swamy associates chennai . coimbatore . bengaluru . hyderabad . ahmedabad

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swamy associateschennai . coimbatore .
bengaluru . hyderabad . ahmedabad

• BUDGET SAFARI

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• central excise

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4 increased to 8 across the board (except
for food / pharma / paper products / notified
medical equipments textile machinery). Goods
of ch. hdg 68 manufactured _at_ site
unconditionally exempted Exemption to packaged
software on the value representing transfer of
right to use (both under BED as well as
CVD) Notification No. 22/2009 -
http//taxindiaonline.com/RC2/union_budget/ub2009-
10/cen/cex2209.pdf Notification No. 80/2009 -
http//taxindiaonline.com/RC2/union_budget/ub2009-
10/cen/cus8009.pdf

• central excise

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Motor vehicles above 2000 cc to cost less
Petrol driven transport vehicles its chassis
to cost less ( except Dumpers) -
Notification 16 / 2009 - http//taxindiaonline.co
m/RC2/union_budget/ub2009-10/cen/cex1609.pdf

• central excise

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Compound wall for compounding ! - one time
compounding cap for Section 9 (1)
offences (except for attempt / abetment) -
parallel offence under NDPA - one time
compounding for any offence under CEA on goods
valued more than Rs.1 crore - convicts on or
after 30/12/2005- clause 103 of Finance (No.2)
Bill,2009http//taxindiaonline.com/RC2/union_bud
get/ub2009-10/bud2009_10.htm

• central excise

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CAs Budget! - inclusion in special audits u/s
14 A 14 AA of CEA along with cost
accountants - certification in export refunds of
service tax - clause 104 105 of Finance
(No.2) Bill,2009 http//taxindiaonline.com/RC2/u
nion_budget/ub2009-10/fb/bill42.pdf

• central excise

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COD power to High Courts - Sections 35 G 35 H
of CEA amended clause 107 108 of Finance
(No.2) Bill,2009 http//taxindiaonline.com/RC2/un
ion_budget/ub2009-10/fb/bill42.pdf - Sections
130 130 A of CA amended clause 86 87of
Finance (No.2) Bill,2009 http//taxindiaonline.co
m/RC2/union_budget/ub2009-10/fb/bill41.pdf Retur
n of non relied docs within 30 days of SCN Rule
24A of CER 2002 introduced Notification No.
17/2009 NT http//taxindiaonline.com/RC2/union_b
udget/ub2009-10/cen/cexnt1709.pdf

• central excise

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• customs

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Remission Refund - Section 26 A of CA
introduced - refund on imported defective goods
/ not as per specs - goods to be exported or
relinquished or destroyed ARA of IT ( under
Section 245 O of the ITA) to be ARA of Customs
(under Section 28F of CA) - clause 84 85 of
Finance (No.2) Bill,2009 http//taxindiaonline.co
m/RC2/union_budget/ub2009-10/fb/bill41.pdf

• customs

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DGCEI is DRI too! - Notification 27 / 2009
Customs (N.T) revalidated w.e.f 9/5/2000 -
to have all India jurisdiction - clause 91 of
Finance (No.2) Bill,2009 http//taxindiaonline.c
om/RC2/union_budget/ub2009-10/fb/bill41.pdf

• customs

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Compound wall for compounding ! - one time
compounding cap for Sections 135 135 A
offences - parallel offence under NDPA /
Chemical weapons convention Act / Arms Act /
Wild Life (Protection) Act - smuggling of
specified goods under Appendix 3 of Schedule 2 of
ITC / prohibited items under Section 5 of
FT(DR)Act / goods or docs affecting
sovereign relationship or national honour - one
time compounding for any offence under CA on
goods valued more than Rs.1 crore -convicts on
or after 30/12/2005 - clause 103 of Finance
(No.2) Bill,2009 http//taxindiaonline.com/RC2/un
ion_budget/ub2009-10/fb/bill41.pdf

• customs

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Tariff value provision to CTA Section 3 (2) of
CTA amended Machinery provisions to safeguard
dutySections 8B (4A), 8C (5B) 9 (7A) of
CTARevalidations to Sections 8B,8C,9 9A of
CTAMargin of dumping to be based on facts upon
non availability of recordsSub-section 6A to
section 9A of CTA - clause 93 101 of Finance
(No.2) Bill,2009http//taxindiaonline.com/RC2/uni
on_budget/ub2009-10/fb/bill41.pdf

• customs

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• service tax

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new services - Cargo transport by rail -
Transport of coastal cargo - Cargo transport
thru Inland waterways - Legal consultancy (bar
_at_ claw!) - Cosmetic / plastic surgery (
effective after a notified date) - clause 112
of Finance (No.2) Bill,2009 http//taxindiaonline
.com/RC2/union_budget/ub2009-10/fb/bill5.pdf

• service tax

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amended services - BAS to include
beers! ( Business Auxiliary Service to exclude
only manufacture of excisable goods) - Sub
brokers out of service tax net - acquiring
to become providing in IT service w.e.f
16/5/2008 ( effective after a notified
date) - clause 112 of Finance (No.2)
Bill,2009 http//taxindiaonline.com/RC2/union_bud
get/ub2009-10/f

• service tax

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No more revision only appealRule making
power to determine - date for rate - place
of provisionRetrospective amendment to
Notfn.1/2009 from 1/1/2005 (services
provided to GTA) - clause 112 of Finance
(No.2) Bill,2009 http//taxindiaonline.com/RC2/
union_budget/ub2009-10/fb/bill5.pdf

• service tax

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Works contracts tightened - Composition
only if gross value of all goods used are
included- FOC materials to be included in
composition scheme- Supply under separate
contracts to be included under composition
w.e.f 7/7/2009 but not to apply for WC, which
have already commenced or payment is received in
part or fullNotification 23/2009 -
http//taxindiaonline.com/RC2/union_budget/ub2009-
10/cen/st2309.pdf

• service tax

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Refund of service tax on exports - New
modified scheme - terminal handling service
included - Refund based on self certification (
up to 0.25 FOB) or on Companys CA
certification - time limit to file claim
extended to one year - relevant date is the
date of export ( What if ST is paid after one
year?) Notification 17 / 2009 -
http//taxindiaonline.com/RC2/union_budget/ub2009-
10/cen/st1709.pdf

• service tax

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Exemption for exports - GTA between place
of removal to ICD / CFS / port / airport -
Foreign Commission agents - BRC not a
criterion ( slip or intentional?) - 1 Cap on
exemption for Commission paid - Half yearly
returns to be filed - Scheme available for
exports after 7/7/2009 Notification 18 / 2009
- http//taxindiaonline.com/RC2/union_budget/ub200
9-10/cen/st1809.pdf

• service tax

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• cenvat credit

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Steel Cement are no more inputs if used in
construction ( Explanation to rule 2(k) of CCR
amended)Cenvat to be reversed on Inputs /
Capital goods, by a service provider, upon
writing off in full( Rule 3(5B) of CCR
amended)Reversal under Rule 6(3)(i) of CCR
reduced - 10 to 5 for manufacturers - 8 to
6 for service providersNotification 16 / 2009
NT - http//taxindiaonline.com/RC2/union_budget/u
b2009-10/cen/cexnt1609.pdf

• cenvat credit

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swamy associateschennai . coimbatore .
bengaluru . hyderabad . ahmedabad

• THANKS