Duty reduced on LED TV

 Today's budget has reduced duty on LED  TV. Waiting for notification for exact  duty.

Income tax exemption for citizen in this Budget

 Direct Tax Code (DTC) will be effective from 1.4.2012.
Exemption limit  raised to Rs 1,80,000/= for general Tax payer.
Senior citizen age  reduced  form 65 Years to 60 Years and exemption limit is Rs 2,50 ,000/=
One more category of senior Citizen ,who are above 80 years, exemption limit is Rs 5,00,000/-.

No need to file IT return by Salaried people

 If  employer  has deducted TDS  from Salary ,then, Salaried employee need not to file  IT return.

Relief from litigation for small revenue locked

As per Govt litigation policy , Govt Department will not  appeal in higher  judicial forum ,if revenue involved is less than  prescribed by Govt. It will concentrate more on higher revenue realisation ,where  revenue involved is high.

Self Assessment of import duty is introduced for importer and exporter

Self assessment by importer  and exporter   is a  great step. It will reduce time of transaction and cost  of compliance with Customs formalities. Thus will lead more competitive  price of  Indian Goods  and improve
efficiency of Global Supply Chain. There will be random checks by Customs to prevent mis use of  self assessment practice. This scheme is operative in various form for past many years. But  ,now it is has been widen.   Detail procedure will be known only after  Notification or circular is issued by CBEC.

As per Task force of Ministry of Commerce, It is said that  reducing of transaction cost will yield saving of
  Rs 2100  Crore.

CBEC has EDI systems at  91 locations. Electronic filing and    CBEC web portal are great tool for reducing transaction cost.  Even  State Govts  have started accepting  Electronic Tax Returns.

Goods and Service tax ( GST) in this budget 2011-2012

Honourable FM has proposed that  he will introduce Constitutional   amendment for GST. Establishment of  national IT   network  will be back bone of effective GST regime. In June 2011 ,Pilot portal on GST, with collaboration  with 11 States ,will be launched. Lower rate of Central Excise duty is increased form  4 % to 5 %. Around 130 items of consumer nature , Central  Excise duty is reduced to 1%  ,in order to align with GST.

Lower limit of central excise duty is increased form 4 % to 5 % to align GST.

 Many States have increased  rate of VAT from  4 % to 5 %.  Therefore , FM has also increased  lower rate of Central Excise Duty from 4 % to 5 %.  Peak Basic rate of central Excise is 10 % only.
Net gain by Indirect tax  in this budget  is Rs 7,300 crore.

Less Excise duty on consumer goods to align with proposed GST

 Duty on Sanitary napkin  is reduced from 10 % to 1%.
 Around 130 items , mostly consumer goods, duty is reduced to 1 %. No cenvat credit is allowed on these items.

Reduce customs duty on work of art , exhibitions and Film Rolls

Exemption form duty on  Work of    Art for exhibitions ,
colour unexposed jubo reel, 10,000 and 4000 feets are exempted  form excise duty.

Reduce customs and excise duty for promoting green economy

Less Excise  duty on car based on  hybrid Fuel & hydrogen  cell.
LED lights  ,customs duty is 5 %.
 Customs Duty on Solar lantern is reduced form 10 % to 5 % .
Excise duty exemption for Mega Power  Project.

No change is peak rate of Customs duty , it is still 10 % for most of items.

Honourable FM missed two paras , read them before Indirect tax portion of the Budget.  Three rate of basic customs duty  are kept for most of items.
Thrust was on simplification and rationalization of Taxes.
Curb on Money laundry and  Corrupt practice.
 Reduction in duty for promoting green economy.
2.5 % customs duty on  specified agriculture machinery.
Reduce  Customs duty on silk from 30 % to 5 %.
Customs duty on Technical fabric from 7.5% to 5%.
Reduction of duty  on parts for mobile hand set.
Reduce  Customs duty on  coke and Gypsum   to 2.5 %.

Budget high light on Gifts

There is no change in Gift limit for importing goods for personal use.

No service tax on canned software ,if seller is not charging more than M.R.P from end customer as per Notification No. 53/2010 - Service Tax

No service tax on canned software ,if seller is not charging more than M.R.P. It is to avoid double taxation as software as service and as product, one time it is service tax  and another time is central excise .

Notification is reproduced for easy reference.

 Notification No. 53/2010 - Service Tax

                                                                                                             New Delhi, the 21 st December,2010 

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3,
SECTION (i)]
Government of India
Ministry of Finance
Department of Revenue
                                                                                                    
 G.S.R.  (E).- In exercise of the powers conferred  by sub-section (1) of section 93 of the
Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the
public interest so to do, hereby exempts  the taxable service referred to in item (v) of sub-clause
(zzzze) of clause (105) of section 65 of the said Finance Act (hereinafter referred to as ‘such service’),
for packaged or canned software (hereinafter referred to as ‘said goods’) from the whole of service
tax, subject to the condition that-
(i) the value of the said goods domestically produced or imported, for the purposes of levy of the duty
of Central Excise or the additional duty of customs leviable under sub-section (1) of section 3 of the
Customs Tariff Act, 1975 (51 of 1975), if imported, as the case may be, has been determined under
section 4A of the Central Excise Act 1944 (1 of 1944) (hereinafter referred to as ‘such value’); and
(ii) (a) the appropriate duties of excise on such value have been paid by the manufacturer, duplicator
or the person holding the copyright to such software, as the case may be, in respect of software
manufactured in India; or
(b) the appropriate duties of customs including the additional duty of customs on such value, have
been paid by the importer in respect of software which has been imported into India;
(iii) a declaration made by the service provider on the invoice relating to such service that no amount
in excess of the retail sale price declared on the said goods has been recovered from the customer.
Explanations.- For the purpose of this notification, the expression,-
(i) “appropriate duties of excise” shall mean the duties of excise leviable under section 3 of the Central
Excise Act, 1944 (1 of 1944) and a notification, for the time being in force, issued in accordance with
the provision of sub-section (1) of section 5A of the said Central Excise Act; and
(ii) “appropriate duties of customs” shall mean the duties of customs leviable under section 12 of the
Customs Act, 1962 (52 of 1962) and any of the provisions of the Customs Tariff Act, 1975 (51 of
1975) and a notification, for the time being in force, issued in accordance with the provision of subsection (1) of section 25 of the said Customs Act.
                                                                                               [F. No. 354/189/2010-TRU]
                                                                                          (VIKAS)
Under Secretary to the Government of India




Ravindra Kumar

Customs duty on HP iPAQ mobile messenger is 1.03 %.

Customs classification of HP iPAQ mobile messenger is under heading CTH 85171290  and rate of duty  is @ 1.03%, if  it looks more like smartphone. However,  If it is considered handheld device than CTH 8471 and duty @ 14.71%.  Correct classification will depend upon what is  principal function of a particular items.
Regards
Ravindra Kumar
Global Tax Guru
www.globaltaxguru.in

Customs duty on VC6096 WWAN In-Vehicle/Fixed Mount Mobile Computer is 1.03%

 Tariff classification of Motorala  under CTH  85171290 and  rate of duty is 1.03 %.
The VC609VC6096 WWAN In-Vehicle/Fixed Mount Mobile Computer6 all-in-one in-cab solution is designed to help transportation and logistics providers achieve cost-effective compliance, maximize driver productivity, improve safety and vehicle utilization, reduce costs and improve customer service.

Customs duty on HTC EVO 4G,Google Nexus One,Samsung Vibrant, HTC Desire,HTC Incredible,Motorola Droid X,Samsung Epic 4G,

Rate of customs duty on a rear view mirror hands-free Bluetooth car kit

The tariff classification of a rear view mirror hands-free Bluetooth car kit  is CTH 85176970. Rate of duty is 15.03%.

Second hand personal goods should not require import licence

As per Foreign Trade Policy, second hand capital goods are allowed to be imported without any licence. But  second goods for personal use seems to be restricted. This view is not appears to be correct.

"......Provided that where it is established to the satisfaction of the Adjudicating Authority that any goods or materials which are liable to confiscation under this rule, had been imported for personal use, and not for any trade or industry, such goods or materials shall not be ordered to be confiscated........"   Rule 17. Confiscation and redemption..FOREIGN TRADE (REGULATION) RULES, 1993 Ministry of Commerce Notification No. GSR 791 (E), dated 30-12-1993.




It is interpreted that  if any goods is imported for personal use than it cannot be confiscated  for violation  of above Rule. There is no value limit  for personal import without any licence.However, Department of Revenue/ Customs department   ,at many place, does not allow goods imported for personal use. Reason cited is based on 3(1)(i) of   Foreign Trade (Exemption from application of Rules in certain cases) Order, 1993. This is not true. 


Once Rule itself says that personal use goods are not to be confiscated ,then ,where is question of restricting import of consumer electronics goods ,valued more than C.I.F ,Rs 2000/= through  Order. Hence, goods for personal use should be allowed without any adjudication , whether it is old or new.  Revenue authority and DGFT to rectify and make  importing  goods for personal use as smooth affair.

Exports transaction cost to be cut by 40 percent

Scindia said transaction of exports cost nearly $14 billion annually. This is nearly seven percent of India's total exports value. 

Total merchandise exports from India was $178.66 billion in 2009-10. The government targets to increase it to $200 billion during the current fiscal. (Source:http://economictimes.indiatimes.com/news/economy/foreign-trade/Exports-transaction-cost-to-be-cut-by-40-percent/articleshow/6426877.cms)

Import of wine as gift or sample into India through courier

                    


 Import of wine is free ,that is without any import licence.

 But , you have to pay  customs duty @ 150 % EXCEPT for sacramental wine(Which is  @ 36.136 %).

 As far IEC is concerned , if  importer is commercial organisation, then requires an IEC.

 Sample of wine or gift,supplied free of cost through Courier and valued less than Rs 10,000/=, is  with out any  Customs duty. For more information ,you can visit my site www.globaltaxguru.in.
If you are interested in regular business ,then ,i can help you.
Thanks and warm regards
Ravindra Kumar
www.globaltaxguru.in