Service Tax-Budget impact, 2016

SERVICE TAX CHANGESPrepared by Pooja Jajwani, Sandesh Mundra & Associates

EXPECTATIONS FROM THE SERVICE TAX BUDGET•FM has done his job. GST dark clouds ? Imagine the plight of FM.

•New house vs old house•Role of opposition•Rationalisation vs stability•Still effort is made to please all

Prepared by Pooja Jajwani, Sandesh Mundra & Associates

LEVY OF “KRISHI KALYAN CESS” [KKC] OF 0.5% TO MAKE EFFECTIVE SERVICE TAX RATE @ 15%• KKC paid eligible as CENVAT


•KKC of 0.5% to make effective tax @ 15%. •CENVAT against output liability of KKC. ALLOWED

•Going near the GST target•Shortly invoice will have more line items from government than your actual bill

•Cess why – no fund sharing with the states

LEVY OF “KRISHI KALYAN CESS” [KKC] OF 0.5% TO MAKE EFFECTIVE SERVICE TAX RATE @ 15% W.E.F. 01-06-2016


• This cess has no cascading effect as credit is available• Changes are yet to be incorporated in Rule 3 of the Cenvat

Credit Rules, 2004 to provide requisite legal backing for availment of Cenvat credit. Further as per the TRU letter the credit seems to have been restricted for the service provider

• Event budget speech says – Input Tax credit of the cess will be available for payment of cess

• Mallya cess ??

LEVY OF “KRISHI KALYAN CESS” [KKC] OF 0.5% TO MAKE EFFECTIVE SERVICE TAX RATE @ 15% W.E.F. 01-06-2016


MALLYA CESS


NEGATIVE LIST AMENDMENTS1. Specified Education Services


SPECIFIED EDUCATION SERVICES (CONT.) • This entry is deleted from negative list but exemption continues

by entry in Mega Exemption Notification w.e.f. bill enactment• Educational institution is not defined by common sense but by

babus• Govind Rao committee – certain things like education and health

can-not be taxed• Constant efforts to tweak the negative listi. Article 46/47 – directive principles of state policy – public interestii.Why do we have private schools in india ? They may have

become teaching shops ? But still ?iii.No new additions in the negative list ? Only deletions


2. TRANSPORTATION OF PASSENGERS


• Transportation of passenger by Ac Stage Carriage like GSRTC shall be liable to Service Tax at an abated rate of 60% [with Swachh Bharat Cess (SBC) + Krishi Kalyan Cess (KKC)]. w.e.f. 01-06-2016. without CENVAT

• Services of transportation of passengers with or without baggage by Ropeway, Cable car or Aerial Tramway @ 14.5% [with SBC] w.e.f. 01-04-2016.

• Contract carriage vs stage carriage• Contract of carriage is a contract between goods/passenger

carrier and consignor, consignee or passenger. It typically define the rights, duties and liabilities of parties, addressing topics such as acts of God and including clauses such as force majeure.

• Stage carriage means a motor vehicle which can carry more than six passengers excluding the driver for hire or reward at separate fares paid by or for individual passengers, either for the whole journey or for stages of the journey.

2. TRANSPORTATION OF PASSENGERS


3. TRANSPORTATION OF GOODS


TRANSPORTATION OF GOODS• Services of transportation of goods from outside India

up to custom station of clearance in India is deleted from negative list.

• Transportation of goods by aircraft exempted by amendment in exemption notification.

• But Service tax at an abated rate of 4.5% [with SBC + KKC] applicable on goods transportation by vessel under RCM. w.e.f. 01-06-2016

• Importation is taxable, exportation is exempt


EXEMPTIONS WITHDRAWN / SERVICE TAX SCOPE INCREASED


• Service tax would be applicable on services provided by way of construction, erection, commissioning, or installation of original works pertaining to Monorail and Metrorail where contract is entered on or after 01.03.2016. w.e.f. 01-03-2016

• Some big corporate seems to have influenced this change for the purpose of establishment of cenvat chain

• Appropriate stamp duty was paid – different languages in each exemption

EXEMPTIONS WITHDRAWN / SERVICE TAX SCOPE INCREASED


2. LEGAL SERVICES


LEGAL SERVICES• Legal services by senior advocate to other advocate or law firm is

withdrawn. Levy is under forward charge w.e.f. 01-04-2016.• Lawyers started in 2009, then gone away, then came back as

reverse charge in 2012. • Confusion in notification and TRU circular. Advocate act bars

senior advocate from joining a firm and directly filing a vakalatnama. – section 16 of advocate act

• So advocates are now divided into following categories :-Junior, junior advocate of a firm, junior to junior, junior to partnership, junior to senior, junior and senior to non business, and to business (It is to be noted that section 16 of the Advocates Act, 1961 grants discretion to the advocate to be or not to be senior advocate as per his consent) Prepared by Pooja Jajwani, Sandesh

Mundra & Associates

RESTRICTIONS ON SENIOR ADVOCATESRESTRICTIONS ON SENIOR ADVOCATES (Rules under Sections 16(3) and 49(1)(g) of the Act)(a) A Senior Advocate shall not file a vakalatnama or act in any Court, or Tribunal, or before any person or other authority mentioned in Section 30 of the Act.Explanation: "To Act" means to file an appearance or any pleading or application in any court, to Tribunal or before any person or other authority mentioned in Section 30 of the Act, or to do any act other than pleading required or authorised by law to be done by a party in such Court, or Tribunal, or before any person or other authority mentioned in the said Section either in person or by his recognised agent or Py an advocate or an attorney on his behalf.(b) (i) A senior Advocate shall not appear without an Advocate on Record in the Supreme Court or without an Advocate in Part II of the State Roll in any court, or tribunal, or before any person or other a,uthorities mentioned in Section 30 of the Act.


ii). Where a Senior Advocate has been engaged prior to the coming into force of the Rule in this Chapter, he shall not continue thereafter unless an Advocate in Part II of the State Roll is engaged along with him. Provided that a Senior Advocate may continue to appear without an Advocate in Part II of the State Roll in cases in which he had been briefed to appear for the prosecution or the defence in a criminal case, if he was so briefed before he is designated as a Senior Advocate or before coming into operation of the rules in this Chapter as the case may be

(c) He shall not accept instructions to draft pleading or affidavits, advice on evidence or to do any drafting work of an analogous kind in any Court or Tribunal, or before any person or other authority mentioned in Section 30 of the Act or undertake conveyancing work of any kind whatsoever. This restriction however shall not extend to settling any such matter as aforesaid in consultation with an Advocate in Part II of the State Roll.(cc) A Senior Advocate shall, however, be free to make concessions or give undertakings in the course of arguments on behalf of his clients on instructions from the junior Advocate.(d) He shall not accept directly from a client any brief or instructions to appear in any Court or Tribunal, of before any person or other authority in India.(e) A Senior Advocate who had acted as an Advocate (Junior) in a case, shall not after he has been designated as a Senior Advocate advise

RESTRICTIONS ON SENIOR ADVOCATES (CONTI)


3. ARBITRAL TRIBUNALServices provided by Representor in Arbitral Tribunal to an Arbitral Tribunal is taxable @ 14.5% [with SBC]. w.e.f. 01-04-2016


NEW EXEMPTIONS GRANTED / SERVICE TAX SCOPE REDUCED


• Services provided by Indian Institute of Management (IIM) by way of 3 specified programs (except Executive Development Programme) to their students will be exempt from service tax w.e.f. 1.3.2016.

• Certain exemptions by way of finance act and certain by way of notifications

IIM is ___________ - as per service tax department it is mandap keeper, recruitment agency, caterer, lessor, hotel, management consulting agency – everything except post office and reserve bank• Recognised by law - ???• What about XLRI / Jamnalal Bajaj of Institute

NEW EXEMPTIONS GRANTED / SERVICE TAX SCOPE REDUCED


2. . ENTRY NO 12A IS INSERTED TO RESTORE EXEMPTION WHICH WAS WITHDRAWN EARLIER AND CONSTRUCTION ABATEMENT


• Entry no 12A is inserted to restore exemption which was withdrawn earlier and would be applicable up to 31.03.2020 on services provided to Government, a Local Authority or a Governmental Authority for construction, erection, repair, maintenance, renovation, or alteration of:

a.any civil structure or any other original works predominantly used for non commercial purpose.

b.structure meant for use as educational, clinical, art or cultural establishment

c.residential complex of Government employees and specified persons. under a contract which has been entered prior to 01.03.2015. w.e.f. 01.03.2016

2. ENTRY NO 12A IS INSERTED TO RESTORE EXEMPTION WHICH WAS WITHDRAWN EARLIER AND CONSTRUCTION ABATEMENT


CANAL, DAM IRRIGATION


• Governmental authority – Because of the above amendment, only the services of canal, dam or other irrigation works provided to the Government, a local authority or a governmental authority is covered. Thus, other services as listed under entry 12 and 25 as on 1.7.2012 provided to the Government, a local authority or a governmental authority should also be treated at par for the purpose of granting this retrospective exemption.

• Suggestion

• It is suggested that the said benefit be extended to all the items covered under Sr No 12 and 25 of Notification No 25/2012-ST dated 20.06.2012.

CANAL, DAM IRRIGATION


ENTRY 14A – WORKS PERTAINING TO AIRPORT


1. Entry no 14A is inserted to restore exemption withdrawn earlier and would be applicable up to 31.03.2020 on services provided by way of construction, erection, commissioning or installation of original works pertaining to an Airport or Port provided that Ministry of Civil Aviation / Shipping certifies that contract had been entered prior to 01.03.2015 . w.e.f. 01-03-2016. Refund shall be made within period of 6 months from the date of the assent of Finance Bill, 2016. • Prove unjust enrichment, what if charged in invoice and not

collected• 2. Services by an aircraft will continue to be outside service

tax net by way of exemption through exemption notification after deletion from negative list entry w.e.f. 01-06-2016

ENTRY 14A – WORKS PERTAINING TO AIRPORT


3. EXEMPTION TO CONSTRUCTION SERVICES FOR SLUM REHABILITATION / LOW COST HOUSING


1.Exemption is given to services provided by way of construction, erection, repair, maintenance, etc. of civil structure or any other original works pertaining to the In-situ rehabilitation of existing slum dwellers using land as a resource under private participation under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana. w.e.f. 1.3.2016

• 2. Exemption is given to services provided by way of construction, erection, repair, maintenance, etc. of civil structure or any other original works pertaining to the Beneficiary led individual house construction / enhancement under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana. w.e.f. 01-03-2016

• 3. Exemption is given to services provided by way of construction of original works pertaining to low cost houses up to a carpet area of 60 sq. mtr. in a housing project under "Affordable housing in Partnership" component of PMAY or under any housing scheme of the State Government. w.e.f. 01-03-2016

• The purpose of such project is rehabilitation of slum dwellers, whether the development is done on the same land or at other land.

• In the event if few of slum dwellers do not agree to accept houses build for their rehabilitation, the Tax exemption for entire project should not be disallowed.

What is the meaning of ‘Beneficiary led individual housing construction’ ?

WHO IS THE COMPETENT AUTHORITY

3. EXEMPTION TO CONSTRUCTION SERVICES FOR SLUM REHABILITATION / LOW COST HOUSING


5 MISCELLANEOUS EXEMPTIONS


• 1. Threshold exemption to services provided by a performing artist in folk or classical art form of (i) music, (ii) dance, or (iii) theater is increased from Rs. 1,00,000/- per event to Rs. 1,50,000/- per event w.e.f. 01-04-2016

• 2. Service provided by Employees' Provident Fund Organisation [EPFO], Insurance Regulatory and Development Authority of India [IRDA], Security Exchange Board of India [SEBI] and National Centre for Cold Chain Development [NCCCD] will be exempt from Service Tax w.e.f. 01-04-2016

• 3. Exemption from Service Tax provided to software recorded on media on which affixation of Retail Sale Price [RSP] is required under Legal Metrology Act, 2009 subject to following condition: -

Value of the package has been determined under Section 4A of the Central Excise Act, 1944. - Appropriate duty of excise/CVD has been paid by manufacturer / importer. - Declaration from service provider that no excess amount over the RSP has been recovered. w.e.f. 01-03-2016

5 MISCELLANEOUS EXEMPTIONS



GOVERNMENT SERVICES

Consequently, notification No. 30/2012-ST is being amended so as to delete the words “by way of support services‟ appearing at Sl. No. 6 of the Table in the said notification with effect from 1st April, 2016.• Thus, charges/ Fess/ amount charged by DGFT, MCA

for various services provided to business entities have been inadvertently proposed to be made liable to Service Tax. This also leads to the conclusion that sovereign functions of the Government will also be liable to service tax which cannot be the intention ofthe legislature.

• Suggestion:• It is suggested that an appropriate clarification in this

regard be provided.


AMENDMENT IN 26/2012-ST1. Indian Railway


INDIAN RAILWAY• Services of transport of goods by Indian Railway shall be liable to

Service Tax @ 4.5% [with SBC + KKC] after abatement of 70% allowing CENVAT credit of input services.

• However, transport of goods in container by rail by private sector shall be liable to Service Tax @ 6% [with SBC + KKC] after abatement of 60% with credit of input services.

• Services of transportation of passengers by rail service in A.C. Coach and First Class shall be liable to Service Tax @ 4.5% [with SBC + KKC] after abatement of 70% by additionally allowing CENVAT Credit of input services. w.e.f. 01-04-2016 and effect of KKC from 01-06-2016


2. TRANSPORT RELATED PROVISIONS


• New Entry for allowing abatement @ 60% on transport of used household goods by a Goods Transport Agency (GTA) is being inserted without CENVAT credit.

• Abatement on transportation of goods in a vessel @ 70% is continued by allowing CENVAT Credit of input services.

• Both w.e.f. 01-04-2016 and effect of KKC from 01-06-2016

2. TRANSPORT RELATED PROVISIONS


3. CHIT FUNDS

New Entry for allowing abatement @ 30% on services provided by foreman to a chit fund under the Chit Funds Act, 1982 is being inserted without CENVAT credit. w.e.f. 01-04-2016 and effect of KKC from 01-06-2016


4. SERVICES OF TOUR OPERATOR

• Tour operator providing services solely for arranging/booking accommodation for tour, abatement of 90% is available if cost of accommodation is included in invoice.

• For any other service provided by Tour operator; abatement changed to 70% from 75% / 60%.

w.e.f. 01-04-2016 and effect of KKC from 01-06-2016


5. MOTOR CAB SERVICES

An explanation is inserted for availing abatement of 60% on renting of motor cab services which states that amount charged by service provider shall include cost of goods (including fuel) and services supplied by the service recipient. w.e.f. 01-04-2016 and effect of KKC from 01-06-2016



TAX ON UNDER CONSTRUCTION PROPERTY IN INDIAUniform abatement at the rate of 70% is prescribed for Construction services. Hence, for all commercial or residential construction services abatement rate of 70% will be applicable and effective rate of service tax shall be 4.50% [with SBC + KKC] w.e.f. 01-04-2016 and effect of KKC from 01-06-2016


AMENDMENT REGARDING PAYMENT OF TAX


1. Benefit of quarterly payment of service tax is extended to HUF.2. Benefit of quarterly payment of service tax is extended to One Person Company (OPC) whose aggregate value of taxable services provided is up to Rs. 50 Lakhs in the previous financial year. 3. One Person Company (OPC) having taxable services up to Rs. 50 Lakhs in the previous financial year has an option to make payment on receipt basis up to the turnover of Rs. 50 Lakhs in current financial year. All above w.e.f 1.4.2016SUGGESTION - Facility to pay service tax on cash basis may be extended to HUFs also.

AMENDMENT REGARDING PAYMENT OF TAX


AMENDMENT IN REVERSE CHARGE MECHANISM


1. After deletion of ‘support Services’ from Rule 2(1)(d)(i)(E) of Service Tax Rules, the Service Recipient under RCM shall be liable to pay service tax on 'any services' provided by the Government or local authorities to business entity. 2. RCM on Mutual Fund Agent / distributor is deleted hence he shall be liable to pay Service Tax @15% [with SBC + KKC] subject to benefit of Rs. 10 Lacs Basic Exemption Limit for services provided to Mutual Fund / AMC. 3. For single premium annuity policies, an insurer carrying on life insurance business shall be liable to pay service tax @ 1.40% of the single premium charged from the policy holder.

AMENDMENT IN REVERSE CHARGE MECHANISM


SERVICE TAX RETURNS


• Service tax assessees above a certain threshold limit as may be notified will be required to file an Annual Return on or before 30/11/2016. Annual return can be revised within a period of one month from the date of filling of said return.

• Late fees of Rs. 100 per day subject to maximum limit of Rs. 20,000 will be required to be paid for delay in filling of Annual Service Tax Return.

• w.e.f. date of enactment of Finance Bill, 2016

SERVICE TAX RETURNS


POT RULES, 2011 (POTR)


POTR• Point of Taxation Rules has been made by Central Government pursuant

to section 67A (2) of the Act. Thus, any doubt about the applicability of service tax rate or apparent contradiction between Section 67A and PoTR would be taken care of. . w.e.f. date to be notified

• Rule 5 of PoTR is applicable for PoT in case of new services. An explanation is being inserted in Rule 5 stating that the rule shall be applicable in case of new levy as well w.e.f. 01-03-2016.

• Where a service is taxed for the first time, then, - • no tax shall be payable to the extent the invoice has been issued and

the payment received against such invoice before such service became taxable;

• no tax shall be payable if the payment has been received before the service becomes taxable and invoice has been issued within fourteen days of the date when the service is taxed for the first time.

• Another explanation is inserted stating that in case of new levy other than two situation specified in Rule 5, the new levy or tax shall be payable w.e.f. 01-03-2016

Further, in the case of Collector of C.Ex Hyderabad VsVazir Sultan Tobacco Co Ltd 1996 (83) E.L.T. 3 (SC), it has been held that manufacturing is a taxable event whereas payment of excise duty is at the time of the removal of goods, therefore in a case where goods have been manufactured at the time when they were not excisable, there cannot be a duty liability at the time of removal of such goods.


AMENDMENT IN CENVAT CREDIT RULES


CENVAT ON FOLLOWING GOODS ARE ALLOWED

Railway wagons as capital goods

Appliances used in office located in factory as capital goods

Inputs and capital goods for pumping of water for captive use in factory

Capital goods of value upto Rs.10 k per piece allowed in single year

Job worker eligible to take ITC of tools used


CENVAT ON SERVICESService of transportation from

custom station to outside India not eligible

Credit of infrastructure cess not available

Circular says KKC not eligible but no changes notified

Service tax charged on right assignment of natural resource to

be spread over period of right


RULE 6 OF CENVAT


1.Rule 6 redrafted 2.Reversal of credit cannot exceed the value of total credit

taken. 3.Under proportionate reversal option, CENVAT Credit of only

common inputs / input services will have to be reversed. 4.Manufacturer/provider of output service who failed to give

prior intimation, may be allowed by a Central Excise officer to follow proportionate reversal option and pay the amount alongwith interest calculated at the rate of 15% per annum from the due date of each month till payment date.

5.Existing Rule 6 would continue to be in operation up to 30.06.2016, for the units who are required to discharge the obligation in respect of financial year 2015-16.

RULE 6 OF CENVAT


RULE 6 OF CENVAT1.Banks and other financial institutions has been given

option to reverse CENVAT Credit in respect of exempted service either on the basis of 7% of value of exempted service or proportionate reversal in addition to the option of 50% reversal.

2.Exempt service will include activity which is not a 'service‘

3.CENVAT Credit of Capital Goods used for the manufacture of exempted goods or provision of exempted service for two years from the date of commencement of commercial production or provision of service shall not be allowed. Similar provision is being made for capital goods installed after the date of commencement of commercial production or provision of service.


INPUT SERVICE DISTRIBUTOR AND MISCELLANEOUS


INPUT SERVICE DISTRIBUTOR1.Input Service Distributor (ISD) can distribute CENVAT to an outsourced

manufacturing units also.

2.Credit attributable to more than one unit but not all the units shall be distributed to attributable units only and not to all units.

3.Outsourced Manufacturing unit shall maintain separate account of credit received from ISD and shall use it for payment of duty on goods manufactured for ISD. Provision of Rule 6 of CENVAT Credit Rules shall not apply to ISD.

4.As per newly inserted Rule 7B, manufacturers having multiple manufacturing units can take credit of inputs received under the cover of an invoice issued by warehouse of the manufacturer following provisions as made applicable to first / second stage dealer.

5.Manufacturer or provider of output service shall submit an Annual Return of CENVAT Credit for each financial year by 30th November of the succeeding year in Form to be specified. xxi. Rule 14 (2) which prescribes a procedure based on First In First Out (FIFO) method for determining utilization of CENVAT credit has been omitted.


AMENDMENT IN FINANCE ACT, 1994

Normal period of limitation extended to 30 monthsOn non-deposit of tax interest @ 24% on non-collection @ 15%

CORRESPONDING CREDIT FOR INPUT SERVICES SHOULD ALSO BE INCREASED FROM 12 MONTHS TO 30 MONTHS



[There is a big chance for disputes, as section 67(2) of Finance Act, 1994 says that Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged. Hence, officers are likely to impose 24% interest rate in most of cases by saying that assessee has already collected service tax but not paid to Govt.]


LETS TAKE TWO EXAMPLES IN INTEREST• For example, where an invoice has been made for INR 1,00,000.00 and tax

rate is 14.5% (including SBC), in such case, total value of invoice is INR 1,14,500.00. The invoice has been made in December 2016. The due date is 6th January, 2016. The amount is collected in 15th August, 2017 and tax has been deposited to the Government on 30th September, 2017. In this case, whether the interest will be 15% from 6th January,2016 to 15th August, 2017 and 24% from 16th August, 2017 to 30th September, 2017 or will it be 24% from 6th January,2016 to 30th September, 2017.

• Further, what will be the situation where only a part of the amount is collected and remaining amount is not collected? Say a client pays only Rs100000specifically stating that the amount towards service tax has been withheld in such case, whether the interest rate will be 15% or 24%.


AMENDMENT IN FINANCE ACT, 1994Service of lottery distributor not an “Transaction in money”

Transfer of Right of frequency spectrum is a declared service

In main offence and penalty is closed then, penalty on director will be closed

Monetary limit for filling complaints enhanced from Rs.50 L to Rs.2 Cr


SUGGESTION TIME

• Suggestion• It is suggested that constitutional validity for levying

tax on right to use the radio-frequency spectrum and subsequent transfers thereof needs to be checked. Further, even if it is decided that service tax is to be levied on right to use the radio-frequency spectrum and subsequent transfers thereof, in such case, a provision is to be introduced in the budget which clearly states that in such a case, state should not tax the same otherwise these seems to be a clear case of litigation and probably double taxation as well


Power to arrest only if tax collected but not deposited and amount > Rs.2 Cr

Powers to allow Service tax rebate introducedService provided to govt. authority like SSNL is exempted from July, 12 to Jan, 2014. Refund allowed

No service tax for April, 2015 to Feb 2016 for service to local/ government authority

AMENDMENT IN FINANCE ACT, 1994 (CONT.)

Prepared by Sandesh Mundra & Associates

AMENDMENT IN FINANCE ACT• No service tax shall be levied for the period from 01-04-2015 to

29-02-2016 in respect of taxable services provided to Government, a local authority or a Governmental Authority for construction, erection, repair, maintenance, renovation, or alteration of:

a.any civil structure or any other original works predominantly used for non commercial purpose.

b.structure meant for use as educational, clinical, art or cultural establishment

c.residential complex of Government employees and specified persons under a contract which has been entered prior to 01.03.2015. Refund shall be made within a period of 6 months from the date of the assent of Finance Bill, 2016.Prepared by Pooja Jajwani, Sandesh Mundra &

Associates

AMENDMENTS FOR REFUNDS• Time for application for refund of CENVAT for export of

service One year from – (a)receipt of payment in convertible foreign exchange,

if service completed prior to payment; or (b)date of issue of invoice, where advance is received

w.e.f 1.03.2016• Refund of service tax is allowed on services used

beyond the place of removal for export of goods retrospective effect from 01-07-2012.

w.e.f. enactment of Finance BillPrepared by Pooja Jajwani, Sandesh Mundra & Associates

INDIRECT TAX DISPUTE RESOLUTION SCHEME, 2016

Designated authority to pass order in 15 days of intimation

Payment with interest and penalty equal to 25% of tax in 15 days and intimate authority in 7 days

Declaration before 31.12.2016 has to be made

If appeal pending before Commissioner (Appeals) (Demand<50 L)


• On receiving order of authority, declarant get immunity from all proceedings under the Act, in respect of tax declared under the scheme.

• Any amount paid in pursuance of the declaration under the scheme shall not be refunded.

• Order passed by Designated Authority under the scheme shall not be deemed to be an order on merits and has no binding effect.

• This Scheme will not be applicable for

(a)Search and Seizure proceedings; or

(b)Prosecution for offence punishable under the Act instituted before 01-06-2016

(c)order in respect of narcotic drugs or other prohibited goods

(d)order in respect of any offence punishable under Indian Penal Code, the Narcotic Drugs and Psychotropic Substances Act, 1987 or the Prevention of Corruption Act, 1988; or (d) any detention order has been passed under the Conservation of Foreign Exchange and Prevention of Smuggling Act, 1974.

INDIRECT TAX DISPUTE RESOLUTION SCHEME, 2016


•Ready Mix Concrete (RMC) manufactured at siteVide Notification No. 12/2016 effective 1.3.2016 RMC manufactured at site has been exempted prospectively by way of substitution of below entry.

Suggestion – Excise duty exemption, which was earlier limited to Concrete Mix (CM) only, now being extended to Ready Mix Concrete (RMC) manufactured at construction site for construction work.

