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01 05 2015
Friday
Proposed in the Finance Bill 2015 |
As passed in the Lok Sabha on 30 04 2015 |
Penalty for failure to pay service tax.
76. (1) Where service tax has not been levied or paid, or has been short-levied or short-paid, or erroneously refunded, for any reason, other than the reason of fraud or collusion or wilful misstatement or suppression of facts or contravention of any of the provisions of this Chapter or of the rules made thereunder with the intent to evade payment of service tax, the person who has been served notice under sub-section (1) of section 73 shall, in addition to the service tax and interest specified in the notice, be also liable to pay a penalty not exceeding ten per cent. of the amount of such service tax:
Provided that where such service tax and interest is paid within a period of thirty days of-
(i) the date of service of notice under sub-section (1) of section 73, no penalty shall be payable;
(ii) the date of receipt of the order of the Central Excise Officer determining the amount of service tax under sub-section (2) of section 73, the penalty payable shall be twenty-five per cent. of the penalty imposed in that order, only if such reduced penalty is also paid within such period.
(2) Where the Commissioner (Appeals), the Appellate Tribunal or, the court, as the case may be, modifies the service tax determined under sub-section (2) of section 73, then, the amount of penalty payable thereon, shall also stand modified accordingly, and the benefit of reduced penalty under the proviso to sub-section (1) shall be available if such service tax, interest and reduced penalty so payable, is paid within a period of thirty days from the date of receipt of the order by which such modification is made.".
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Penalty for failure to pay service tax.
76. (1) Where service tax has not been levied or paid, or has been short-levied or short-paid, or erroneously refunded, for any reason, other than the reason of fraud or collusion or wilful misstatement or suppression of facts or contravention of any of the provisions of this Chapter or of the rules made thereunder with the intent to evade payment of service tax, the person who has been served notice under sub-section (1) of section 73 shall, in addition to the service tax and interest specified in the notice, be also liable to pay a penalty not exceeding ten per cent. of the amount of such service tax:
Provided that where such (this word is removed now) service tax and interest is paid within a period of thirty days of-
(i) the date of service of notice under sub-section (1) of section 73, no penalty shall be payable; and proceedings in respect of such service tax and interest shall be deemed to have been concluded; (added)
(ii) the date of receipt of the order of the Central Excise Officer determining the amount of service tax under sub-section (2) of section 73, the penalty payable shall be twenty-five per cent. of the penalty imposed in that order, only if such reduced penalty is also paid within such period.
(2) Where the amount of penalty is increased by the Commissioner (Appeals), the Appellate Tribunal or the court, as the case may be, over and above the amount as determined under sub-section (2) of section 73, the time within which the reduced penalty is payable under clause (ii) of the proviso to sub-section (1) in relation to such increased amount of penalty shall be counted from the date of the order of the Commissioner (Appeals), the Appellate Tribunal or the court, as the case may be .(substituted)
Did they make a mistake in substituting this clause instead of adding a new clause?
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Penalty for failure to pay service tax for reasons of fraud, etc.
78. (1) Where any service tax has not been levied or paid, or has been short-levied or shortpaid, or erroneously refunded, by reason of fraud or collusion or wilful mis-statement or suppression of facts or contravention of any of the provisions of this Chapter or of the rules made thereunder with the intent to evade payment of service tax, the person who has been served notice under the proviso to sub-section (1) of section 73 shall, in addition to the service tax and interest specified in the notice, be also liable to pay a penalty which shall be equal to hundred per cent. of the amount of such service tax:
Provided that where such service tax and interest is paid within a period of thirty days of -
(i) the date of service of notice under the proviso to sub-section (1) of section 73, the penalty payable shall be fifteen per cent. of such service tax;
(ii) the date of receipt of the order of the Central Excise Officer determining the amount of service tax under sub-section (2) of section 73, the penalty payable shall be twenty-five per cent. of the service tax so determined:
Provided further that the benefit of reduced penalty under the first proviso shall be available only if the amount of such reduced penalty is also paid within such period.
(2) Where the Commissioner (Appeals), the Appellate Tribunal or the court, as the case may be, modifies the service tax determined under sub-section (2) of section 73, then, the amount of penalty payable thereon, shall also stand modified accordingly, and the benefit of reduced penalty under the first proviso to sub-section (1) shall be available if such service tax, interest and reduced penalty so payable, is paid within a period of thirty days from the date of receipt of the order by which such modification is made.
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Penalty for failure to pay service tax for reasons of fraud, etc.
78. (1) Where any service tax has not been levied or paid, or has been short-levied or shortpaid, or erroneously refunded, by reason of fraud or collusion or wilful mis-statement or suppression of facts or contravention of any of the provisions of this Chapter or of the rules made thereunder with the intent to evade payment of service tax, the person who has been served notice under the proviso to sub-section (1) of section 73 shall, in addition to the service tax and interest specified in the notice, be also liable to pay a penalty which shall be equal to hundred per cent. of the amount of such service tax:
Provided that in respect of the cases where the details relating to such transactions are recorded in the specified record for the period beginning with the 8th April, 2011 upto the date on which the Finance Bill, 2015 receives the assent of the President (both days inclusive), the penalty shall be fifty per cent. of the service tax so determined.(now inserted) Provided that where such (word removed) service tax and interest is paid within a period of thirty days of -
(i) the date of service of notice under the proviso to sub-section (1) of section 73, the penalty payable shall be fifteen per cent. of such service tax; and proceedings in respect of such service tax, interest and penalty shall be deemed to be concluded (inserted now)
(ii) the date of receipt of the order of the Central Excise Officer determining the amount of service tax under sub-section (2) of section 73, the penalty payable shall be twenty-five per cent. of the service tax so determined:
Provided also that the benefit of reduced penalty under the second proviso shall be available(inserted now) only if the amount of such reduced penalty is also paid within such period.
Explanation.--For the purposes of this sub-section, "specified records” means records including computerised data as are required to be maintained by an assessee in accordance with any law for the time being in force or where there is no such requirement, the invoices recorded by the assessee in the books of accounts shall be considered as the specified records. (inserted now)
(2) Where the Commissioner (Appeals), the Appellate Tribunal or the court, as the case may be, modifies the amount of service tax determined under sub-section (2) to section 73, then the amount of penalty payable under sub-section (1) and the interest payable thereon under section 75 shall stand modified accordingly, and after taking into account the amount of service tax so modified, the person who is liable to pay such amount of service tax, shall also be liable to pay the amount of penalty and interest so modified. (substituted now)
(3) Where the amount of service tax or penalty is increased by the Commissioner (Appeals), the Appellate Tribunal or the court, as the case may be, over and above the amount as determined under sub-section (2) of section 73, the time within which the interest and the reduced penalty is payable under clause (ii) of the second proviso to sub-section (1) in relation to such increased amount of service tax shall be counted from the date of the order of the Commissioner (Appeals), the Appellate Tribunal or the court, as the case may be (inserted now)
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Transitory Provisions: Section 78B
(2) Notwithstanding anything contained in sub-section (1), in respect of cases falling under the provisions of sub-section (4A) of section 73 as was in force prior to the date of coming into force of the Finance Act, 2015, where no notice under the proviso to sub-section (1) of section 73 has been served on any person or, where so served, no order has been passed under sub-section (2) of section 73, before such date, the penalty leviable shall not exceed fifty per cent. of the service tax
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Transitory Provisions: Section 78B
(2) In cases where show cause notice has been issued under sub-section (1) of section 73 or under the proviso thereto, but no order has been passed under sub-section (2) of section 73 before the date on which the Finance Bill, 2015 receives the assent of the President, the period of thirty days for the purpose of closure of proceedings on the payment of service tax and interest under clause (i) of the proviso to sub-section (1) of section 76 or on the payment of service tax, interest and penalty under clause (i) of the second proviso to sub-section (1) of section 78, shall be counted from the date on which the Finance Bill, 2015 receives the assent of the President.(substituted now)
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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
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Notification No. 28 /2015-Customs |
Amends notification No. 12/2012- Customs, dated the 17th March, 2012 - customs duty increased on sugar and many other changes |
Notification No. 29 /2015-Customs |
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. 30 /2015-Customs |
Amends notification No. 27/2011- Customs, dated the 1st March, 2011 - export duty on iron ore fines reduced from 30% to 10%. |
CENTRAL EXCISE
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Notification No. 23 /2015-Central Excise |
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. 24 /2015-Central Excise |
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. 25/2015-Central Excise |
Amends notification No. 16/2010-Central Excise, dated the 27th February, 2010 - Chewing Tobacco. |
Notification No. 26/2015-Central Excise |
Amends notification No. 14/2015-Central Excise, dated the 1st March, 2015 - exemption from education cess on DTA clearances from EOUs. |
Notification No. 27/2015-Central Excise |
Amends notification No. 15/2015-Central Excise, dated the 1st March, 2015 - - exemption from education cess on DTA clearances from EOUs. |
Notification No. 12/2015-Central Excise (N.T.) |
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. 13/2015-Central Excise (N.T.) |
Amends the Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules, 2010 |
SERVICE TAX
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Notification No. 12/2015- Service Tax |
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).
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Can two Exemption Notifications be simultaneously allowed - CBEC Clarifies.
THE issue as to whether an importer can simultaneously avail the exemption benefits under two notifications, one for Basic Customs Duty and the other for CVD was clarified by the Board in Circular No.41/2013-Customs dated 21.10.2013 that an importer while availing of BCD exemption on steam coal under notification No.46/2011-Customs, dated 01.06.2011 can simultaneously avail of concessional CVD at 2% under S.No.123 of notification No.12/2012-Customs, dated 17.03.2012.
Drawing the same analogy, in the case of muriate of potash and urea for use in the manufacture of other fertilizers, Board clarifies that importers can simultaneously avail benefit of S.No.198 or 203 of notification No.12/2012-Customs, dated 17.03.2012 for concessional rate of BCD and S.No.127 of notification No.12/2012-Central Excise for CVD exemption.
This clarification is contained in the letter from JS, TRU explaining the notifications issued yesterday.
Please also see DDT 2214 22.10.2013
CBEC JSTRUD.O.F.No.334/5/2015-TRU, Dated: April 30, 2015
Tariff Value of Gold and Silver Increased
THE Government has increased the Tariff value of Gold from 388 USD to 393 USD per 10 gms. The tariff value of Silver is increased from 524 USD to 537 USD per kilogram.
Tariff values of all the oils, Brass Scrap have been changed.
The Tariff values as on 15.04.2015 and with effect from 30.04.2015 are as under:
Table 1
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S. No.
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Chapter/ heading/ sub-heading/tariff item
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Description of goods
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Tariff value USD (Per Metric Tonne)
from 15.04.2015
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Tariff value USD (Per Metric Tonne)
from 30.04.2015
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(1)
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(2)
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(3)
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(5)
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(6)
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1 |
1511 10 00 |
Crude Palm Oil |
658
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650
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2 |
1511 90 10 |
RBD Palm Oil |
682
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659
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3 |
1511 90 90 |
Others - Palm Oil |
670
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655
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4 |
1511 10 00 |
Crude Palmolein |
684
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662
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5 |
1511 90 20 |
RBDPalmolein |
687
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665
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6 |
1511 90 90 |
Others -Palmolein |
686
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664
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7 |
1507 10 00 |
Crude Soyabean Oil |
726
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752
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8 |
7404 00 22 |
Brass Scrap (all grades) |
3469
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3460
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9 |
1207 91 00 |
Poppy seeds |
2602
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2602
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Table 2
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S. No. |
Chapter/ heading/ sub-heading/tariff item |
Description of goods |
Tariff value USD
from 15.04.2015
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Tariff value USD
from 30.04.2015
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1 |
71 or 98 |
Gold, in any form in respect of which the benefit of entries at serial number 321 and 323 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed. |
388 per 10 grams
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393 per 10 grams
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2 |
71 or 98 |
Silver, in any form in respect of which the benefit of entries at serial number 322 and 324 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed. |
524 per kilogram
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537 per kilogram
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Table 3
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S. No. |
Chapter/ heading/ sub-heading/tariff item |
Description of goods |
Tariff value USD (Per Metric Tons)
from 15.04.2015
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Tariff value USD (Per Metric Tons)
from 30.04.2015
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1 |
080280 |
Areca nuts |
2264
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2264
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Notification No. 42/2015-Cus.(N.T.), Dated: April 30 2015
Income Tax - Extremely Simplified Procedure
REPLYING to the debate on the Finance Bill, the FM said,
Recently a controversy did come up. There is an old income tax form of 12 pages which was made 13.5 pages. I was out of the country when it was done. I had it stopped. I am having the entire matter reviewed and very soon you will hear of an extremely simplified procedure coming from us.
An easy taxation form in which an assessee is able to do things himself and does not have to run to various advisors.
Exchange Rates changed
THE Central government has notified new exchange rates for imported goods and for export goods in respect of the following foreign currencies viz. Danish Kroner, Euro, Norwegian Kroner, Pound Sterling and Swedish Kroner from today.
Notification 41/2015-Cus(NT), Dated: April 30, 2015
Expeditious clearance of export goods to Nepal - CBEC Instructions
THE Ministry of External Affairs has announced "Operation Maitree" under which India has embarked upon massive rescue, relief and evacuation operations in Nepal. A number of organizations/individuals as a part of their contribution to the relief operations may be required to procure relief items for export to Nepal.
In this regard, CBEC has directed the Chief Commissioners that field formations may be instructed to ensure all possible facilitation for expeditious procurement of goods meant for cross border supplies to Nepal from India. All procedural formalities, relating to export of relief items under bond or duty free procurement of relief items for export, may be expeditiously completed in order to facilitate export of relief items to Nepal on an urgent basis and where necessary, temporary orders may be issued by the Chief Commissioner to remove difficulty in complying with the procedures prescribed.
CBEC F.No. 201/03/2015-CX.6., Dated April 30, 2015
Monday is a holiday - Buddha Purnima
Until Tuesday with more DDT
Have a nice weekend.
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