budget change-effective date

[felix ka]

what is the effective date of the modifications made in the chapter notes to CETA vide Union Budget 2011?

[Radha Arun]

The changes made in chapter notes will come into effect upon enactment of the Finance Bill into the Finance Act 2012.

[Radha Arun]

Oops, I didn't realise that you were asking about budget 2011. Those changes came into effect on 8 April 2011.

[rajkumar shukla]

what about chapter note which results into levy of excise duty, like defining a deemed manufacturing process. won"t it be effective from midnight in view of provisional collection of taxes Act?

[rajkumar shukla]

what about chapter note which results into levy of excise duty, like defining a deemed manufacturing process. won"t it be effective from midnight in view of provisional collection of taxes Act?

[Radha Arun]

Sorry for the confusion. My reply was actually about 2012 budget. I looked up the Memorandum to the Finance Bill of 2011 and found that the chapter note changes had immediate effect. 

[rajkumar shukla]

Thanks for agreeing with me.I feel this is applicable not only for budget 2011 but other budgets as well.

AI Summary

Effective date of chapter note amendments: enactment triggers effect unless Memorandum specifies immediate application, impacting provisional tax collection timing. Effective date of amendments to chapter notes ordinarily follows enactment of the Finance Bill into the Finance Act, but where the Memorandum to the Finance Bill specifies immediate effect, those chapter note changes come into force on the date stated in the Memorandum. Where a chapter note results in levy of excise duty (for example by defining a deemed manufacturing process), the Provisional Collection of Taxes Act and midnight timing for provisional collection may affect when provisional collection is applicable.