Finance Bill 2007

Sitting Judge of HC & ex-Member of ITAT in the list of 17 former and current Members of ITAT who are sought to be prosecuted by CBI for outsourcing writing of Orders to CA Firm-Members were posted in Mumbai Kolkata Ahmedabad Hyderabad Agra & Cuttack Benches of ITAT Law Ministry says that there is no sufficient evidence against ITAT Members Meaning of the expression ‘gross amount’appearing in Rule 3(1) of the Works Contract (Composition Scheme for Payment ofService Tax) Rules, 2007, as it stood prior 7th July 2009-ServiceTax Circular No.150 Budget to be presented on 16th March FM issues Advisory to CESTAT to ensure that orders are issued by Benches on conclusion of arguments and in complicated matters orders should be issued within 30 days Madras High Court stays levy of service tax on lawyers economic growth slows to 6.9 per cent Sunil Kumar appointed as Chief Secretary of Chattisgarh Amarchand Mangaldas to open offices in Chennai Ahmedabad & Pune US closes its embassy in Syria Sudha Sharma appointed as Member of CBDT Rupee hits a high of 48.73 against Dollar Laxman Das is Officiating Chairman of CBDT Tariff Value for import of gold is 556 & for silver 1067 & for Brass Scrap 4078 & for poppy seeds 2205-Customs Non-Tariff Notification No. 10 Fused Silica is classifiable under Tariff Item 32074000-Customs Circular No.3 Additional Commisssioner of Income Tax HA Siddiqui sentenced to 4 years imprisonment for accepting bribe of Rs 1 Lakh by CBI Court in Delhi HC upholds levy of service tax on booking of flats-The explanation which was inserted by the Finance Act of 2010 clearly brings within the fold of taxable service a construction service provided by the builder to a buyer where there is an intended sale between the parties whether before, during or after construction Authority for Advance Ruling rules super concentrates shall be classified as products of the chemical industry under heading 3824 90 90 of Customs Tariff Anti dumping duty imposed on import of Morpholine from China European Union & USA Anti dumping duty imposed on import of Geogrid/Geostrips/ Geostraps made of polyester or Glass fiber in all its forms from Refund of Anti-Dumping Duty (Paid in Excess of Actual Margin of Dumping) Rules, 2012 notified-Customs Non-Tariff Notification No.5 Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Amendment Rules, 2012-Customs Non-Tariff Notification No.6 Safeguard duty at the rate of 10% ad valorem notified on import of Phthalic anhydride, falling under tariff item 2917 35 00-Customs SG Notification No.1 Customs duty on import of Gold, Silver, Cut & Polished Diamonds hiked Customs duty to be charged at the rate of 2 per cent of Tariff Value on gold and 6 per cent of Tariff Value on silver Tariff Value for import of gold & silver notified-Customs Non-Tariff Notification No.3 Anti-dumping duty on imports ofSilk fabrics 20-100 gms per metre, falling under heading 5007 originating in, or exported from, China-CustomsTariff Notification No. 2 Anti-dumping duty imposed on imports of Nylon Filament Yarn, falling under Chapter 54 ,originating in, or exported from, China, Chinese Taipei, Malaysia, Thailand and Korea RP-Customs TariffNotification No.3 Anti-dumping duty imposed on import of Phosphoric Acid of allgrades and all concentrations (excluding Agriculture/Fertilizer Grade) ,falling under tariff item 28092010, originating in, or exported from, Israel and Taiwan-Customs Tariff Notification No.4 Anti-dumping duty on imports of Cellophane Transparent Film , falling under Chapter 39 , originating in, or exported from, China-Customs TariffNotification No.5 Anti-dumping duty onimports of Saccharin, falling under Chapters 29, 30, 33 and 38 ,originating in, or exported from, China-Customs Tariff Notification No.7 Special Bench of ITAT rules the appellant is not entitled to set off carry forward business loss against the long term capital gain arising on sale of land used for the purpose business ITAT rules Long Term and Short Term gains / losses on sale of equity shares under Portfolio Management Scheme is business income and not Capital Gains HC rules the opinion of the AO may have been legally erroneous but this cannot be a ground for initiation of re-assessment proceedings Anti-dumping duty on ‘Caustic Soda’, originating in, or exported from, Saudi Arabia, Iran, Japan, USA & France-Customs Tariff Notification No.1 Cost Accountants can issue Certificates for the purpose of refund of 4% CVD-Customs Circular No.1 Customs duty on import from ASEAN nations lowered- Customs Tariff Notification No.127 deeper tariff cut on import from Malaysia notified- Customs Tariff Notification No.128 deeper tariff cuts on import from Korea notified- Customs Tariff Notification No.123 deeper tariff cuts on import from Srilanka & Pakistan under SAFTA notified- Customs Tariff Notification No.125 Schedule of Rates for Service Tax Refund to Exporters notified in supersession of Notification No.17/2009-Service Tax Notification No. 52 Customs duty on import of several products from specified countries lowered-Customs Tariff Notification No.113 Anti-dumping duty on ‘Sodium Hydrosulphite (SHS)’, falling under headings 2831 and 2832 , originating in, or exported from, China PR- Customs Tariff Notification No.111 CBEC specifies documents required for Registration of ServiceTax Customs duty on import of 532 Products from Singapore lowered-many products exempted from duty-Customs Tariff Notification No. 106 Government allows Rebate of excise duty on export of goods to Nepal under ARE-1 Procedure w.e.f. 1st March 2012-Central Excise Non-Tariff Notification No.24

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Lok Sabha passes Finance Bill 2007

AIT News Network

NEW DELHI. The Lok Sabha has passed the Finance Bill, 2007, including the amendments introduced by the FM on 3^rd may 2007 which are as follows.

Central Excise

texturised vegetable proteins (soya bari) and ready to eat packaged food exempted from excise duty.

Full exemption from excise duty extended to biscuits of RSP equivalent upto Rs.100 per kg.

Excise duty (excluding Biri Workers’ Welfare Cess) has been reduced on hand made biris from Rs. 11 to Rs. 9 per thousand and on other biris (machine made) from Rs.24 to Rs.21 per thousand.

Excise duty on particleboards and other similar boards of heading 4410 and fiberboards of heading 4411 has been reduced from 16% to 8%.

Water Purification Equipment based on ultra-filtration technology using polysulphone membranes have been fully exempted from excise duty.

Excise duty on slide fasteners, including zip fasteners, and their parts falling under heading 9607 has been reduced from 16% to 8%.

An ad-valorem rate of excise duty at ‘12% of retail sale price’ has been prescribed for cement of retail sale price exceeding Rs.190 per 50 kg bag or per tonne equivalent retail sale price exceeding Rs.3800. The tariff rate being Rs.600 PMT, the rate of excise duty on cement priced above Rs.250 per 50 kg bag or per tonne equivalent retail sale price exceeding Rs. 5000 will be Rs.600 PMT.

Customs

Export duty on iron ores fines of Fe content of 62 percent and below has been reduced from Rs.300 per metric tonne (PMT) to Rs.50 PMT.

Customs duty on N- paraffin has been reduced from 10% to 7.5%.

Cut and polished diamonds have been fully exempted from customs duty.

Customs duty on nickel and articles of nickel has been reduced from 5% to 2%.

‘refrigerated motor vehicles’ exempted Customs duty. CV duty has also been reduced on such vehicles from 16% to 8% by way of excise duty reduction from 16% to 8%.

Full exemption from customs and excise/CV duty has been extended to aircrafts and their parts, imported/procured for providing ‘Non-scheduled Air transport (passenger) services and Non-scheduled Air transport (charter) services.

Full exemption from customs and excise/CV duty granted to aircrafts and their parts, imported/procured by Aero Club of India or by Flying Training Institutes .

aircrafts and their parts mentioned above will also be exempt from 4% additional duty of customs.

Direct Taxes

The business of developing or operating and maintaining or developing, operating and maintaining any infrastructure facility included in the positive list of businesses and industries under the amendment in clause (23FB) of section 10. Venture Capital Funds investing in infrastructure facilities, as defined in Explanation to section 80IA(4)(i), will now get the benefit of pass through status.

The valuation of perquisite in the nature of rent free or concessional rent accommodation owned and provided by the non-Governmental employer to his employee is proposed to be reduced. At present the valuation is 15% of salary (for cities having population of not more than 4 lakh) and 20% of salary for (cities having population of more than 4 Lakh). It is proposed to be reduced it to 7.5% of salary (for cities having population of 10 lakhs and below), 10% of salary (for cities having population of more than 10 lakhs, but not more than 25 lakhs) and 15% of salary (for cities having population of more than 25 lakhs). The amount paid or recovered from employee for the rent of the accommodation will get reduced from this valuation.

In the case of ESOPs, there has been no change in the original proposal to charge FBT on the date of allotment or transfer of specified security. However, the fringe benefit arising from ESOPs will now be valued on fair market value, on the date of vesting of option, as reduced by the amount paid by the employee for acquiring the specified security. The period of holding for the purpose of capital gain tax will be reckoned from the date of allotment or transfer of specified security.

The Income-tax Act to be amended to provide for tax-neutral amalgamation or demerger of cooperative banks. Hence, the amalgamated or resulting co-operative bank will be able to set-off and carry forward the unabsorbed loss or accumulated depreciation of the amalgamating or demerged cooperative bank.

New section 80-IE inserted for providing fiscal incentives to units located in North-Eastern States and State of Sikkim. Under this new section, undertakings located in these states, and which begins to commence manufacturing or under going substantial expansion or commence eligible business on or after 1^st April 2007, but before 1^st of April 2017, will be eligible for 100% deduction of profits from such business for ten consecutive years. The benefit has been intended for those who are engaged in manufacturing of article or things, other than the negative list and those engaged in eligible business. Eligible business includes business of hotel (not below two star category), adventure and leisure sports including ropeways, providing medical and health services in the nature of nursing home with a minimum capacity of twenty-five beds, running an old-age home, operating vocational training institute for hotel management, catering and food craft, entrepreneurship development, nursing and para-medical, civil aviation related training, fashion designing and industrial training, running information technology related training center, manufacturing of information technology hardware and bio-technology.

Investment in rural bonds of NABARD included in the list of permissible investment under section 80C.

Click here for text of Amendments in FINANCE BILL, 2007