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    AMENDMENT IN THE SIXTH SCHEDULE TO THE FINANCE ACT, 2018 - Customs - FINANCE (No.2) BILL, 2019
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    NewsBills
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    Road and Infrastructure Cess increase on petrol and diesel takes effect, raising scheduled additional customs duty per litre.
    Amendment to the Sixth Schedule to the Finance Act, 2018 increases the scheduled rate of Road and Infrastructure Cess as an additional duty of customs on motor spirit (petrol) and high speed diesel; the Finance (No. 2) Bill, 2019 prescribes the new per litre scheduled rate and the amendment is to take effect from 06.07.2019 with immediate provisional operation under the Provisional Collection of Taxes Act, 1931.
    NewsBills
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    Road and Infrastructure Cess increase on petrol and diesel raises additional customs duty incidence and alters fuel taxation.
    The Finance (No. 2) Bill, 2019 increases the Road and Infrastructure Cess levied as an additional duty of customs on motor spirit (petrol) and high speed diesel, thereby raising the per litre cess rate applied to these fuels and altering the customs duty component in fuel taxation.
    NewsBills
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    Retrospective amendments correct customs classifications and extend exemptions for temporary vehicle imports and antidumping measures.
    The Finance (No. 2) Bill, 2019 proposes retrospective amendments to insert correct customs tariff headings for stearic acid and to correct antidumping classifications and exclusions for polyester yarn and polypropylene, and to give retrospective effect to an exemption of IGST and compensation cess on temporary vehicle imports under the carnet regime, thereby altering duty, IGST/cess and antidumping chargeability for specified past periods.
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    Customs tariff amendments extend concessional feed treatment and explicitly exempt specified semiconductor machines and audio components from BCD.
    The amendments confirm that prawn feed and shrimp larvae feed in any form attract a concessional rate of 5%, while fish feed qualifies only in pellet form; propose inclusion of HS 8486 to exempt semiconductor manufacture machines from basic customs duty; add headphones, earphones and combined microphone/speaker sets to tariff subheading 8518 30 00 consistent with ITA commitments; and amend notification No. 57/2017-Customs to explicitly exclude microphones, receivers, speakers, connectors and SIM sockets from a concession entry.
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    Excise duty definitions clarified: amendments specify basic excise duty, road and infrastructure cess, and special additional excise duty.
    Amendments define three core excise components-Basic Excise Duty as set out in the Fourth Schedule, Road and Infrastructure Cess as the additional excise introduced by the Finance Act 2018, and Special Additional Excise Duty as the levy created by the Finance Act 2002-and provide that changes effected by the Finance (No. 2) Bill, 2019 take effect on enactment unless otherwise specified.
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    Basic excise duty on petroleum crude raised, imposing a nominal per tonne duty and enabling provisional collection under tax law.
    The Finance (No.2) Bill, 2019 amends the Fourth Schedule to the Central Excise Act, 1944 to impose a nominal per tonne basic excise duty on petroleum crude, changing the rate from nil and providing that the revised duty operates immediately under a declaration made under the Provisional Collection of Taxes Act, 1931.
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    Excise duty changes impose specified rates on a range of tobacco products and alter duty treatment for crude petroleum.
    Proposals set out notification based excise duty rates for multiple tobacco tariff lines-imposing per unit and percentage levies on specified categories of cigarettes, biris, smoking mixtures, chewing tobacco, snuff, tobacco extracts and other manufactured tobacco or substitutes-replacing prior nil treatment. They also remove a nominal per tonne excise charge on crude petroleum produced under production sharing contracts and certain exploration blocks, with each tariff line assigned a precise levy form to be applied by notification.
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    Special additional excise duty increase on petrol and diesel imposes higher fuel taxes immediately under provisional collection.
    Amendment raises the scheduled rates of Special Additional Excise Duty on petrol and diesel by modifying the Eighth Schedule to the Finance Act, 2002 via the Finance (No. 2) Bill, 2019; the change is to take effect immediately under a provisional collection declaration, with the operative rates to be prescribed by subsequent notification.
    NewsBills
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    Road and Infrastructure cess increase on petrol and diesel takes effect immediately under Provisional Collection of Taxes framework.
    The Finance (No. 2) Bill, 2019 amends the Sixth Schedule to the Finance Act, 2018 to increase the Road and Infrastructure cess as an additional excise duty on motor spirit (petrol) and high speed diesel from Rs. 8 per litre to Rs. 10 per litre, with the amendment declared effective from 6 July 2019 under a provisional collection declaration and to be implemented by notification.
    NewsBills
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    Excise duty increases on petrol and diesel under Finance Bill raise effective tax rates for fuel levies.
    The Finance (No.2) Bill, 2019 increases the effective rates of Special Additional Excise Duty and Road and Infrastructure Cess on motor spirit (petrol) and high speed diesel by substituting the prior per litre rates with higher per litre rates for each levy, with the cess expressly levied as an additional duty of excise.
    NewsBills
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    Service tax retrospective exemptions expanded to specified state licence fees, select IIM programmes, and upfront lease consideration.
    The Finance (No. 2) Bill, 2019 proposes retrospective Service Tax exemptions: (i) State Government consideration for grant of liquor licences for 1 April 2016-30 June 2017; (ii) specified Indian Institutes of Management educational programmes (excluding Executive Development Programmes) for 1 July 2003-31 March 2016; and (iii) upfront amounts paid for long term (thirty years or more) leases of development plots by State industrial/majority government entities for 1 October 2013-30 June 2017.
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    Dispute resolution amnesty scheme introduced to settle legacy central excise and service tax cases under the Finance Bill.
    The Finance (No.2) Bill, 2019 introduces a Sabka Vishwas Legacy Dispute Resolution Scheme, a dispute resolution cum amnesty mechanism to resolve and settle legacy Central Excise and Service Tax cases through provisions in clauses 119-134 of the Bill, establishing a time bound framework for admission and settlement of eligible legacy disputes.
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    GST amendment effective dates clarified: central amendments effective on enactment while finance-bill changes await notification.
    Amendments carried out through the Finance (No.2) Bill, 2019 take effect on the date of its enactment unless otherwise specified; amendments carried out in the Finance Bill, 2019 will come into effect from the date when they are notified, concurrently with corresponding amendments to the Acts passed earlier by the States and Union territories with legislature.
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    National Appellate Authority for Advance Ruling clarifies binding advance rulings, procedural powers and remedies under amended CGST framework.
    The amendments create a National Appellate Authority for Advance Ruling with defined composition, powers to regulate procedure and exercise civil court powers, time bound disposal and limited rectification capacity; its advance rulings are binding on distinct applicants and registered persons with the same permanent account identifier and void if obtained by fraud. They also introduce an alternative composition scheme for service/mixed suppliers with specified turnover limits, clarify treatment of interest/discount for turnover computations, raise the exclusive goods exemption threshold, mandate Aadhaar authentication for specified taxpayers, require specified electronic payment options, permit electronic cash ledger head transfers and authorize Commissioner extensions for certain filings, while calibrating interest charging and refund disbursement, and enhancing anti profiteering penalty authority.
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    Intergovernmental transfer of IGST collections enabled to reflect electronic cash ledger head reallocation between Centre and States.
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    Retrospective GST exemption: Uranium Ore Concentrate exempted from central, integrated and UT tax for 2017 period.
    The Finance (No. 2) Bill, 2019 retrospectively amends Notification No. 2/2017 under the Central, Integrated and Union Territory GST rate schedules to exempt Uranium Ore Concentrate from Central Tax, Integrated Tax and Union Territory Tax for the period from 1st July, 2017 to 14th November, 2017, effectuating a removal of tax incidence on that good by amendment of the respective notifications.
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    Eligibility for SUGAM ITR-4: resident individuals, HUFs and resident firms with presumptive business income may use the simplified return.
    Eligibility to file Form SUGAM (ITR-4) is limited to resident individuals, resident HUFs (other than not ordinarily resident), and resident firms (excluding LLPs) deriving business or professional income computed under presumptive provisions of sections 44AD, 44ADA or 44AE. Explicit exclusions bar persons with foreign assets/signing authority/income, directorships, unlisted equity holdings in the previous year, income above the prescribed limit, more than one taxable house property, brought forward or carry forward losses, assessments where tax was deducted in another's hands, claims under double taxation provisions or deduction under section 91, certain agricultural income, and incomes taxable under specified special heads.
    Act RulesIncome Tax
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    ITR form eligibility limited to resident individuals with salary, single house and non lottery other income; foreign interests excluded.
    Form SAHAJ (ITR 1) is available only to resident individuals whose taxable income arises solely from salaries or family pension, income from a single house property without brought forward or current losses under that head, and other sources excluding lottery winnings and race horse income, provided they do not fall into disqualifying categories such as foreign assets, foreign income or signing authority, income requiring apportionment, directorships, unlisted equity shareholdings, tax assessed on income with TDS in another person's hands, claims for double taxation relief, specified deductive claims, agricultural income above a small threshold, or total income above the prescribed upper limit.
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    Place of supply rules: intermediary back office services treated at supplier location and not as export, GST applies.
    The applicant's back office and payroll processing activities qualify as services rendered as an intermediary; under the IGST intermediary rule the place of supply is the supplier's location. The services do not satisfy all conditions for export of services (clause (iii) of the export definition fails) and therefore are not zero rated; GST is payable.
    ManualsIncome Tax
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    Deduction for authors' royalty income available only to resident authors under income tax rules; non-residents are ineligible.
    The deduction for authors' royalty income under section 80QQB is limited to individual taxpayers who are resident-either resident and ordinarily resident or resident but not ordinarily resident-and excludes non-resident authors, so non-residents cannot claim the royalty deduction.

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      Review of Customs duty Exemptions - Review of conditional exemption rates of BCD

      24 July, 2024

      Contents
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      Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

      (i) The BCD exemption for the goods covered under following serial numbers of the notification are being extended upto 31st March, 2026 unless specified otherwise.

      S. No.

      S N of 50/17-Cus

      Brief Description

      1.

      17

      Specified Planting materials, namely, oilseeds, seeds of vegetables, tubers, etc.

      2.

      80A

      Algal oil for manufacturing of aquatic feed

      3.

      90

      Lactose for use in manufacture of homeopathic medicines

      4.

      104

      Specified goods used in processing of sea-food

      5.

      133

      Gold ores and concentrates

      6.

      139

      Bunker Fuels namely: (i). IFO 180 CST; (ii). IFO 380 CST; (iii). VLSFO (CTH 27)

      7.

      150

      Naphtha for manufacture of Fertilisers (scope of exemption is being reduced only to Naphtha)

      8.

      155

      Liquefied petroleum gases (LPG) received from unit in SEZ and returned by the DTA unit to the SEZ unit

      9.

      164

      Electrical energy supplied from SEZ unit to DTA

      10.

      165

      Electrical energy supplied from SEZ to DTA

      11.

      172

      Specified goods used in manufacture of silicon wafers or solar wafers, for manufacture of solar cell or module

      12.

      183

      Medical use fission Molybdenum-99 (Mo-99) for use in manufacture of radio pharmaceuticals

      13.

      184

      Pharmaceutical Reference Standard

      14.

      188

      Goods for manufacture of ELISA Kits

      15.

      191

      Maltol for manufacture of deferiprone

      16.

      204

      Anthraquinone or 2-Ethyl Anthraquinone for use in manufacture of Hydrogen peroxide

      17.

      237

      Specified material for manufacture of EVA (Ethylene Vinyl Acetate) sheets or backsheet, which are used in the manufacture of solar photovoltaic cells or modules (Scope of materials which can be imported is being increased)

      18.

      253

      Specified Goods for manufacture of Brushless Direct Current (BLDC) motors

      19.

      257

      Tags, labels, stickers, belts, buttons, hangers or printed bags, imported by bonafide exporters

      20.

      257A

      Specified goods used in manufacture of handicraft items for export when imported by bonafide exporter

      21.

      257B

      Specified goods used in manufacture of textile or leather garments for export when imported by bonafide exporter

      22.

      257C

      Specified goods used in manufacture of leather or synthetic footwear or other leather products for export when imported by bonafide exporter

      23.

      258

      Security fibre, threads, Paper based Taggant, M-feature for use in manufacture of security paper by Security Paper Mill, Hoshangabad and Bank Note Paper Mill India Pvt Ltd, Mysore.

      24.

      259

      Raw materials for manufacture of security fibre and security thread for supply to Security Paper Mill, Hoshangabad and Bank Note Paper Mill India Pvt. Ltd, Mysore for use in manufacture of security paper

      25.

      260

      Goods for the manufacture of specified orthopedic implants (902110)

      26.

      261

      Raw material for manufacture of Copper-T Contraceptive

      (i) Alatheon

      (ii) Copper Wire

      27.

      265

      Capacitor grades polypropylene granules for manufacture of Capacitor grade plastic

      28.

      269

      Super absorbent polymer for manufacture of adult diapers and specified goods

      29.

      271

      Polytetrametylene ether glycol, (PT MEG) for use in manufacture of spandex yarn

      30.

      276

      Ethylene- propylene- non-conjugated diene rubber (EPDM) for manufacture of insulated wire and cables

      31.

      279

      New or retreated Pneumatic tyres of rubber for use in servicing, repair of maintenance of aircrafts used for operating scheduled air transport service or scheduled air cargo service etc

      32.

      280

      New or retreated Pneumatic tyres of rubber for use in servicing, repair or maintenance of aircraft imported or procured by Aero Club of India/ for flying training purpose/ operating non-scheduled (passenger or charter) services/ AAI for flight calibration purpose

      33.

      290

      Wood pulp for manufacture of newsprint, paper or paperboard

      34.

      292

      Goods imported for manufacture of paper, paper boards, newsprint

      35.

      293A

      Newsprint and uncoated paper imported for printing of newsprint

      36.

      296A

      Lightweight coated paper imported by actual users for printing of magazines

      37.

      326

      Hydrophilic /Hydrophobic Non- Woven, imported for use in the manufacture of Adult Diapers

      38.

      329

      Pile fabrics for the manufacture of toys

      39.

      333

      Moulds, tools and dies, for the manufacture of parts of electronic components or electronic equipment

      40.

      334

      (i) Graphite Felt or Graphite pack for growing silicon ingots (ii) Thin Steel wire used in wire saw for slicing of silicon wafers

      41.

      345A

      Simply Sawn Diamonds

      42.

      364A

      Spent catalyst or ash containing precious metals

      43.

      368

      Ferrous Scrap

      44.

      374

      Magnesium Oxide (MgO) coated cold rolled steel coils for use in manufacture of cold rolled grain oriented (CRGO) steel

      45.

      375

      Specified items for manufacture of cold rolled grain-oriented steel (CRGO) steel

      46.

      378

      Metal parts for manufacture of electrical insulators falling under heading 8546

      47.

      379

      Pipes and tubes for use in manufacture of boilers

      48.

      380

      Forged steel rings for manufacture of special bearings for use in wind operated electricity generators

      49.

      381

      Flat copper wire for use in the manufacture of photo voltaic ribbon for manufacture of solar photovoltaic cell or modules

      50.

      392

      Dies for drawing metal, where imported after repairs from abroad

      51.

      403

      Parts and raw materials for offshore oil exploration

      52.

      404

      Specified items including capital goods and raw materials for off shore oil exploration

      53.

      415

      Parts for manufacture of catalytic convertors

      54.

      415A

      Platinum or Palladium for manufacture of Noble Metal Compounds & Noble Metal Solutions

      55.

      416

      Ceria zirconia compounds for use in the manufacture of washcoat for catalytic converters

      56.

      417

      Cerium compounds for use in the manufacture of washcoat for catalytic converters

      57.

      418

      Zeolite for use in the manufacture of washcoat for catalytic converters

      58.

      422

      Machinery, electrical equipment for use in semiconductor wafer and LCD

      59.

      423

      Machinery, electrical equipment for use in marking and packaging of semiconductor chips

      60.

      426

      Specified goods for the manufacture of semiconductor devices, memory card, IC, solar cell

      61.

      435

      Capital goods for printing industry

      62.

      442

      Bushings made of Platinum and Rhodium alloy when imported in exchange of worn out or damaged bushings exported out of India

      63.

      446

      Parts and components for manufacture of tunnel boring machines

      64.

      451

      Evacuated tubes with three layers of solar selective coating for use in manufacture of solar water heater

      65.

      462

      Ball screws for use in the manufacture of CNC Lathes

      66.

      463

      Linear Motion Guides for use in the manufacture of CNC Lathes

      67.

      464

      CNC Systems for use in the manufacture of CNC Lathes

      68.

      464A

      Goods for manufacture of plastic processing machineries

      69.

      467

      Parts and components of cash dispenser or automatic bank note dispenser

      70.

      468

      Parts for manufacture of Micro ATM, Fingerprint reader/scanner, Iris scanner, Miniaturised POS (Scope of exemption is being limited to import of raw materials only)

      71.

      471

      All parts for use in the manufacture of LED lights

      72.

      472

      All inputs for use in the manufacture of LED driver or MCPCB for LED lights

      73.

      476

      Television equipment, cameras etc for taking films, imported by a foreign film unit or television team

      74.

      477

      Filming equipment of foreign origin if imported into India after having been exported therefrom.

      75.

      480

      Goods imported for being tested in specified test centers

      76.

      489B

      Goods for manufacturing of Microphones

      77.

      504

      Parts and Components of Digital Still Image Video Cameras

      78.

      509

      Parts, components and accessories for manufacture of Digital Video Recorder

      79.

      510

       Parts, components and accessories for use in manufacture of reception apparatus for television

      80.

      511

      Parts, components and accessories for manufacture of CCTV Camera

      81.

      512

      Specified Parts, components and for use in manufacture of Lithium-ion battery and battery pack

      82.

      512A

      Inputs, parts or sub-parts for use in the manufacturing of Printed Circuit Board Assembly

      83.

      515A

      Open Cell for manufacture of TV Panel

      84.

      516

      The following goods for use in the manufacture of Liquid Crystal Display (LCD) /LED TV Panel

      85.

      517

      Magnetrons for manufacture of domestic microwave ovens

      86.

      519

      Raw materials or parts for use in manufacture of e-Readers

      87.

      523A

      Parts, sub-parts, inputs or raw material for use in manufacture of Lithium-ion cells

      88.

      527

      Lithium-ion cell use in manufacture of battery or battery pack

      89.

      527A

      Lithium-Ion Cell for use in manufacture of battery or battery pack of cellular mobile

      90.

      527B

      Lithium-Ion Cell manufacture of battery or battery pack of EV

      91.

      534

      Parts of gliders or simulators of aircrafts (excluding rubber tyres and tubes of gliders)

      92.

      535

      Raw materials for manufacture of aircraft and parts of aircraft

      93.

      535A

      Parts of aircraft for manufacture of aircraft or for manufacture of parts of aircraft by PSU under Min of Defence

      94.

      536

      Parts, testing equipment, tools and tool-kits for maintenance, repair, and overhauling of aircraft, components or parts of aircrafts

      95.

      537

      All goods of Heading 8802 (except 88026000-spacecraft)

      96.

      538

      Components or parts, including engines, of aircraft of heading 8802

      97.

      539

      (a) Satellites and payloads; (b) Ground equipment brought for testing of (a)

      98.

      539A

      Scientific and technical instruments etc for launch vehicles and satellites

      99.

      540

      Specified goods imported by scheduled air transporter

      100.

      542

      Specified goods imported by Aero Club, Flying Training Institutes

      101.

      543

      Specified goods imported by non-scheduled air transporter

      102.

      544

      Parts (other than rubber tubes), of aircraft of heading 8802

      103.

      546

      Parts (other than rubber tubes), of aircraft of heading 8802

      104.

      548

      Barges or pontoons imported along with ships

      105.

      551

      Cruise ships, Excursion ships

      106.

      553

      Fishing vessels, Tugs and Pusher crafts, light vessels excluding vessels and floating structure imported for break up

      107.

      555

      Vessels like warships, lifeboats excluding vessels and floating structure imported for break up

      108.

      567

      Stainless steel tube and wire, for manufacture of Coronary stents /artificial valve

      109.

      569

      Parts required for manufacture of Ostomy products

      110.

      570

      Medical and surgical instruments, apparatus and appliances including spare parts and accessories thereof

      111.

      575

      Specified Hospital Equipment for use in specified hospitals

      112.

      578A

      Raw materials, for the manufacture of Cochlear Implants

      113.

      580

      X-Ray Baggage Inspection Systems and parts thereof

      114.

      581

      Portable X-ray machine / system

      115.

      583

      Parts and cases of braille watches, for the manufacture of Braille watches

      116.

      591

      Parts of electronic toys

      117.

      593

      Parts of video games for the manufacture of video games

      Note: Description of entries is indicative. Notification may be referred to for complete description.

      (ii) The BCD exemption for the goods covered under following serial numbers of the notification no 50/2017-Customs is being extended upto 31st March 2029.

      S. No.

      S. No. of 50/2017Cus

      Brief Description

      1.

      212A

      Medicines/drugs/vaccines supplied free by United  Nations International Children's Emergency Fund (UNICEF), Red Cross etc

      2.

      213

      Drugs and materials

      3.

      428

      Specified goods imported by accredited press cameraman

      4.

      429

      Specified goods, imported by accredited journalist

      5.

      549

      Capital goods, raw materials and spares for repairs of ocean-going vessels

      6.

      550

      Spare parts and consumables for repairs of ocean going vessels registered in India.

      7.

      577

      Lifesaving medical equipment for personal use

      8.

      607

      Life Saving drugs like Keytruda etc

      9.

      607A

      Lifesaving drugs/medicines for personal use

      10.

      611

      Archaeological artefacts for exhibition in a museum

      11.

      612

      Specified raw material for sports goods

      Note: Description of entries is indicative. Notification may be referred to for complete description.


      Full Text:

      Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

      Topics

      ActsIncome Tax