SKS Associates Law Firm

SNAPSHOT BUDGET 2013 INDIRECT TAX

Customs Non Tariff
Protection provided to designs and geographical indications along with patents, trademarks and copyrights Allow provisional attachment of property belonging to any person to whom notice served for cases of collusion; or wilful misstatement; or suppression of facts, Advance Ruling available for any new business of import or export by an existing importer or exporter. Allow electronic filing of import / export manifest and to insert a proviso that where this is not feasible, the Commissioner of Customs may allow the delivery of such manifest in any other manner. Where imported goods are not immediately entered for home consumption goods it is permitted to be stored for a period not exceeding thirty days in a public warehouse and the private warehouse with a further possible extension of 30 days Certain specified offences made non-bailable Vacation of Stay order where appeal is not disposed of within the total period of 365 days from the date of order Department allowed to recover money due to the Central Government from any other person other than the defaulter after giving such other person a notice in writing Duty deferment under Section 143A when any material is imported under an import licence belonging to the category of Advance Licence is withdrawn No duty liability on any sample of goods which is consumed or destroyed during the course of testing or examination Agents made equally liable for any act or omission when the agent is expressly or impliedly authorised by the owner, importer or exporter of any goods

(Office: 431/D-22, II Floor, Chattarpur Hills, New Delhi 110074)

ExciseExcise- Non tariff

Duty evasion limit enhanced from thirty lakh rupees to fifty lakh for offences punishable with a term of imprisonment extending to seven years Offences relating to excisable goods where the duty leviable exceeds fifty lakh rupees and the person has committed evasion of payment of duty or contravened any of the provisions in relation to credit of any duty allowed has been made cognizable and non bailable. Department allowed to recover money due to the Central Government from any other person other than the defaulter after giving such other person a notice in writing Service of a statement containing details of duty not paid, short levied or erroneously refunded shall be deemed to be a service of notice Provisional attachment provisions amended to include offences involving extended period of limitation also. Advance Ruling application allowed for credit of excise duty paid or deemed to have been paid. The scope of admissibility has been expanded to include credit of service tax paid or deemed to have been paid on input services. Speed post with proof of delivery or courier approved by the Central Board of Excise & Customs included as additional modes of delivery.

Service tax
'Approved vocational education course' provided in section 65B to include State Council of Vocational Training' (SCVT) and excluding National Skill Development Corporation since it is not an affiliating body Definition of "process amounting to manufacture or production of goods", amended to include processes on which duties of excise are leviable under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 Testing activities directly related to production of any agricultural produce like soil testing, animal feed testing, testing of samples from plants or animals, for pests and disease causing microbes will be covered by the negative list; If a show cause notice issued for longer period of limitation is not found sustainable by an appellate authority or tribunal or court, the same will be deemed to be a notice issued for a period of eighteen months; Maximum penalty for failure to obtain registration has been made ten thousand rupees only Nee Section 78A introduced, to make provision for imposition of penalty on director, manager, secretary or other officer of the company, who is in any manner knowingly concerned with specified contraventions Tribunal can admit an appeal or permit the filing of memorandum of cross objections after the expiry of the relevant period;

(Office: 431/D-22, II Floor, Chattarpur Hills, New Delhi 110074)

Section 89 is being rearranged and amended to specifically provide that in the case of failure to pay service tax collected, within six months, for amount exceeding fifty lakh rupees shall be punishable with an imprisonment for a term which may extend upto seven years but not less than six months Section 91 is being introduced to provide for power to arrest by an authorized officer not below the rank of Superintendent of Central Excise particularly for nonpayment of collected service tax; Abatement in case of 'construction of complex, building or civil structure, or a part thereof.. where the carpet area of residential unit exceeds 2000 square feet or the amount charged is more than One Crore Rupees, taxable portion for service tax increased to 30%. This is effective 01 March 2013. Exemption to Charitable organizations, providing service towards any other object of general public utility limited to threshold exemption limit of 10 lacs only (earlier 25 Lacs) effective 01 April 2013. All restaurants having air-conditioning or central air heating in any part of the establishment at any time during the year brought under service tax effective 01 April 2013. Exemption to Services provided by an educational institution by way of renting of immovable property removed. Exemption to Temporary transfer or permitting the use or enjoyment of a copyright relating to cinematographic films limited to exhibition of cinematograph films in a cinema hall or a cinema theatre. Exemption to Services by way of vehicle parking to general public removed. Exemption to Services provided to Government, a local authority or a governmental authority, by way of repair or maintenance of aircraft removed. One time amnesty from imposition of interest and penalty and prosecution, provided to the stop filers, non-filers or non-registrants or service providers (who have not disclosed true liability in the returns filed by them during the period from October 2007 to December 2012) and who pay atleast 50% of the "tax dues" by 31.12.2013 and the remaining part by 30 June 2014.

(Office: 431/D-22, II Floor, Chattarpur Hills, New Delhi 110074)