
towards fulfilling its objectives and to work with like-minded members to remove
any asymmetries in the multilateral trade rules which place a developing
country at a disadvantage. The current WTO rules as well as those under
negotiation envisage the eventual phasing out of export subsidies. This is a
pointer to the direction that export promotion efforts will have to take in future,
i.e. towards more fundamental systemic measures rather than incentives and
subsidies alone.
15. There is a need to ensure that our products and services are internationally
competitive. A roadmap has been developed on measures required to raise the
3
quality standards of the merchandise produced and enhance India’s capacity to
export to discerning markets.
16. In an increasingly competitive world, branding plays an indispensable role in
global positioning. Branding campaigns are being planned for promoting
exports from sectors such as services, pharmaceuticals, plantations and
engineering as well as of commodities and services in which India has
traditional strengths, such as handicrafts and yoga.
17. Specific measures will be taken to facilitate the entry of new entrepreneurs and
manufacturers in global trade through extensive training programmes.
18. We have based the FTP for 2015-2020 on certain principles, such as,
encouraging the export of labour intensive products, Agricultural products, high
tech products with high export earning potential and eco-friendly and green
products and work on focussed market diversification. Technology intensive
manufacturing will be supported. Other focus areas are defence, pharma,
environment friendly products, products meeting BIS standards and technical
textile related products.
19. Coming now to the specifics, FTP 2015-20 introduces two new schemes. The
‘Merchandise Exports from India Scheme’ (MEIS) is for export of specified
goods to specified markets. The ‘Services Exports from India Scheme’ (SEIS)
is for increasing exports of notified services. These replace multiple schemes
earlier in place, each with different conditions for eligibility and usage of scrips.
20. No conditionality will be attached to any scrips issued under these schemes.
Duty credit scrips issued under MEIS and SEIS, and the goods imported
against these scrips, are fully transferable.
21. The foreign trade policy supports ‘Make in India’ through measures to
encourage procurement of capital goods from indigenous manufacturers under
EPCG Scheme by reducing Export Obligation (EO) by 25%. This will promote
the domestic capital goods manufacturing industry and enable them to develop
their productive capacities for both local and global consumption. Further,
there is a higher level of rewards under the MEIS for export items with high
domestic content and value addition.
4
22. E-Commerce exports of employment creating sectors have been supported
under the `Merchandise exports from India Scheme’ through courier or foreign
post offices.
23. Special Economic Zones have been facing some challenges in recent times. In
order to boost exports from SEZs, government has now decided to extend
benefits of both the reward schemes (MEIS and SEIS) to units located in SEZs.
It is hoped that this measure will give a new impetus to the development and
growth of SEZs in the country.
24. Trade facilitation and enhancing the ease of doing business are the other major
focus areas in this new FTP. One of the major objectives of the FTP is to move
towards paperless working in a 24x7 environment.
25. The Services sector has emerged as a prominent sector in India in terms of its
contribution to national and State incomes, trade flows and FDI inflows. The
Department of Commerce is working on an ambitious reform agenda, which is
being pursued through an inter-ministerial mechanism. In addition, the
‘Services Exports from India Scheme’ (SEIS) is aimed at encouraging exports
of the notified services.
26. Through this policy we aim to enable India to respond to the challenges of the
external environment, keep in step with a rapidly evolving international trading
architecture and make trade a major contributor to the country’s economic
growth and development. The confluence of several favourable factors gives
India an unprecedented window of opportunity to set its house in order and
face the challenges thrown up by an ever changing global economic
environment.
27. I urge the Government and industry to work in tandem to deal with the
challenges and to respond to the tremendous opportunities before us.
28. On our part I assure you that we will have regular interactions with all
stakeholders, including State Governments to achieve our national objectives.
Thank you.

Wednesday, March 30, 2016

Anti-Dumping on Tyre Curing Presses also known as Tyre Vulcanisers or Rubber Processing Machineries for tyres, excluding Six Day Light Curing Press for curing bi-cycle tyres

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

Notification No. 11/2016-Customs (ADD)

 New Delhi, the dated 29th March, 2016


G.S.R. (E). – Whereas, the designated authority, vide notification No. 15/22/2014-DGAD,
dated the 7th January, 2015, published in the Gazette of India, Extraordinary, Part I, Section
1, dated the 7th January, 2015, had initiated a review in the matter of continuation of antidumping
duty on imports of Tyre Curing Presses also known as Tyre Vulcanisers or Rubber
Processing Machineries for tyres, excluding Six Day Light Curing Press for curing bi-cycle
tyres (hereinafter referred to as the subject goods), originating in or exported from the
People’s Republic of China (hereinafter referred to as the subject country), imposed vide
notification of the Government of India, in the Ministry of Finance (Department of Revenue)
No. 01/2010-Customs as amended, dated the 8th January, 2010, published in the Gazette of
India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 21(E), dated the
8th January, 2010;
 And whereas, the Central Government had extended the period of imposition of
anti-dumping duty on the subject goods, originating in or exported from the subject country,
upto and inclusive of the 7th January, 2016, vide notification of the Government of India, in
the Ministry of Finance (Department of Revenue) No.06/2015-Customs(ADD), dated the 3rd
March, 2015, published in Part II, Section 3, Sub-section (i) of the Gazette of India,
Extraordinary, vide number G.S.R 170(E), dated the 3rd March, 2015;
 And whereas, in the matter of review of anti-dumping duty on import of the subject
goods, originating in or exported from the subject country, the designated authority in its
final findings published vide notification No. 15/22/2014-DGAD, dated the 5th January,
2016, in the Gazette of India, Extraordinary, Part I, Section 1, dated the 5th January, 2016 has
come to the conclusion that-
(a) the subject goods have been exported to India from the subject country below its
normal value;
(b) the domestic industry has suffered material injury;
(c) the material injury has been caused by the dumped imports of the subject goods from
subject country;
and has recommended imposition of the definitive anti-dumping duty on the subject goods,
originating in or exported from the subject country.
Now, therefore, in exercise of the powers conferred by sub-sections (1) and (5) of
section 9A of the said Customs Tariff Act, read with rules 18 and 23 of the Customs Tariff
(Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and
for Determination of Injury) Rules, 1995, the Central Government, on the basis of the
aforesaid final findings of the designated authority, hereby imposes on the goods, the
description of which is specified in column (3) of the Table below, falling under tariff item of
the First Schedule to the said Customs Tariff Act as specified in the corresponding entry in
column (2), the specification of which is specified in column (4), originating in the country as
specified in the corresponding entry in column (5) and produced by the producer as specified
in the corresponding entry in column (7), when exported from the country as specified in the
corresponding entry in column (6), by the exporter as specified in the corresponding entry in
column (8), and imported into India, an anti-dumping duty at the rate to be worked out as
percentage of the CIF value of imports of the subject goods as specified in the corresponding
entry in column (9) of the said Table.
Table
S.
No
Tarif
f
Item
Description
of goods
Specifi
cation
Country
of origin
Country
 of
export
Produce
r
Exporte
r
% of
CIF
(1) (2) (3) (4) (5) (6) (7) (8) (9)
1 8477
51 00
Tyre curing
Presses
except Six
Day Light
Curing Press
for curing bicycle
tyres
All
sizes
upto
130”
People’s
Republic
of China
People’s
Republic
of China
Any Any 15
2 8477
51 00 -do- -doPeople’s

Republic
of China
Any Any Any 15
3 8477
51 00 -do- -do- Any
People’s
Republic
of China
Any Any 15
 2. The anti-dumping duty imposed under this notification shall be effective for a period
of five years from the date of publication of this notification in the Official Gazette and shall
be paid in Indian currency.
Note.- For the purpose of this notification, “CIF value” means assessable value as determined
under section 14 of Customs Act, 1962 (52 of 1962).
 [F. No.354/80/2009-TRU(Pt.-I)]
 (K.Kalimuthu)
Under Secretary to the Government of India 

Tuesday, March 15, 2016

New Notification No 39/2016-Customs(N.T.)

[Notification No. 39/2016 - Customs (N.T), dated 15.03.2016] [http://cbec.gov.in/htdocs-cbec/customs/cs-act/notifications/notfns-2016/cs-nt2016/csnt39-2016] (From APUS Browser - small, fast and clean)

Thursday, March 10, 2016

Preventive Vigilance Action of scrutiny of Adjudication/ Appeal Orders


Directorate General of Vigilance
Customs & Central Excise
2nd & 3rd Floor, Hotel Samrat,
Kautilya Marg, Chanakya Puri, New Delhi-110021

 F.No.V.500/39/2015 Dated /04/2015

To,
All Principal Chief Commissioners/ Chief Commissioners of Central Excise,
All Principal Chief Commissioners/ Chief Commissioners of Central Excise & Customs,
All Principal Chief Commissioners/ Chief Commissioners of Service Tax,
All Principal Chief Commissioners/ Chief Commissioner of Customs,
All Principal Chief Commissioners/ Chief Commissioners of Customs (Preventive),
All Principal Directors General/ Directors General/Principal Chief Commissioner (AR)

Sub: Preventive Vigilance Action of scrutiny of Adjudication/ Appeal Orders — clarification
regarding

Sir/ Madam,
 Reference is invited to DG (Vigilance) letters F.No.V.500/100/2009-Pt.1 dated 24.02.2010
and 27.04.2010 regarding scrutiny of adjudication/appellate orders from vigilance angle as a
preventive vigilance action, in terms of which the review committees were advised to undertake
scrutiny of adjudication/appellate orders from vigilance angle as per the criteria laid down by the
Supreme Court in its decision in the case of K K Dhawan as noted in CVC Circular No. 39/11/07
dated 01.11.2007.
2. It need not be overemphasized that the adjudicating and appellate authorities are required
to pass fair, judicious and legally sustainable speaking orders which can withstand judicial scrutiny
at higher appellate fora. Apprehensions have, however, been raised that the above instructions
have created a 'fear of vigilance' amongst the field officers, due to which some of the adjudicating/
appellate authorities are resorting to confirmation of demands through non-speaking orders/
without following judicial discipline/ non consideration of pleas put forth by the parties, etc. merely
due to a fear of coming under vigilance scrutiny. Such unjust orders, besides attracting adverse
judicial scrutiny, cause harassment to the trade and undermine the efforts of the Department in
providing a non-adversarial tax regime to taxpayers.
2
3. The matter has been examined. It is noted that since 1997, only 18 adjudication orders have
been taken up for scrutiny by the Directorate General of Vigilance. This indicates that on an
average, only one case in a year i.e. 0.001% of the total quasi-judicial orders passed in the
department have been taken up for vigilance scrutiny. The fear of vigilance action against
adjudicating/ appellate authorities in respect of adjudication/ appeal orders, therefore, appears to
be totally unfounded and misplaced. With a view to remove any such misgiving/ 'fear of vigilance'
in adjudication/ appeal matters, further clarifications are being issued as under.
4. The instructions of this Directorate dated 24.02.2010 and 27.04.2010 regarding scrutiny of
adjudication/appellate orders from vigilance angle were issued based on a suggestion of CVC made
in 2009 after the vigilance audit of Customs & Central Excise Department, wherein CVC had
suggested that as a measure of preventive vigilance, adjudication orders involving a sum of Rs.50
lakh and above should be examined from the vigilance angle also. It was also informed that while
making any such scrutiny of adjudication/ appellate orders from vigilance angle, the criteria
referred in CVC's Circular 39/11/07 dated 01.11.2007 (copy enclosed) and as laid down by Hon'ble
Supreme Court in the case of Union of India and Others vs. KK Dhawan (copy enclosed) must be
kept in consideration for examining the lapses of officers exercising quasi-judicial powers to see
whether any of the said criteria was attracted or not. For reference, the criteria prescribed by the
Hon'ble Supreme Court are reproduced below:
• Where the officer had acted in a manner as would reflect on his reputation for integrity or
good faith or devotion to duty
• If there is prima facie material to show recklessness or misconduct in the discharge of his
duty
• If he has acted in a manner which is unbecoming of a government servant
• If he had acted negligently or that he omitted the prescribed conditions which are essential
for the exercise of the statutory powers
• If he had acted in order to unduly favour a party
• If he had been actuated by corrupt motive however, small the bribe may be because Lord
Coke said long ago "though the bribe may be small, yet the fault is great"
3
5. Adjudication and Appellate Orders are examined by Review Committees of Chief
Commissioners or Commissioners comprehensively, including from the angle of legality and
propriety, with a view to take a decision whether the orders are acceptable or to be appealed
against in higher appellate fora. Examination of orders from vigilance angle is also a part of this
exercise. It is, however, clarified that an adjudication/ apellate order is not required to be referred
by the Review Committee for further vigilance scrutiny merely on the ground of it being an antirevenue
order or having some legal infirmities (for which review and appellate remedy is available),
unless there are genuine reasons to doubt the bonafides of the decision or where the order shows
a conspicuous violation of the procedures involved or recklessness, etc., as per the above criteria
laid by Hon'ble Supreme Court in the KK Dhawan's judgment and as circulated by CVC in Circular
No.39/11/07 dated 01.11.2007.
6. It is expected that senior officers in the field, given their vast experience, would be able to
distinguish between the orders warranting scrutiny from vigilance angle and those which do not.
 This issues with the approval of Chairman, CBEC.
 sd/-
(Vanaja Sarna)
Director General (Vigilance)
Encl:
1. Hon'ble Supreme Court decision in the case of Union of India and Others vs. KK Dhawan.
2. CVC Circular No.39/11/07 dated 01.11.2007 

Monday, February 29, 2016

#Budget2016 MOVING TOWARDS A PENSIONED SOCIETY

MOVING TOWARDS A PENSIONED SOCIETY

 Withdrawal up to 40% of the corpus at the time of retirement to be tax
exempt in the case of National Pension Scheme (NPS).

 Annuity fund which goes to legal heir will not be taxable.

 In case of superannuation funds and recognized provident funds,including EPF, the same norm of 40% of corpus to be tax free will apply in respect of corpus created out of contributions made on or from 1.4.2016.

  Limit for contribution of employer in recognized Provident and Superannuation Fund of ` 1.5 lakh per annum for taking tax benefit. Exemption from service tax for Annuity services provided by NPS and Services provided by EPFO to employees.

 Reduce service tax on Single premium Annuity (Insurance) Policies from 3.5% to 1.4% of the premium paid in certain cases.

#ServiceTax on Services provided by #IndianShippingLines

#ServiceTax  on Services provided by #IndianShippingLines by way of transportation of
goods by a vessel to outside India being zero rated with effect from 1st March, 2016 and Input tax credit is allowed  ;
 and
b) Service tax  @ 14% on services provided by them by way of transportation of goods by a vessel from outside India up to the customs station in India being imposed, with effect from 1st June, 2016.



Change in Excise duty on Articles of Jewellery

Excise duty exemption on Articles of#Jewellery [excluding silver jewellery,
other than studded with diamonds or other precious stones namely, ruby, emerald
and sapphire] being withdrawn with a higher threshold exemption upto Rs 6 crore
in a year and eligibility limit of Rs 12 crore, along with simplified compliance
procedure.

Now , it is proposed:1% (without Input Tax Credit)

                           or

                        12.5%  (Input Tax Credit)

#Budget2016 Corporate Tax rate proposals

 Corporate Tax rate proposals:

  New manufacturing companies incorporated on or after 1.3.2016 to be given an option to be taxed at 25% + surcharge and cess provided they do not claim profit linked or investment linked
deductions and do not avail of investment allowance and accelerated depreciation.

 Lower the corporate tax rate for the next financial year for relatively small enterprises i.e companies with turnover not exceeding `Rs 5 crore (in the financial year ending March 2015), to
29% plus surcharge and cess.

  100% deduction of profits for 3 out of 5 years for startups setup during April, 2016 to March, 2019. MAT will apply in such cases.

  10% rate of tax on income from worldwide exploitation of patents developed and registered in India by a resident.

 Complete pass through of income-tax to securitization trusts including trusts of ARCs. Securitisation trusts required to deduct tax at source.

  Period for getting benefit of long term capital gain regime in case of unlisted companies is proposed to be reduced from three to two years.

  Non-banking financial companies shall be eligible for deduction to the extent of 5% of its income in respect of provision for bad and doubtful debts.

 Determination of residency of foreign company on the basis of Place of
Effective Management (POEM) is proposed to be deferred by one year.

  Commitment to implement General Anti Avoidance Rules (GAAR) from 1.4.2017.

Key Features of Budget 2016-2017

Key Features of Budget 2016-2017
INTRODUCTION
Growth of Economy accelerated to 7.6% in 2015-16.
India hailed as a ‘bright spot’ amidst a slowing global economy by IMF.
Robust growth achieved despite very unfavorable global conditions and two consecutive years shortfall in monsoon by 13%.
Foreign exchange reserves touched highest ever level of about 350 billion US dollars.
Despite increased devolution to States by 55% as a result of the 14th Finance Commission award, plan expenditure increased at RE stage in 2015-16 – in contrast to earlier years.

CHALLENGES IN 2016-17
Risks of further global slowdown and turbulence.
Additional fiscal burden due to 7th Central Pay Commission recommendations and OROP.

ROADMAP & PRIORITIES
Transform India' to have a significant impact on economy and lives of people.
Government to focus on –
ensuring macro-economic stability and prudent fiscal management.
boosting on domestic demand
continuing with the pace of economic reforms and policy initiatives to change the lives of our people for the better.
Focus on enhancing expenditure in priority areas of - farm and rural sector, social sector, infrastructure sector employment generation and recapitalization of the banks.
Focus on Vulnerable sections through:
Pradhan Mantri Fasal Bima Yojana.
New health insurance scheme to protect against hospitalization expenditure
facility of cooking gas connection for BPL families.
Continue with the ongoing reform programme and ensure passage of the Goods and Service Tax bill and Insolvency and Bankruptcy law
Undertake important reforms by:
giving a statutory backing to AADHAR platform to ensure benefits  reach the deserving.
freeing the transport sector from constraints and restrictions
incentivizing gas discovery and exploration by providing calibrated marketing freedom
enactment of a comprehensive law to deal with resolution of financial firms
provide legal framework for dispute resolution and re-negotiations in PPP projects and public utility contracts
undertake important banking sector reforms and public listing of general insurance companies undertake significant changes in FDI policy.

AGRICULTURE AND FARMERS’ WELFARE
Allocation for Agriculture and Farmers’ welfare is ` 35,984 crore
‘Pradhan Mantri Krishi Sinchai Yojana’ to be implemented in mission mode. 28.5 lakh hectares will be brought under irrigation.
Implementation of 89 irrigation projects under AIBP, which are languishing for a long time, will be fast tracked
A dedicated Long Term Irrigation Fund will be created in NABARD with an initial corpus of about ` 20,000 crore
Programme for sustainable management of ground water resources with an estimated cost of ` 6,000 crore will be implemented through multilateral funding
5 lakh farm ponds and dug wells in rain fed areas and 10 lakh compost pits for production of organic manure will be taken up under MGNREGA
Soil Health Card scheme will cover all 14 crore farm holdings by March 2017.
2,000 model retail outlets of Fertilizer companies will be provided with soil and seed testing facilities during the next three years
Promote organic farming through ‘Parmparagat Krishi Vikas Yojana’ and 'Organic Value Chain Development in North East Region'.
Unified Agricultural Marketing ePlatform to provide a common e- market platform for wholesale markets
Allocation under Pradhan Mantri Gram Sadak Yojana increased to `19,000 crore. Will connect remaining 65,000 eligible habitations by 2019.
To reduce the burden of loan repayment on farmers, a provision of ` 15,000 crore has been made in the BE 2016-17 towards interest subvention
Allocation under Prime Minister Fasal Bima Yojana ` 5,500 crore.  ` 850 crore for four dairying projects - ‘Pashudhan Sanjivani’, ‘Nakul Swasthya Patra’, ‘E-Pashudhan Haat’ and National Genomic Centre for indigenous breeds

RURAL SECTOR
Allocation for rural sector - ` 87,765 crore.
` 2.87 lakh crore will be given as Grant in Aid to Gram Panchayats and Municipalities as per the recommendations of the 14th Finance Commission
Every block under drought and rural distress will be taken up as an intensive Block under the Deen Dayal Antyodaya Mission
A sum of ` 38,500 crore allocated for MGNREGS.
300 Rurban Clusters will be developed under the Shyama Prasad Mukherjee Rurban Mission
100% village electrification by 1st May, 2018.
District Level Committees under Chairmanship of senior most Lok Sabha MP from the district for monitoring and implementation of designated Central Sector and Centrally Sponsored Schemes.
Priority allocation from Centrally Sponsored Schemes to be made to reward villages that have become free from open defecation.
A new Digital Literacy Mission Scheme for rural India to cover around 6 crore additional household within the next 3 years.
National Land Record Modernisation Programme has been revamped.
New scheme Rashtriya Gram Swaraj Abhiyan proposed with allocation of ` 655 crore.

SOCIAL SECTOR INCLUDING HEALTH CARE
Allocation for social sector including education and health care – `1,51,581 crore.
` 2,000 crore allocated for initial cost of providing LPG connections to BPL families.
New health protection scheme will provide health cover up to ` One lakh per family. For senior citizens an additional top-up package up to `30,000 will be provided.
3,000 Stores under Prime Minister’s Jan Aushadhi Yojana will be opened during 2016-17.
‘National Dialysis Services Programme’ to be started under National Health Mission through PPP mode
“Stand Up India Scheme” to facilitate at least two projects per bank branch. This will benefit at least 2.5 lakh entrepreneurs.
National Scheduled Caste and Scheduled Tribe Hub to be set up in partnership with industry associations
Allocation of ` 100 crore each for celebrating the Birth Centenary of Pandit Deen Dayal Upadhyay and the 350th Birth Anniversary of Guru Gobind Singh.

EDUCATION, SKILLS AND JOB CREATION
62 new Navodaya Vidyalayas will be opened
Sarva Shiksha Abhiyan to increasing focus on quality of education
Regulatory architecture to be provided to ten public and ten private institutions to emerge as world-class Teaching and Research Institutions
Higher Education Financing Agency to be set-up with initial capital base of ` 1000 Crores
Digital Depository for School Leaving Certificates, College Degrees, Academic Awards and Mark sheets to be set-up.

SKILL DEVELOPMENT
Allocation for skill development – ` 1804. crore.
1500 Multi Skill Training Institutes to be set-up.
National Board for Skill Development Certification to be setup in partnership with the industry and academia
Entrepreneurship Education and Training through Massive Open Online Courses




JOB CREATION
GoI will pay contribution of 8.33% for of all new employees enrolling in EPFO for the first three years of their employment. Budget provision of ` 1000 crore for this scheme.
Deduction under Section 80JJAA of the Income Tax Act will be available to all assesses who are subject to statutory audit under the Act
100 Model Career Centres to operational by the end of 2016-17 under National Career Service.
Model Shops and Establishments Bill to be circulated to States.

INFRASTRUCTURE AND INVESTMENT
Total investment in the road sector, including PMGSY allocation, would be ` 97,000 crore during 2016-17.
India’s highest ever kilometres of new highways were awarded in 2015. To approve nearly 10,000 kms of National Highways in 2016-17.
Allocation of ` 55,000 crore in the Budget for Roads. Additional `15,000 crore to be raised by NHAI through bonds.
Total outlay for infrastructure - ` 2,21,246 crore.
Amendments to be made in Motor Vehicles Act to open up the road transport sector in the passenger segment
Action plan for revival of unserved and underserved airports to be drawn up in partnership with State Governments.
To provide calibrated marketing freedom in order to incentivise gas production from deep-water, ultra deep-water and high pressure-high temperature areas
Comprehensive plan, spanning next 15 to 20 years, to augment the investment in nuclear power generation to be drawn up.
Steps to re-vitalise PPPs:
Public Utility (Resolution of Disputes) Bill will be introduced during 2016-17
Guidelines for renegotiation of PPP Concession Agreements will be issued
New credit rating system for infrastructure projects to be introduced
Reforms in FDI policy in the areas of Insurance and Pension, Asset Reconstruction Companies, Stock Exchanges.
100% FDI to be allowed through FIPB route in marketing of food products produced and manufactured in India.
A new policy for management of Government investment in Public Sector Enterprises, including disinvestment and strategic sale, approved.

FINANCIAL SECTOR REFORMS
A comprehensive Code on Resolution of Financial Firms to be introduced.
Statutory basis for a Monetary Policy framework and a Monetary Policy Committee through the Finance Bill 2016.
A Financial Data Management Centre to be set up.
RBI to facilitate retail participation in Government securities.
New derivative products will be developed by SEBI in the Commodity Derivatives market.
Amendments in the SARFAESI Act 2002 to enable the sponsor of an ARC to hold up to 100% stake in the ARC and permit non institutional investors to invest in Securitization Receipts.
Comprehensive Central Legislation to be bought to deal with the menace of illicit deposit taking schemes.
Increasing members and benches of the Securities Appellate Tribunal.
Allocation of ` 25,000 crore towards recapitalisation of Public Sector Banks.
Target of amount sanctioned under Pradhan Mantri Mudra Yojana increased to ` 1,80,000 crore.
General Insurance Companies owned by the Government to be listed in the stock exchanges.

GOVERNANCE AND EASE OF DOING BUSINESS
A Task Force has been constituted for rationalization of human resources in various Ministries.
Comprehensive review and rationalisation of Autonomous Bodies.
Bill for Targeted Delivery of Financial and Other Subsidies, Benefits and Services by using the Aadhar framework to be introduced.
Introduce DBT on pilot basis for fertilizer.
Automation facilities will be provided in 3 lakh fair price shops by March 2017.
Amendments in Companies Act to improve enabling environment for start-ups.
Price Stabilisation Fund with a corpus of ` 900 crore to help maintain stable prices of Pulses.
“Ek Bharat Shreshtha Bharat” programme will be launched to link States and Districts in an annual programme that connects people through exchanges in areas of language, trade, culture, travel and tourism.

FISCAL DISCIPLINE
Fiscal deficit in RE 2015-16 and BE 2016-17 retained at 3.9% and 3.5%.  Revenue Deficit target from 2.8% to 2.5% in RE 2015-16
Total expenditure projected at ` 19.78 lakh crore
Plan expenditure pegged at ` 5.50 lakh crore under Plan, increase of 15.3%
Non-Plan expenditure kept at ` 14.28 lakh crores
Special emphasis to sectors such as agriculture, irrigation, social sector including health, women and child development, welfare of Scheduled Castes and Scheduled Tribes, minorities, infrastructure.
Mobilization of additional finances to the extent of ` 31,300 crore by NHAI, PFC, REC, IREDA, NABARD and Inland Water Authority by raising Bonds.
Plan / Non-Plan classification to be done away with from 2017-18.
Every new scheme sanctioned will have a sunset date and outcome review.
Rationalized and restructured more than 1500 Central Plan Schemes into about 300 Central Sector and 30 Centrally Sponsored Schemes.
Committee to review the implementation of the FRBM Act.

RELIEF TO SMALL TAX PAYERS
Raise the ceiling of tax rebate under section 87A from `2000 to `5000 to lessen tax burden on individuals with income upto `5 laks.
Increase the limit of deduction of rent paid under section 80GG from `24000 per annum to `60000, to provide relief to those who live in rented houses.


BOOST EMPLOYMENT AND GROWTH
Increase the turnover limit under Presumptive taxation scheme under section 44AD of the Income Tax Act to ` 2 crores to bring big relief to a large number of assessees in the MSME category.
Extend the presumptive taxation scheme with profit deemed to be 50%, to professionals with gross receipts up to `50 lakh.
Phasing out deduction under Income Tax:
Accelerated depreciation wherever provided in IT Act will be limited to maximum 40% from 1.4.2017
Benefit of deductions for Research would be limited to 150% from 1.4.2017 and 100% from 1.4.2020
Benefit of section 10AA to new SEZ units will be available to those units which commence activity before 31.3.2020.
The weighted deduction under section 35CCD for skill development will continue up to 1.4.2020
Corporate Tax rate proposals:
New manufacturing companies incorporated on or after 1.3.2016 to be given an option to be taxed at 25% + surcharge and cess provided they do not claim profit linked or investment linked deductions and do not avail of investment allowance and accelerated depreciation.
Lower the corporate tax rate for the next financial year for relatively small enterprises i.e companies with turnover not exceeding ` 5 crore (in the financial year ending March 2015), to 29% plus surcharge and cess.
100% deduction of profits for 3 out of 5 years for startups setup during April, 2016 to March, 2019. MAT will apply in such cases.
10% rate of tax on income from worldwide exploitation of patents developed and registered in India by a resident.
Complete pass through of income-tax to securitization trusts including trusts of ARCs. Securitization trusts required to deduct tax at source.
Period for getting benefit of long term capital gain regime in case of unlisted companies is proposed to be reduced from three to two years.
Non-banking financial companies shall be eligible for deduction to the extent of 5% of its income in respect of provision for bad and doubtful debts.
Determination of residency of foreign company on the basis of Place of Effective Management (POEM) is proposed to be deferred by one year.
Commitment to implement General Anti Avoidance Rules (GAAR) from 1.4.2017.
Exemption of service tax on services provided under Deen Dayal Upadhyay Grameen Kaushalya Yojana and services provided by Assessing Bodies empanelled by Ministry of Skill Development & Entrepreneurship.
Exemption of Service tax on general insurance services provided under ‘Niramaya’ Health Insurance Scheme launched by National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disability.
Basic custom and excise duty on refrigerated containers reduced to 5% and 6%.

MAKE IN INDIA
Changes in customs and excise duty rates on certain inputs to reduce costs and improve competitiveness of domestic industry in sectors like Information technology hardware, capital goods, defence production, textiles, mineral fuels & mineral oils, chemicals & petrochemicals, paper, paperboard & newsprint, Maintenance repair and overhauling [MRO] of aircrafts and ship repair.

MOVING TOWARDS A PENSIONED SOCIETY
Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the case of National Pension Scheme (NPS). Annuity fund which goes to legal heir will not be taxable.
In case of superannuation funds and recognized provident funds, including EPF, the same norm of 40% of corpus to be tax free will apply in respect of corpus created out of contributions made on or from 1.4.2016.
Limit for contribution of employer in recognized Provident and Superannuation Fund of ` 1.5 lakh per annum for taking tax benefit. Exemption from service tax for Annuity services provided by NPS and Services provided by EPFO to employees.
Reduce service tax on Single premium Annuity (Insurance) Policies from 3.5% to 1.4% of the premium paid in certain cases.

PROMOTING AFFORDABLE HOUSING
100% deduction for profits to an undertaking in housing project for flats upto 30 sq. metres in four metro cities and 60 sq. metres in other cities, approved during June 2016 to March 2019 and completed in three years. MAT to apply.
Deduction for additional interest of `50,000 per annum for loans up to `35 lakh sanctioned in 2016-17 for first time home buyers, where house cost does not exceed ` 50 lakh.
Distribution made out of income of SPV to the REITs and INVITs having specified shareholding will not be subjected to Dividend Distribution Tax, in respect of dividend distributed after the specified date.
Exemption from service tax on construction of affordable houses up to 60 square metres under any scheme of the Central or State Government including PPP Schemes.
Extend excise duty exemption, presently available to Concrete Mix manufactured at site for use in construction work to Ready Mix Concrete.

RESOURCE MOBILIZATION FOR AGRICULTURE, RURAL ECONOMY AND CLEAN ENVIRONMENT
Additional tax at the rate of 10% of gross amount of dividend will be payable by the recipients receiving dividend in excess of ` 10 lakh per annum.
Surcharge to be raised from 12% to 15% on persons, other than companies, firms and cooperative societies having income above ` 1 crore.
Tax to be deducted at source at the rate of 1 % on purchase of luxury cars exceeding value of ` ten lakh and purchase of goods and services in cash exceeding ` two lakh.
Securities Transaction tax in case of ‘Options’ is proposed to be increased from .017% to .05%.
Equalization levy of 6% of gross amount for payment made to non- residents exceeding ` 1 lakh a year in case of B2B transactions.
Krishi Kalyan Cess, @ 0.5% on all taxable services, w.e.f. 1 June 2016. Proceeds would be exclusively used for financing initiatives for improvement of agriculture and welfare of farmers. Input tax credit of this cess will be available for payment of this cess.
Infrastructure cess, of 1% on small petrol, LPG, CNG cars, 2.5% on diesel cars of certain capacity and 4% on other higher engine capacity vehicles and SUVs. No credit of this cess will be available nor credit of any other tax or duty be utilized for paying this cess.
Excise duty of ‘1% without input tax credit or 12.5% with input tax credit’ on articles of jewellery [excluding silver jewellery, other than studded with diamonds and some other precious stones], with a higher exemption and eligibility limits of ` 6 crores and ` 12 crores respectively.
Excise on readymade garments with retail price of ` 1000 or more raised to 2% without input tax credit or 12.5% with input tax credit.
‘Clean Energy Cess’ levied on coal, lignite and peat renamed to ‘Clean Environment Cess’ and rate increased from `200 per tonne to `400 per tonne.
Excise duties on various tobacco products other than beedi raised by about 10 to 15%.
Assignment of right to use the spectrum and its transfers has been deducted as a service leviable to service tax and not sale of intangible goods.

PROVIDING CERTAINITY IN TAXATION
Committed to providing a stable and predictable taxation regime and reduce black money.
Domestic taxpayers can declare undisclosed income or such income represented in the form of any asset by paying tax at 30%, and surcharge at 7.5% and penalty at 7.5%, which is a total of 45% of the undisclosed income. Declarants will have immunity from prosecution.
Surcharge levied at 7.5% of undisclosed income will be called Krishi Kalyan surcharge to be used for agriculture and rural economy.
New Dispute Resolution Scheme to be introduced. No penalty in respect of cases with disputed tax up to ` 10 lakh. Cases with disputed tax exceeding ` 10 lakh to be subjected to 25% of the minimum of the imposable penalty. Any pending appeal against a penalty order can also be settled by paying 25% of the minimum of the imposable penalty and tax interest on quantum addition.
High Level Committee chaired by Revenue Secretary to oversee fresh cases where assessing officer applies the retrospective amendment.
One-time scheme of Dispute Resolution for ongoing cases under retrospective amendment.
Penalty rates to be 50% of tax in case of underreporting of income and 200% of tax where there is misreporting of facts.
Disallowance will be limited to 1% of the average monthly value of investments yielding exempt income, but not exceeding the actual expenditure claimed under rule 8D of Section 14A of Income Tax Act.
Time limit of one year for disposing petitions of the tax payers seeking waiver of interest and penalty.
Mandatory for the assessing officer to grant stay of demand once the assesse pays 15% of the disputed demand, while the appeal is pending before Commissioner of Income-tax (Appeals).
Monetary limit for deciding an appeal by a single member Bench of ITAT enhanced from ` 15 lakhs to ` 50 lakhs.
11 new benches of Customs, Excise and Service Tax Appellate Tribunal (CESTAT).

SIMPLIFICATION AND RATIONALIZATION OF TAXES
13 cesses, levied by various Ministries in which revenue collection is less than ` 50 crore in a year to be abolished.
For non-residents providing alternative documents to PAN card, higher TDS not to apply.
Revision of return extended to Central Excise assesses.
Additional options to banking companies and financial institutions, including NBFCs, for reversal of input tax credits with respect to non- taxable services.
Customs Act to provide for deferred payment of customs duties for importers and exporters with proven track record.
Customs Single Window Project to be implemented at major ports and airports starting from beginning of next financial year.
Increase in free baggage allowance for international passengers. Filing of baggage only for those carrying dutiable goods.

TECHNOLOGY FOR ACCOUNTABILITY
Expansion in the scope of e-assessments to all assessees in 7 mega cities in the coming years.
Interest at the rate of 9% p.a against normal rate of 6% p.a for delay in giving effect to Appellate order beyond ninety days.
‘e-Sahyog’ to be expanded to reduce compliance cost, especially for small taxpayers.


Change in Basic Customs Duty (BCD) in this Budget (2016-17)

Change in Basic Customs Duty (BCD) in this Budget (2016-17)

1.Basic custom duty on refrigerated containers reduced to 5%

2. Braille paper to attract Nil basic customs duty.

3 Concessional 5% Basic Customs Duty ,under project imports, being extended for ‘cold chain including pre-cooling unit, pack houses, sorting and grading lines and ripening chambers’.

4. Basic customs duty on wood in chips or particles for manufacture of paper, paperboard and news print being reduced to NIL.

5. BCD on Plans, drawings and designs being increased to 10 %.

6. Basic Customs Duty on specified fibres and yarns being reduced to  2.5%

7.  Basic customs duty on import of specified fabrics [for manufacture of textile garments for export] of value equivalent to 1% of FOB value of exports in the preceding financial year being exempted subject to the specified conditions to NIL  rate.

8. BCD on polypropylene granules / resins for the manufacture of capacitor grade plastic films being reduced to NIL rate.

9. BCD on E-Readers being increased to 7.5%.

10. BCD on parts of E-readers being reduced to 5%.

11. Nil Basic Customs Duty being extended on magnetron of capacity of 1 KW to 1.5 KW for use in manufacture of domestic microwave ovens, subject to actual user condition.

12. Machinery, electrical equipment, instrument and parts thereof (except populated PCBs) for semiconductor wafer fabrication/LCD fabrication units being exempted and BCD is NIL rate.

13. Machinery, electrical equipment, instrument and parts thereof (except populated PCBs) imported for Assembly, Test, Marking and Packaging of semiconductor chips (ATMP) being exempted and BCD is NIL rate.

14. The exemption from basic customs duty, CV duty, SAD on charger/adapter, battery and wired headsets/speakers for manufacture of mobile phone being withdrawn. Now it is proposed :-

        Applicable BCD   , CVD – 12.5%   ,SAD – 4%.

 

15. Inputs, parts and components, subparts for manufacture of charger / adapter, battery and wired headsets /speakers, of mobile phone, subject to actual user condition being exempted.

 Now it is proposed :  BCD-NIL  , CVD – NIL   ,SAD –NIL.

16. Parts and components, subparts for manufacture of Routers, broadband Modems, Set-top boxes for gaining access to internet, set top boxes for TV, digital video recorder (DVR)/network video recorder (NVR), CCTV camera/IP camera, lithium ion battery [other than those for mobile handsets] being exempted.

Now it is proposed :-   BCD-NIL  , CVD – NIL   ,SAD –NIL.

17. Basic Customs Duty exemption on Magnetic - Heads (all types), Ceramic/ Magnetic cartridges and stylus, Antennas, EHT cables, Level meters/level indicators/ tuning indicators/ peak level meters/ battery meter/VC meters/Tape counters, Tone arms, Electron guns being withdrawn.

Now it is proposed :-   BCD-As Applicable.

18. Specified telecommunication equipment [Soft switches and Voice over Internet Protocol (VoIP) equipment namely VoIP phones, media gateways, gateway Product/Switch (POTP/POTS), Optical controllers and session border controllers, Optical Transport equipment; combination of one / more of Packet Optical Transport Network(OTN) products, and IP Radios, Carrier Ethernet Switch, Packet Transport Node (PTN) products, Multiprotocol Label Switching- Transport Profile (MPLS-TP) products, Multiple Input / Multiple Output (MIMO) and Long Term Evolution (LTE) Products on which 10% BCD was imposed in 2014-15 Budget] being excluded from the purview of the other exemption also.

Now it is proposed :-   BCD @ 10%.

 

19. Basic Customs Duty exemption on preform of silica for manufacture of telecom grade optical fibre /cables being withdrawn.

Now it is proposed :-   BCD @ 10%.

20. Basic Customs Duty on specified capital goods and inputs for use in manufacture of Micro fuses, Sub-miniature fuses, Resettable fuses and Thermal fuses being exempted.

Now it is proposed :-   BCD-NIL 

21. Concessional Basic Customs Duty on Neodymium Magnet (before Magnetization) and Magnet Resin (Strontium Ferrite compound/before formed, before magnetization) for manufacture of BLDC motors, being prescribed subject to actual user condition.

 Now it is proposed :-   BCD-2.5%

22. BCD on Silica sand being reduced is reduced to  2.5%.

23. Basic Customs Duty on brass scrap being reduced is to 2.5%

 

24. BCD on Golf cars being increased to 60%.

25. Nil BCD and 6% excise/CVD being extended on parts of electric vehicles and hybrid vehicles, presently.

26. BCD on aluminium Oxide for manufacture of Wash Coats, which are used in the manufacture of catalytic converters, being reduced to  5% ,subject to actual user condition.

27. Description of “Engine for HV (Atkinson cycle)” to “Engine for xEV (hybrid electric vehicle)” for the purposes of   Nil Basic Customs Duty and 6% CVD being changed.

28. Description of “Engine for HV (Atkinson cycle)” to “Engine for xEV(hybrid electric vehicle)” being changed for the purposes of concessional 6% excise duty.

 

29. CVD exemption on specified machinery required for construction of roads being withdrawn. Now CVD is 12.5%

30.. Excise duty on carbon pultrusions used for manufacture of rotor blades, and intermediates, parts and sub-parts of rotor blades for wind operated electricity generators being reduced to 6%.

31.Excise duty on Unsaturated Polyester Resin (polyester based infusion resin and hand layup resin), Hardeners/Hardener for adhesive resin, Vinyl Easter Adhesive (VEA) and Epoxy Resin used for manufacture of rotor blades, and intermediates, parts and sub-parts of rotor blades for wind operated electricity generators being increased to 6 %.

 

 

 

 

 

 

 

 



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