Valuation of taxable services: draft rules propose methods to determine value when consideration is non monetary or unknown.
Valuation of taxable services currently relies on gross monetary charges under section 67, leaving uncertainty where consideration is non monetary or not explicitly known. The Finance Bill, 2006 proposes replacing that provision and empowering rules prescribing methods to determine taxable value in such circumstances. Draft Service Tax (Determination of Value) Rules, 2006 are circulated and the Tax Research Unit invites comments with provided contact details and a submission deadline.

Taxation of cross border services: draft rules propose a dedicated levy and seek public comments on service categorisation.
Proposes the Taxation of Services (Provided from outside India and Received in India) Rules, 2006 to levy service tax on services provided from abroad and received in India, replacing reliance on the existing Explanation to sub-clause (105) and aligning with principles of the Export of Services Rules, 2005. The Ministry solicits comments on the draft, notably the categorisation of fifteen included services under Rule 3(2), and requests submissions to the Tax Research Unit at the given address and email by the stated deadline.

Service tax expansion: new specified services and reverse charge introduced, with valuation, registration and recordkeeping obligations imposed.
The Finance Act revisions expand the scope of service tax by specifying new taxable services and extending existing categories; introduce a reverse charge for services provided from outside India to recipients in India; substitute section 67 with new valuation provisions for non monetary or indeterminate consideration; adjust exemptions and abatements; and impose enhanced procedural obligations on registration, recordkeeping, inspection, provisional attachment, recovery, and penalty, with specified effective dates and transitional notifications.

Special countervailing duty extended to most imports with specified exemptions and creditability for excise inputs.
The Finance Bill, 2006 revises customs and central excise by extending a special countervailing duty broadly to imports subject to enumerated exemptions, lowering peak customs rates and reducing duties across multiple sectors, while withdrawing specified concessions. Central excise adjustments combine targeted rate reductions and new impositions, RSP abatement changes, unified treatment for certain tobacco and pan masala products, and statutory notes expanding what constitutes "manufacture." Procedural and valuation amendments, tariff re alignment to eight digit codes, retrospective corrections for export schemes, and reporting requirements for revenue and price data are also introduced.

Amendments to Standard Input-Output Norms update SION entries, add chemical, engineering and food norms and fuel allowances.
Public Notice revises the Handbook of Procedures (Vol.2) SIONs by correcting descriptions and quantities, deleting one entry, and adding new SIONs in annexures for chemicals, engineering and food products; the engineering SIONs set net to net treatment, material weight ratios and a consumables FOB allowance while chemical and food SIONs specify permitted import inputs and quantities, with a fuel allowance added to the general notes.

VKUY eligibility limited to notified products and value added variants; unauthorised benefit claims must be recovered by authorities.
Eligibility for Vishesh Krishi Upaj Yojana benefits is limited to products and value added variants that are explicitly notified in the Foreign Trade Policy appendix; value added variants not specifically listed (e.g., certain mentha extracts) are not entitled to benefits. Port offices permitting such unlisted claims should be corrected, and Regional Licensing Authorities must initiate recovery proceedings and inform the Directorate General of Foreign Trade.

Income tax rate and deduction framework revised, new 80C ceiling and dematerialised TDS/TCS operationalised for direct taxes and procedural TDS reforms.
The Act revises income tax rates, surcharge application and a two percent Education Cess, consolidates and caps certain savings deductions under a new deduction framework, withdraws selected standard salary and rebate benefits, restores and extends targeted exemptions and incentives, modifies depreciation and R&D weighted deductions, adjusts withholding rates for specified cross border payments, reforms TDS/TCS dematerialisation with transitional paper requirements, mandates quarterly electronic reporting for small interest payments with penalties for non compliance, rationalises assessment timelines in search and seizure cases, and increases securities transaction tax rates.

Container movement procedure replaced: triplicate proforma and general continuity bond now govern removal and return.
The notice withdraws Annexure-A endorsement and prescribes a new procedure: removal of containers requires a triplicate proforma signed by the CHA/Importer/Exporter and the Steamer Agent/Container Liner/Shipping Agent and is allowed on the basis of a General Continuity Bond executed by the Steamer Agent/Container Liner/Shipping Agent. The Preventive Officer shall time- and date-stamp all copies, maintain a register with serial numbers, hand over duplicate and triplicate to the applicant, update the register on surrender of the duplicate upon return, and the General Bond shall be executed and kept in the Dock Preventive Section in custody of the Assistant Commissioner (DP).

Certificates of Origin - Non-Preferential: new Delhi agencies added and FIEO entry amended to include all branches.
Amendment updates Appendix 4-C List of Agencies Authorized to Issue Certificates of Origin-Non Preferential by adding M/s. Delhi Chamber of Commerce & Industry and M/s. Indian Society of Agribusiness Professionals and by amending the Federation of Indian Export Organisation's Delhi entry to include its updated contact details and all branches in India for certification purposes.

Correction of circular number: administrative corrigendum directs adoption of corrected identifier and notification with acknowledgement.
An administrative corrigendum revises the previously issued circular number, replacing the earlier identifier with the corrected identifier for the same subject-matter. Field formations are to be informed, recipients must acknowledge receipt, and a Hindi version will follow.

Electronic Clearing System refunds: depositories must maintain real-time MICR and bank details to secure accurate refund credits.
Use of the Electronic Clearing System for refunds requires depository participants to update applicants' MICR codes and other bank details in depository databases on a real-time basis to prevent failed or incorrect ECS credits; depositories must issue instructions to DPs, amend bye-laws as necessary, and report implementation status to the regulator.

Expanded small-scale industry list: additional product codes added to broaden eligibility for statutory supportive measures and exemptions.
Central Government amends the notified Order by inserting additional product codes and item descriptions into the Appendix to expand the list of goods treated as produced by small-scale and ancillary undertakings-covering food, plastics, extensive dye categories, glass and ceramics, tiles, ceramic tableware, laboratory glassware, lime and plaster, selected auto parts, and the drugs and pharmaceuticals sector-thereby making producers of those items eligible for supportive measures, exemptions and favourable treatment under the Industries (Development and Regulation) Act; the amendment takes effect upon Gazette publication.

Fair Price determination governs auction-cum-tender disposal of seized and time expired goods, with joint pricing and government valuers.
Monthly disposal of seized, confiscated and time expired warehoused goods shall occur by simultaneous public auction and sealed tender. A Joint Pricing Committee in each Commissionerate will determine the Fair Price by reference to wholesale market price less a discount that reflects and exceeds the buyer's expected resale margin; Government Approved Valuers must ascertain market price and margins. No separate reserve price is to be fixed. The JPC may accept the highest bid if it meets or is close to the Fair Price; unsold lots are re-offered up to three times and sold at the highest third-attempt bid absent justified retention. E-auction implementation is mandatory; applicability is limited to goods for which statutory notice to owners has been issued.

Industrial cables classification narrowed to specified cable types, limiting VAT schedule coverage and withdrawing the prior broader circular.
The department withdraws the earlier circular and confines Entry No. 40 of the Third Schedule to only co-axial cable; telephone cables (with and without connectors); optical fibre cables; and uninsulated electric transmission wire, clarifying that broader categories of industrial or domestic wiring are not covered. The clarification was issued with prior approval of the Commissioner (VAT).

Issuance of statutory forms required daily by ward officers, ensuring continuous availability and strict compliance.
Ward officers are directed to issue statutory Forms on all working days until further order, with strict compliance required to ensure uninterrupted availability. The instruction is issued with the prior approval of the Commissioner and accompanied by distribution and publicity measures to departmental officers, operations staff, the public website and the representative trade association.

Construction of complex service: builders, contractors subject to service tax when activities constitute works contracts, taxable on gross charges
Service tax applies to construction activities where statutory definitions and judicial pronouncements treat builder undertakings for prospective purchasers as works contract or taxable services rather than sale. For Construction of Complex Service, builders and contractors can both be liable as independent service providers. Taxable value is the gross amount charged by the service provider, inclusive of goods and materials, subject only to the prescribed abatement on the gross amount and no other deductions in composite contracts.

Wood packaging treatment compliance required: exporters must use authorised ISPM-15 accredited providers and marking for export consignments.
Exporters must ensure wood packaging material is treated to be pest-free by heat treatment or methyl bromide fumigation in accordance with ISPM-15, using authorised, accredited treatment providers that assign international marks and numbers; exporters should consult the online list of authorised providers and contact the plant protection authority for details.

Expeditious disposal of goods: final tender for repeatedly unsold consignments and regular e-auctions to clear backlog.
Measures require an interim administrative process to clear long-pending unclaimed and uncleared consignments by re-offering lots unsold after multiple auctions/tenders through a final tender with the highest bid accepted, and to regularise disposal by conducting monthly e-auctions/tenders under Board procedure; hazardous waste disposal must follow existing Ministry guidelines. Special Task Forces at each Custom House must reconcile detained consignments with records, refer pending investigative or adjudicatory actions for completion, notify custodians of non-detained goods for auction, and complete reconciliation within a prescribed period, with quarterly Customs-custodian meetings to match pendency and update statuses.

PAN submission deadline extended for registered dealers and for applicants to submit PAN shortly after obtaining it.
The Commissioner extends the time for submission of Permanent Account Number in Form DVAT-52: registered dealers as on the order's date, including deemed registrants, may submit PAN information up to 31st March, 2006; where registration applications are filed after the order or PAN is obtained after applying for registration, PAN must be submitted within fifteen days of obtaining it.

Eligibility criteria for derivatives: post-restructured IPOs may qualify for derivatives trading from their first day of listing.
Where a post-restructured company launches an Initial Public Offering, the same eligibility criteria for introduction of derivatives applicable to standard IPOs shall apply to the post-restructured company from its first day of listing, permitting immediate consideration of derivative contracts on the listed equity.