It gives us immense pleasure in forwarding you our “Budget Analysis with respect to Excise & Service Tax” in Simple, Summarized & lucid manner.
- Interest Rate reduced to 15% from 18%-24%-30% in Excise, Service Tax & Custom
- Facility to file Revised Return of Excise is provided
- Reduction in filing of Total Excise Return from Total 27 Returns to only Total 13 returns is required to be filed annually. Requirement of filing of ER 5, ER 6 & ER 7 is dispensed with.
- Scope of Definition of Capital Goods in increased. Now Cenvat Credit of capital goods used in office of factory can be taken.
- 100% Cenvat Credit of, ‘capital goods having value upto Rs 10,000’ can be availed in first year only.
- Rule 6 (Litigation Prone Rule) of Cenvat Credit Rules 2004 is simplified.
- Excise Registration Procedure in case of Jewellery Industry is simplified.
- Total Rate of Service tax increased to 15% (Though expectation was 16%)
- Facility of payment of service tax to government on quarterly basis given to HUF & One Person Company as against monthly payment.
- Relief to Information Technology Software Industry as clarification provided whether Excise is applicable or Service Tax on software recorded on media
AGRICULTURE/ INDUSTRY: It is talked in various media about this Budget mainly for Agriculture and there is not much good things for Industry. Same feeling we also got when we heard budget Speech. However when our team has analysed changes in Excise & Service Tax, we noted that so many good amendment is made like Reduction in Interest Rate, Simplification of Cenvat Credit Procedure, Reduction in Number of Excise Returns etc.
GST: In Budget Speech of 2015, honorable Finance Minister Shri Arun Jaitley has mentioned that “GST will be put in place from 1st April 2016”. However in Budget Speech of 2016, no committed target date is announced for GST. Which imply that Road map of GST is not so easy and it may take Year 2017 or 2018 for GST to become reality.
INDIA GLOBALLY: However, government achieved GDP growth rate of 7.6% in spite of Global Slowed down. Also CPI inflation was came down from 9.4% to 5.4%. International Monetary Fund has held India as ‘Bright Spot’ whereas World Economic Forum has said India’s growth is ‘Extraordinarily High’. This is pride moment for all we Indian. Government needs to be thanked for the same.
OUR ANALYSIS: Various bold steps are taken in this budget w.r.t Excise & Service Tax which are explained in one page highlights enclosed to this mail.
- CENTRAL EXCISE RULES 2002 :BUDGET-2016
- CENTRAL EXCISE & TARIFF ACT 1984 AND RULES BUDGET-2016
- CENTRAL EXCISE ACT 1944 BUDGET-2016
- SERVICE TAX ABATEMENT RATE BUDGET 2016
- SERVICE TAX RATE WEF 01.06.2016
- SERVICE TAX APPLICABLE WEF ENACTMENT OF FINANCE BILL 2016
- SERVICE TAX RULES 1994 APPLICABLE FROM 01.04.2016
- POINT OF TAXATION RULES 2011 (POTR) BUDGET-2016
- EXEMPTED LIST OF SERVICES IN BUDGET-2016
Kindly go through the same and revert for any clarification. Request to give your feedback on Analysis done by us.