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    ManualsService Tax
    Whether issuance of SCN under section 73 is mandatory to fix the liability of the assessee? Whether ...
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    ManualsService Tax
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    SCN requirement: absence of a show-cause notice prevents imposition of service tax and interest under revision.
    Issuance of a show-cause notice under the demand provision is a prerequisite to fix service tax and interest; where only a penalty notice was issued under the penalty regime, the revisional authority cannot validly pass an order demanding service tax with interest because the penalty notice cannot substitute for a demand-stage show-cause notice.
    ManualsService Tax
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    Right to be heard required before finalising provisional assessment; taxpayer must be told grounds and allowed to respond.
    An assessing authority must inform the taxpayer of the specific grounds for proposed enhanced liability and afford a meaningful opportunity to meet those grounds before finalising a provisional assessment, as a baseline requirement of natural justice in assessment proceedings.
    ManualsService Tax
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    Provisional assessment appeals permitted where statute and rules authorize provisional determinations, allowing aggrieved parties to prefer appeals.
    Provisional assessments are authorized by the Act and Rules, and an aggrieved party retains the right to appeal against such provisional assessments; the provisional nature does not by itself preclude preferring appeals under the applicable appellate procedure.
    ManualsService Tax
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    Non-filing of memorandum for provisional assessment is a procedural omission and does not negate provisional assessment.
    Non filing of the memorandum in Form ST 3A does not by itself negate the existence of a provisional assessment; the form serves to supply date wise details to enable the proper officer to make an accurate final assessment, and omission of that statement does not preclude that assessments were provisional, especially where the taxpayer later requests and the proper officer completes a final assessment.
    ManualsService Tax
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    Best judgment assessment must be reasoned, not arbitrary; it requires material support and more than mere guesswork.
    A best-judgement assessment allows limited estimation but the assessing officer must make an honest, fair and reasoned estimate and cannot act wholly arbitrarily; technical rules of evidence are relaxed but the assessment must be based on more than mere suspicion or pure guesswork and should be supported by adequate material rather than unsupported conjecture.
    ManualsService Tax
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    Best judgment assessment: courts may not substitute their own estimate if the assessing authority's basis has reasonable nexus.
    Assessment based on accounts is proper where books are genuine and substantially correct, with only minor adjustments; a best judgment assessment is used when accounts are unreliable and the authority estimates liability using available accounts, other information and surrounding circumstances. Courts reviewing a best judgment assessment must first confirm that rejection of accounts was justified and then assess whether the estimating basis has a reasonable nexus to the estimated turnover; if so, the authority's bona fide estimate should not be displaced.
    ManualsService Tax
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    Assessment in service tax: scope includes self assessment, reassessment, provisional and best judgement modes and interest determination.
    Assessment for service tax includes self-assessment, reassessment, provisional assessment, best judgement assessment and any order where tax assessed is nil; it also includes determination of interest on assessed or reassessed tax. "Assessee" means a person liable to pay the tax and includes the person's agent.
    ManualsService Tax
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    Untrue self-declaration in tax return corroborates suppression and can trigger penalty under self-assessment procedures.
    An untrue declaration in a service tax return asserting that tax has been paid corroborates suppression and attracts penalty; absence of a bona fide statement on the return or with the return renders the declaration faulty and imputes liability under the self-assessment procedure.
    ManualsService Tax
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    Electronic preservation of records permitted subject to every page being authenticated by digital signature and prescribed safeguards.
    Preservation of records in electronic form is permitted provided each page of the record is authenticated by a digital signature, and the Board may prescribe further conditions, safeguards and procedures for maintaining digitally signed records.
    ManualsService Tax
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    Partial reverse charge: provider exempt under SSI does not pay; service receiver still liable for receiver's portion of tax.
    Where a service falls under partial reverse charge and the provider is covered by the SSI exemption and not liable to pay service tax, the provider's obligation to pay its share is eliminated while the service receiver remains independently liable to pay the receiver's portion under the reverse charge mechanism.
    ManualsService Tax
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    Reverse charge liability now places full service tax responsibility on the service recipient for manpower and security services.
    W.e.f. notification no. 07/2015-ST the services by way of supply of manpower for any purpose and security services have been placed under a full reverse charge mechanism, making the service recipient exclusively liable to discharge the entire service tax; the earlier partial reverse charge split between recipient and service provider has been removed.
    ManualsService Tax
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    Partial reverse charge: service tax liability split between provider and recipient; third-party payers allowed under notification
    A scheme of partial reverse charge allocates service tax between provider and recipient by notifying services and the share payable by the recipient, the provider paying the remainder. As at 01/04/2015 the notification covers renting of passenger motor vehicles to persons not in the same business and the service portion of works contracts. The framework also allows liability to be placed on persons other than provider or recipient, for example a representative of an aggregator, where so notified.
    ManualsService Tax
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    Aggregator liability: platform owners bear service tax responsibility, with representatives appointed if no taxable territory presence.
    An "aggregator" is the owner manager of a web based application enabling customers to connect with service providers under the aggregator's brand; the aggregator is the person liable for paying service tax for services involving the aggregator. If the aggregator lacks physical presence in the taxable territory, a person representing the aggregator in that territory is liable; if there is neither presence nor representative, the aggregator must appoint a person in the territory who will be liable to pay service tax.
    ManualsService Tax
    Show AI Summary
    Aggregate value rule: combined turnover across services and premises determines small service provider exemption; co-owners assessed individually.
    Exemption is applied to the aggregate value of all taxable services provided from all premises by a provider, and eligibility is determined by aggregating previous year turnover across all premises; where premises are co-owned, each co-owner may claim the exemption separately if, on individual assessment, their aggregate taxable services fall within the threshold.
    ManualsService Tax
    Show AI Summary
    Reverse charge excludes recipients from small service provider exemption when they are liable to pay service tax.
    The Small service provider exemption does not extend to persons liable to pay service tax as service recipients under the Reverse Charge Mechanism; values of taxable services for which tax is payable by such person under sub-section (2) of section 68 read with the Service Tax Rules are excluded from the notification's exemption.
    ManualsService Tax
    Show AI Summary
    Option to decline small-provider exemption allows service providers to pay service tax and claim CENVAT credit from that date.
    Service providers may elect during a financial year to forego the small-provider value-based exemption and pay service tax, but the election is irrevocable for that financial year. Upon electing to pay service tax, the provider may avail CENVAT credit only for inputs or input services received on or after the date service tax payments commence and used for taxable services for which service tax is payable.
    ManualsService Tax
    Show AI Summary
    Brand name usage and service tax exemption: services under own brand remain eligible; exclusion covers use of another's brand.
    Exemption for small service providers applies when services are provided under the provider's own brand name or trade name; the notification excludes only taxable services provided under a brand or trade name of another person, whether registered or not.
    ManualsService Tax
    Show AI Summary
    Deemed registration applies when the local superintendent delays issuance, but not to centralized registration by the Commissioner.
    Failure of the Superintendent of Central Excise to issue Form ST-2 within seven days triggers deemed registration; that deeming provision applies only to registrations by the Superintendent and not to centralized registrations granted by the Commissioner, where no statutory time limit exists. Registration must nevertheless be granted within a reasonable time, and administrative circulars treating seven days as reasonable impose directory guidance and accountability but do not create deemed registration for the Commissioner.
    ManualsService Tax
    Show AI Summary
    Registration refusal prohibited: complete service tax applications must be accepted and authorities cannot register suo moto.
    A complete and properly filled application in Form ST-1 and/or ST-2 must be accepted; there is no statutory power under the Finance Act, 1994 or the Service Tax Rules, 1994 for the Superintendent or the Commissioner to refuse registration, nor to grant registration suo moto. Registration is confined to the category specified in the application, and non-alignment with the correct category may attract recovery or penal proceedings.
    ManualsService Tax
    Show AI Summary
    Surrender of service tax registration required on cessation of taxable services; cancellation follows after dues are cleared and documents submitted.
    Surrender of the registration certificate is mandatory upon cessation of taxable services and must be submitted to the Superintendent, who ensures all dues are paid before cancelling registration. No prescribed format exists; a simple application is acceptable. A trade notice lists common reasons for surrender and requires an application and undertaking, copies of recent ST-3 returns (up to six), profit & loss accounts and balance sheets (up to three years) or income tax returns or bank statements if unavailable, and disclosure of pending show-cause notices, confirmed demands, court cases and audits; waiver of penalty may be applied where returns were not filed but turnover is below the exemption limit.

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

      24 July, 2024

      Contents
      Notifications
      Plus +
      Summary
      Note

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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