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SHE Cess{SECONDARY & HIGHER EDUCATION CESS}

Levy @ 1 % on Customs duties / Excise duties & Service Tax.

Excise and Customs – w.e.f. 01.03.2007. Service Tax – w.e.f. 11.05.2007.

CENVATable.


CUSTOMS


Valuation set for major revamp.

Peak rate reduced to 10 %.


“Interest” ing amendment in Drawback.

CENTRAL EXCISE


SETTLEMENT COMMISSION - CASTAWAY Once in a lifetime affair.

No immunity from interest.

Threshold limit raised to Rs. 3 Lakhs.

Pay and use.

Clandestine removals & Remand cases No Entry

Prosecution immunity - Limited.


Settlement only before original adjudication Fate of ex-parte orders?

* w.e.f 1st June 2007

UJAGAR UNDONE

Job workers beware !

Duty to be paid on principals’ price.

Rule 10 A inserted in Valuation Rules.

Is it the end of the road?


* w.e.f 1st April 2007

OTHER CHANGES …SSI exemption enhanced to Rs.1.5 Crores.

MRP levy in the offing for IT products.

E – payment made compulsory – 50 lakhs PLA

Amounts payable under CCR, 2004 are also duty. – CERA to bury its head.

New Section 5 B .


OTHER CHANGES.

• Pre - deposit menace to cover more. Section 11AB interest. Rule 57CC / Rule 6 “amounts”. Section 11D. • Time limit for filing departmental appeal - reduced. Transitional provisions expanded.


• Pipes for Water supply projects extended.

SERVICE TAX


NEW LEVIES *

Mining – oil, gas & minerals.

Renting of immovable property.

Works Contracts.

Asset management including portfolio management.

Content development.

Design Services.



RENTING OF IMMOVABLE PROPERTY

Commercial or business use – partly or wholly

Exclusions : - Religious bodies – both ways. - Educational bodies – one way. - Vacant land. - Land for educational, sports, circus, entertainment & parking purposes. - Residential / Accommodation. - Property tax – pro rata / subsequent adjustments


WORKS CONTRACTS …

Erection, commissioning, installation, commercial / residential construction, turnkey projects / EPC projects.

Roads, airports, railways, transport terminals, bridges, tunnels and dams, construction of ports – excluded.

Levy either on the service component or 2 % on gross amount.


Why not all works contracts?

WORKS CONTRACTS .

Separate Valuation provisions – Rule 2 A

Optional composition scheme – 32 / 2007

2 % on gross amount less VAT / ST on the transfer of property.


What if VAT / ST is paid on whole value

• No CENVAT on inputs

CG / Input services not barred

AMENDMENTS TO EXISTING LEVIES

Unification of telecom services.

Space selling in business directories, etc.

Social function for the purpose of mandap keeper / pandal / event management to cover marriages also.

Consulting engineering to cover hardware.



AMENDMENTS TO EXISTING LEVIES

Rent – a – cab to include cab more than 12 pax.

Management consultancy to include business consultancy.

“Goods” to include software under maintenance & repairs.

Man power supply to include pre-recruitment services.



OTHER FEATURES

Self adjustment of excess payment.

Revised return / Late filing fee.

Small scale exemption raised to Rs. 8 lakhs.

Exemption to residential welfare associations. upto Rs. 3000/- monthly subscription.

Cost audit / Saving clause like C. Ex.


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THANKS


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