The Interim Budget
PC reading out his Budget Speech. Please see the three MPs standing by his side; they were standing there throughout his speech. To protect him?
We have covered the Budget extensively yesterday itself - A brief summary of the tax changes:-
Excise Duty reduced for Automobiles - mobile phones
Mobile phones till now attracted an excise duty of 6% for those with an RSP of more than Rs. 2000 and 1% for others. Now it will be 6% with CENVAT Credit and 1% without credit irrespective of the RSP.
Excise duty on machinery, electric, electronic goods reduced - but only till 30.06.2014. Goods falling under Chapter 84 and 85 of the Central Excise Tariff with some exceptions will now attract a duty rate of 10% instead of 12%. This exemption will be valid only till 30.06.2014.
Excise duty on automobiles reduced - but only till 30.06.2014. Automobiles falling under Chapter 87 will also attract reduced rates of duty and this will also be valid till 30.06.2014.
The Finance Minister said that the rates can be reviewed at the time of regular budget and that is why the reduction as of now is valid only till 30.06.2014.
Exemption for goods supplied to mega power plants - time to produce certificate extended : As per condition 43 of Notification No. 12/2012-CE dated 17.03.2012, the final mega power status certificate is to be produced within thirty six months. Now this is extended to sixty months.
Notification No. 12/2012-CE dated 17.03.2012 is amended.
Notification No. , Dated: February 17, 2014
Customs Exemption to Embryo and …
Human embryo exempted from Customs duty : Human Embryo not for commercial purposes is now exempted.
Non Edible industrial grade oil. Customs duty which varies from 10 to 20% is now reduced to 7.5%.
LNG for Dahej SEZ exempted : Liquefied Natural Gas (LNG) imported for consumption in the C2-C3 Plant of M/s Oil and Natural Gas Corporation Limited located in the Dahej Special Economic Zone and also the remnant Liquefied Natural Gas (LNG) or Natural Gas (NG) cleared into the Domestic Tariff Area (DTA), after completion of the authorised operations, exempted from Customs duty.
Goods for Construction of Roads : Certain capital goods required for construction of roads exempted.
Plant and machinery for Bank Note Press : plant or machinery or equipment, related spares and consumables imported by or on behalf of BNPMIPL, for setting up of a Bank Note Paper Mill project to manufacture Cylinder Mould Vat Made Watermarked Banknote (CWBN) paper and other security paper at Mysore, Karnataka; and Plant or machinery or equipment, related spares and consumables for online inspection of pulp to attract 5% duty. This is also exempted from SAD.
Notification No. 12/2012-Customs dated 17.03.2012 is amended.
Notification No. , Dated: February 17, 2014
Notification No. , Dated: February 17, 2014
Service Tax
THE Government has exempted:
Cord Blood Banks :Services provided by cord blood banks by way of preservation of stem cells or any other service in relation to such preservation;
Storage of Rice :Services by way of loading, unloading, packing, storage or warehousing of rice.
Notification No. No.25/2012-Service Tax, dated the 20th June, 2012 is amended.
Notification No. , Dated: February 17, 2014
The RICE exemption:
While handling and storage of rice has been exempted, the Board has clarified that transportation of rice is already exempted under the category of foodstuff.
Milling of paddy : Board has also clarified that when paddy is milled into rice, on job work basis, service tax is exempt under sl.no.30 (a) of exemption notification 25/2012-ST dated 20th June, 2012, since such milling of paddy is an intermediate production process in relation to agriculture.
CBEC Circular No. 177/03/2014 -ST, Dated: February 14, 2014