AI Drafter - (New and Powerful) 
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
TaxTMI 
TaxTMI 
Memorandum Explaining the Provisions in The Finance Bill
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (E) Widening and deepening of tax base; (F) Revenue mobilisation measures; (G) Improving effectiveness of tax administration; (H) Preventing tax abuse; and (I) Rationalisation of provisions of the Act. DIRECT TAXES A. RATES OF INCOME-TAX I. Rates of income-tax in respect of income liable to tax for the assessment year 2020-21. In respect of income of all categories of assessees liable to tax for the assessment year 2020-21, the rates of income-tax have either been specified in specific sections (like section 115BAA or section 115BAB for domestic companies) or have been specified in Part I of the First Schedule to the Bill. These are the same as those laid down in Part III of the First Schedule to the Finance (No 2) Act, 2019, as amended by Taxation Law Amendment Act, 2019 (TLAA) for the purposes of computation of "advance tax", deduction of tax at source from "Salaries" and charging of tax payable in certain cases. (1) Surcharge on income-tax The amount of income-tax shall be increased by a surcharge for the purposes of the Union,- (a) in the case of every individual or HUF or association of persons or body of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ore rupees, at the rate of twenty-five per cent. of such income-tax; (iv) having a total income [excluding the income of the nature referred to in clause (b) of sub-section (1) of section 115AD of the Act] exceeding five crore rupees, at the rate of thirty-seven per cent. of such income-tax; (v) having a total income [including the income of the nature referred to in clause (b) of sub-section (1) of section 115AD of the Act] exceeding two crore rupees but is not covered in sub-clauses (iii) and (iv), at the rate of fifteen per cent. of such income-tax: Provided that in case where the total income includes any income chargeable under clause (b) of sub-section (1) of section 115AD of the Act, the rate of surcharge on the income-tax calculated on that part of income shall not exceed fifteen per cent; (b) in the case of every co-operative society or firm or local authority, at the rate of twelve per cent. of such income-tax, where the total income exceeds one crore rupees; (c) in the case of every domestic company except such domestic company whose income is chargeable to tax under section 115BAA or section 115BAB of the Act,- (i) at the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Act, being a non-resident, calculated,- (i) at the rate of ten per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds fifty lakh rupees but does not exceed one crore rupees; (ii) at the rate of fifteen per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees but does not exceed two crore rupees; (iii) at the rate of twenty-five per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds two crore rupees but does not exceed five crore rupees; (iv) at the rate of thirty-seven per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds five crore rupees; (b) in the case of every co-operative society or firm, being a non-resident, calculated at the rate of twelve per cent. of such tax, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....other than those mentioned in (ii) and (iii) below) or HUF or every association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Act (not being a case to which any other Paragraph of Part III applies) are as under:- Upto Rs. 2,50,000 Nil. Rs. 2,50,001 to Rs. 5,00,000 5 per cent. Rs. 5,00,001 to Rs. 10,00,000 20 per cent. Above Rs. 10,00,000 30 per cent. (ii) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year,- Upto Rs. 3,00,000 Nil. Rs. 3,00,001 to Rs. 5,00,000 5 per cent. Rs. 5,00,001 to Rs. 10,00,000 20 per cent. Above Rs. 10,00,000 30 per cent. (iii) in the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year,- Upto Rs. 5,00,000 Nil. Rs. 5,00,001 to Rs. 10,00,000 20 per cent. Above Rs. 10,00,000 30 per cent. The amount of income-tax computed in accordance with the preceding provisions of this Paragr....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... as income-tax and surcharge on total income exceeding one crore rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees. From the assessment year 2021-22, resident co-operative societies have an option to opt for taxation under newly inserted section 115BAD of the Act. This is discussed later. C. Firms In the case of firms, the rate of income-tax has been specified in Paragraph C of Part III of the First Schedule to the Bill. This rate will continue to be the same as that specified for FY 2019-20. The amount of income-tax shall be increased by a surcharge at the rate of twelve per cent. of such income-tax in case of a firm having a total income exceeding one crore rupees. However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees. D. Local authorities The rate of income-tax in the case of every local authority has been specified in Paragraph D of Part III ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cluding sub-section (2A) of section 92CE, sections 115-O, 115QA, 115R, 115TA or 115TD], the surcharge shall be levied at the rate of twelve per cent.. For FY 2020-21, additional surcharge called the "Health and Education Cess on income-tax" shall be levied at the rate of four per cent on the amount of tax computed, inclusive of surcharge (wherever applicable), in all cases. No marginal relief shall be available in respect of such cess. [Clause 2 & the First Schedule] IV Other amendments having impact on rates for various categories of person A. Incentives to resident co-operative societies. The TLAA, which replaced The Taxation Laws (Amendment) Ordinance, 2019, sought to provide additional fiscal stimulus to attract investment, generate employment and boost the economy in the wake of economic developments post enactment of the Finance (No. 2) Act, 2019 and keeping in view the reduction of rate of corporate income tax by many countries world over. TLAA, inter alia, introduced section 115BAA in the Act so as to provide that an existing domestic company may opt to pay tax at 22 per cent., if it does not claim any incentive and deduction as provided in said section.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....off of any loss carried forward or depreciation from any earlier assessment year, if such loss or depreciation is attributable to any of the deductions referred to in (a) above; and (c) by claiming the depreciation, if any, under section 32, except clause (iia) of sub-section (1) thereof, determined in such manner as may be prescribed; (iii) the loss and depreciation referred to in (ii)(b) above shall be deemed to have been given full effect to and no further deduction for such loss or depreciation shall be allowed for any subsequent year. However, where there is a depreciation allowance in respect of a block of asset which has not been given full effect to prior to the assessment year beginning on 1st April, 2021, corresponding adjustment shall be made to the written down value of such block of assets as on 1st April, 2020 in the prescribed manner, if the option is exercised for a previous year relevant to the assessment year beginning on 1st April, 2021; (iv) the concessional rate shall not apply unless option is exercised by the co-operative society in the prescribed manner on or before the due date specified under sub-section (1) of section 139 of the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ears, as the case may be, if the Individual or HUF fails to satisfy the conditions and other provisions of the Act shall apply; (iv) the condition for concessional rate shall be that the total income of the individual or HUF is computed,- (a) without any exemption or deduction under the provisions of clause (5) or clause (13A) or prescribed under clause (14) (other than those as may be prescribed for this purpose) or clause (17) or clause (32) of section 10 or section 10AA or section 16 or clause (b) of section 24 [in respect of property referred to in sub-section (2) of section 23] or clause (iia) of sub-section (1) of section 32 or section 32AD or section 33AB or section 33ABA or sub-clause (ii) or sub-clause (iia) or sub-clause (iii) of sub-section (1) or sub-section (2AA) of section 35 or section 35AD or section 35CCC or clause (iia) of section 57 or under any provisions of Chapter VI-A other than the provisions of sub-section (2) of section 80CCD or section 80JJAA; (b) without set off of any loss,- (i) carried forward or depreciation from any earlier assessment year, if such loss or depreciation is attributable to any of the deductions refer....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to have any business income in which case, option under para (vi)(a) above shall be available. It is further proposed to amend section 115JC of the Act so as to provide that the provisions relating to AMT shall not apply to such individual or HUF having business income. It is also proposed to amend section 115JD of the Act so as to provide that the provisions relating to carry forward and set off of AMT credit, if any, shall not apply to such individual or HUF having business income. The condition listed at (iva) above, means that the individual or HUF opting for taxation under the newly inserted section 115BAC of the Act shall not be entitled to the following exemptions/ deductions: (i) Leave travel concession as contained in clause (5) of section 10; (ii) House rent allowance as contained in clause (13A) of section 10; (iii) Some of the allowance as contained in clause (14) of section 10; (iv) Allowances to MPs/MLAs as contained in clause (17) of section 10; (v) Allowance for income of minor as contained in clause (32) of section 10; (vi) Exemption for SEZ unit contained in section 10AA; (vii) Standard deduct....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ke effect from 1st April, 2021 and will, accordingly, apply in relation to the assessment year 2021-22 and subsequent assessment years. [Clauses 53, 57 & 58] C. Modification of concessional tax schemes for domestic companies under section 115BAA and 115BAB TLAA inserted section 115BAA and section 115BAB in the Act to provide domestic companies an option to be taxed at concessional tax rates provided they do not avail specified deductions and incentives. Some of the deductions prohibited are deductions under any provisions of Chapter VI-A under the heading "C. Deduction in respect of certain incomes" other than the provisions of section 80JJAA. It is now proposed to amend the provisions of section 115BAA and section 115BAB to not allow deduction under any provisions of Chapter VI-A other than section 80JJAA or section 80M, in case of domestic companies opting for taxation under these sections. These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-21 and subsequent assessment years. [Clauses 51 & 52] D. Withdrawal of exemption on certain perquisites or allowances provided to Union Pubic Service....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ct, 1958 and the rules made thereunder. It is proposed to remove these exemptions. Accordingly, it proposed to: (i) delete cause (45) of section 10 of the Act; (ii) amend section 8 of the Election Commission (Conditions of Service of Election Commissioners and Transaction of Business) Act, 1991, so as to delete the exemption from income-tax on value of rent-free residence, conveyance facilities, sumptuary allowance, medical facilities and other such conditions of service as are applicable to a Judge of the Supreme Court, paid to Chief Election Commissioner and other Election Commissioners. These amendments will take effect from 1st April, 2021 and will, accordingly, apply in relation to the assessment year 2021-22 and subsequent assessment years. [Clause 7] B. TAX INCENTIVES Exemption in respect of certain income of wholly owned subsidiary of Abu Dhabi Investment Authority and Sovereign Wealth Fund. Section 10 of the Act provides for exemption in respect of certain incomes and activities under specific circumstances. In order to promote investment of sovereign wealth fund, including the wholly owned subsidiary of Abu Dhabi Investment Authority....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... storage of crude oil in a facility in India and sale of crude oil therefrom to any person resident in India shall not be included in the total income, if such storage and sale by the foreign company is pursuant to an agreement or an arrangement entered into by the Central Government or approved by the Central Government; and having regard to the national interest, the foreign company and the agreement or arrangement are notified. Clause (48B) of said section, inserted by the Finance Act, 2017 and amended by the Finance Act, 2018, provides for exemption in respect of any income accruing or arising to a foreign company on account of sale of leftover stock of crude oil, if any, from the facility in India after the expiry of the agreement or the arrangement referred to in clause (48A) or on termination of the said agreement or the arrangement, in accordance with the terms mentioned therein, as the case may be, subject to such conditions as may be notified by the Central Government in this behalf. It is now proposed to provide exemption, by inserting a new clause in section 10, to any income accruing or arising to Indian Strategic Petroleum Reserves Limited (ISPRL), being a wholl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hall, subject to certain conditions specified therein, be allowed a deduction of an amount equal to one hundred per cent of the profits and gains derived from such business. The conditions contained in the section, inter alia, prescribe that the project is approved by the competent authority during the period from 1st June, 2016 to 31st March, 2020. In order to incentivise building affordable housing to boost the supply of such houses, the period of approval of the project by the competent authority is proposed to be extended to 31st March, 2021. This amendment will take effect from 1st April, 2021 and will, accordingly, apply in relation to the assessment year 2021-22 and subsequent assessment years. [Clause 38] Extending time limit for sanctioning of loan for affordable housing for availing deduction under section 80EEA of the Act The existing provisions of section 80EEA of the Act provide for a deduction in respect of interest on loan taken from any financial institution for acquisition of an affordable residential house property. The deduction allowed is up to one lakh fifty thousand rupees and is subject to certain conditions. One of the conditions is that loan ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... in which case, the corpus of fund shall not be less than one hundred crore rupees at the end of a period of six months from the last day of the month of its establishment or incorporation, or at the end of such previous year, whichever is later. This condition does not apply in a case where the fund has been wound up. Representations have been received in this regard stating that as per this condition, the period for fulfilling the requirement of monthly average of the corpus of one hundred crore rupees ranges from six months to eighteen months, in so far as the fund established or incorporated on last day of the financial year would get six months and the fund established or incorporated on first day of the financial year would get eighteen months. It has been stated that this results in anomaly as certain funds due to its date of establishment and incorporation get favoured or discriminated against. Accordingly, it is proposed to amend section 9A of the Act to relax these two conditions so as to provide that,- (i) for the purpose of calculation of the aggregate participation or investment in the fund, directly or indirectly, by Indian resident, contribution of the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ble at Source (TDS) at five per cent by a specified company or a business trust, on interest paid to non-residents on the following forms of borrowings (approved by the Central Government) made in foreign currency from sources outside India: i. Monies borrowed under a loan agreement at any time on or after 1st July, 2012 and before 1st July, 2020; ii. Borrowings by way of issue of any long-term infrastructure bond at any time on or after 1st July, 2012 and before 1st July, 2014; iii. Borrowings by way of issue of long-term bond including long-term infrastructure bonds at any time on or after 1st of October 2014 and before 1st July, 2020; The concessional rate of TDS of five per cent is also applicable in respect of monies borrowed by a specified company or a business trust from a source outside India by way of issue of rupee denominated bond (RDB) before 1st July, 2020, to the extent such interest does not exceed the amount of interest calculated at the rate approved by the Central Government in this behalf. Representations have been received for extension of the time limit and also for a further concessional rate of TDS on interest payment against bor....
X X X X Extracts X X X X
X X X X Extracts X X X X
....municipal debt security. This amendment will take effect from 1st April, 2020. [Clause 83] C. REMOVING DIFFICULTIES FACED BY TAXPAYERS Excluding interest paid or payable to Permanent Establishment of a non-resident Bank for the purpose of disallowance of interest under section 94B. Section 94B of the Act, inter alia, provides that deductible interest or similar expenses exceeding one crore rupees of an Indian company, or a permanent establishment (PE) of a foreign company, paid to the associated enterprises (AE) shall be restricted to 30 per cent. of its earnings before interest, taxes, depreciation and amortisation (EBITDA) or interest paid or payable to AE, whichever is less. Further, a loan is deemed to be from an AE, if an AE provides implicit or explicit guarantee in respect of that loan. AE for the purposes of this section has the meaning assigned to it in section 92A of the Act. This section was inserted in the Act through the Finance Act, 2017 in order to implement the measures recommended in final report on Action Plan 4 of the Base Erosion and Profit Shifting (BEPS) project under the aegis of G-20-Organisation of Economic Co-operation and Development (....
X X X X Extracts X X X X
X X X X Extracts X X X X
....emed to be the full value of the consideration. Section 50C of the Act provides that where the consideration declared to be received or accruing as a result of the transfer of land or building or both, is less than the value adopted or assessed or assessable by stamp valuation authority for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed or assessable shall be deemed to be the full value of the consideration and capital gains shall be computed on the basis of such consideration under section 48 of the Act. The said section also provides that where the value adopted or assessed or assessable by the stamp valuation authority does not exceed one hundred and five per cent of the consideration received or accruing as a result of the transfer, the consideration so received or accruing as a result of the transfer shall, for the purposes of section 48, be deemed to be the full value of the consideration. Clause (x) of sub-section (2) of section 56 of the Act, inter alia, provides that where any person receives, in any previous year, from any person or persons on or after 1st April, 2017, any immovable property, for a considerati....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sed to amend sub-section (4) of section 35AD to provide that no deduction will be allowed in respect of expenditure incurred under sub-section (1) in any other section in any previous year or under this section in any other previous year, if the deduction has been claimed by the assessee and allowed to him under this section. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-21 and subsequent assessment years. [Clause 18] Exempting non-resident from filing of Income-tax return in certain conditions. Section 115A of the Act provides for the determination of tax for a non-resident whose total income consists of: (a) certain dividend or interest income; (b) royalty or fees for technical services (FTS) received from the Government or Indian concern in pursuance of an agreement made after 31st March 1976, and which is not effectively connected with a PE, if any, of the non-resident in India. Sub-section (5) of said section provides that a non-resident is not required to furnish its return of income under sub-section (1) of section 139 of the Act, if its total income, consists only of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tart-ups or TDS by the start-up employer, it is proposed to amend section 192 of the Act, and insert sub-section (1C) therein to clarify that for the purpose of deducting or paying tax under sub-sections (1) or (1A) thereof, as the case may be, a person, being an eligible start-up referred to in section 80-IAC, responsible for paying any income to the assessee being perquisite of the nature specified in clause (vi) of sub-section (2) of section 17 of the Act, in any previous year relevant to the assessment year 2021-22 or subsequent assessment year, deduct or pay, as the case may be, tax on such income within fourteen days - (i) after the expiry of forty eight months from the end of the relevant assessment year; or (ii) from the date of the sale of such specified security or sweat equity share by the assessee; or (iii) from the date of which the assessee ceases to be the employee of the person; whichever is the earliest on the basis of rates in force of the financial year in which the said specified security or sweat equity share is allotted or transferred . Similar amendments have been carried out in section 191 (for assessee to pay the tax direct ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-21 and subsequent assessment years. [Clause 31] Modification of the definition of "business trust" Section 115UA of the Act provides for a taxation regime applicable to business trusts. Under the said regime, the total income of the trust, excluding capital gains income is charged at the maximum marginal rate. Further, the income by way of interest and rent, received by the business trust from a Special Purpose Vehicle (SPV) is accorded pass through treatment i.e. there is no taxation of such interest or rental income in the hands of the trust and no withholding tax at the level of SPV. The business trusts are also required to furnish return of income and adhere to other reporting requirements. The definition of "business trust" has been provided in clause (13A) of section 2 of the Act, to mean a trust registered as an Infrastructure Investment Trust (InvIT) or a Real Estate Investment Trust (REIT) under the relevant regulations made under the Securities and Exchange Board of India (SEBI) Act, 1992 and the units of which are required to be listed on a recognis....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n case to case basis not only for future years but also Rollback years. Both SHR and the APA have been successful in reducing litigation in determination of the ALP. It has been represented that the attribution of profits to the PE of a non-resident under clause (i) of sub-section (1) of section 9 of the Act in accordance with rule 10 of the Rules also results in avoidable disputes in a number of cases. In order to provide certainty, the attribution of income in case of a non-resident person to the PE is also required to be clearly covered under the provisions of the SHR and the APA. In view of the above, it is proposed to amend section 92CB and section 92CC of the Act to cover determination of attribution to PE within the scope of SHR and APA. With respect to section 92CB, the amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-21 and subsequent assessment years. With respect to section 92CC, the amendment will take effect from 1st April, 2020 and therefore will apply to an APA entered into on or after 1st April, 2020. [Clauses 43 & 44] Allowing deduction for amount disallowed under section 43B, to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d will, accordingly, apply in relation to the assessment year 2020-21 and subsequent assessment years. [Clause 104] Reducing the rate of TDS on fees for technical services (other than professional services). Section 194J of the Act provides that any person, not being an individual or a HUF, who is responsible for paying to a resident any sum by way of fees for professional services, or fees for technical services, or any remuneration or fees or commission by whatever name called (other than those on which tax is deductible under section 192 of the Act, to a director), or royalty or any sum referred to in clause (va) of section 28, shall, at the time of payment or credit of such sum to the account of the payee, deduct an amount equal to ten per cent as income-tax. Section 194C of the Act provides that any person responsible for paying any sum to a resident for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract shall at the time of payment or credit of such sum deduct an amount equal to one per cent in case payment is made to an individual or a HUF and two per cent in other cases. It is noticed that there are large n....
X X X X Extracts X X X X
X X X X Extracts X X X X
....duct income-tax in accordance with the provisions of sub-section (1), if- (a) the total sales, gross receipts or turnover of the co-operative society exceeds fifty crore rupees during the financial year immediately preceding the financial year in which the interest referred to in sub-section (1) is credited or paid; and (b) the amount of interest, or the aggregate of the amount of such interest, credited or paid, or is likely to be credited or paid, during the financial year is more than fifty thousand rupees in case of payee being a senior citizen and forty thousand rupees, in any other case. This amendment will take effect from 1st April, 2020. [Clause 75] Widening the scope of TDS on E-commerce transactions through insertion of a new section. In order to widen and deepen the tax net by bringing participants of e-commerce within tax net, it is proposed to insert a new section 194-O in the Act so as to provide for a new levy of TDS at the rate of one per cent. with the following key points: * The TDS is to be paid by e-commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or p....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... supply of goods or services or both, including digital products, over digital or electronic network. * "services" is defined to include fees for technical services and fees for professional services, as defined in section 194J. * Consequential amendments are being proposed in section 197 (for lower TDS), in section 204 (to define person responsible for paying any sum) and in section 206AA (to provide for tax deduction at 5 per cent. in non-PAN/ Aadhaar cases). This amendment will take effect from 1st April, 2020. [Clause 84] Widening the scope of section 206C to include TCS on foreign remittance through Liberalised Remittance Scheme (LRS) and on selling of overseas tour package as well as TCS on sale of goods over a limit. Section 206C of the Act provides for the collection of tax at source (TCS) on business of trading in alcohol, liquor, forest produce, scrap etc. Sub-section (1) of the said section, inter-alia, provides that every person, being a seller shall, at the time of debiting of the amount payable by the buyer to the account of the buyer or at the time of receipt of such amount from the said buyer in cash or by the issue of a cheque or ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....previous year in excess of fifty lakh rupees. In non-PAN/ Aadhaar cases the rate shall be one per cent. * Only those seller whose total sales, gross receipts or turnover from the business carried on by it exceed ten crore rupees during the financial year immediately preceding the financial year, shall be liable to collect such TCS. * Central Government may notify person, subject to conditions contained in such notification, who shall not be liable to collect such TCS. * No TCS is to be collected from the Central Government, a State Government and an embassy, a High Commission, legation, commission, consulate, the trade representation of a foreign State, a local authority as defined in Explanation to clause (20) of section 10 or any other person as the Central Government may, by notification in the Official Gazette, specify for this purpose, subject to conditions as prescribed in such notification. * No such TCS is to be collected, if the seller is liable to collect TCS under other provision of section 206C or the buyer is liable to deduct TDS under any provision of the Act and has deducted such amount. These amendments will take effect from 1s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Commodities Transaction Tax (CTT) on the sale of commodity derivatives based on non-agricultural commodities traded in recognised associations. The intention behind introducing CTT was to bring parity between the derivative trading in the securities market and the commodity market. The CTT was levied at the rate of 0.01 per cent, which was also the rate of Securities Transaction Tax (STT) levied on sale of 'futures' (a contract, which derives its value from an underlying asset and is settled by physical delivery) in securities. Subsequently, the scope of CTT was expanded vide the Finance Act, 2018 by also including the sale of options on commodity derivatives as taxable commodity transactions. Trading in derivatives including commodity derivatives is regulated by the Securities Contract (Regulation) Act, 1956 (SCRA). Prior to 2015, derivative trading in commodities was regulated by the Forward Markets Commission (FMC) under the Forward Contracts (Regulation) Act, 1952 (FCRA). In 2015, the FCRA was repealed and the FMC was merged with the SEBI. As a result, the recognised associations defined in the FCRA were replaced by the recognised stock exchange defined in the SCRA. Subseque....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion is exercised. Further, the following changes are also proposed in the Finance Act, 2013- (a) The definition of taxable commodities transaction in clause (7) of section 116 is proposed to be amended to - (i) include the transactions of "sale of option in goods" and "sale of commodity derivatives based on prices or indices of prices of commodity derivatives" and (ii) substitute "recognised stock exchange" in place of "recognised association". (b) The reference to FCRA in clause (8) of section 116 is proposed to be changed to SCRA. (c) The table in section 117 to be amended to incorporate the taxable commodities transactions referred to in (a) above, specify the rate of CTT and specify the person by whom CTT is payable. (d) The value of taxable commodities transactions defined in section 118 is proposed to be amended to incorporate the taxable commodities transaction referred to in para (a) (i) above. This amendment will take effect from 1st April, 2020. [Clause 147] G. IMPROVING EFFECTIVENESS OF TAX ADMINISTRATION Modification of e-assessment scheme. Section 143 of the Act provides the manner for processing a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rovision shall be applicable. [Clause 70] Provision for e-appeal. In order to impart greater efficiency, transparency and accountability to the assessment process under the Act a new e-assessment scheme has already been introduced. With the advent of the e-assessment scheme, most of the functions/ processes under the Act, including of filing of return, processing of returns, issuance of refunds or demand notices and assessment, which used to require person-to-person contact between the taxpayer and the Income-tax Department, are now in the electronic mode. This is a result of efforts by the Department to harness the power of technology in reforming the system. All these processes are now not only faceless but also very taxpayer-friendly. Now a taxpayer can manage to comply with most of his obligations under the Act without any requirement for physical attendance in the offices of the Department. The filing of appeals before Commissioner (Appeals) has already been enabled in an electronic mode. However, the first appeal process under the Commissioner (Appeals), which is one of the major functions/ processes that is not yet in full electronic mode. A taxpayer can file app....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tute the proviso to sub-section (6) of section 133A to provide that,- (A) in a case where the information has been received from the prescribed authority, no income-tax authority below the rank of Joint Director or Joint Commissioner, shall conduct any survey under the said section without prior approval of the Joint Director or the Joint Commissioner, as the case may be; and (B) in any other case, no income-tax authority below the rank of Commissioner or Director, shall conduct any survey under the said section without prior approval of the Commissioner or the Director, as the case may be. This amendment will take effect from 1st April, 2020. [Clause 65] Clarity on stay by the Income Tax Appellate Tribunal (ITAT). The existing provisions of the first proviso to sub-section (2A) of section 254 of the Act, inter-alia, provides that the ITAT may, after considering the merits of the application made by the assessee pass an order of stay for a maximum period of 180 days in any proceedings against the order of the Commissioner of Income-tax (Appeal). Second proviso to the said sub-section prescribes that where the appeal is not so disposed of, the ITAT....
X X X X Extracts X X X X
X X X X Extracts X X X X
....re that the reforms initiated by the Department to eliminate human interface from the system reaches the next level, it is imperative that an e-penalty scheme be launched on the lines of E-assessment Scheme-2019. Therefore, it is proposed to insert a new sub-section (2A) in the said section so as to provide that the Central Government may notify an e-scheme for the purposes of imposing penalty so as to impart greater efficiency, transparency and accountability by,- (a) eliminating the interface between the Assessing Officer and the assessee in the course of proceedings to the extent technologically feasible; (b) optimising utilisation of the resources through economies of scale and functional specialisation; (c) introducing a mechanism for imposing of penalty with dynamic jurisdiction in which penalty shall be imposed by one or more income-tax authorities. It is also proposed to empower the Central Government, for the purpose of giving effect to the scheme made under the proposed sub-section, for issuing notification in the Official Gazette, to direct that any of the provisions of this Act relating to jurisdiction and procedure of imposing penalty s....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... period of 729 days or less. Clause (b) thereof contains similar provision for the HUF. This category of persons has been carved out essentially to ensure that a non-resident is not suddenly faced with the compliance requirement of a resident, merely because he spends more than specified number of days in India during a particular year. The conditions specified in the present law in respect of this carve out have been the subject matter of disputes, amendments and further disputes. Further, due to reduction in number of days, as proposed, for visiting Indian citizen or person of Indian origin, there would be need for relaxation in the conditions. The issue of stateless persons has been bothering the tax world for quite some time. It is entirely possible for an individual to arrange his affairs in such a fashion that he is not liable to tax in any country or jurisdiction during a year. This arrangement is typically employed by high net worth individuals (HNWI) to avoid paying taxes to any country/ jurisdiction on income they earn. Tax laws should not encourage a situation where a person is not liable to tax in any country. The current rules governing tax residence make it poss....
X X X X Extracts X X X X
X X X X Extracts X X X X
....parties. As a result, a substantial amount of income escapes the tax net. Therefore, to bring clarity in the section and plug the leakage, it is proposed to amend the definition of "work" under section 194C to provide that in a contract manufacturing, the raw material provided by the assessee or its associate shall fall within the purview of the 'work' under section 194C. Associate is proposed to be defined to mean a person who is placed similarly in relation to the customer as is the person placed in relation to the assessee under the provisions contained in clause (b) of sub-section (2) of section 40A of the Act. This amendment will take effect from 1st April, 2020. [Clause 76] Penalty for fake invoice. In the recent past after the launch of Goods & Services Tax (GST), several cases of fraudulent input tax credit (ITC) claim have been caught by the GST authorities. In these cases, fake invoices are obtained by suppliers registered under GST to fraudulently claim ITC and reduce their GST liability. These invoices are found to be issued by racketeers who do not actually carry on any business or profession. They only issue invoices without actually supplying any goods....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of both India and that foreign country or territory, or investigation of cases of such evasion or avoidance, or (d) recovery of income-tax under the laws of both India and that foreign country or territory. Section 90A of the Act contains provision similar to section 90 of the Act so as to empower the Central Government to adopt and implement an agreement between a specified association in India and any specified association in specified territory outside India for granting relief, avoidance of double taxation, exchange of information and recovery of income-tax. India has signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (commonly referred to as MLI) along with representatives of many countries, which has since been ratified. India has since deposited the Instrument of Ratification to OECD, Paris along with its Final Position in terms of Covered Tax Agreements (CTAs), Reservations, Options and Notifications under the MLI, as a result of which MLI has entered into force for India on 1st October, 2019 and its provisions will be applicable on India's DTAAs from FY 2020-21 onwards. The MLI is an out....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ction 90A of the Act. These amendments will take effect from 1st April, 2021 and will, accordingly, apply in relation to the assessment year 2021-22 and subsequent assessment years. [Clauses 41 & 42] Deferring Significant Economic Presence (SEP) proposal, Extending source rule, Aligning exemption from taxability of Foreign Portfolio Investors (FPIs), on account of indirect transfer of assets, with amended scheme of SEBI, and rationalising the definition of royalty. Section 9 of the Act contains provisions in respect of income which are deemed to accrue or arise in India. Sub-section (1) thereof creates a legal fiction that certain incomes shall be deemed to accrue or arise in India. Clause (i) of sub-section (1) deems the following income to accrue or arise in India: "all income accruing or arising, whether directly or indirectly, through or from any business connection in India, or through or from any property in India, or through or from any asset or source of income in India, or through the transfer of a capital asset situate in India." Finance Act, 2018, inter alia, inserted Explanation 2A to said clause so as to clarify that the "significant economic ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion. This amendment will take effect from 1st April, 2021 and will, accordingly, apply in relation to the assessment year 2021-22 and subsequent assessment years. However, for attribution of income related to SEP transaction or activities the amendment will take effect from 1st April, 2022 and will, accordingly, apply in relation to the assessment year 2022-23 and subsequent assessment years. [Clause 5] Further, the Finance Act, 2012, inter alia, had inserted Explanation 5 to said clause to clarify that an asset or capital asset being any share or interest in a company or entity registered or incorporated outside India shall be deemed to be and shall always be deemed to have been situated in India if the share or interest derives, directly or indirectly, its value substantially from the assets located in India. Second proviso to said Explanation, inserted through the Finance Act, 2017, provides that the Explanation shall not apply to an asset or capital asset, which is held by a non-resident by way of investment, directly or indirectly, in Category-I or Category-II foreign portfolio investor under the Securities and Exchange Board of India (Foreign Portfolio Investors....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ect from 1st April, 2021 and will, accordingly, apply in relation to the assessment year 2021-22 and subsequent assessment years. [Clause 5] It is further proposed to amend section 295 of the Act so as to empower the Board for making rules to provide for the manner in which and the procedure by which the income shall be arrived at in the case of,- (i) operations carried out in India by a non-resident; and (ii) transaction or activities of a non-resident. The amendment at clause (i) will take effect from 1st April, 2021 and will, accordingly, apply in relation to the assessment year 2021-22 and subsequent assessment years. The amendment at clause (ii) will take effect from 1st April, 2022 and will, accordingly, apply in relation to the assessment year 2022-23 and subsequent assessment years. [Clause 103] Removing dividend distribution tax (DDT) and moving to classical system of taxing dividend in the hands of shareholders/unit holders. Section 115-O provides that, in addition to the income-tax chargeable in respect of the total income of a domestic company, any amount declared, distributed or paid by way of dividends shall be charged to additional....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vidend declared, distributed or paid after 1st April, 2003, but on or before 31st March, 2020 shall be covered under the provision of this section. (ii) amend clause (34) of section 10 to provide that the provision of this clause shall not apply to any income, by way of dividend, received on or after 1st April, 2020. (iii) amend section 115R to provide that the income distributed on or before 31st March, 2020 shall only be covered under the provision of this section. (iv) amend clause (35) of section 10 to provide that the provision of this clause shall not apply to any income, in respect of units, received on or after 1st April, 2020. (v) amend clause (23FC) of section 10 so that all dividends received or receivable by business trust from a special purpose vehicle is exempt income under this clause. (vi) amend clause (23FD) of section 10 to exclude dividend income received by a unit holder from business trust from the exemption so that the dividend income is taxable in the hand of unit holder of the business trust. (vii) amend sub-section (3) of section 115UA to delete reference to sub-clause (a) so that distributed income of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ause (23D) of section 10 or units from the administrator of the specified undertaking or units from the specified company shall at the time of credit of such income to the account of the payee or at the time of payment thereof by any mode, whichever is earlier, deduct income-tax there on at the rate of ten per cent. It may also be provided for threshold limit of Rs. 5,000/- so that income below this amount does not suffer tax deduction. It is also proposed to defined "Administrator", "specified company", as already defined in clause (35) of section 10. It is also proposed to define "specified undertaking" as in clause (i) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002. It is also proposed to provide that where any income is credited to any account like suspense account, in the books of account of the person liable to pay such income, the liability for tax deduction under this section would arise at that time. (xvi) amend section 195 to delete exemption provided to dividend referred to in section 115-O. (xvii) amend section 196A to revive its applicability on TDS on income in respect of units of a Mutual Fund. It is also prop....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., apply in relation to the assessment year 2021-22 and subsequent assessment years. [Clause 28] Rationalisation of provisions relating to trust, institution and funds. Amendment of sub-section (7) of section 11 to allow entities holding registration under section 12A/12AA to apply for notification under clause (46) of section 10 Section 11 of the Act provides for grant of exemption in respect of income derived from property held under trust for charitable or religious purposes to the extent to which such income is applied or accumulated during the previous year for such purposes in accordance with the provisions contained in sections 11, 12, 12A, 12AA and 13 of the Act. Sub-section (7) of section 11 of the Act, inserted by the Finance (No. 2) Act, 2014 with effect from 1st April, 2015, provides that where a trust or an institution has obtained registration under section 12AA [as it stood immediately before its proposed amendment] or under section 12A [as it stood immediately before its amendment by the Finance (No 2) Act, 1996] and said registration is in force for any previous year, then, exemption under section 10 [except under clauses (1) and (23C)] shall not be a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sity, college, institution or company etc need improvement with the advent of technology and keeping in mind the practical issue of difficulty in obtaining registration/ approval/ notification before actually starting the activities. It is also felt that the approval or registration or notification for exemption should also be for a limited period, say for a period not exceeding five years at one time, which would act as check to ensure that the conditions of approval or registration or notification are adhered to for want of continuance of exemption. This would in fact also be a reason for having a non-adversarial regime and not conducting roving inquiry in the affairs of the exempt entities on day to day basis, in general, as in any case they would be revisiting the concerned authorities for new registration before expiry of the period of exemption. This new process needs to be provided for both existing and new exempt entities. Filing of statement of donation by donee to cross-check claim of donation by donor It may further be mentioned that certain provisions of the Act provide that an exempt entity may accept donations or certain sum for utilisation towards their o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....oing so, the approval, registration or notification in respect of the entity shall be valid for a period not exceeding five years at one time. (v) application for approval under section 80G shall be made to Principal Commissioner or Commissioner. (vi) an entity making fresh application for approval under clause (23C) of section 10, for registration under section 12AA, for approval under section 80G shall be provisionally approved or registered for three years on the basis of application without detailed enquiry even in the cases where activities of the entity are yet to begin and then it has to apply again for approval or registration which, if granted, shall be valid from the date of such provisional registration. The application of registration subsequent to provisional registration should be at least six months prior to expiry of provisional registration or within six months of start of activities, whichever is earlier. (vii) the application pending for approval, registration, as the case may be, shall be treated as application in accordance with the new provisions, wherever they are being provided for. (viii) deduction under section 80G/ 80GG....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... by the said assessees at least one month prior to the due date of filing of return of income. This requires amendments in all the sections of the Act which mandates filing of audit report along with the return of income or by the due date of filing of return of income. Thus, provisions of section 10, section 10A, section 12A, section 32AB, section 33AB, section 33ABA, section 35D, section 35E, section 44AB, section 44DA, section 50B, section 80-IA, section 80-IB, section 80JJAA, section 92F, section 115JB, section 115JC and section 115VW of the Act are proposed to be amended accordingly. Further, the due date for filing return of income under sub-section (1) of section 139 is proposed to be amended by:- (A) providing 31st October of the assessment year (as against 30th September) as the due date for an assessee referred to in clause (a) of Explanation 2 of sub-section (1) of Section 139 of the Act; (B) removing the distinction between a working and a non-working partner of a firm with respect to the due date as mentioned in sub-clause (iii) of clause (a) of Explanation 2 of sub-section (1) of Section 139 of the Act. These amendments will take effect from 1s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tement. This section proposes to mandate the prescribed income-tax authority or the person authorised by such authority to upload in the registered account of the assessee a statement in such form and manner and setting forth such information, which is in the possession of an income-tax authority, and within such time, as may be prescribed. Consequently, section 203AA is proposed to be deleted. These amendments will take effect from 1st June, 2020. [Clauses 90] Rationalisation of the provisions of section 49 and clause (42A) of section 2 of the Act in respect of segregated portfolios. Section 49 of the Act provides for cost of acquisition for the capital asset which became the property of the assessee under certain situations. Further, clause (42A) of section 2 of the Act provides the definition of the term "short-term capital asset". It also provides for determination of period of holding of the capital asset held by the assessee. SEBI has, vide circular SEBI/HO/IMD/DF2/CIR/P/2018/160 dated December 28, 2018, permitted creation of segregated portfolio of debt and money market instruments by Mutual Fund schemes. As per the SEBI circular, all the existing unit hold....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mpany in whose case application for insolvency resolution process has been admitted by the Adjudicating Authority (AA) under the Insolvency and Bankruptcy Code, 2016 (IBC), the return has to be verified by the insolvency professional appointed by such AA. Similarly, in case of a limited liability partnership (LLP), the return has to be verified by the designated partner of the LLP or by any partner, in case there is no such designated partner. Therefore, it is proposed to amend clause (c) and (cd) of section 140 of the Act so as to enable any other person, as may be prescribed by the Board to verify the return of income in the cases of a company and a limited liability partnership. Further, section 288 of the Act provides for the persons entitled to appear before any Income-tax Authority or the Appellate Tribunal, on behalf of an assessee, as its "authorised representative", in connection with any proceedings under that Act. While the IBC empowers the Insolvency Professional or the Administrator to exercise the powers of the Board of Directors or corporate debtor, it has been reported that lack of explicit reference in section 288 of the Act for an Insolvency Professional to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in electronic form for its usage, transfer etc. The provision for recovery of duties provided under Section 28AAA of Customs Act, 1962 are also being expanded to include such electronic credit of duties. [107 and 110] 5. Section 111 is being amended to insert a new clause (q), to prescribe that goods imported on claim of preferential tariff treatment, and in relation to which any provision of Chapter VAA or of any rule made under this Act have been contravened shall be liable to confiscation. [111] 6. Section 156 is being amended to insert a new clause (i) in sub-section (2) to empower the Central Government to make rules for the purpose of prescribing the manner, procedures, conditions, restriction and other issue to carry out the purposes of newly inserted Chapter VAA. [112] 7. Section 157 (2) is being amended to empower the Central Government to make regulations for the purpose of prescribing the manner, procedures, conditions, restriction and other issues to carry out the purposes of newly inserted section 51B. [113] ll. AMENDMENTS IN THE CUSTOMS TARIFF ACT 1975 S. No. Amendment Clause of the Finance Bill, 2020 1. Section 8B is be....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hold articles and parts thereof, of aluminum; pot scourer and scouring or polishing pads, gloves and the like, of aluminum. 10% 20% 11. 8301 Padlocks and locks (key, combination or electrically operated) of base metal; Clasps and frames with clasps, incorporating locks of base metals; keys for any of the foregoing articles, of base metals (Other than lock of a kind used for automobiles.) 10% 20% 12. 9603 Brooms, brushes, hand operated mechanical floor sweepers, not motorized, mops and feather dusters; prepared knots and tufts for broom or brush making; paint pads and rollers; Squeegees (other than roller squeegees). 10% 20% 13. 9604 00 00 Hand sieves and hand riddles. 10% 20% 14. 9615 Combs, hair-slides and the like, hairpins curling pins, curling grips, hair curlers and the like other than those of heading 8516 and parts thereof. 10% 20% 15. 9617 Vacuum flasks and other vacuum vessels, complete with cases; parts thereof other than glass inners. 10% 20% 16. 8414 51 10 Table Fans 10% 20% 17. 8414 51 20 Ceiling Fans 10% 20% 18. 8414 51 30 Pedestal Fans 10% 20%....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... type, not exceeding 800 litre capacity 7.5% 15% 52. 8418 40 90 Other freezers of upright type, not exceeding 800 litre capacity 7.5% 15% 53. 8418 50 00 Refrigerating or freezing display counters, cabinets, Show-cases and the like 7.5% 15% 54. 8418 61 00 Heat pumps other than air conditioning machines 7.5% 15% 55. 8418 69 10 Ice making machinery 7.5% 15% 56. 8418 69 20 Water cooler 10% 15% 57. 8418 69 30 Vending machine, other than automatic 10% 15% 58. 8418 69 40 Refrigerating equipment/devices used in leather industry 7.5% 15% 59. 8418 69 50 Refrigerated farm tanks, industrial ice cream freezer 7.5% 15% 60. 8418 69 90 Others (like freezers of capacity 800 litres and more etc.] 7.5% 15% 61. 8515 (except 8515 90 00) Welding and Plasma cutting machines 7.5% 15% Other Electronic goods 62. 8504 40 (except 8404 40 21) Static Converters 15% 20% 63. 8504 40 21 Dip bridge rectifier 10% 20% 64. 8517 70 10 Populated, loaded or stuffed printed circuit boards....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 90 30 Open cell for television set 15% 0% 3. 8541 40 11 Solar cells, not assembled 20% 0% 4. 8541 40 12 Solar cells, assembled in modules or made up in panels 20% 0% *Will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931. IV. OTHER PROPOSALS INVOLVING CHANGES IN BASIC CUSTOMS DUTY RATES IN NOTIFICATIONS S.No Heading, sub-heading, tariff item Commodity From To Animals 1. 0101 21 00 Pure-bred breeding horses 30% Nil Fuels, Chemicals and Plastics 2. 27 Very low Sulphur fuel oil meeting ISO 8217:2017 RMG380 Viscosity in 220-400 CST standards/Marine Fuel 0.5% (FO), under the same conditions as available to IFO 180 CST and IFO 380 CST under entry at S. No. 139 of notification No. 50/2017-Customs dated 30.06.2017. 10% Nil 3. 2713 12 10, 2713 1290 Calcined Petroleum Coke 10% 7.5% 4. 2843 Colloidal precious metals; compounds of precious metals; amalgams of precious metals 7.5% 10% 5. 2916 12 10 Butyl Acrylate 5% 7.5% ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ms dated 30.6.2017, required for construction of road like paver finisher, machines for filling up cracks in roads, mobile bridge inspection units etc. Nil Applicable BCD 23. 8501 Motors like Single Phase AC motors, Stepper motors, Wiper Motors etc. 7.5% 10% Electronic goods, parts thereof 24. 74 Copper and articles thereof used in manufacturing of specified electronic items Nil Applicable BCD 25. 8504 40 Specified Chargers and power adapters Applicable BCD 20% 26. 8517 70 10 PCBA of Cellular mobile phones (with effect from 01.04.2020) 10% 20% 27. 8517 70 90 Fingerprint readers/scanner, for use in Cellular mobile phones Nil 15% 28. 8517 70 90 Vibrator/Ringer of Cellular mobile phones(with effect from 01.10.2020) Nil 10% 29. 8517 70 90 Display Panel and Touch Assembly of Cellular mobile phones (with effect from 01.10.2020) Nil 10% 30. 8518 30 00 Headphones and Earphones Applicable BCD 15% 31. 8518 90 00 Following parts of Microphone for use in manufacture of Microphone namely, a) microphone cartridge b....
X X X X Extracts X X X X
X X X X Extracts X X X X
.....2017. S. No. S. No. of Notification No 50/2017-customs Description 1. 5 Tuna bait [0303] 2. 7 Goods upto an aggregate of ten thousand metric tonnes of total imports of Milk and cream, in powder, granules or other solid form in a financial year. [0402 10, 0402 21 00] 3. 7A Whey, concentrated, evaporated or condensed, liquid or semi-solid [0404 10 10] 4. 7B Other Whey [0404 90 00) 5. 8 Butter Ghee, Butter Oil [0405] 6. 9 Other cheese [0406 90 00) 7. 10 Pancreas (Products of animal origin, not elsewhere specified) (Chapter 5] 8. 11 Conch shell [0508 00] 9. 18 Bulbs or tubers, other live plants [0601 or 0602] 10. 36 All goods other than meslin or wheat [1001] 11. 38 Meslin [1001] 12. 40 Maize upto an aggregate of five lakh metric tonnes of total imports of such goods in a financial year [1005 90] 13. 47 Sugar beet seeds [1209 10 00) 14. 56 Edible oils [1508, 1512, 1513, 1514, 1515 or 1511 10] 15. 58 Refined vegetable oils of edible grade, in loose or bulk form (other than palm oil) [chapter 15] 16. 59 Vegetable oils of edible grade, i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....[2004 10 00] 29. 99 Peanut Butter [2008 11 00] 30. 105 Wine, for use as sacramental wine [22] 31. 108 Angostura bitters [2208] 32. 113 Fin fish feed [2301 20, 2309 90 32, 2309 90 39] 33. 115 Dietary soya fibre [2304] 34. 148 Naphtha, when imported by Ratnagiri Gas and Power Private Limited (RGPPL), for use in generation of electricity in the power plants of Ratnagiri Gas and Power Private Limited (RGPPL) at Dabhol, District Ratnagiri, Maharashtra [2710] 35. 149 Naphtha, when imported for generation of electrical energy by a generating company as defined in section 2(28) of the Electricity Act, 2003 (36 of 2003) to supply electrical energy-or to engage in the business of supplying electrical energy [2701] 36. 152 Propane, Butane [2711 12 00, 2711 13 00] 37. 160 Electrical energy [ 2716 00 00] 38. 170 Phosphoric acid, for the manufacture of fertilizers(28] 39. 212 Japanese Encephalitis (JE) vaccine, imported by the Andhra Pradesh Government through UNICEF [30] 40. 220 Kyanite salts, in a form indicative of their use for manurial purpose [31] 41. 243 Isolated soya prote....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... namely: - (a) Vishwavidyalaya- Jahangirpuri; (b) Central Secretariat-Qutab Minar (via All India Institute of Medical Sciences); (c) Shahdara- Dilshad Garden; (d) Indraprastha-New Ashok Nagar; (e) Yamuna Bank-Anand Vihar-lnter State Bus Terminus; and (f) Kirti Nagar-Mundka (along with operational Link to Shahdara- Rithala corridor) (Any Chapter) 59. 412 Goods specified in List 15 required for construction of roads [84 or any other chapter] 60. 447 The following goods required for manufacture of Optical disk drives (ODD), namely: - (i) Pick up assembly (ii) Digital signature procession integrated circuit (iii) DC motor (iv) LDO voltage regulator [84 or Any other Chapter] 61. 456 The following goods, namely: - (a) Sprinklers and drip irrigation systems for agricultural and horticultural purposes; (b) Micro Irrigation equipment [8424] 62. 457 Poultry incubators and brooders [8436 21 00] 63. 459 Parts for manufacture of printers falling under sub heading 8443 32 (except 8443 99 51, 8443 99 52, 8443 99 53) [8443] 64. 465 CD -Wr....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of 5% ad valorem on the import value of such goods as determined under Section 14 of the Customs Act, 1962. This Health Cess shall be a duty of Customs. Any Export Promotion scrips shall not be used for payment of said Cess. Health Cess shall not be imposed on medical devices which are exempt from BCD. Further, inputs/parts used in the manufacture of medical devices will also be exempt from Health Cess. The proceeds of Health Cess shall be used by the Union for funding of health infrastructure in the Country. VIII. OTHER CHANGES (INCLUDING CERTAIN CLARIFICATIONS' TECHNICAL CHANGES) 1. BCD on dyed woven fabric of yarn containing 85% or more by weight of textured polyester filaments, under tariff sub-heading "5407 52" has been prescribed by S. Nos. 47 and 48 of notification No. 14/2006-Customs dated 01.03.2006. S. No. 31A of notification No. 82/2017-Customs dated 27.10.2017 also prescribes rate on this item. This entry is being omitted. 2. a) Technical changes of clarificatory nature are being made in Condition No. 78 so as to make it consistent with entry at S. No. 539 of notification No. 50/2017-Customs dated 30.06.2017. The said S. No. 539 deals with export of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l BCD rate of 5% on item for renovation and modernization of Fertilizer plants It requires a techno-economic clearance from Department of Fertilizer. The Condition No. 51 is being amended so as to remove this requirement. IX. Review of levy of Social Welfare Surcharge on various items. A. Social Welfare Surcharge is being exempted on following items. S.No. HS Code Description (1) (2) (3) 1. 0404 10 10 Whey, concentrated, evaporated or condensed, liquid or semi solid 2. 0406 90 00 Cheese, Other 3. 0601,0602 Bulbs or tubers, other live plants 4. 0802 12 00 Almonds, Shelled 5. 0802 31 00 Walnuts, in shell 6. 0802 32 00 Walnuts, shelled 7. 1001 11 00, 1001 91 00, 1001 99 20 Wheat and Meslin 8. 1005 90 Maize 9. 1704 10 00 Chewing Gum, whether or not sugar coated 10. 1901 10 Preparations suitable for infant or young children, put up for retail sale. 11. 2009 11 00 Orange Juice, Frozen 12. 2009 12 00 Orange Juice, not frozen, or a Brix value not exceeding 20 13. 2009 19 00 Orange Juice, Other 14. 2515 12 20 Marble and travertine slabs 15.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vailing duty for enabling imposition of such duty. Certain other changes are being made for bringing clarity in the Rules. 3. Revocation of Anti-dumping duty on import of Purified Terephthalic Acid originating in or exported from: - i. South Korea and Thailand imposed vide notification No. 28/2019-Customs (ADD) dated 24.7.2019 ii. China. Iran, Indonesia, Malaysia and Taiwan imposed vide notification No. 28/2016-Customs (ADD) dated 5.7.2016 EXCISE Note: (a) "Basic Excise Duty" means the excise duty set forth in the Fourth Schedule to the Central Excise Act, 1944. (b) "NCCD" means National Calamity Contingent Duty levied under Finance Act, 2001, as a duty of excise on specified goods at rates specified in seventh schedule to Finance Act, 2001 (c) Clause Nos. in square brackets [] indicate the relevant clause of the Finance Bill, 2020. (d) Amendments carried out through the Finance Bill, 2020 come into effect on the date of its enactment, unless otherwise specified. l. AMENDMENT IN THE SEVENTH SCHEDULE TO THE FINANCE ACT, 2001* [Clause [145] of the Finance Bill. 2020]: S. No. Tariff Item Description of goods....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ST Act means the Integrated Goods and Services Tax Act, 2017 (c) UTGST Act means the Union Territory Goods and Services Tax Act, 2017 Amendments carried out in the Finance Bill, 2020 will come into effect from the date when the same will be notified, as far as possible, concurrently with the corresponding amendments to the similar Acts passed by the States & Union territories with legislature. I. AMENDMENTS IN THE CGST ACT 2017: S.No. Amendment Clause of the Finance Bill, 2020 1. The definition of "Union territory" in clause (114) of section 2 of the CGST Act is being amended to update the definition of Union territory in view of the bringing into force of the Jammu and Kashmir Reorganization Act, 2019 and the Dadra and Nagar Haveli and Daman and Diu (Merger of Union Territories), Act, 2019, Consequential changes are also being made in UTGST Act, 2017. [116] 2. Section 10 of the CGST Act is being amended, so as to exclude from the ambit of the Composition scheme certain categories of taxable persons, engaged in making- (i) supply of services not leviable to tax under the CGST Act, or (ii) inter-State outward supply of services, or (iii) outward supp....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... CGST Act is being amended to make provision for enabling issuance of removal of difficulties order for another 2 years, i.e. till five years from the date of commencement of the said Act. [128] 14. Entries at 4(a) & 4(b) in Schedule II of the CGST Act is being amended with effect from 01.07.2017 to make provision for omission of supplies relating to transfer of business assets made without any consideration from Schedule II of the said Act. [129] II. AMENDMENTS IN THE IGST ACT 2017: S. No. Amendment Clause of the Finance Bill, 2020 1. Section 25 of the IGST Act is being amended to make provision for enabling the issuance of removal of difficulties orders for another 2 years, i.e. till five years from the date of commencement of the said Act. [132] III. AMENDMENTS IN THE UTGST ACT 2017: S.No. Amendment Clause of the Finance Bill, 2020 1. Section 26 of the UTGST Act is being amended to make provision for enabling the issuance of removal of difficulties orders for another 2 years. i.e. till five years from the date of commencement of the said Act. [136] IV. AMENDMENTS IN THE Goods and Services Tax (Compensation to States) ACT, ....