BUDGET – 2008 - an overviewBUDGET – 2008 - an overview

by

swamy associates chennai – coimbatore – bengaluru – hyderabad – ahmedabad - rajkotchennai – coimbatore – bengaluru – hyderabad – ahmedabad - rajkot

CENTRAL EXCISE

Excise duty reduced to 14 % across the board

( 14.42% with Education CESS)

Pharma gets the best tonic !

Rate of duty reduced to 8 % ( abatement reduced to 35.5 %

)

- Units at Excise exempted zones are

no more beneficial

Paper gets pampered.

Exemption upto 3500 MTs restored(for units using non-conventional raw materials)

Rate of duty reduced to 8 %

Roads to clog more.

Duty for two wheelers & small cars reduced to 12 %

Software – No more soft corner.

Duty on packaged software increased to 12 %

Section 4 A – gets more teeth.

New Rules notified for non-declaration / incorrect

/obliterating MRP

- Adoption of nearest MRP- Market enquiry

If MRP is altered – altered MRP

Section 11B – Interesting amendment.

Refunds to cover interest also

Pre deposit to be refunded in 3 months

Section 11 D – widens its wings.

To cover “any person”

To cover exempted / NIL rated goods

Cenvat Credit Rules, 2004.

Input service definition to cover only “upto place of removal”.

Credit of Service tax on outward transport – out.

Master Circular – Still a ray of hope.

GTA Service Tax – Cannot be paid through credit.

Rule 6 of CCR…

Taxable & Exempted Service providers to pay 8 % of exempted services

value.

Option to reverse credit – Introduced for all

Formula for provisional reversal and final reversal

No more 20 % restriction

- Needs another Shri. Ramanujan.

… Rule 6 of CCR

First to reverse the input credit for exempted goods manufactured

Next to reverse the input credit for exempted services

Next to reverse the input services credit for exempted goods manufactured and

exempted services rendered

Miscellanea…

DTA duty for EOUs – enhanced.

1% NCCD for mobile phones

- Review of orders by Committee - Measure to resolve difference of opinion

“Goods” definition redefined.

… Miscellanea

Labelling or relabelling and repacking changed to

Labelling or relabelling or repacking.

Section 3A re-introduced(Mummy Returns)

SERVICE TAX

Threshold Exemption

Exemption enhanced to Rs.10 lakhs- No registration upto Rs. 9 lakhs

Disputes Resolution Scheme.

Effective from 01.07.2008 to 30.09.2008

Arrears pending as on 01.03.2008Service tax component of arrears not to exceed Rs.25,000.

GTA Abatement – made simple.

No more declaration from transporter.

Works Contract

Rate enhanced to 4 %

New levies / Expansion of levies…

All Information Technology Services under net.

Amendments in BAS / Consulting Engineering.

(Classification war with Copyrights in the offing?)

… New levies / Expansion of levies…

ULIP

Stock Exchange

Processing and Clearing houses

Tour operators(To include all permits except stage carriage permit)

BAS( To include game of chance like lottery)

… New levies / Expansion of levies

Supply of tangible goods

Internet telecommunication

Cargo handling

Renting of immovable property

Miscellanea.

Payment in advance

Self adjustment – Upto Rs. 1 lakh

Revised return – Upto 90 days

More penal provisions

CUSTOMS

Project imports – Rate reduced to 5 %

Iron / Aluminium melting scrap – NIL

Time limit for re-export under drawback scheme reduced to 18 months

THANKS

by

swamy associates chennai – coimbatore – bengaluru – hyderabad – ahmedabad - rajkot