Union Budget – 2012-13 - Notifications amending all Central Governed Indirect Taxes

Union Budget – 2012-13 - Notifications

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Extracts from Budget Speech as delivered by Honorable Finanace Minister Shri. Pranab Mukherjee on Service Tax Tax

157.     I shall now turn to indirect taxes. In a slight departure from the previous years, I shall begin with Service Tax.

Service Tax

158.     At the end of June this year, this tax will attain adulthood by completing 18 years. It is therefore time to shift gears and accelerate ahead. However, service tax needs to confront two important challenges to sustain the journey. These are:

•        The share of services in taxes remains far below its potential. There is a need to widen the tax base and strengthen its enforcement;

•        Service Tax law is complex and sometimes avoidably different from Central Excise. We need to bring the two as close as possible in the light of our eventual goal of transition to GST.

            I have attempted to address both these issues this year.

Extracts from Budget Speech as delivered by Honorable Finanace Minister Shri. Pranab Mukherjee on Direct Taxes

Madam Speaker,

            I now come to Part B of my proposals.

135.     The life of a Finance Minister is not easy. Various players, including policy makers, politicians, agriculturists and business houses, participate in the making of the economy. When everything goes well with the economy, we all share in the joy. However, when things go wrong, it is the Finance Minister who is called upon to administer the medicine. Economic policy, as in medical treatment, often requires us to do something, which, in the short run, may be painful, but is good for us in the long run. As Hamlet, the Prince of Denmark, had said in Shakespeare’s immortal words, “I must be cruel only to be kind.”

            With this reminder, let me now turn to the tax proposals.

136.     Last year, I had set the compass for movement towards the DTC in Direct Taxes and GST in Indirect Taxes. My tax proposals for fiscal year 2012-13 mark further progress in that direction.

Key Features of Budget 2012-2013 - Service Tax

Key Features of Budget 2012-2013 - Specifically on Service Tax

■                    Place of Supply Rules for determining the location of Sevice tax confronts challenges of its share being below its potential, complexity in tax law, and need to bring it closer to Central Excise Law for eventual transition to GST.

■                    Overwhelming response to the new concept of taxing services based on negative list.

■                    Proposal to tax all services except those in the negative list comprising of 17 heads.

■                    Exemption from service tax is proposed for some sectors.

Key Features of Budget 2012-2013 - Direct Taxes

Key Features of Budget 2012-2013 - Specifically on Direct Taxes.

■                    Tax proposals for 2012-13 mark progress in the direction of movement towards DTC and GST.

■                    DTC rates proposed to be introduced for personal income tax.

■                    Exemption limit for the general category of individual taxpayers proposed to be enhanced from Rs.1,80,000 to Rs.2,00,000 giving tax relief of Rs.2,000.

■                    Upper limit of 20 per cent tax slab proposed to be raised from Rs.8 lakh to Rs.10 lakh.

■                    Proposal to allow individual tax payers, a deduction of upto Rs.10,000 for interest from savings bank accounts.

TDS and TCS rates as applicable to FY 2011-12

In order to enable the accounting professionals to update the TDS and TCS working for their clients and for reference working, please note below the TDS Rates as applicable for FY 2011-12 relevant to AY 2012-13.

CBEC issued Rate of Exchange for conversion of foreign currency for computation of Custom Duty

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, PART-II, SECTION 3, SUB-SECTION (ii), EXTRAORDINARY]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

CENTRAL BOARD OF EXCISE AND CUSTOMS

NOTIFICATION   NO.14/2012-CUSTOMS (N.T.)

DATED THE 27^th February, 2012

8 Phalguna, 1933(SAKA)

S.O.       (E). – In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.9/2012-CUSTOMS (N.T.), dated the 30^th January, 2012 vide number S.O. 189 (E), dated the 30^th January, 2012, except as respects things done or omitted to be done before such supersession, the Central Board of Excise and Customs hereby determines that the rate of exchange of conversion of each of the foreign currency specified in column (2) of each of Schedule I and  Schedule II annexed hereto into Indian currency or vice versa shall, with effect from 1^st March, 2012 be the rate mentioned against it in the corresponding entry in column (3) thereof, for the purpose of the said section, relating to imported and export goods.

Guidance Note on Accounting for Real Estate Transactions

ICAI issued Guidance Note on Accounting for Real Estate Transactions (Revised 2012). The objective of this Guidance Note is to recommend the accounting treatment by enterprises dealing in 'Real Estate’ as sellers or developers. The term ‘real estate’ refers to land as well as buildings and rights in relation thereto. Enterprises who undertake such activity are generally referred to by different terms such as ‘real estate developers’, ‘builders’ or ‘property developers’.

To read more Click Here.

CG makes amendment in Cenvat Credit Rules - CENVAT Credit (First Amendment) Rules, 2012

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

New Delhi, the 09^th February, 2012

Notification No. 01/2012-Central Excise (N.T.)

G.S.R.        -(E).- In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely :-

1.        (1) These rules may be called the CENVAT Credit (First Amendment) Rules, 2012.

           (2) They shall come into force from the date of publication in the Official Gazette.

Documents required to be filed with refund claim of Excess Payment of Duty U/s 11B of Central Excise Act, 1944

List of documents required to be filed with refund claim of Excess Payment of Duty U/s 11B of Central Excise Act, 1944:-

1. Application in prescribed  Form –R.
2. Copy of TR-6/ GAR-7/PLA/ copy of return evidencing payment of duty.
3. Copy of invoices  (in original)
4. Documents evidencing that duty has not been passed on to the buyer.
5. Any other document in support of the refund claim.

ICAI enters into an arrangement with TAXMANN to provide the contents of its website only at Rs.3500/- its members

As an ongoing attempt to enable the members to keep pace with the latest developments in direct taxes, the Direct Taxes Committee of ICAI has entered into an arrangement with Taxmann, a reputed and a well known publisher, wherein Taxmann has agreed to provide all materials that are published and made available by it as a part of its standard practice and procedure on its website www.taxmann.com at a subsidized price of Rs. 3500/- p.a. vis-a- vis its market value which is Rs.7500/-. With this, the Committee has tried to make available, in a timely manner, relevant educational resources at a subsidized cost to the members, which in turn would enable them to discharge their functions in an effective manner.

Tariff Value u/s 14(2) of Customs Act, 1962 being Notified by CBEC

[TO BE PUBLISHED IN PART-II, SECTION-3, SUB-SECTION (ii) OF THE GAZETTE OF INDIA, EXTRAORDINARY]

Government of India

Ministry of Finance

(Department of Revenue)

(Central Board of Excise and Customs)

 

 

Notification No. 2/2012 - Customs (N. T.)

New Delhi, 13^th January, 2012

23 Pausha, 1933 (SAKA)

            S. O______ (E) – In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Board, being satisfied that it is necessary and expedient so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Cus (N. T.), dated, the 3^rd August 2001, namely: -          

ICAI - Issued Direct Tax Case Laws for May 2012

The Institute of Chartered Accountant of India issued in the interest of CA Final Students 33 Case Laws for its subject Direct Tax Laws (Group II Subject VII). All the CA Final students who are appearing for May 2012  examination are recommended to study these cases. To download these cases Click Here.

Best of Luck for the Exams.

Source: ICAI

Exchange Rates Notified by CBEC for the Month of January 2012

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

CENTRAL BOARD OF EXCISE AND CUSTOMS

Notification No.88 / 2011 - Customs (N.T.)

Dated the 28^th December, 2011

7 Pausha, 1933(SAKA)

            S.O.       (E). – In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.82/2011-CUSTOMS (N.T.), dated the 28^th November, 2011 vide number S.O. 2684(E), dated the 28^th November, 2011, except as respects things done or omitted to be done before such supersession, the Central Board of Excise and Customs hereby determines that the rate of exchange of conversion of each of the foreign currency specified in column (2) of each of Schedule I and  Schedule II annexed hereto into Indian currency or vice versa shall, with effect from 1^st January, 2012 be the rate mentioned against it in the corresponding entry in column (3) thereof, for the purpose of the said section, relating to imported and export goods.

TARIFF VALUES OF EDIBLE OILS, BRASS SCRAP (ALL GRADES) AND POPPY SEEDS NOTIFIED

PRESS INFORMATION BUREAU

GOVERNMENT OF INDIA

*****

TARIFF VALUES OF EDIBLE OILS, BRASS SCRAP (ALL GRADES) AND POPPY 

SEEDS NOTIFIED

    New Delhi: Pausha 12, 1933

January 2, 2012

Central Board of Excise and Customs (CBEC), Department of Revenue has issued  a Notification No. 89/2011-Customs (N.T.) dated December 30, 2011 and thereby notifying tariff values of edible oils, brass scrap (all grades) and Poppy seeds as shown in the table below.

No need to pay TAX DEMAND NOTICES if less than Rs.100/- - Finance Ministry

PRESS INFORMATION BUREAU

GOVERNMENT OF INDIA

*****

PRESS NOTE

It has been reported in some sections of the press that the Central Processing Centre, Bangalore  is sending notices for  payment of taxes which are as small as Rs. 1/- , 4/- ,  6/-, causing unnecessary hardship to assesses . It  has been stated that  when the refunds for amounts less than Rs. 100/- are not issued by the Income Tax Department, then the demand for less than Rs. 100/- should also not be collected.

Custom - Documents Required for Refund of 4%Spl.CVD

Documents Required for refund of 4% Special Additional Duty (SAD) / (4%Spl.CVD) as mentioned in Notification No. 102/2007-Customs dated 14th September 2007 are:

1. Document evidencing payment of the Special Additional Duty (SAD).
2. Invoices of sale of the imported goods in respect of which refund of the said SAD is claimed.
3. Documents evidencing payment of appropriate sales tax or value added tax, as the case may be, by the importer, on sale of such imported goods.