Changes Related to Central Excise in Budget 2016

Just Recently The Finance Minister has actually presented the Financing Bill, 2016 in Lok Sabha today i.e. 29 th February, 2016 and here we supply detailed analysis for modifications in Central Excise Law.

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Material in this Article.

Modifications Connected To Central Import Tax in Budget 2016

Amendments made reliable right away

  • The Clean Energy cess is to be relabelled as Clean Environment cess. The reliable rate of Tidy Energy cess proposed to be increased from Rs.200 per tonne to Rs.400 per tonne.
  • Infrastructure cess is to be levied on automobile under heading 8703 based on specific exceptions. Even more, this cess is not CENVATable and CENVAT credit can not be utilized for its payment

Modifications to be effective from the date on which Finance Costs receives the assent of the President

Amendments in the Central Excise Act, 1944

  • Requirement of publishing and offering for sale any notification provided, by the Directorate of Promotion and Public Relations of CBEC under area 5A proposed to be done away with.
  • The time-limit for issuance of program cause notice under area 11 A for healing of service tax not levied/paid/short levied/short paid/erroneously reimbursed, for non-fraud cases is proposed to be enhanced by 1 year, i.e. from 1 year to 2 years.
  • It is proposed to empower the Board under section 37 B to problem orders, guidelines and directions for the application of any other arrangement of the Central Import Tax Act, 1944.

Modifications effective from 01.042016

Changes in the CENVAT Credit Rules, 2004

The CENVAT Credit Rules, 2004 have actually been simplified and rationalized with a venture to improve CENVAT credit circulation, lower the compliance concern and associated lawsuits, predominantly those connecting to apportionment of credit in between exempted and non exempted final products/services. Main amendments include:

  • Inputs and input services used in an activity which is not a ‘service’ under the Financing Act, 1994 likewise to draw in reversal provisions under rule 6.
  • CENVAT credit of service tax paid on amount charged for task by Federal government or any other person of a natural resource readily available, over such period of time as the duration for which the rights have been appointed.

    Should check out– Modifications Connected to Service Tax in Budget Plan

    Amendments in the Central Excise Rules, 2002

    The Central Excise Rules, 2002 are proposed to be changed as follows:

    ( a) Reduction of the variety of go back to be filed by a main import tax assessee above a specified limit to 13, that is, 1 annual return and 12 regular monthly returns.

    The stated yearly return is likewise required to be filed by the service tax assessees above a specified threshold. Hence, now three service tax returns require to be submitted rather of two.

    ( b) Like under service tax, the center of revision of return to be offered under main excise.

    ( c) Manual attestation of copy of invoice, indicated for transporter, is not needed in cases where billings are digitally signed.

    ( d) In case of completion of provisional assessment, the interest will be chargeable from the initial date of payment of duty.

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