budget 2015-2016 - proposals and changes

BUDGET ANALYSIS 2015 - 2016

- Aniket RastogiAdvocate

LEASHING BLACK MONEY

BLACK MONEY- COMPLIANCE FACILITATION

Definition of proceeds of crime under Prevention of Money-laundering Act, 2002 beingamended to enable attachment and confiscation of equivalent asset in India where the assetlocated abroad cannot be forfeited

Quoting of PAN being made mandatory for any purchase/ sale exceeding the value of Rs. 1 lakh

Beneficial owner or beneficiary of foreign assets will be mandatorily required to file return, evenif there is no taxable income

Date of opening of foreign account to be specified by the assessee in the return of income

Regarding transactions in immovable properties, Section 269SS and Section 269T amended toprohibit acceptance or re-payment of cash advance of Rs. 20,000 or more otherwise than byaccount payee cheque or bank draft or by Electronic Clearance System

Foreign Exchange Management Act, 1999 to be amended to include seizure and confiscation ofasset/security of equivalent value situated in India if any foreign exchange, foreign security orany immovable property is illegally held outside India

BLACK MONEY- COMPLIANCE FACILITATION

Benami Transaction (Prohibition) Bill to be introduced that will enable confiscation of benamiproperty and provide for prosecution

Offenders will not permitted to approach the Settlement Commission

False Declaration/documents relating to customs to be predicate offence under Prevention ofMoney Laundering Act, 2002

Information regarding foreign currency sales and cross border transactions to be furnished bythird party reporting entities

CBDT and CBEC will leverage technology in order to have access to information in each othersdatabase

Provision being introduced to tackle splitting of reportable transactions

BLACK MONEY - PENALTY

Income in relation to any undisclosed foreign asset or undisclosed income from any foreign assetto be taxable at the maximum marginal rate. No exemptions or deductions be allowed

Offence will be made non-compoundable

Rigorous imprisonment of upto 10 years

Penalty @ 300% of tax, shall be levied for concealment of income and assets

Penalty of an equal amount is proposed for transaction in immovable property if done in cashadvance of Rs. 20000 or more

Non filing or inadequate filing of return to attract rigorous imprisonment up to 7 years

Penalty and prosecution with punishment of imprisonment up to 5 years if any foreign exchange,foreign security or any immovable property is illegally held outside India

CHANGES IN DIRECT TAX

DIRECT TAX

No change in the rate of personal income-tax and the rate of tax for companies in respect ofincome earned in the financial year 2015-16

Income tax on royalty and fees for technical services proposed to be reduced from 25% to 10%

Ceiling on receipts from charitable activities be modified to 20% of the total receipts from theexisting ceiling of Rs. 25 lakh

Yoga proposed to be included within the ambit of charitable purpose under Section 2(15) of theIncome-tax Act

Direct Tax Code scrapped

Non-furnishing of Form 15CA and Form 15CB will attract a penalty of Rs. 1 lakh

Threshold limit on new regular workmen has been reduced from 100 to 50 to claim the incentiveunder Section 80JJAA

DIRECT TAX

Tax rate on payment of royalty and FTS to a non-resident which is not effectively connected withPE of such non-resident is now reduced to 10% from 25%

Mere presence of fund manager in India would not establish Permanent Establishment of offshore funds resulting in adverse tax consequences

No MAT on profits corresponding to income from capital gains on transactions in securitieswhich are liable to tax at a lower rate

No MAT on share of income received by a Company-member from AOP/ BOI if such AOP/BOIis chargeable to tax at maximum marginal rate

GAAR deferred for another 2 years. When implemented, it would apply prospectively toinvestments made on or after 01.04.2017

Corporate Tax rate proposed to be reduced from 30% to 25% over the next 4 years. Various taxexemptions and incentives enjoyed by the Corporate tax payers will be removed

DIRECT TAX

Wealth tax proposed to be abolished w.e.f April 1, 2016 with an additional surcharge of 2% to belevied thus bringing the surcharge rate to 12% in case of individuals, HUFs, AOPs, BOIs,artificial juridical persons, firms, cooperative societies and local authorities having income inexcess of Rs. 1 crore, 7% in case of domestic companies, enhanced from 5%, having incomebetween Rs. 1 crore and Rs. 10 crores and 12% in case of companies having income above Rs. 10crores, enhanced from 10%

Income tax return structure to be amended to allow capturing of information regarding wealthheld by individuals and entities

Surcharge @12% to be levied as against current rate of 10% on additional income-tax payable bycompanies on distribution of dividends and buyback of shares, or by mutual funds andsecuritisation trusts on distribution of income

Additional depreciation @20% allowed on new plant and machinery installed by amanufacturing unit or a unit engaged in generation and distribution of power

DIRECT TAX

Additional investment allowance @15% and additional depreciation @15% proposed to beprovided to new manufacturing units set-up during the period 01.04.2015 to 31.03.2020 innotified areas of Andhra Pradesh and Telangana

Period of applicability of reduced rate of tax @5% in respect of foreign investors extended from31.05.2015 to 30.06.2017

In case of foreign companies the surcharge will continue to be levied @2% if the income liesbetween Rs. 1 crore and Rs. 10 crore, and @ 5% if the income exceeds Rs. 10 crore

Income of Core Settlement Guarantee Fund established by Clearing Corporations as per mandateof SEBI exempted

DIRECT TAX (TAXING INDIRECT TRANSFERS)

The term substantially in explanation 5 to Section 9(1)(i) was inserted vide amendment toFinance Act, 2012 with retrospective effect to provide that the indirect transfer shall also bechargeable to tax

The amended legislation proceeded to tax even those transactions which although involvetransfer of shares or interest in a foreign entity, but such share or interest derives its valuesubstantially from the assets based in India

Thus, vide Finance Act, 2015 the term has been clarified to remove the ambiguity regarding thethe undefined criteria upon which such an indirect transfer becomes taxable in India therebyputting to rest the controversy and providing a stable taxation regime. With respect to taxingindirect transfers, it has been proposed that value of assets situated in India shall exceed Rs. 10crore and should comprise of at least 50% of the value of total assets of the company as on thevaluation date

DIRECT TAX (TDS PROVISIONS)

TDS provisions attracted when payment of interest made by co-operative banks to its members

Restrict exemption to TDS under sec. 194C to contractors where such contractor owns ten or lessgoods carriages at any time during the previous year along with PAN

TDS on interest paid by a permanent establishment (PE) or a branch of foreign bank to its HeadOffice (HO) and other overseas branches treating the PE or branch as a taxable entity

Threshold limit of payment of Rs 30,000 to deduct TDS at 10% on pre-mature withdrawal fromEmployees Provident Fund Scheme, 1952

DIRECT TAX (PROCEDURAL ASPECT)

Mechanism proposed to pre-empt repetitive appeals by the revenue in the same assessees caseon the same question of law year after year

No requirement to obtain TAN by an individual or HUF purchasing an immovable propertyfrom a non-resident, when hell deduct tax on such acquisition from a non-resident

In search cases, it is proposed to allow seized cash to be adjusted towards the assessees taxliability under his settlement application

Increment in monetary limit from Rs. 5 lakh to Rs. 15 lakh, for a case to be heard by a SingleMember Bench of the ITAT

Threshold limit for applicability of transfer pricing regulations to specified domestic transactionsto be increased from Rs. 5 crore to Rs. 20 crore

DIRECT TAX (BENEFITS TO MIDDLE CLASS TAX PAYER)

Investments in Sukanya Samriddhi Scheme is eligible for deduction u/s 80C. All payments tothe beneficiaries including interest payment on deposit will also be fully exempt

Deduction limit u/s 80CCC, on account of contribution to a Pension Fund of LIC or IRDAapproved increased from Rs. 1 lakh to Rs. 1.5 lakh

Additional deduction of Rs. 50,000 is proposed to be provided for contribution to the NewPension Scheme under Section 80CCD

Deduction limit u/s 80D, in respect of health insurance premium, increased from Rs. 15,000 toRs. 25,000 and for senior citizens increased from Rs. 20,000 to Rs. 30,000

Deduction limit u/s 80DD towards maintenance including medical treatment of a dependantwho is a person with disability, increased from Rs. 50,000 to Rs. 75,000 and in case of severedisability from Rs. 1 lakh to Rs. 1.25 lakh

DIRECT TAX (BENEFITS TO MIDDLE CLASS TAX PAYER)

Deduction limit u/s 80DDB, in respect of expenditure on account of specified diseases of seriousnature increased from Rs. 60,000 to Rs. 80,000 in case of very senior citizens

Donation made to National Fund for Control of Drug Abuse (NFCDA) shall be eligible for 100%deduction under section 80G

Full deduction proposed against contributions made to Swachh Bharat Kosh and Clean GangaFund under Section 80G

Increase in deduction limit u/s 80U in case of a disabled person from Rs. 50,000 to Rs. 75,000 andin case of severe disability the limit is increased from Rs. 1 lakh to Rs. 1.25 lakh

Deduction of Rs. 30,000 towards medical expenditures allowed in case of senior citizens abovethe age of 80 years and not covered by health insurance

Transport allowance exemption is being increased from Rs. 800 to Rs. 1,600 per month

CHANGES IN INDIRECT TAX

SERVICE TAX

Increase in rate of service tax plus education cesses from 12.36% to a consolidated rate of 14%.Effective date yet to be notified

Imposition of Swachh Bharat Cess @2% is proposed to be levied on value of all or certaintaxable services for financing and promoting Swachh Bharat initiative thereby making total rateof service tax to be 16%. Effective date is yet to be notified

Section 66F (1) prescribes that unless otherwise specified, reference to a service shall not includereference to any input service used for providing such services

Exemption vide notification 42/2012, regarding service provided by a commission agent locatedoutside India to an exporter located in India, is withdrawn

Transport of goods for export by road from the factory to a land customs station is exempted

Road cess on petrol and diesel hiked to Rs. 6 per litre from Rs. 2 per litre

SERVICE TAX

Service tax levied on construction related services rendered to Government, local authority orgovernmental authority with exemption limited to specified works

Negative List under service tax is being slightly pruned and certain other exemptions are beingwithdrawn to widen the tax base

SERVICE TAX (DEFINITION OF CONSIDERATION)

Consideration under section 67 includes :

any amount that is payable for the taxable services provided or to be provided

any reimbursable expenditure or cost incurred by the service provider and charged, in course ofproviding or agreeing to provide a taxable service, except in such circumstances, and subject tosuch conditions, as may be prescribed

any amount retained by the lottery distributor or selling agent from gross sale amount of lotteryticket in addition to the fee or commission, if any, or, as the case may be, the discount received,that is to say, the difference in the face value of lottery ticket and the price at which thedistributor or selling agent gets such ticket

SERVICE TAX (CHANGES IN NEGATIVE LIST)

To be levied on the service provided by way of access to amusement facility such as rides,bowling alleys, amusement arcades, water parks, theme parks, etc

Service tax on admission to entertainment event of concerts, pageants, non-recognised sportingevents, music concerts and award functions, where amount charged, for admission, is more thanRs. 500/- except few being exempted

Services provided by the Government or local authority to a business entity, except the servicesthat are specifically exempted or covered by any another entry in the Negative List, shall beliable to service tax

Service tax to be levied on service by way of carrying out any processes as job work forproduction or manufacture of alcoholic liquor for human consumption

SERVICE TAX (MEGA EXEMPTION NOTI. [25/2012])

Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling offruits and vegetables are being exempted

Service provided by way of admission to a museum, zoo, national park, wild life sanctuary and atiger reserve is being exempted

No Service tax on services of performing artist (except brand ambassador) in folk or classical artform of music, dance or theatre if amount charged does not exceed Rs. 1 lakh

Service provided by way of exhibition of movie by the exhibitor/theatre owner to the distributoror association of persons consisting of exhibitor as one of its member is being exempted

Exemptions withdrawn on the following services:o services provided by a mutual fund agent to a mutual fund or assets management company;o distributor to a mutual fund or AMC; ando selling or marketing agent of lottery ticket to a distributor of lottery


Exemption presently available on specified services of construction, repair of civil structures, etc.when provided to Government shall be restricted only to -o a historical monument, archaeological siteo canal, dam or other irrigation work;o pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal

Service tax levied on construction, erection, commission or installation of original works relatedto airport or port

Health care services and ambulance services are exempt from Service Tax

Life insurance service provided by way of Varishtha Pension Bima Yojna is being exempted

No service tax on services provided by a Common Effluent Treatment Plant operator fortreatment of effluent


Exemption is being withdrawn on the following services-o Departmentally run public telephoneo Guaranteed public telephone operating only local callso Service by way of making telephone calls from free telephone at airport and hospital where no bill is

issued

Service tax levied on transportation of tea, coffee, jaggery, sugar, milk products (other than milk)and edible oil

Service tax exemption on transportation of food stuff by rail, or vessels or road will be limited totransportation of food grains including rice and pulses, flours, milk and salt only

SERVICE TAX (ABATEMENT)

Service tax payable on 30% on value of transport of passengers, with or without accompaniedbelongings by rail is also subject to uniform condition of non-availment of Cenvat credit

Abatement on services by goods transport agency in relation to transportation of goods isincreased from 25% to 30%

Abatement on services by transport of goods in a vessel is reduced to 30%

Abatement of 70% is withdrawn on chit fund service

Business and first class air travel to cost more on pocket since abatement is reduced from 60% to40%

SERVICE TAX (REVERSE CHARGE)

Full reverse charge on services provided by mutual fund agents or distributors, mutual fundor asset management company and lottery agents

Full reverse charge on manpower supply and security services when provided byindividual, HUF, partnership firm to a body corporate

Full reverse charge on service provided or agreed to be provided by a person involving anaggregator in any manner

SERVICE TAX (SERVICE TAX RULES)

Under Rule 2, services provided by way of aggregator model to be taxed, if the service, soprovided, uses the brand name of the aggregator in any manner

Under Rule 4, registration for single premises to be granted in two days of filing of application.Also, there is no need to get Registration Certificate signed by the Authority and the RegistrationCertificate downloaded from ACES would be sufficient proof

Provision for issuing digitally signed invoices is inserted. Also, records may be preserved inelectronic form but each page has to be authenticated by means of a digital signature

Rule 6 (6A) which provided for recovery of service tax self-assessed and declared in the returnunder section 87 is being omitted consequent to the amendment in section 73 for enabling suchrecovery

Alternative rates in respect of certain services like money changing service, service provided byair travel agent, insurance service and service provided by lottery distributor and selling agentare revised proportionately due to upward revision of service tax rate

SERVICE TAX (CENVAT CREDIT RULES)

Cenvat Credit Rules amended to allow credit of service tax paid under partial reverse charge bythe service receiver without linking it to the payments of value of service to service provider as atrade facilitation measure

Cenvat credit (in partial reverse charge) can be availed by the service recipient as under:o Where service recipient has to pay the tax on his own accord- credit can be claimed when the same is

deposited with the Governmento Where tax is charged by the service provider- credit can be claimed as soon as the invoice is received by

the service recipient. Provided, the payment is made within three months of receipt of invoice else thecredit, so availed, shall be revered but can be re-availed on making payment

Time period for taking Cenvat Credit is extended from six months to one year from date ofinvoice

Cenvat Credit allowed on input and capital goods received directly by job workers

CUSTOMS

Concessional rate of custom duty of Nil Basic Customs Duty, 6% CVD and Nil SAD on specifiedparts of electrically operated and hybrid vehicles extended upto 31st March, 2016

Reduction in the rates of basic customs duty on certain inputs, raw materials, intermediates andcomponents (in all 22 items) so as to minimise the impact of duty inversion and reduce themanufacturing cost in several sectors

Addressing the problem of Cenvat credit accumulation due to the levy of SAD, certain goods,except populated printed circuit are exempted from SAD. Also, the rate of SAD on certain otherinputs and raw materials are reduced, subject to actual user condition

Notifications 13/2012 and 14/2012 granting exemption on the levy of EC and SHEC arerescinded

Export duty on ilmenite reduced to 2.5% from 5%

CUSTOMS

Petrol and high speed diesel, falling under heading 2710 of the First Schedule to the CustomsTariff Act, 1975, when imported into India, exempted from so much of the additional customsduty as is in excess of the amount calculated at the rate of Rs. 6 per litre

No penalty would be imposed if the duty and interest, due, is paid within 30 days of issue ofShow Cause Notice, provided there is no fraud , collusion, mis-representation involved

Reduced penalty of 25% in cases of short levy/ non-levy/ short payment/ non-payment/erroneous refund of duty for reasons of collusion or any wilful mis-statement or suppression offacts, provided the duty, as determined, along with the interest is paid within 30 days from thedate of communication of the order

Penalty not exceeding 10% of the duty sought to be evaded of Rs. 5000, whichever is greater, incases of improper import or export of goods

CUSTOMS (REDUCTION IN BCD)

RAW MATERIALS PREVIOUS RATECURRENT

RATE CHANGE

Antimony metal, antimony waste and scrap 5.0% 2.5% - 2.5%

Black Light Unit Module for use in the manufacture of LCD/LED TV panels 10.0% Nil - 10.0%

Butyl acrylate 7.5% 5.0% - 2.5%

Certain specified inputs for use in the manufacture of flexible medical video endoscopes 5.0% 2.5% - 2.5%

Ethylene dichloride (EDC), vinyl chloride monomer (VCM) and styrene monomer (SM) 2.5% 2.0% - 0.5%

HDPE for use in the manufacture of telecommunication grade optical fibre cables 7.5% Nil - 7.5%

CUSTOMS (REDUCTION IN BCD)- CONTD.


RATE CHANGE

Isoprene and Liquefied butanes 5.0% 2.5% - 2.5%

Organic LED (OLED) TV panels along with LCDs panels 10.0% Nil - 10.0%

Specified components for use in the manufacture ofspecified CNC lathe machines and machining centres 7.5% 2.5% - 5.0%

Ulexite ore 2.5% Nil -2.5%

Digital Still Image Video Camera, their parts andcomponents 5.0% Nil - 5.0%


RAW MATERIALS CURRENT RATEActive Energy Controller (AEC) for use in the manufacture of Renewable PowerSystem (RPS) Inverters 5.0%

Evacuated Tubes with three layers of solar selective coating for use in themanufacture of solar water heater and system Nil

Parts, components and accessories (falling under any Chapter) for use in themanufacture of tablet computers and their sub-parts Nil

Raw materials [battery, titanium, palladium wire, eutectic wire, silicone resins andrubbers, solder paste, reed switch, diodes, transistors, capacitors, controllers, coils(steel), tubing (silicone)] for use in the manufacture of pacemakers

Nil

To reduce the cost of raw materials, basic custom duty on certain items has been reduced asgiven hereunder:


RAW MATERIALS CURRENT RATEDuty on certain materials (C-block compressors, crankshafts, over load protector andpositive thermal coefficient) used to manufacture refrigerator compressors 5.0%

Certain compounds of ceria zirconia, cerium and zeolite used in the manufacture ofwash-coat for catalytic converters 5.0%

Sulphuric acid for the manufacture of fertilizers 5.0%Anthraquinone 2.5%

Metal parts for use in the manufacture of electrical insulators falling under heading8546 7.5%

To address the problem of duty inversion, duty has been reduced on certain inputs as listedbelow:

CUSTOMS (REDUCTION IN BCD)- CONTD.

RAW MATERIALS CURRENT RATE

Magnetron of up to 1 KW used for the manufacture of domestic microwave ovens Nil

Artificial heart (left ventricular assist device) Nil

Materials like water blocking tape, Ethylene propylene non-conjugated dienerubber (EPDM) and mica glass tape used in the manufacture of insulated wires andcables

7.5%

CUSTOMS (REDUCTION IN SAD)


RATE CHANGE

All goods except populated PCBs (under any Chapter ofCustoms Tariff) used in manufacture of ITA bound goods 4.0% Nil - 4.0%

Inputs for use in the manufacture of LED drivers andMCPCB for LED lights, fixtures and LED lamps 4.0% Nil - 4.0%

Melting scrap of iron & steel, copper, brass andaluminium 4.0% 2.0% - 2.0%

Naphtha, ethylene dichloride (EDC), vinyl chloridemonomer (VCM) and styrene monomer (SM) formanufacture of excisable goods

4.0% 2.0% - 2.0%

SAD on certain raw materials has been reduced to address the problem of CENVAT creditaccumulation. The new applicable rates are as listed in the table below

CUSTOMS (REDUCTION IN SAD)- CONTD.


RATE CHANGE

Raw materials [battery, titanium, palladium wire, eutecticwire, silicone resins and rubbers, solder paste, reedswitch, diodes, transistors, capacitors, controllers, coils(steel), tubing (silicone)] for use in the manufacture ofpacemakers

4.0% Nil - 4.0%

Parts, components and accessories (falling under anyChapter) for use in the manufacture of tablet computers 4.0% Nil - 4.0%

CUSTOMS (INCREASE IN BCD)


RATE CHANGE

Effective rate on Commercial Vehicles 10.0% 20.0% 10.0%

Metallurgical coke 2.5% 5.0% 2.5%

Tariff rate on Commercial Vehicles 10.0% 40.0% 30.0%

Tariff rate on iron & steel and articles of iron or steel,falling under Chapters 72 and 73 of the Customs Tariff 10.0% 15.0% 5.0%

Note:

There is no change in the existing effective rates of basic customs duty on Iron and Steel

Customs duty on commercial vehicles in Completely Knocked Down (CKD) kits and electrically operated vehiclesincluding those in CKD condition will continue to be at 10%

EXCISE

Standard Ad Valorem rate of BED proposed to be increased to 12.5%. Levy of Education Cessand Secondary & Higher Education Cess on excisable goods are being subsumed in Basic ExciseDuty thereby making the excisable goods fully exempt of both the cess

Education Cess and Higher Education Cess on petroleum products exempted

Concessional excise duty rates on specified parts of Electrically Operated Vehicles and HybridVehicles, presently available upto 31.03.2015, is being extended upto 31.03.2016

All goods falling within the First Schedule to the Central Excise Tariff Act, 1985 exempted fromthe whole of the Secondary and Higher Education Cess

Notifications 28/2010 and 29/2010 granting Education Cess and Secondary and HigherEducation Cess exemption on all goods under tenth schedule of Finance Act, 2010 have beenwithdrawn

Exemption from SAD proposed on all goods used for manufacture of ITA bound (except PPCB)

EXCISE

Scheduled rate of Clean Energy Cess levied on coal, lignite and peat is being increased from Rs.100 per tonne to Rs. 300 per tonne

Clean Energy Cess increased from Rs. 100 to Rs. 200 per metric tonne of coal

Conversion of Excise Duty to the extent of Rs. 4 per litre into Road Cess

Excise duty levied on the value of duty paid on rails for manufacture of railway or tramwaytrack construction material is being exempted retrospectively for the period from 17.03.2012 to02.02.2014, if no CENVAT credit of duty paid on such rails is availed

Lemonade and other beverages to attract excise duty based on MRP

Condensed milk in unit containers will attract excise duty based on retail sale price

LED lights will attract excise duty based on MRP

EXCISE

Excise duty on cigarettes is increased by 25% for cigarettes of length not exceeding 65 mm and by15% for cigarettes of other lengths. Similar increases proposed on cigars, cheroots and cigarillos

Increase in excise duty on pan masala, gutkha and certain other tobacco products

Excise duty rate on petrol and diesel revised but net effect remains unchanged

Excise duty exemption for captively consumed intermediate compound coming into existenceduring the manufacture of agarbatti

Excise duty of 2% without CENVAT credit and 6% with CENVAT credit to be levied on peanutbutter

Excise duty of 2% without CENVAT credit or 6% with CENVAT credit is being levied oncondensed milk put up in unit containers

Additional Excise duty on water (mineral, aerated, sweetened or flavoured) reduced to Nil

EXCISE (AMENDMENT IN CENVAT CREDIT RULES)

Time limit for taking CENVAT Credit on inputs and input services is being increased from sixmonths to one year

Credit in respect of inputs may be taken immediately on receipt of the inputs at the premises ofthe job worker when goods directly sent to him

If credit wrongly taken but not utilized no interest or penalty attracted and it would be recoveredfrom the manufacturer. If credit wrongly taken and utilized then it would be recovered alongwith interest

Credit shall be utilised in the following manner:o the opening balance of the month has been utilised first;o credit admissible in terms of these rules taken during the month has been utilised next;o credit inadmissible in terms of these rules taken during the month has been utilised thereafter

EXCISE (CHANGES IN ABATEMENT)

RAW MATERIALS CURRENT RATE

Condensed milk put up in unit containers 30%

Extracts, essences and concentrates of tea or mate and preparations with a basis ofthese extracts, essences or concentrates or with a basis of tea or mate 30%

All goods except mineral waters and aerated waters 35%

All footwear 25%

LED lights or fixtures including LED Lamps 35%

EXCISE (REDUCTION IN EXCISE DUTY)


RATE CHANGE

Chassis for Ambulances 24.0% 12.5% - 11.5%

Inputs used in manufacture of LED drivers and MCPCBfor LED lights, fixtures and LED lamps 12.0% 6.0% - 6.0%

Leather footwear (footwear with uppers made of leatherof heading 4107 or 4112 to 4114) of Retail Sale Price ofmore than Rs. 1000 per pair

12.0% 6.0% - 6.0%

Tablets without Cenvat Credit 12.0% 2.0% - 10.0%

Solar water heater and system without Cenvat Credit 12.0% Nil - 12.0%

EXCISE (REDUCTION IN EXCISE DUTY)


RATE CHANGE

Pig iron SG Grade/ Ferro-silicon-magnesium formanufacture of cast components of wind operatedelectricity generators

12.0% Nil - 12.0%

Round copper wire and tin alloys used in manufacture ofSolar PV ribbon for manufacture of solar PV cells 12.0% Nil - 12.0%

Specified raw materials [battery, titanium, palladium wireetc.] for use in the manufacture of pacemakers 12.0% Nil - 12.0%

Wafers for use in the manufacture of integrated circuit(IC) modules for smart cards 12.0% 6.0% - 6.0%

EXCISE (INCREASE IN AD VALOREM RATES)


RATE CHANGE

Duty on tobacco used for smoking through 'hookah' or'chilam , other unbranded smoking tobacco and otherunbranded manufactured tobacco and its substitutes

12.0% 12.5% .5%

All goods, manufactured and cleared in packaged form,from a mini cement plant

6% + Rs 120 PMT

6% + Rs 125 PMT Rs 5 PMT

All goods, manufactured and cleared in packaged form,from a plant other than a mini cement plant

12% + Rs 120 PMT

12.5% + Rs 125 PMT

.5% + Rs 5 PMT

All goods, whether or not manufactured in a mini cementplant, other than those cleared in packaged form 12.0% 12.5% .5%



RATE CHANGE

Cement clinkers and Portland cement 12.0% 12.5% .5%

Gold potassium cyanide manufactured from gold andused in the electronics industry

12.0% (excluding

value of gold)

12.5% (excluding

value of gold)

.5%

Supported catalysts of certain metals

12.0% (of the value of material, if any, added and the

amount charged for such

manufacture)

12.5% (of the value of

material , if any, added and the

amount charged for such

manufacture)

.5%



RATE CHANGE

Cotton yarn, man-made synthetic filament yarn and yarnof staple fibres put up for sale as well as certain fabricswoven

12.0% 12.5% .5%

Sacks and bags of polymers of ethylene other than forindustrial use 12.0% 15.0% 3.0%

Drilling rigs falling under heading 8430 and 8705,mounted on motor vehicle chassis manufactured fromchassis and compressor on which the duty of exciseleviable under the First Schedule has already been paid

12.0% 12.5% .5%

Hybrid motor vehicles 12.0% 12.5% .5%



RATE CHANGE

Three wheeled vehicles for transport of not more thanseven persons, including the driver 12.0% 12.5% .5%

Motor vehicles, other than petrol driven dumpers of tariffitem 8704 10 90 12.0% 12.5% .5%

Motor vehicles of less than 4000mm in length, driven bypetrol, LPG, CNG or diesel and with engine capacity ofless than 1200cc (Petrol, CNG, LPG) and 1500 cc (Diesel)

12.0% 12.5% .5%

Hydrogen vehicles (on fuel cell technology) and three ormore axled motor vehicles for transport of goods or fortransport of eight or more persons, including the driver(other than articulated vehicle)

12.0% 12.5% .5%



RATE CHANGE

Motor Vehicles for the transport of more than twelvepersons, excluding the driver 12.0% 12.5% .5%

Motor Vehicles for the transport of goods, other thanpetrol driven 12.0% 12.5% .5%

Motor Vehicle under heading 8716 manufactured by amanufacturer, other than the manufacturer of the chassis 12.0% 12.5% .5%

Chassis of battery powered road vehicles and of three ormore axled motor vehicle 12.0% 12.5% .5%


RATE CHANGE

Tablets with Cenvat Credit 12.0% 12.5% .5%

Soft Drinks 12.0% 18.0% 6.0%

Solar water heater and system with Cenvat Credit 12.0% 12.5% .5%

Mobile Phones with Cenvat Credit 6.0% 12.5% 6.5%

EXCISE (INCREASE IN EXCISE DUTY)

EXCISE (COMPLIANCE FACILITATION)

PAN requirement mandatory for registration

Details of registrations obtained from other departments to be communicated to the excisedepartment

Online registration for Central Excise to be done within 2 working days of the receipt of dulycompleted online application form

Post registration, self attested documents to be tendered at the time of verification of thepremises

Fresh registration in case of transfer of business or acquisition of factory

Assessee allowed to issue digitally signed invoices and maintain other records electronically

Delay in return filing will attract an interest of Rs. 100 for each day till the default continues

EXCISE (COMPLIANCE FACILITATION)

Facility of direct dispatch of goods by registered dealer from seller to customers premises isbeing provided. Similar facility is also being allowed in respect of job-workers. Registeredimporter can also send goods directly to customer from the port of importation

IMPACT ON TAX COLLECTION

As a result of these changes the direct taxproposals are projected to result in revenueloss of 8,315 crore

On the other hand, the changes in indirecttaxes are expected to yield 23,383 crore

Thus, the net impact of all tax proposalswould be revenue gain of 15,068 crore

-8315

23383

Direct Tax Indirect Tax

Projected figures for 2015-2016

THANK YOU

Aniket Rastogi, Advocate

M: +91 9899177302, 7417505699

E: [email protected]

BUDGET ANALYSIS 2015 - 2016Slide Number 2BLACK MONEY- COMPLIANCE FACILITATIONBLACK MONEY- COMPLIANCE FACILITATIONBLACK MONEY - PENALTYSlide Number 6DIRECT TAXDIRECT TAXDIRECT TAXDIRECT TAXDIRECT TAX (TAXING INDIRECT TRANSFERS)DIRECT TAX (TDS PROVISIONS)DIRECT TAX (PROCEDURAL ASPECT)DIRECT TAX (BENEFITS TO MIDDLE CLASS TAX PAYER)DIRECT TAX (BENEFITS TO MIDDLE CLASS TAX PAYER)Slide Number 16Slide Number 17SERVICE TAXSERVICE TAXSERVICE TAX (DEFINITION OF CONSIDERATION)SERVICE TAX (CHANGES IN NEGATIVE LIST)SERVICE TAX (MEGA EXEMPTION NOTI. [25/2012])SERVICE TAX (MEGA EXEMPTION NOTI. [25/2012])SERVICE TAX (MEGA EXEMPTION NOTI. [25/2012])SERVICE TAX (ABATEMENT)SERVICE TAX (REVERSE CHARGE)SERVICE TAX (SERVICE TAX RULES)SERVICE TAX (CENVAT CREDIT RULES)Slide Number 29CUSTOMSCUSTOMSCUSTOMS (REDUCTION IN BCD)CUSTOMS (REDUCTION IN BCD)- CONTD.CUSTOMS (REDUCTION IN BCD)CUSTOMS (REDUCTION IN BCD)CUSTOMS (REDUCTION IN BCD)- CONTD.CUSTOMS (REDUCTION IN SAD)CUSTOMS (REDUCTION IN SAD)- CONTD.CUSTOMS (INCREASE IN BCD)Slide Number 40EXCISEEXCISEEXCISEEXCISE (AMENDMENT IN CENVAT CREDIT RULES)EXCISE (CHANGES IN ABATEMENT)EXCISE (REDUCTION IN EXCISE DUTY)EXCISE (REDUCTION IN EXCISE DUTY)EXCISE (INCREASE IN AD VALOREM RATES)EXCISE (INCREASE IN AD VALOREM RATES)EXCISE (INCREASE IN AD VALOREM RATES)EXCISE (INCREASE IN AD VALOREM RATES)EXCISE (INCREASE IN AD VALOREM RATES)EXCISE (INCREASE IN EXCISE DUTY)EXCISE (COMPLIANCE FACILITATION)EXCISE (COMPLIANCE FACILITATION)IMPACT ON TAX COLLECTIONSlide Number 57

budget 2015-2016 - proposals and changes

Documents

income tax

foreign assetto

foreign account

rate of tax

return of income

penalty of rs

undisclosed foreign

undisclosed income