Budget 2016-17 changes in customs import duty tariff,excise duty and service tax
Indian Union Budget 2016-2017, changes in import customs tax tariff, chapter wise
Indian Budget 2016-17, Excise duty tariff changes, chapter wise
Changes in Service Tax as per Budget 2016-17
Excise duty CENVAT for readymade garments and made up articles of textiles
The Indian Budget 2016-2017 reads about excise duty and CENVAT for made up articles of textiles and garments as below:
Excise duty of 2% (without CENVAT credit) or 12.5% (with CENVAT credit) is being levied on readymade garments and made up articles of textiles falling under Chapters 61, 62 and 63 (heading Nos. 6301 to 6308) of the Central Excise Tariff except those falling under 6309 and 6310 of retail sale price (RSP) of Rs.1000 and above when they bear or are sold under a brand name. This optional levy would apply to such readymade garments and made up articles of textiles regardless of the composition of the garment / article. However, in respect of readymade garments and made up articles of textiles other than those mentioned above, the optional levy of „Nil (without CENVAT credit) or 6% (with CENVAT credit)? in case of garments / articles of cotton, not containing any other textile material and „Nil (without CENVAT credit) or 12.5% (with CENVAT credit)? in case of garments / articles of other composition, as the case may be, shall continue. The tariff value for readymade garments and made up articles of textile is also being increased from 30% to 60% which shall apply to all goods mentioned in the notification No.20/2001-CentralExcise (N.T.) dated 30.04.2001. It may be noted that the new levy is similar to the levy of mandatory excise duty of 10% on readymade garments and made up articles of textiles [goods falling under Chapters 61, 62 and 63 (heading Nos. 63.01 to 63.08)] when they bear or are sold under a brand name, which was introduced in the Budget 2011-12, except that: 3 a. The present levy is an optional levy, that is domestic manufacturers will have the option to pay excise duty of „2% (without CENVAT credit) or 12.5% (with CENVAT credit)?, b. The levy is restricted to such articles which have RSP of Rs.1000 and above, and c. The tariff value is being revised from 30% of RSP to 60% of the RSP.
In this regard, I would like to reiterate the instructions issued vide Budget letter F.No.334/3/2011-TRU dated 28.02.2011, Instruction D.O. F.No.334/3/2011-TRU, dated 04.03.2011 and Instruction D.O. F.No. B-1/3/2011-TRU, dated 25.03.2011. The said instructions shall apply mutatis mutandis to the new levy. Salient features of these instructions [suitably modified for the proposed optional levy, as underlined] are as under: (i) The levy shall not apply to retail tailoring establishments that stitch garments in a customized manner to the size and style specifications of individual customers, whether out of fabric purchased by the customer from the same establishment or fabric supplied by the customer. (ii) The brand name owner, who gets the goods manufactured on his own account on job work, shall pay the duty leviable on such goods as if the goods were manufactured by him. The brand name owner (and not the job-worker) shall be required to register and comply with all the provisions of Central Excise law. Rule 4 (1A) of the Central Excise Rules, 2001 and Para 1, clause (vi) of notification No.36/2001-C.E. (N.T.), dated 26.06.2001 refers. (iii) However, the brand name owner will be given the option to authorise his job-worker to pay the duty leviable on the goods. If such an authorisation is given, then the jobworker would have to obtain registration. Proviso to rule 4 (1A) of the Central Excise Rules, 2001 and proviso to Para 1, clause (vi) of notification No.36/2001-C.E. (N.T.), dated 26.06.2001 refers. (iv) A unit which manufactures goods bearing the brand name of another person out of inputs or raw materials which have been purchased independently and not supplied by the brand owner, does not satisfy the definition of “job-worker” and would, therefore, have to obtain registration and discharge the duty liability. (v) In cases where the brand name owner gets goods bearing its brand manufactured from other manufacturers (normally small units) without providing the raw materials or inputs, and if the RSP is not affixed or marked on such goods when they are cleared in the course of sale from the factory of a manufacturer to the brand owner, then no excise duty would be payable by such a manufacturers since the RSP of such goods is not disclosed to them by the brand owner. However, since the process of labeling or re-labelling constitutes a process of “manufacture”, duty on the tariff value (based on the RSP) would be payable as and when the brand owner labels the goods with the RSP of Rs.1000 or above and clears them for further sale. 4 (vi) The value for computing the eligibility as well as the exemption limit for purposes of SSI exemption would be the tariff value of the goods. Explanation (C) to notification No.8/2003-C.E., dated 1st March, 2003 refers. (vii) The SSI exemption for the month of March, 2016 will be Rs.12.5 lakh, subject to fulfilment of other conditions of the notification No.8/2003-C.E., dated 01.03.2003. For this purpose, notification No.8/2003-C.E., dated 1st March, 2003 is being amended suitably. (viii) The eligibility for availing of the SSI exemption in 2015-16 for the month of March 2016 is that the value of clearances for home consumption from one or more manufacturer from one or more unit should not have exceeded Rs. 4 crore in the financial year 2014-15. The computation for this purpose shall be done in accordance with the provisions of Para 3A of notification No. 8/2003-C.E. For this purpose, a certificate from a Chartered Accountant based on the books of accounts for 2014-15 shall suffice. (ix) Excisable goods which were produced on or before 29.02.2016 but lying in stock as on 29.02.2016 shall attract excise duty upon clearance. Manufacturers shall keep a stock declaration of finished goods, goods-in-process and inputs as on 29.02.2016 in their records duly certified by a Chartered Accountant so as to enable the manufacturers to claim CENVAT credit on inputs or inputs contained in goods lying in stock as already provided for in Rule 3(2) of the CENVAT Credit, Rules, 2004, if he so desires. No stock declaration, will, however, be required to be made to the jurisdictional central excise authorities. (x) Full exemption from Central Excise duty will be available to duty-paid goods returned to the manufacturer during a financial year up to an aggregate ceiling not exceeding 10% of the value of clearances for home consumption made in the preceding financial year. The manufacturer would be required to observe the following procedure for this purpose: (a) To submit an intimation within 48 hours of the receipt of the returned goods about the value of returned goods received in his factory/registered premises; (b) To maintain proper accounts/record of the receipt, finishing operations, and dispatch of returned stock indicating the monthly and cumulative value of the returned stock received during the financial year and to produce the same as and when required. Notification No. 31/2011-C.E., dated 24th March, 2011 refers. This facility has been provided since it is a common practice in this industry that the duty-paid stock cleared to the wholesale dealer/retailer on consignment basis that remains unsold is returned to the manufacturer either at the end of the season or from time to time. Such returned goods are cleared either as such or after „re-finishing? operations to another wholesaler or retailer for sale (often at reduced prices). The 5 re-finishing operations could involve cleaning, ironing, re-folding, repacking or relabeling, some of which constitute “manufacture” in terms of the relevant Chapter Notes. This facility obviates the need to pay excise duty twice on the same goods.
Exemption of excise duty on non manufacturers of goods for installation of cold storage
Exemption on goods financed by UN and Intl agency extends to sub contractors
Area based excise duty exemption presently available to the North Eastern States
BED and NCCD on pan masala, tobacco products, crude petroleum, mobile phones and motor vehicles
Clarification to Department of Scientific and Industrial Research (DSIR)
Customs duty exemption clarification for aircraft engines and parts
OLP and PTCR for manufacture of refrigerator compressor exemption clarification
clarification on exemption of Liquefied Natural Gas (LNG) for SEZ
Exemption of Excise duty of BCD and CVD on power project
No refund of SAD under notification No.102/2007-Customs dated 14.09.2007
Tax changes for specified goods imported for petroleum exploration under Indian Budget 2016-17
Direct imports by Government will attract customs duties
Exemption for disposable sterilized dialyzer and micro barrier of artificial kidney
Excise duty CENVAT is being levied on articles of jewellery under Indian Budget 2016-17
Import duty changes for electrical machinery, television, telecommunication equipment under HS code 85 as per Indian Budget 2016-17
Government tax tariff changes for import of machinery, mechanical appliances, boilers under Indian Budget 2016-17
Latest Indian budget changes for import of miscellaneous articles of base metal under HS code 83
Latest Indian budget changes for import of miscellaneous articles of base metal under HS code 83
Import tax tariff changes for spoon, tools, implements, cutlery forks as per Indian Union Budget 2016-17
Import tariff changes for carnet articles and other base metals under HS code 81 as per new Indian budget
Latest Indian budget changes for import of tin and tin articles under HS code 80
Duty tariff changes for import of zinc and zinc articles as per latest Indian Budget 2016-17
Import tax tariff changes for lead and lead articles as per Indian Union Budget 2016-17
Import duty changes for aluminum and aluminum articles under HS code 76 as per Indian Budget 2016-17
Government tax tariff changes for import of nickel and nickel articles under Indian Budget 2016-17
Import tariff changes for copper and copper articles under HS code 74 as per new Indian budget
Import tax tariff changes for iron and steel as per Indian Union Budget 2016-17
Import duty changes for imitation jewelry, pearls, precious metals, coins under HS code 71 as per Indian Budget 2016-17
Govt tariff changes for import of glass and glassware as per Budget 2016-17
Latest Indian budget changes for import of ceramic products as per HS code 69
Duty tariff changes for import of articles of mica, stone, plaster,cement, asbestos as per latest Indian Budget 2016-17
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