TaxTMI 
TaxTMI 
FINANCE BILL, 2013 - PROVISIONS RELATING TO INDIRECT TAXES
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....of refund claimed is less than rupees hundred, the same shall not be refunded. [Clause 55] 3) Section 28 is being amended to provide that show cause notice will not be served where the amount demanded is less than rupees one hundred. [Clause 56] 4) Section 28BA is being amended to provide for provisional attachment of property belonging to any person to whom notice under sub-section (4) of section 28 has been served. [Clause 57] 5) Clause (a) of section 28E is being substituted so as to include any new business of import or export proposed to be undertaken by the existing importer or exporter within the meaning of "activity". [Clause 58] 6) Section 29 is being amended to empower the Board to permit landing of vessels and aircrafts at any place other than customs port or customs airport. [Clause 59] 7) Section 30 is being amended to provide for electronic filing of import manifest and also to provide that the Commissioner of Customs may, in cases where it is not feasible to deliver the import manifest by presenting electronically, allow the same to be delivered in any other manner. [Clause 60] 8) Section 41 is being amended to pr....
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....disposed of within the total period of 365 days from the date of order, the stay order shall stand vacated. [Clause 66] 14) Section 129C is being amended to enhance the monetary limit of the Single Bench of the Tribunal to hear and dispose of appeals from Rs.10 lakh to Rs.50 lakh. [Clause 67] 15) In sub-clauses (B) and (D) of clause (i) of section 135(1), the threshold limit for punishment in an offence relating to evasion or attempted evasion of duty or fraudulently availing of or attempting to avail of drawback or any exemption from duty in connection with export of goods, has been increased from Rs.30 lakh to Rs.50 lakh. [Clause 68] 16) A new clause (d) is being inserted in section 142 to provide (i) for recovery of money due to the Central Government from any other person other than the defaulter after giving such other person a notice in writing, (ii) that the person to whom such notice has been issued shall be bound to comply, and (iii) that if the person to whom the notice is issued fails to comply, he shall be deemed to be a defaulter in respect of the amount specified in the notice. [Clause 69] 17) Section 143A is being omitted. [Clause ....
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.... (d) Entries 24A and 24B are being inserted to prescribe a tariff rate of export duty of 30% on Ilmenite, unprocessed and Ilmenite, upgraded (beneficiated Ilmenite including Ilmenite ground) under heading tariff items 26140010 and 26140020 respectively. Effective rate is being prescribed on unprocessed Ilmenite at 10% and on upgraded Ilminite at 5%. The changes at para 1) and 2) (b), (c), (d) will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931. [Clause 77] CUSTOMS A. General 1) Baggage Rules are being amended to,- (i) raise the duty free allowance in respect of jewellery for an Indian passenger who has been residing abroad for over one year or a person who is transferring his residence to India from Rs.10,000 to Rs.50,000 in case of a gentleman passenger and from Rs.20,000 to Rs.1,00,000 in case of a lady passenger. (ii) raise the duty free allowance for crew member of vessel/aircraft from Rs.600 to Rs.1500. B. Proposals involving changes in rates of duty I. AGRICULTURE/AGRO PROCESSING/PLANTATION SECTOR: 1) Basic customs duty on deh....
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....for maintenance, repair and overhaul of aircrafts and parts thereof. VII. ENVIRONMENT PROTECTION: 1) Full exemption from basic customs duty is being provided to lithium ion automotive battery for manufacture of lithium ion battery packs for supply to the manufacturers of hybrid and electric vehicles. 2) Time period of exemption (Nil BCD, CVD of 6% and Nil SAD) for the specified parts of electric and hybrid vehicles is being extended by 2 more years up to 31st March, 2015. VIII. TEXTILES: 1) Basic customs duty on raw silk (not thrown), of all grades is being increased from 5% to 15%. 2) Basic customs duty is being reduced from 7.5% to 5% on textile machinery & parts. IX. ELECTRONICS/HARDWARE: 1) Basic customs duty on Set Top Boxes for TV is being increased from 5% to 10%. X. MISCELLANEOUS: 1) Full exemption from basic customs duty and additional customs duty is being provided to trophy imported by National Sports Federation recognized by the Department of Sports and Youth Affairs or any Sports Body registered under Societies Registration Act, in connection with any international tournament held....
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....duty paid or deemed to have been paid. The scope of admissibility has been expanded to include credit of service tax paid or deemed to have been paid on input services. [Clause 86] 10) Reference to section 28-I in section 23F is being substituted with section 23D. [Clause 87] 11) A new proviso is being inserted in sub-section (2A) of section 35C so as to provide that in cases where delay in disposing of the appeal is not attributable to the appellant, the Tribunal may extend the period of stay by a period not exceeding 185 days subject to the condition that if the appeal is not disposed of within the total period of 365 days from the date of order, the stay shall stand vacated. [Clause 88] 12) Section 35D is being amended to enhance the monetary limit of the Single Bench of the Tribunal to hear and dispose of appeals from "ten lakh rupees" to "fifty lakh rupees". [Clause 89] 13) Section 37C is being amended to specify additional modes of delivery of specified documents i.e. by speed post with proof of delivery or through courier approved by the Central Board of Excise & Customs. [Clause 90] 14) Third Schedule is being amended to: &nbs....
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....lloys including brass. IV. AIRCRAFTS & SHIPS: 1) Full exemption from excise duty is being provided on ships and other vessels. Consequently, there will be no CVD on these ships and vessels when imported. V. TEXTILES: 1) Full exemption from excise duty is being provided on hand made carpets and carpets and other textile floor coverings of coir or jute, whether or not handmade. 2) 'Zero excise duty route', as existed prior to Budget 2011-12, is being restored in respect of branded readymade garments and made ups. In the case of cotton there will be zero duty at the fibre stage and, in the case of spun yarn of man made fibres, there will be a duty of 12% at the fibre stage. The 'Zero excise duty route' will be in addition to the CENVAT route now available. VI. HEALTH: 1) Branded Ayurvedic medicaments and medicaments of Unani, Siddha, Homeopathic or bio-chemic system are being brought under MRP based assessment with abatement of 35% from MRP. VII. ELECTRONICS/HARDWARE: 1) Excise duty on mobile phones of retail sale price exceeding Rs 2000/- is being increased from 1% to 6%. VIII. MISCELLANEOUS: ....
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....plants or animals, for pests and disease causing microbes will be covered by the negative list; (v) In section 73, a new sub-section (2A), similar to sub-section (9) of section 11A of Central Excise Act, 1944, is being inserted to harmonize the Central Excise and Service Tax law. As a result, if a show cause notice issued under proviso to sub-section (1) of section 73, is not found sustainable by an appellate authority or tribunal or court, the same will be deemed to be a notice issued for a period of eighteen months; (vi) Section 77, sub-section (1), clause (a), is being amended, in such manner that, maximum penalty imposable for failure to obtain registration will be ten thousand rupees only; (vii) Section 78A is being introduced, to make provision for imposition of penalty on director, manager, secretary or other officer of the company, who is in any manner knowingly concerned with specified contraventions; (viii) In section 86, sub-section (5), it is proposed to insert the expression "sub-section (1) or" appropriately. Therefore, in case of assessee appeal also, appellate tribunal can admit an appeal or permit the filing of memorandum of c....
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....ance of completion certificate by the competent authority', taxable portion for service tax purpose will remain as 25%; in all other cases taxable portion for service tax purpose will be 30%. This change will come into effect from the 1st day of March, 2013. IV. REVIEW OF EXEMPTIONS (to take effect from 1st day of April, 2013): (A) The following exemptions are being rationalized: * Rationalization of exemption limit prescribed for charitable organizations, providing service towards any other object of general public utility. So far, the limit was 25 Lakh Rupees per annum. Now, they will be covered by the threshold exemption. * Exemption provided to restaurants other than those having (i) air-conditioning and (ii) license to serve liquor, is being rationalized; condition regarding 'license to serve liquor' is being omitted. Therefore, with effect from 1st April, 2013, service tax will be leviable on taxable service provided in restaurants with air-conditioning or central air heating in any part of the establishment at any time during the year. * Rationalization of exemption to transport of goods by road and rail/vessel. (B) The f....