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Concessional taxation for nonresident investment income and capital gains restructured, standardizing rates and raising scope and transitional questions.
Clause 214 restructures tax treatment for non-resident investment income and long-term capital gains by prescribing concessional flat rates for gains on specified assets and other investment income, retaining an aggregation mechanism that segregates concessional categories from remaining total income taxed at normal rates, while leaving key terms such as specified asset, investment income, and long-term capital gain to be defined by cross-reference, which creates potential scope and transitional ambiguities.
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Investment income taxation: new rule bars deductions and segregates capital gains, altering deduction eligibility for non-residents.
Clause 213 bars any deduction or allowance in computing the investment income of a non-resident Indian and provides that where gross total income consists only of investment income and/or long-term capital gains no deductions under Chapter VIII are permitted; where such income coexists with other income, the investment/long-term capital gains component must be excluded from gross total income before computing allowable deductions under Chapter VIII.
Act Rules Bills
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Foreign exchange asset definition narrows concessional tax eligibility for non-residents, affecting documentation and asset scope.
Clause 212 defines key terms for the concessional tax regime applicable to non-residents and foreign companies: foreign exchange asset (assets acquired with convertible foreign exchange), investment income (income from such assets), long-term capital gains (capital gains on foreign exchange assets not short-term), non-resident Indian (citizen or person of Indian origin who is not resident) and specified asset (shares, certain debentures and deposits, government securities, and notified assets). The clause updates cross-references to current company law and retains notification powers, while omitting an explicit explanation of person of Indian origin and an in-text definition of convertible foreign exchange, creating potential interpretive need for rules or guidance.
Act Rules Bills
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Taxation of specified income tightened for non-profit organisations, expanding taxable triggers and clarifying timing of taxability.
Clause 337 creates an event based tax regime for specified income of registered non profit organisations by enumerating eleven triggers (including anonymous donations above a threshold, related party benefits, prohibited overseas application, investment contraventions, corpus condition breaches, misapplication or non utilisation of accumulated income, transfers to other NPOs, application to non charitable purposes, and assessing officer determined business income) and linking each trigger to the tax year in which the taxable event occurs, thereby prioritising disclosure, accountability, and timing clarity while leaving rate and deduction rules to other provisions.
Act Rules Bills
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Taxation of online gaming winnings: a ring fenced flat rate regime with prescribed computation and enhanced reporting obligations.
Clause 194 creates a distinct tax regime for net winnings from any online game, applying to any person and defining online games broadly. Net winnings must be computed as prescribed, with gaming receipts ring fenced and taxed at a specified flat rate while remaining income is taxed ordinarily. The provision emphasizes definitions aligned with technology statutes and anticipates detailed subordinate rules for aggregation, timing, promotional credits, and interaction with TDS, with limited scope for deductions unless the computation rules provide otherwise.
Act Rules Bills
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Taxation of virtual digital assets: flat rate plus denial of loss relief reshapes compliance and reporting obligations.
Clause 194 (Table: S. No. 4) creates a dedicated tax regime for income from transfer of virtual digital assets, applying to any person and taxing such income at a flat rate while allowing only the cost of acquisition as a deduction. All other expenses, allowances, set offs and carry forwards of losses from VDA transfers are disallowed. The statutory definition of "transfer" applies to VDAs irrespective of capital asset status, requiring segregation of VDA income in tax computation and imposing enhanced record keeping and compliance obligations.
Act Rules Bills
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Taxation of carbon credit transfers: concessional flat tax with prohibition on deductions simplifies compliance and defines eligible credits.
Clause 194 of the Income Tax Bill, 2025 subjects income from transfer of carbon credits to a self contained regime: any person is taxable on such income at a flat 10% rate, computed by taxing the carbon credit income at 10% and taxing remaining income under normal provisions. The provision defines carbon credit as a UNFCCC validated reduction of one tonne of CO2 or equivalent gases tradable at market price, contains an overriding clause over other Act provisions, and expressly disallows any deduction or allowance in computing such income, resulting in taxation of gross consideration.
Act Rules Bills
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Concessional patent royalty regime offers lower tax for resident patentees subject to option, no deductions, and lockout on noncompliance.
A concessional regime taxes royalty from patents developed and registered in India for resident patentees as gross income at a concessional rate, disallowing any deduction; assessees must exercise a prescribed option within the prescribed time, and non compliance for any of five succeeding years triggers a five year ineligibility. Definitions require substantial in country development expenditure and exclude sale proceeds and capital gains from royalty.
Act Rules Bills
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Tax on unexplained income: punitive flat rate and denial of deductions for incomes classified under specified provisions.
Clause 195 targets income referred to in sections 102-106, applying whether self declared or determined by the Assessing Officer, and mandates taxation of those amounts at a punitive flat rate while the balance income is taxed normally. It further provides an overriding rule that no deduction, allowance, or set off of losses is permitted against the income so classified, thereby preventing taxpayers from reducing liability on such unexplained or unaccounted sums.
Act Rules Bills
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Anonymous donations taxation: broader scope and threshold rule increase compliance and record-keeping obligations for non-profits.
Clause 337 targets anonymous donations to registered non-profit organisations (excluding entities wholly for religious purposes) by taxing the amount of anonymous donations exceeding the higher of a specified absolute sum or a percentage of such donations in the tax year, with contemporaneous recognition of receipts. The clause broadens applicability beyond the prior enumerated institutions, omits a specified tax rate, and lacks detailed definitions and compliance mechanics, creating interpretive and administrative uncertainties for mixed purpose organisations and cross border receipts.
Act Rules Bills
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Special taxation of non-resident sports and entertainment income: flat-rate treatment with no deductions and TDS-driven compliance.
A flat-rate regime taxes specified India-sourced receipts of non-resident sportsmen, sports associations, and entertainers-covering participation, performances, advertisements and article contributions-with such receipts treated as ring-fenced special income taxed separately from other income; deductions are expressly disallowed for computing that special income, and proper withholding at source can exempt a taxpayer from domestic return-filing when that is the taxpayer's sole Indian income.
Act Rules Bills
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Tax on gambling winnings: flat gross tax with no deductions, and online gaming treated separately.
Clause 194 (Table S. No. 1) taxes winnings from lotteries, crossword puzzles, races (excluding income from owning or maintaining race horses), card games and other gambling at a flat rate on gross receipts with no deductions or set-off; tax is computed in two steps-tax on such winnings and tax on the balance of income as if winnings were excluded-and winnings from online games are expressly excluded and dealt with separately.
Act Rules Bills
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Concessional tax regime for new manufacturing co-operative societies offers reduced tax for qualifying manufacturing income.
A concessional tax regime grants newly formed manufacturing co-operative societies an optional, irrevocable reduced tax treatment for qualifying manufacturing income, contingent on formation and commencement within prescribed windows, exercise of the option in the prescribed manner, and compliance with anti abuse conditions. Qualifying income is computed without specified deductions or set offs, certain non manufacturing income and specified gains are taxed at higher rates, and failure to satisfy conditions withdraws the regime for the relevant and subsequent years.
Act Rules Bills
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Concessional tax regime for resident cooperative societies: elective simplified computation in exchange for forgoing specified deductions.
Clause 203 establishes an elective concessional tax regime for resident cooperative societies permitting computation of total income without specified deductions and without set-off of losses or depreciation attributable to those disallowed deductions; the option is exercised in the prescribed manner within the return-filing timeframe, is irrevocable, and failure to meet conditions renders the option invalid for that and subsequent years, while losses and depreciation not allowed are deemed finally given effect. An IFSC carve-out permits designated deductions for IFSC units subject to conditions.
Act Rules Bills
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New tax regime narrows exemptions and denies related loss carry-forwards, requiring strict opt-in procedures and electronic compliance.
Clause 202 creates a consolidated new tax regime for individuals, HUFs, AOPs, BOIs and certain artificial juridical persons pairing a graded slab structure with the denial of most specified exemptions, deductions and loss set-offs. Total income is computed without the benefit of listed deductions and without carry-forward or set-off of losses and depreciation attributable to those disallowed items. The clause prescribes an option procedure with strict withdrawal and re-entry limits for business/professional assessees and contemplates procedural electronic filing requirements and an IFSC carve-out.
Act Rules Bills
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Concessional tax regime for new manufacturing companies limits exemptions and binds firms to an irrevocable option for preferential taxation.
Concessional tax regime for new manufacturing domestic companies grants a lower corporate rate to qualifying manufacturers while disallowing most exemptions and deductions. The regime requires an irrevocable option, exercised in the prescribed manner by the due date for the first return; failure to meet conditions causes permanent loss of eligibility. Income computation is exemption free, with no carry forward for losses or depreciation attributable to disallowed deductions. Benefits can continue on amalgamation if conditions are met. Procedural and definitional details are expected to be specified in subordinate rules.
Act Rules Bills
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Optional concessional corporate tax regime requires companies to forgo specified deductions and accept irrevocable tax treatment.
Optional concessional corporate tax regime requires domestic companies to compute taxable income without specified deductions and to forgo set-off or carry forward of losses or depreciation attributable to those disallowed items, treating such losses and depreciation as having been given full effect; the option must be exercised in the prescribed manner by the filing due date, is irrevocable and applies to subsequent tax years, with modified treatment for IFSC units and procedural details to be provided by subordinate rules.
Act Rules Bills
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Concessional tax regime for manufacturing companies requires irrevocable option and prohibits set off of attributable losses.
Clause 199 creates a concessional tax regime for qualifying domestic manufacturing companies, available at the taxpayer's option, conditioned on exclusive engagement in manufacturing related activities and computed without specified deductions. It precludes set off of losses attributable to those disallowed deductions by deeming such losses to have been fully given effect to. The option must be exercised in the prescribed manner by the due date for the first return and, once exercised, is irrevocable for subsequent years except where a statutory switch is permitted, thereby trading lower tax rates for forfeiture of targeted incentives and necessitating clear procedural compliance.
Act Rules Bills
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Taxation of special incomes: consolidated flat-rate regime covering life insurance profits and emerging digital income streams.
Clause 194 creates a consolidated flat-tax framework for specified special incomes-winnings, patent royalties, carbon credits, VDAs, online game winnings, and life insurance profits-providing category-specific rates, comprehensive definitions, and an overriding application. For life insurance business it preserves a concessional 12.5% flat tax and the aggregate computation method but omits the prior temporary deposit requirement and lacks detailed computation rules, potentially causing interpretive issues on measuring ''profits and gains.'' Clause 194 modernises taxation of emerging income streams while centralising special-income treatment under one provision.
Act Rules Bills
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Taxation of foreign portfolio investment: concessional rates tied to strict attribution and compliance requirements.
Clause 210 creates a consolidated tax framework for FIIs and specified funds on securities income and capital gains, setting concessional rates by income category and conditioning those rates on prescribed attribution to non resident unit holders (excluding permanent establishments). It restricts specified deductions where income consists solely of securities receipts, disapplies certain loss set off provisions for securities gains, and anticipates rule based mechanisms for daily AUM attribution and digital filing requirements, aligning and refining the policy and operational features previously governed by Section 115AD and Rules 21AJ/21AJAA.

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PRUNING AND REVIEW OF CUSTOMS DUTY CONCESSIONS/ EXEMPTIONS

2 February, 2022

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IV. PRUNING AND REVIEW OF CUSTOMS DUTY CONCESSIONS/ EXEMPTIONS

A. Review of concessional rates of BCD prescribed to Capital Goods and Project Imports vide notification No. 50/2017 – Customs dated 30.6.2017:

The Customs duty rate structure on capital goods and project imports has been comprehensively reviewed and exemption on capital goods/ project imports are being phased out in a gradual manner. However, certain exemptions on capital goods would continue. Accordingly, the BCD exemption hitherto available on certain goods are being withdrawn by omitting the following entries of notification No. 50/2017Customs dated 30.6.2017, from the dates mentioned against each entry.

S.No.

S. No. of notification No. 50/2017

Description/ HS Code

(1)

(2)

(3)

Textile Sector

1.

399 [exemption is being phased out as per details in column (3)]

Goods (other than old and used) for use in man-made or synthetic fiber or yarn industry (84 or any other Chapter)

1. Concessional BCD rate to be withdrawn for Spindles, Yarn guides, Ballon Control Rings and Travellers [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for the remaining items such as Machinery for continuous polymerization plant, Machinery for synthetic fibre plant, Machinery for synthetic filament yarn plant, Machinery for Regular/HWM Viscose Staple Fibre Plant, Machinery for Lyocell Fiber Plant, in this entry [w.e.f 1.4.2023]

2.

400 [w.e.f 1.4.2023]

Goods such as Machinery for garment sector, Machinery for manufacture of technical textiles, Woollen machinery items, Machinery for manufacture of non-wovens textiles, Machinery for manufacture of denim fabrics, Machinery for use with shuttleless looms etc. as specified in List 12 to the notification No. 50/2017-Customs, and parts for their manufacture for use in textiles industry

3.

432 [exemption is being phased out as per details in column (3)]

Goods (other than old and used) for use in the textile industry

1. Concessional BCD rate to be withdrawn for item no. 1, List 25: Effluent treatment unit with biopaq reactor, activate sludge process, activated carbon, ultrafiltration ozonisation facilities [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for item no. 3, List 25: Effluent treatment unit with automatic sensing devices, automatic controlled chemical dosing, dissolved air floatation (DAF), reverse osmosis, sludge dewatering, decanters, ultrafilters, vacuum filters to deliver water for reuse [w.e.f 1.4.2022]

3. Concessional BCD rate to be withdrawn for the remaining items such as singeing machines, yarn drying machines, knitting machines etc., in this entry. [w.e.f 1.4.2023]

4.

433 [w.e.f 1.4.2022]

Machinery or equipment for effluent treatment plant for handloom sector or handicraft sector

5.

434 [w.e.f 1.4.2023]

Machinery for use in the silk textile industry

6.

460 [w.e.f 1.4.2023]

Shuttle less looms and parts for their manufacture for use in the textile industry

7.

461 [exemption is being phased out as per details in column (3)]

Machineries such as Knitting, weaving machines

1. Concessional BCD rate to be withdrawn for Card Clothing (HS Code 8448 31 00) used in textile machinery i.e., Carding Machine [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for the remaining items, such as machines for extruding, drawing, texturing, textiles machines, machines for preparing textile fibers, textile spinning machines, textile twisting machines, textile winding machines, weaving machines, knitting machines, auxiliary machines etc., in entry. [w.e.f 1.4.2023]

Power Sector

8.

397 [exemption is being phased out as per details in column (3)]

Goods specified in List 10 required for use in high voltage power transmission project

1. Concessional BCD rate to be withdrawn for 13 items [List 10 in the notification] that include Transformers, Reactor, Circuit Breaker etc. [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for the remaining items such as High Voltage DC Divider and CT, High Voltage DC Reactor, High TRV Circuit Breaker for High Voltage DC application, Optical Current Transformer etc. in this entry. [w.e.f 1.4.2023]

9.

405 [exemption is being phased out as per details in column (3)]

Wind operated electricity generators, its parts and raw material, thereof

1. Concessional BCD rate to be withdrawn for item No. (1) & (3) of this entry that include wind operated electricity generators (WOEG) upto 30 kW, wind operated battery chargers upto 30kW and blades for the rotors of WOEG [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for the remaining items, such as parts of wind operated electricity generators including special bearings, gear box, yaw components, wind turbine controllers etc. and parts thereof and parts of blades, raw materials of blades etc. in this entry. [w.e.f 1.4.2023]

10.

406 [w.e.f 1.4.2023]

Permanent magnets for manufacture of PM synchronous generators above 500KW for use in wind operated electricity generators

11.

413 [w.e.f 1.4.2022]

All goods, for renovation or modernization of a power generation plant (other than captive power generation plant)

12.

414 [w.e.f 1.4.2022]

All goods, imported by a manufacturer-supplier for the manufacture and supply of machinery and equipment to a power generation plant (other than captive power generation plant)

Petroleum Sector

13.

403 [w.e.f 1.4.2023]

Parts and raw materials for manufacture of goods to be supplied in connection with the purposes of off- shore oil exploration or exploitation

14.

409 [exemption is being phased out as per details in column (3)]

Goods specified in List 13 required for setting up crude petroleum refinery

1. Concessional BCD rate to be withdrawn for 11 items of List 13 that include utility systems, water treatment systems, air handling systems, boilers etc. [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for the remaining items such as all types of Refinery Process Units, All types of Hydrogen Generation, Recovery and Purification Plants, All types of Process Subsystems, All types of Effluent Solids/Liquids/Gaseous Processing etc. in this S. No. [w.e.f 1.4.2023]

15.

410 [w.e.f 1.4.2022]

Kits and its parts required for the conversion of motor- spirit or diesel driven vehicles into Compressed Natural Gas driven or Propane driven or Liquefied Petroleum Gas driven vehicles

Leather Sector

16.

396 [w.e.f 1.4.2022]

Machinery or equipment for effluent treatment plant for leather industry

17.

439 [w.e.f 1.4.2023]

292 goods specified in List 27 to notification No. 50/2017Customs, designed for use in the leather industry or the footwear industry, like Air blast dust removing machine, Automatic Drying machine etc.

Food Packaging Sector

18.

455 [w.e.f 1.4.2023]

Machinery for filling, closing, sealing or labelling bottles, cans, boxes, bags or other containers

19.

458 [w.e.f 1.4.2023]

Machinery for the industrial preparation or manufacture of food or drink, other than machinery for the extraction or preparation of animal or fixed vegetable fats or oils

Other Sectors

20.

393 [w.e.f 1.4.2023]

(i) Cricket bat and hockey stick splice joining machine

(ii) Rugby ball or soccer ball stitching Machine

(iii) Moulds for soccer ball, basketball and volley ball

21.

394 [w.e.f 1.4.2023]

Bacteria removing clarifier

22.

395 [w.e.f 1.4.2023]

Marine seawater pumps with fibre impellers and Automatic fish/prawn feeder

23.

407 [w.e.f 1.4.2023]

Goods required for, -

(a) the substitution of ozone depleting substances (ODS);

(b) the setting up of new capacity with non – ODS technology.

24.

408 [w.e.f 1.4.2023]

Goods required for renovation, modernization or maintenance of a fertilizer plant

25.

436 [w.e.f 1.4.2023]

Spares, supplied with outboard motors for maintenance of such outboard motors

26.

440 [w.e.f 1.4.2023]

Fogging machines imported by a Municipal Committee, District Board etc.

27.

443 [w.e.f 2.2.2022]

Goods to be imported by or on behalf of security printing and minting corporation of India limited (SPMCIL) that include Plant or machinery or equipment, related spares and consumables for printing of banknotes, etc.

28.

444 [w.e.f 1.4.2023]

Geothermal ground source heat pumps

29.

445 [w.e.f 1.4.2023]

Goods for making of gem and jewellery –

(1) Automatic Chain Making machine,

(2) chain twisting machine,

(3) Spiral making machine,

(4) Rolling machine (combined Profile Groovers/Strip Making)

(5) Automatic Investing Machine/casting Machine

30.

448 [w.e.f 1.4.2023]

Specific agricultural implements and parts used for their manufacture that include paddy transplanter, sugarcane harvester, cotton picker etc.

31.

469 [w.e.f 1.4.2023]

Atmospheric water generator

32.

470 [w.e.f 1.4.2023]

Machinery for making wooden fiberboards

Project Imports

33.

597, 598, 599, 600, 601, 602, 603, 604, 605, 606

a. Project Imports for project such as

(i) Power Projects, including Nuclear and Solar Power

(ii) Coal Projects

(iii) Gas Projects

(iv) Iron Ore Projects

(v) Water Supply Projects

(vi) Mandi and Warehousing Projects for Food Grains

(vii) Other Projects

b. New projects registered after 30th September 2022 under project imports will attract 7.5% BCD rate with change in BCD Tariff rate to 7.5%.

c. Existing projects registered till 30th September 2022 under project imports will be grandfathered till 30th September 2023 attracting old BCD rates of 0%/2.5%/5% as applicable.

d. After 30th September 2023, all projects registered under project imports will attract 7.5% BCD rate.

B. Review of concessional rates of BCD prescribed in notification No. 50/2017 – customs dated 30.06.2017: The BCD exemption hitherto available on certain goods are being withdrawn by omitting some of the entries of notification No. 50/2017Customs dated 30.6.2017 as shown below. Additionally, modifications have also been made with respect to some of the entries of notification No. 50/2017-Customs dated 30.6.2017, wherein end-dates have been prescribed, and partial changes has been made to the exemptions. These changes are detailed below.

S. No.

S. No. of notification No. 50/ 2017

Description

 

Entries to be immediately omitted

 

1.

4

Atlantic Salmon

 

2.

26

Hazelnuts or filberts, shelled and in-shell

 

3.

28

Other nuts, shelled and in-shell

 

4.

33

Durians, other fresh fruits like Pomegranates, Tamarind, Sapota, Custard- apple, Bore, Lichi, etc. other than currants and gooseberries

 

5.

50

Seed Lac

 

6.

52

Dammar Batu

 

7.

82

Crude glycerin for use in the manufacture of soaps

 

8.

96

Tapioca and substitutes therefor prepared from starch

 

9.

122

Silica Sands

 

10.

124

Marble, travertine, granite other than rough marble and travertine blocks and marble slabs

 

11.

151

Kerosene imported by the Indian IOCL. BPCL, HPCL and IBP Company Limited for ultimate sale through the Public Distribution System

 

12.

159

Bio-based asphalt sealer and preservation agent; Millings remover and crack filler; Asphalt remover and corrosion protectant; Sprayer system for bio-based Asphalt and condition no. 14

 

13.

171

The goods specified in List 7, for the manufacture of laser and laser-based instrumentation and condition No. 17

 

14.

173

Goods used in manufacture of telecommunication grade impregnated glass reinforcement roving, namely: E-glass roving/ yarn, liquid absorbent polymer, polyurethane polymer and vinyl polymer

 

15.

175

Common Salt (including Rock salt, Sea salt and Table salt)

 

16.

187

Raw materials intermediates and consumables supplied by UNICEF for manufacture of DTP vaccines and condition No. 19

 

17.

233

Myrobalan fruit extract

 

18.

234

Triband Phosphor

 

19.

235

Ceramic Colours

 

20.

236

Glass frit and other glass, in the form of powder, granules or flakes

 

21.

241

Vinyl Polyethylene Glycol for use in manufacture of Poly Carboxylate Ether

 

22.

242

The following goods for use in the manufacture of Plasma Volume Expanders, namely: Hydroxyethyl starch and Dextran

 

23.

277

Mica glass tape for use in manufacture of insulated wire and cables

 

24.

293

Grape guard paper (paper used for packaging grapes)

 

25.

324

Monofilament long line system for tuna fishing and condition No. 34

 

26.

327

Samples of hand knotted carpets and condition No. 36

 

27.

328

Polyester Tyre Cord Fabric

 

28.

332

Parts of Umbrella

 

29.

216 & 481

Artificial Kidney (Dialyzer)

 

30.

216A & 481A

Parts for manufacture of Artificial Kidney

 

31.

402

Goods, for use in the manufacture of static converters of automatic data processing machines: PCBA, Transformer, Battery and Copper enameled wires

 

32.

424

Listed goods for paging goods and its parts

 

33.

425

Listed goods for Public Mobile Radio Trunked Service (PMRTS) and its parts

 

34.

431

Goods used for Research and development in Agro-Chemical Sector Unit

 

35.

449

Goods for use in the manufacture of refrigerator compressor namely: -

(i) C-Block compressor;

(ii) Crankshafts.

 

36.

450

Over Load Protector (OLP) and positive thermal coefficient for use in the manufacture of refrigerator compressor

 

37.

501

Recorded magnetic tapes and floppy diskettes, imported by the University Grants Commission for use in Computers

 

38.

588

Synthetic tracks and equipment to lay synthetic tracks.

 

39.

589

(i) Asphalt resurfacer;

(ii) Acrylic resurfacer;

(iii) Cushion coat;

(iv) Acrylic colour concentrate;

(v) Acrylic marking paint; and

(vi) Polytan in powder or granule form

 

40.

590

Requisites for games and sports

 

Entries where End-dates are prescribed

 

41.

289

Wood in chips for use in manufacture of paper, paperboard & newsprint [End-date of 31.03.2023 is prescribed]

 

42.

430

Goods used for Research and Development purpose in pharmaceutical and bio- technology sector. [End-date of 31.03.2023 is prescribed]

 

43.

479

Mono or Bi polar Membrane electrolysers and parts; Membrane and parts; Parts, other than those for caustic soda unit or caustic potash unit [End-date of 31.03.2024 is prescribed]

 

44.

594

Snow-skis and other snow-ski Equipment; Water-skis, surfboards, sailboards and other water-sport equipment [End-date of 31.03.2023 is prescribed]

 

Section 25 (4A) of the Customs Act, inserted vide Finance Act, 2021, prescribes that where any exemption is granted subject to any condition under sub section (1), such exemption shall, unless otherwise specified or varied or rescinded, be valid up to 31st day of March falling immediately after two years from the date of such grant or variation. Accordingly, conditional exemptions will have validity in terms of this subsection. Therefore, entry being impacted on account of this clause have been identified and an explanation has been inserted in the notification No. 50 /2017-Customs.

[“Explanation: Under the provisions of subsection (4A) of section 25 of the Customs Act, 1962, it is hereby specified that the conditional exemptions granted under the S. Nos. of the Table to the notification, mentioned under column (2) of the Table below, for which period of validity is not specified otherwise, shall unless varied or rescinded, be valid up to the date mentioned in the corresponding entry in column (3) of the said Table. ….” ]

 

The following entries, unless varied, will have validity up to 31.03.2023.

 

45.

16, 90, 133, 139, 150, 155, 164, 165, 168, 183, 184, 188, 204, 213, 237, 238, 253, 254, 255, 258, 259, 260, 261, 269, 271, 276, 277A, 279, 280, 325, 333, 334, 339, 340, 341, 341A, 353, 364A, 374, 375, 378, 379, 380, 381, 387, 392, 415, 415A, 416, 417, 418, 419, 420, 421, 426, 428, 429, 441, 462, 463, 464, 471, 472, 475, 478, 482, 489B, 495, 497, 504, 509, 510, 511, 512, 512A, 516, 519, 534, 535, 535A, 536, 538, 540, 542, 543, 544, 546, 549, 550, 559, 565, 566, 567, 568, 570, 575, 577, 578A, 579, 580, 581, 583, 593, 612

 

The following entries [having been reviewed in this exercise done this year], unless varied, will have validity up to 31.03.2024.

 

46.

17, 80A, 104, 172, 191, 257, 257A, 257B, 257C, 264A, 290, 292, 293A, 296A, 326, 329, 345A, 354, 355, 356, 357, 422, 423, 442, 446, 451, 465, 517, 591

 

Entries omitted being in the nature of technical change

 

47.

31

Dried Grapes (Raisins, Other)

 

48.

161

Electrical Energy originating from Nepal and Bhutan

 

49.

192

Alkyl esters of long chain fatty acids obtained from vegetable oils, commonly known as bio- diesels

 

50.

215

The Blood group sera, namely: -Anti C., anti E., anti c., anti e., anti M., anti N., anti Le., anti-Pl., anti S., antihuman globulin sera, anti F., anti kell, anti cellane, anti Jka., and anti I

 

51.

224

Potassium Nitrate, in a form indicative of its use for manurial purpose

 

52.

248

Dipping oil, Paclobutrazol (Cultar)

 

53.

466

Parts/ sub-parts, components or accessories for use in the manufacture of tablet computer.

 

54.

485

Deflection components for use in colour monitors for computers or for use in PCBs of colour monitors for computers

55.

496

Stepper Motors for use in the manufacture of goods falling under heading 8471

56.

505

Parts of Set-top box for use in its manufacture

57.

506

Parts/sub-parts, components for use in manufacture of broadband modem Other than PCBA, charger.

58.

507

Parts/ sub-parts, components and accessories for use in manufacture of routers other than PCBA, charger.

59.

508

Parts/ sub-parts, components and accessories for use in manufacture of set top boxes for gaining access to internet other than PCBA, charger.

Entries with partial changes

60.

15

Frozen Semen and Frozen semen equipment

[Exemption to continue only for bovine semen]

61.

104

List of specified goods used in the processing of sea-foods

[Exemption to continue for selected items and accordingly, exemption has been continued for 16 items and 4 new items has been added to the list]

62.

132

List A items:

1. Aluminous cement

2. Silicon metal (99%)

3. Micro/fumed silica

4. Brown fused alumina

5. Sintered/tabular alumina

6. Fused zirconia

7. Sodium hexameta phosphate

8. Silicon carbide

9. Boron carbide

10. Reactive alumina

11. Fused silica; and List B items: Phenolic resin

[Exemption to continue for list A with end-date of 31.03.2023 and discontinue for list B immediately]

63.

166

(A) Drugs, medicines, diagnostic kits or equipment specified in List 3.

(B) Bulk drugs used in the manufacture of drugs or medicines at (A)

[Exemptions under List-3 is being rationalized]

Note: Items included in List 3 under S. No. 166 provides for a conditional concessional rate of 5% on the imports of drugs, medicines, diagnostic kits, etc. along with bulk drugs used in the manufacture of such drugs or medicines. The items in the said list has been reviewed. Accordingly, 35 items have been removed from the List and 1 item [influenza vaccine] in the List would be omitted after 18 months. For further details, please refer to notification No. 02/2022 – Customs dated the 1st February, 2022.

64.

167

(A) Lifesaving drugs/medicines including their salts and esters and diagnostic test kits specified in List 4.

(B) Bulk drugs used in the manufacture of drugs or medicines at (A).

[Exemptions under List-4 is being rationalized in the manner as detailed in the Note at S. No. 63 above; Entry at S. No. 167 (C) has been omitted as a similar exemption is available under S. No. 607 (b) of notification No. 50/2017 – Customs]

Note: Items included in List 4 under S. No. 167 provides for customs duty exemption on the imports of Lifesaving drugs/medicines, diagnostic kits, etc. along with bulk drugs used in the manufacture of such goods. The items in the said list has been reviewed. Accordingly, 3 items in List 4 [Diagnostic agent for detection of Hepatitis B antigen, Diagnostic kits for detection of HIV antibodies, Enzyme Linked Immuno absorbent Assay kits (ELISA kits)] have been transferred to List 3, 2 bulk drugs [bulk drug substance for poliomyelitis vaccine (inactivated and live) and Monocomponent Insulin] that are currently included in List 4 would be transferred to List 3 after 2-3 years, and 36 items from List 4 have been omitted. For further details, please refer to notification No. 02/2022 – Customs dated the 1st February, 2022.

65.

404

Goods required in connection with Petroleum operations.

[Rationalization of the exemption provided for goods used in petroleum operations as specified in List 33 under S. No. 404, and simplification of the associated condition no. 48 for availing such exemption and disposal of such goods]

Note: A definition has been provided for a licensee, lessee, contractor or sub-contractor for the purpose of this entry. Also, the requirement of producing a certificate from Directorate General of Hydrocarbons (DGH) for import or each transaction under this entry has been dispensed with. Further, the list of items falling under List 33 has been pruned down and have been made more specific by prescribing the concerned HS Codes.

66.

513

Parts or components for use in manufacture of populated printed circuit board of various telecom and electronics related products, and its sub-parts.

[Exemption to continue for Digital Video Recorder(DVR)/Network Video Recorder(NVR) falling under tariff item 8521 90 90; CCTV Camera/IP Camera falling under tariff item 8525 20 80; Reception apparatus for television but not designed to incorporate a video display falling under tariff item 85287100]

C. Customs duty exemptions which have been granted through certain other standalone notifications, have also been reviewed:

S.No.

Notification No.

Amendment

I. The following notifications have been modified in the manner as detailed below:

1.

39/1996-Customs dated 23.07.1996

This notification prescribes concessional rate of customs duty on items relating to Defence and internal security forces. Upon review of exemption, entries under S. Nos. 14, 15, 17, 18, 19, 24, 29, 30, 31, 31A, 31B, 32, 33, 35, 36, 38, 39, 40, 41, 42, 43 have been omitted.

[Sunset date of 31.03.2023 has been prescribed for the remaining entries as per Section 25(4A) of the Customs Act, 1962]

2.

25/1999-Customs dated 28.02.1999

This notification prescribes concessional rate of customs duty on items relating to import of raw materials and parts for use in manufacture of electronic items.

Upon review of exemption, it has been pruned to remove redundant exemption entries and exemptions related to obsolete items and accordingly, more than 125 entries have been omitted.

[Sunset date of 31.03.2024 been applied for the remaining entries]

3.

25/2002-Customs dated 01.03.2002

This notification prescribes concessional rate of customs duty on import of items relating to capital goods used in manufacture of electronic items. [Sunset date of 31.03.2024 been applied for the all entries]

4.

27/2011-Customs dated 01.03.2011

This notification prescribes concessional rate of customs duty on export of goods. Upon review of the exemption, the entries under S. Nos. 20B, 63 and 64 have been omitted as these entries have become obsolete.

5.

37/2017-Customs dated 30.06.2017

This notification prescribes concessional rate of customs duty on import of items relating to internal security agencies. Upon review of exemption entries, the entries under S. Nos. 6 and 7 have been omitted as their validity has expired.

II. The following obsolete/expired notifications have been rescinded as detailed below:

S.No.

Notification No.

Description

1.

190/1978-Customs dated 22.09.1978

These notification provides for additional duty of customs on import of transformer oil equivalent to such portion of the excise duty leviable on the raw material commonly known as transformer oil base stock or transformer oil feedstock.

2.

191/1978-Customs dated 22.09.1978

3.

10/1995-Customs dated 7.3.1995

This notification prescribes concessional rate of customs duty on import inputs imported for manufacturing of Iron & Steel intermediates.

4.

26/1999-Customs dated 28.2.1999

This notification prescribes concessional rate of basic customs duty on import of kerosene imported by a manufacturer of linear alkyl benzene for extracting N-Paraffin.

5.

27/2004-Customs dated 23.01.2004

This notification prescribes concessional rate of customs duty on import of specified goods imported for use in manufacture of certain chemicals.

6.

14/2006-Customs dated 01.03.2006

This notification prescribes concessional rate of customs duty on import of specified varieties of woven fabrics falling under Chapters 52, 54, 55 and 58.

The entries of this notification have been merged in notification No. 82/2017-Customs.

7.

48/2006-Customs dated 26.05.2006

This notification prescribes concessional rate of customs duty on import of woven fabrics of carded/combed wool or fine animal hair. The entries of this notification have been merged in notification No. 82/2017-Customs.

8.

90/2007-Customs dated 26.07.2007

This notification prescribes concessional rate of additional duty of customs on import of items related to Electronics and Information Technology goods.

9.

08/2011-Customs dated 14.02.2011

This notification prescribes exemption from the whole of the additional duty of customs, leviable thereon under subsection (1) of section 3 of the said Customs Tariff Act, on jute products imported from Bangladesh or Nepal.

The notification has been rescinded as post introduction of GST, the jute products attract integrated tax on imports.

10.

24/2011-Customs dated 1.03.2011

This notification exempts Basic Customs Duty on copper concentrate as is equivalent to the duty of customs leviable on the value of Gold and silver contained in such copper concentrate.

11.

49/2013-Customs dated 29.11.2013

This notification prescribed concessional rate of customs duty on import of Anti-Tuberculosis Drugs, Diagnostics and Equipment and had lapsed on 1st April, 2016.

12.

23/2014-Customs dated 11.07.2014

This notification prescribed concessional rate of customs duty on import of Drugs & equipment imported for National AIDS Control Programme and had lapsed on 1st April, 2015.

13.

37/2015-Customs dated 10.06.2015

This notification prescribed concessional rate of customs duty on import of Anti-Retroviral Drugs (ARV Drugs) and had lapsed on 1st April, 2016.

14.

11/2016-Customs dated 01.03.2016

This notification prescribes concessional rate of customs duty on import of software recorded media.

15.

20/2020-Customs dated 9.04.2020

This notification prescribes concessional rate of customs duty on import of Face Masks, Surgical Masks, Ventilators, COVID-19 Testing Kits, etc. and had lapsed on 30th September, 2020.

16.

40/2020-Customs dated 28.10.2020

This notification prescribes concessional rate of customs duty on import of Potatoes under Tariff Rate Quota (TRQ) and had lapsed on 31st January, 2021.

D. Inclusion of End-date as per Section 25(4A) of the Customs Act, 1962, in certain stand-alone notifications:

S.No.

Notification No./ Entry of the notification No.

Amendment

1.

146/94-Customs dated 13.07.1994

This notification prescribes concessional rate of customs duty on specified sports goods, equipment and requisites imported by National Sports Federation

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

2.

147/94-Customs dated 13.07.1994

This notification prescribes concessional rate of customs duty on exemption to Fire arms and ammunition for renowned shot

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

3.

50/96-Customs dated 23.07.1996

This notification prescribes concessional rate of customs duty on equipment, instrument, raw materials, components, pilot plants, computer software for R&D project

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

4.

30/2004-Customs dated 28.01.2004

This notification prescribes concessional rate of customs duty on import of second hand computers as donation

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

5.

81/2005-Customs dated 08.09.2005

This notification prescribes concessional rate of customs duty on machinery/components for initial setting up of power generation project

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

6.

5/2017-Customs dated 02.02.2017

This notification prescribes concessional rate of customs duty on machinery, equipment, apparatus, components and appliances for initial setting up of fuel cell based system for generation of power

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

7.

16/2017-Customs dated 20.04.2017

This notification prescribes concessional rate of customs duty on specified drugs and medicines supplied free of cost to patients

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

8.

Serial No. 2 of 32/2017-Customs dated 30.06.2017

This notification prescribes concessional rate of customs duty on art work created abroad by Indian artist and sculptures, antique books more than 100-year-old.

[The entry, unless varied or rescinded, will have validity up to 31.03.2023.]

 


Full Text:

Budget 2022-23 + FINANCE Bill, 2022

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Acts Income Tax