Consequent Notifications - Credit of Education Cess can be used for payment of Excise Duty
THE Finance Minister made certain announcements in Lok Sabha and promised the required notifications. CBEC was prompt to issue the notifications immediately. These are the notifications issued yesterday.
Since the budget day, there was a concern as to what would happen to the cenvat credit of education cess and the Board took all of two months to clarify the position.
Notification 12/2015 -CENT, dated 30.04.2015 amends the CENVAT Credit Rules, 2004 to stipulate that
"the credit of Education Cess and Secondary and Higher Education Cess paid on inputs or capital goods received in the factory of manufacture of final product on or after the 1st day of March, 2015 can be utilized for payment of the duty of excise leviable under the First Schedule to the Excise Tariff Act:
Provided also that the credit of balance fifty per cent. Education Cess and Secondary and Higher Education Cess paid on capital goods received in the factory of manufacture of final product in the financial year 2014-15 can be utilized for payment of the duty of excise specified in the First Schedule to the Excise Tariff Act:
Provided also that the credit of Education Cess and Secondary and Higher Education Cess paid on input services received by the manufacturer of final product on or after the 1st day of March, 2015 can be utilized for payment of the duty of excise specified in the First Schedule to the Excise Tariff Act.”
What about the balance of CENVAT credit of education cess lying in CENVAT account as on 28.02.2015? The amendment to CENVAT Credit Rules allows credit on inputs/input services received on or after 01.03.2015, but it does not provide solution to the balance of credit as on 28.02.2015.
What if someone had already received the inputs/input services before 28.02.2015, but did not take credit of education cess? Should he lose that?
In case of capital goods, it is not mandatory that the balance 50% should be taken only in the immediate next financial year. Then, why they allowed the credit only to the capital goods received in 2014-15, but not before that?
Why can't they make a simple amendment without creating any fresh problems?
Customs | ||
Notification No. | Amends notification No. 12/2012- Customs, dated the 17th March, 2012 - customs duty increased on sugar and many other changes | |
Notification No. | Amends notification No. 39/96- Customs, dated the 23rd July, 1996 - Exemption from additional duty of customs levied under section 3 of the Customs Tariff Act (both CVD and SAD) in respect of certain entries of notification No.39/96-Customs, dated 23.07.1996 are withdrawn | |
Notification No. | Amends notification No. 27/2011- Customs, dated the 1st March, 2011 - export duty on iron ore fines reduced from 30% to 10%. | |
CENTRAL EXCISE | ||
Notification No. | Amends notification No. 62/95 - Central Excise, dated the 16th March, 1995 and notification No. 63/95- Central Excise, dated the 16th March, 1995 - exemption to Ordnance Factories & Defence PSUs is withdrawn. These changes will be effective from 01.06.2015. Level playing field & Make In India mantra at work? | |
Notification No. | Amends notification No. 12/2012- Central Excise, dated the 17th March, 2012 - Excise duty exemption on finishing agents, dye carriers to accelerate the dyeing or fixing of dye-stuffs, printing paste and other products and preparations of any kind used in the same factory for the manufacture of textiles and textile articles has been withdrawn. Back to old ways? | |
Notification No. | Amends notification No. 16/2010-Central Excise, dated the 27th February, 2010 - Chewing Tobacco. | |
Notification No. | Amends notification No. 14/2015-Central Excise, dated the 1st March, 2015 - exemption from education cess on DTA clearances from EOUs. | |
Notification No. | Amends notification No. 15/2015-Central Excise, dated the 1st March, 2015 - - exemption from education cess on DTA clearances from EOUs. | |
Notification No. | Amends CENVAT Credit Rules, 2004 - Cenvat credit of Education Cess and Secondary & Higher Education Cess for payment of basic excise duty. What happens to the balance credits of Education Cesses lying in the account as on 28.02.2015 is not forthcoming? | |
Notification No. | Amends the Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules, 2010 | |
SERVICE TAX | ||
Notification No. | Amends notification No. 25/2012-ST dated the 20th June, 2012 so as to exempt certain specified services.Life Insurance business provided under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Jan Dhan Yojana (PMJDY), General Insurance business provided under Pradhan Mantri Suraksha Bima Yojana (PMSBY), collection of contribution under Atal Pension Yojana (APY). Incidentally, the notification is dated 30th Aoril , 2015 - perhaps what they meant is April. | |