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    Hierarchy of Income-tax Authorities in India : Clause 236 of the Income Tax Bill, 2025 Vs. Section 1...
    Exclusion from the Indian Tonnage Tax Regime : Clause 234(4)-(7) of the Income Tax Bill, 2025 Vs. Se...
    Anti-Abuse Safeguards in the Indian Tonnage Tax Regime : Clause 234(1)-(3) of the Income Tax Bill, 2...
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    Continuity of Tonnage Tax Benefits in Shipping Sector Demergers : Clause 233(5)-(6) of Income Tax Bi...
    Continuity of Tonnage Tax Benefits in Shipping Amalgamations : Clause 233(1)-(4) of the Income Tax B...
    Determination of Tonnage for Shipping Companies under Indian Tax Law : Clause 227(9) of the Income T...
    Compliance Requirements under India's Tonnage Tax Regime : Clause 232(21) of Income Tax Bill, 2025 v...
    Charter-in Limits under India's Tonnage Tax Regime : Clause 232(15)-(20) of the Income Tax Bill, 202...
    Minimum Training Mandates in India's Tonnage Tax Framework : Clause 232(12)-(14) of the Income Tax B...
    Evolving Compliance Obligations under the Tonnage Tax Scheme: Clause 232(1)-(11) of the Income Tax B...
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    Examining Renewal Provisions for Tonnage Tax in Indian Shipping Taxation : Clause 231(10)-(11) of In...
    Duration and Cessation of Tonnage Tax Option : Clause 231(8)-(9) of the Income Tax Bill, 2025 Vs. Se...
    Procedural framework for opting into the tonnage tax scheme : Clause 231(1)-(7) of Income Tax Bill, ...
    Legal and Practical Implications of Excluding Tonnage Tax Profits from Book Profits in Indian Shippi...
    Capital Gains taxation on Qualifying Ships : Clause 229(8) to (10) of the Income Tax Bill, 2025 Vs. ...
    Loss Set-Off and Apportionment in the Shipping Industry : Clause 230(2)-(4) of the Income Tax Bill, ...
    Exclusion of Deductions and Loss Set-Off under the Tonnage Tax Regime : Clause 230(1) of the Income ...
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    Act RulesBills
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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 RulesBills
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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 RulesBills
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    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 RulesBills
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    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 RulesBills
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    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 RulesBills
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    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 RulesBills
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    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 RulesBills
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    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 RulesBills
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    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 RulesBills
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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 RulesBills
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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.
    Act RulesBills
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    Tonnage tax disqualification: companies face a ten-year bar on re-entry after opting out, default, or formal exclusion.
    Clause 231(12) bars a qualifying company from opting for the tonnage tax scheme for ten years where the company: voluntarily opts out; defaults in complying with the specified compliance provisions; or has its option excluded by a formal exclusion order, with the disqualification period measured from the date of the triggering event.
    Act RulesBills
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    Tonnage tax renewal requires timely application and procedural parity with initial grant, subject to eligibility and potential ineligibility period.
    Clause 231(10) requires renewal of an approved tonnage tax option within one year from the end of the tax year in which the prior option ceases, with renewal discretionary and subject to approval or refusal by the competent authority. Clause 231(11) imports sub sections (1) to (10) to apply equally to renewals, ensuring procedural parity-application format, eligibility checks, opportunity of being heard, timelines and cessation consequences-but leaves unresolved whether benefits continue during pendency or whether delayed applications may be condoned.
    Act RulesBills
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    Tonnage tax lock in establishes a multi year tenure and automatic cessation for qualification loss or compliance defaults.
    Clause 231(8)-(9) provides that an approved tonnage tax option remains in force for ten years from the tax year of exercise, and ceases from the tax year in which the company ceases to qualify, defaults on compliance under section 232(1)-(20), is excluded under the exclusion provision, or voluntarily declares in writing to the Assessing Officer that the part will not apply; on cessation, shipping profits are computed under the general provisions of the Act.
    Act RulesBills
    Show AI Summary
    Tonnage tax opting procedure ensures time-bound approval and procedural fairness under the updated legislative framework.
    A qualifying company must apply in the prescribed form to the Joint Commissioner within the statutory window; the Commissioner may call for documents, must afford an opportunity of being heard before refusing, and must communicate a written order within a set time measured from the end of the processing quarter. On approval, the tonnage tax regime applies from the tax year in which the option is exercised, with transitional provisions for IFSC units and further clauses governing duration, cessation, renewal and a bar on re-entry.
    Act RulesBills
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    Exclusion of book profits: tonnage tax income is removed from MAT computation to preserve the presumptive shipping regime.
    Clause 228(16) excludes the book profit or loss derived from the activities of a tonnage tax company, as defined in Clause 228(1), from the company's book profit for the purposes of section 206, thereby preventing MAT from applying to profits attributable to qualifying core and incidental shipping activities; the exclusion operates alongside detailed provisions on caps for incidental income, allocation of costs and depreciation, treatment of non qualifying ships, and transfer pricing adjustments.
    Act RulesBills
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    Capital gains on qualifying ships taxed under tonnage tax regime with WDV computed for block of qualifying assets.
    Profits or gains on transfer of capital assets forming part of the block of qualifying ships are chargeable to income-tax, with capital gains computed under the capital gains provisions specified in the Bill. For that computation, references to "written down value of the block of assets" are to be read as the "written down value of the block of qualifying assets", and that WDV is to be determined by the method prescribed in sub-section (2) of Clause 229.
    Act RulesBills
    Show AI Summary
    Tonnage tax loss set off limited to shipping income; pre option losses deemed set off and apportionment must be reasonable.
    Clause 230(2)-(4) (and mirror Section 115VM) deem pre option losses attributable to the tonnage tax business to have been set off against relevant shipping income while under the tonnage tax regime, bar their set off against non shipping income after opting in, and require any necessary apportionment to be made on a reasonable basis, creating documentary and evidentiary obligations and potential disputes over apportionment and the definition of relevant shipping income.
    Act RulesBills
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    Tonnage tax exclusion: carry forward and deductions barred, creating a self contained computation regime for shipping companies under new bill
    Clause 230(1) creates a self contained tonnage tax computation by deeming all business losses, allowances and deductions to have been given full effect in their year of origin, prohibiting carry forward or set off of shipping business losses once under the tonnage regime, excluding general chapter based deductions from tonnage profits, and requiring written down values of assets to be computed as if depreciation had been claimed and allowed each relevant year.
    Act RulesBills
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    Depreciation under tonnage tax: explicit WDV allocation formulas clarify asset classification and continuity of depreciation claims.
    Clause 229(1)-(7) mandates that, on entering the tonnage tax regime, depreciation be computed on the written down value attributable to qualifying ships by dividing the existing block WDV between qualifying and non qualifying assets using explicit proportional formulas; separate qualifying asset blocks are created, WDV is transferred proportionally upon reclassification, intra year depreciation is apportioned by days of use, and the resulting WDV blocks are deemed carried forward from the preceding year to preserve continuity.

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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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