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    Act Rules Bills
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Act Rules Bills
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Faceless jurisdiction transforms tax administration by institutionalizing remote assessment and team-based dynamic jurisdiction.
Clause 245 creates a statutory Scheme for faceless jurisdiction, authorising the Central Government to operate specified income-tax powers and functions remotely, including vesting jurisdiction in assessing officers, transferring cases, and ensuring continuity on change of incumbency; it permits notifications to modify Act provisions to implement the Scheme and requires such notifications to be laid before Parliament, balancing administrative flexibility with concerns about the scope of delegated legislation and safeguards for procedural fairness.
Act Rules Bills
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Change of incumbent of an office: successor may continue proceedings but assessee can demand reopening or rehearing.
Clause 244 provides that when an income-tax authority ceases to exercise jurisdiction and is succeeded by another, the successor may continue the proceeding from the stage left by the predecessor, and before such continuation the assessee may demand that the previous proceeding or any part thereof be reopened or that the assessee be reheard before any assessment order is passed.
Act Rules Bills
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Power to transfer cases: modernised transfer framework preserves opportunity to be heard while enabling cross jurisdictional transfers.
Clause 243 empowers designated senior income tax authorities to transfer any "case"-defined to include pending, completed and future proceedings-among Assessing Officers within or across jurisdictions; transfers between different authorities require agreement or, failing that, Board intervention. The clause mandates, where practicable, a reasonable opportunity of being heard and recording of reasons, exempts intra city/locality transfers from prior hearing, permits transfers at any stage without re issuing notices, and consolidates authority designations under the term "specified income tax authority."
Act Rules Bills
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Assessing Officer jurisdiction clarified: territorial nexus, strict time bars and internal administrative resolution govern assessment authority.
The clause anchors AO jurisdiction to the taxpayer's principal place of business, profession, or residence and empowers a specified income-tax authority to determine jurisdictional questions, with escalation to the Board where multiple authorities are involved. It mandates strict time limits for raising jurisdictional objections linked to notice service or assessment stages, requires AO referral of unresolved objections before completing assessment, and preserves AO powers over income arising within their area despite jurisdictional disputes.
Act Rules Bills
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Centralized jurisdiction and delegation: Board directions reallocate tax authorities' powers, shaping jurisdictional clarity and administrative flexibility.
Clause 241 vests income-tax authorities with powers exercisable in accordance with directions issued by the Board, permits higher authorities to exercise functions of lower authorities, authorizes delegated written orders for subordinates, and sets jurisdictional criteria including territorial area, persons, classes of income and cases. It enables the Board to issue general or special orders empowering specified senior officers to perform others' functions, contains deeming provisions treating references to the Assessing Officer as references to substituted officers and removes certain approval requirements, and expands notification powers to prescribe the manner of returns and designate responsible authorities.
Act Rules Bills
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Taxpayer's Charter mandated: statutory duty to adopt a charter, but enforceability and remedies remain undefined.
Clause 240 of the Income Tax Bill, 2025 and Section 119A of the Income-tax Act require the Central Board of Direct Taxes to adopt and declare a Taxpayer's Charter and empower the Board to issue orders, instructions, directions or guidelines for its administration. Both provisions mandate adoption while leaving substantive content, enforceability, remedies, review, and stakeholder consultation to the Board's discretion, creating interpretive issues concerning legal status, variability of protections, and mechanisms for accountability.
Act Rules Bills
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Administrative instruction power guides tax authorities, subject to non interference in individual cases and parliamentary oversight.
Clause 239 grants the Board a broad administrative instruction power to issue binding orders and directions to income tax authorities for uniform administration, subject to safeguards: it cannot direct outcomes in individual cases or interfere with appellate discretion. The clause permits targeted interventions-general or special orders for assessment and collection, condonation of belated claims by non appellate authorities, and relaxation of deduction requirements where default is beyond the assessee's control and compliance occurs before completion of assessment-and requires reasons and parliamentary laying of certain relaxation orders.
Act Rules Bills
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Control of tax authorities: Board may notify subordination of income-tax authorities, affecting jurisdiction and publication standards.
Clause 238 and Section 118 empower the Board to issue notifications directing that specified income-tax authorities be subordinate to other specified authorities; this confers broad administrative control over hierarchies and supervision while remaining subject to administrative-law limits. A key textual difference is Clause 238's omission of an explicit requirement for publication in the Official Gazette, raising questions about the formal mode of notification, transparency, and enforceability that subordinate rules or judicial interpretation should address.
Act Rules Bills
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Appointment of income-tax authorities: Central Government retains primary power with controlled delegation and service-rule safeguards.
Clause 237 vests primary appointment authority for income-tax authorities in the Central Government while authorising delegation to the Board and specified senior officers for appointments below Deputy/Assistant Commissioner, and permits authorised income-tax authorities to appoint executive or ministerial staff, all subject to rules and orders regulating conditions of service and Board authorisation.
Act Rules Bills
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Hierarchy of tax authorities clarified: consolidation and streamlined nomenclature aim to centralise appellate functions and improve clarity.
Clause 236 consolidates the hierarchy of income-tax authorities-from the Central Board of Direct Taxes to Inspectors and Tax Recovery Officers-streamlining nomenclature and grouping alternative designations. It notably omits Deputy Commissioners (Appeals), signalling possible consolidation of first-level appellate functions at higher levels, and leaves allocation of specific powers and appellate responsibilities to subordinate rules and notifications.
Act Rules Bills
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Tonnage tax exclusion: anti abuse power to remove companies from the regime where transactions lack bona fide commercial purpose.
Clause 234(4)-(7) empowers the Assessing Officer to exclude a tonnage tax company by written order where transactions amount to an abuse of the tonnage tax scheme, operating retrospectively from the first day of the tax year in which the transaction was entered into; exclusion requires prior show cause notice and higher-level approval, and does not apply where the company satisfies the Assessing Officer that the transaction was a bona fide commercial arrangement not entered into for tax advantage.
Act Rules Bills
Show AI Summary
Anti-abuse safeguards in tonnage tax: exclusion applies where arrangements produce tax advantages for non-eligible activities.
Clause 234(1)-(3) excludes the tonnage tax scheme where a tonnage tax company is party to any transaction or arrangement that constitutes an abuse by resulting, or that would but for the clause have resulted, in a tax advantage for persons other than the tonnage tax company or for the company in respect of its non-tonnage activities. "Tax advantage" includes manipulation of expense or interest allowances or cost allocation affecting non-tonnage income or loss, and transactions producing more than ordinary profits from tonnage tax activities.
Act Rules Bills
Show AI Summary
Temporary cessation of operations preserves tonnage tax continuity, but temporary loss of qualifying status suspends benefits for that period.
A company is deemed to be operating a qualifying ship for tonnage tax purposes during periods of temporary cessation of operations, so long as the cessation is not permanent; however, a ship that temporarily ceases to meet the statutory criteria of a qualifying ship is excluded from qualifying status for the period of non-qualification and cannot attract tonnage tax benefits during that time.
Act Rules Bills
Show AI Summary
Continuity of tonnage tax benefits preserves scheme application for qualifying companies after demerger, subject to statutory conditions.
Where a demerged company transfers its business to a resulting company before expiry of its tonnage tax option, the tonnage tax scheme shall, subject to other provisions, apply to the resulting company for the unexpired period if it is a qualifying company; similarly, the demerged company retains its option for the unexpired period if it continues to be a qualifying company, with both continuities conditional on statutory eligibility, procedural compliance, and anti-avoidance requirements.
Act Rules Bills
Show AI Summary
Continuity of tonnage tax: amalgamated qualifying shipping companies retain the scheme subject to qualifying status and option deadlines.
Clause 233(1)-(4) secures continuity of the tonnage tax regime on amalgamation by applying the scheme to the amalgamated company if it remains a qualifying company, requiring non-tonnage amalgamated companies to elect the scheme within a prescribed short period, granting the amalgamated entity the longest unexpired option period when multiple merging companies are under the scheme, and excluding entities that failed to elect during the original implementation window from accessing the regime post-amalgamation.
Act Rules Bills
Show AI Summary
Tonnage determination by statutory certificates ensures objective tonnage income computation and limits administrative discretion, aligning with international practice.
The net tonnage for tonnage income must be determined from prescribed certificates: Indian ships by Merchant Shipping Rules or the 1969 Convention certificate as applicable; foreign ships by a DG Shipping licence reflecting Flag State tonnage certificates or other evidence acceptable to the DG; inland vessels by Inland Vessels Act, 2021 certificates. Reliance on statutory certificates is central, reducing subjective measurement and constraining administrative assessment to verification of certificate authenticity.
Act Rules Bills
Show AI Summary
Tonnage tax compliance: separate books and certified accountant's report required or tonnage tax option lapses for the year.
Clause 232(21) makes the tonnage tax option contingent, each year, on maintaining separate books of account for qualifying ship operations and on furnishing a prescribed, duly signed and verified accountant's report before the specified filing date; failure of either requirement renders the tonnage tax option ineffective for that tax year.
Act Rules Bills
Show AI Summary
Charter in cap limits chartered tonnage; breach triggers loss of tonnage tax benefit and possible scheme disqualification.
Clause 232(15)-(20) limits chartered in net tonnage for tonnage tax electors, requires assessment on average net tonnage with the averaging method prescribed in consultation with the Director General of Shipping, excludes bareboat charter cum demise vessels from charter in calculations, and prescribes loss of tonnage tax benefit for a year of breach and permanent cessation of the option after two consecutive years of breach.
Act Rules Bills
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Minimum training requirement - automatic loss of tonnage tax eligibility after consecutive noncompliance; annual certification required with tax return.
Companies opting for the tonnage tax regime must train trainee officers as per guidelines of the Director-General of Shipping and furnish an annually issued compliance certificate in the prescribed form with their tax return; sustained non-compliance over consecutive years results in automatic cessation of the company's option for the tonnage tax scheme from the year following the concluding year of default. Delegation to the Director-General allows technical adaptability but leaves open statutory ambiguities on thresholds, partial compliance and transitional treatment.
Act Rules Bills
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Tonnage Tax Reserve requirement ties tonnage tax access to reinvestment in qualifying shipping assets under the Bill.
Clause 232 conditions tonnage tax access on crediting a specified portion of book profit from qualifying shipping activities to a Tonnage Tax Reserve Account, usable within eight years for acquisition of a new ship or inland vessel; interim restrictions prevent distribution or foreign remittance, and proportional re taxation, carryforward rules, and cessation of the option after sustained default enforce compliance.

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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

Acts Income Tax