Finance Act 2010 is in place – consequential changes
ELECTRICAL energy removed from a Special Economic Zone to the Domestic Tariff Area and non - processing areas of SEZ will now attract duty of 16% ad valorem + Nil Special CVD. This change is made retrospectively with effect from 26th June, 2009. Exemption on supplies or imports of electrical energy, other than the above, will continue to be exempted. Import of electrical energy is also fully exempted from 4% Special CVD. While the increase in duty came into effect immediately under the provisions of Provisional Collection of Taxes Act, the exemptions were to come into force only on the date of enactment of the Finance Bill, 2010. Consequently, exemption from basic customs duty and from 4% Special CVD was provided for the intervening period through notifications. (Notification Nos. and both dated 27.2.2010.
Now that the Finance Bill is enacted, these two notifications are rescinded.
Notification No. ., Dated: May 10, 2010 and Notification No. ., Dated: May 10, 2010
Export Duty on Raw Cotton retained at Rs. 2500 per tonne
. The Finance Act 2010 has fixed a rate of Rs. 10,000/0 PMT as export duty for raw cotton. However the effective rate continues to be Rs. 2500/-.
Notification No. ., Dated: May 10, 2010
Excise – Cigarette Notification rescinded
: Notification No., Dated: February 27, 2010 fixes an effective rate of Rs. 509 per thousand cigarettes. Now this having become a part of the Tariff, the notification is no more relevant and so rescinded.
Notification No. ., Dated: May 10, 2010