Thursday, 31 March 2016
Union Budget 2016: Important changes in Service Tax and Credit Rules effective from April 1, 2016
Affirming that the economy is right on track, the Hon’ble Finance Minister Shri. Arun Jaitley presented the Union Budget for 2016-17 on February 29, 2016. Although, Shri. Arun Jaitley in his ‘Make in India’ Budget speech laid more emphasis on agriculture, farmers welfare, infrastructure, social sector etc., but there are slew of changes in Indirect Taxes also, requiring attention of the Trade & Industry.
Some of the changes were made effective from March 01, 2016 itself like withdrawal of exemption on services to monorail or metro, exemption to specified services provided by the IIM, retrospective Service tax exemption allowed on certain contracts etc., flurry of changes are yet to make their advent from April 1, 2016 and many others will come into force from the date of enactment of the Finance Bill, 2016.
We are summarizing herewith the changes in Service Tax and Cenvat Credit Rules, 2004 that are effective from April 1, 2016 for easy digest:
A: Service Tax leviable under Reverse Charge on any services provided by Government or Local Authority to a Business Entity w.e.f April 1, 2016
Effective from April 1, 2016, under clause (iv) of Section 66D(a) of the Finance Act, 1994 (“the Finance Act”), the words ‘support services’ will be substituted by the words ‘any service’ thereby, to exclude from the Negative List, any services provided by the Government or Local authority to a Business Entity [Section 109(1) of the Finance Act, 2015 read with Notification No. 06/2016-ST dated February 18, 2016]. However, the services provided by Government or Local authority to a Business Entity having turnover upto Rs. 10 lakh in the preceding Financial Year would remain exempt [New entry inserted vide after Entry No. 47 in the Mega Exemption Notification No. 25/2012- ST dated June 20, 2012 (“the Mega Exemption Notification”) amended vide Notification No. 07/2016-ST dated February 18, 2016].
Amendment in the Reverse Charge Notification: The Union Budget, 2016 vide Notification No. 18/2016-ST dated March 1, 2016, has amended Reverse Charge Notification No. 30/2012-ST dated June 20, 2012 (“the Reverse Charge Notification”), to delete the words “by way of support services” appearing at Sl. No. 6 of the Table in the said notification with effect from April 1, 2016.
Corresponding changes in the Service Tax Rules, 1994 (“the Service Tax Rules”) & the Finance Act:Corresponding changes have also been made in Rule 2(1)(d)(i)(E) of the Service Tax Rules and Section 65B(49) of the Finance Act containing definition of the term ‘support services’ is also proposed to be deleted.
Thus, the liability to pay Service tax on any service provided by Government or a Local Authority to Business Entities shall be on the service recipient w.e.f. April 1, 2016except (1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of Section 66D of the Finance Act.
Immediate clarification required:Given that the definition of the term ‘service’ under Section 65B(44) of the Finance Act is wide enough to cover any activity carried out by a person for another for consideration, it appears that effective from April 1, 2016, all Governmental services (sovereign, regulatory fees, statutory charges etc.) would be exigible to Service tax – Immediate clarification is required from the Board to provide exclusion list ofthe Governmental services covered under the Service tax net.
Amendment in Section 66E of the Finance Act to be effective from date of enactment of the Finance Bill, 2016(“FB, 2016”)–Mismatch in taxability for interim period:In the Union Budget, 2016, under Section 66E of the Finance Act, after clause (i), clause (j) is proposed inserted to include “assignment by the Government of the right to use the radio-frequency spectrum and subsequent transfers thereof” under the list of Declared services. Meaning thereby, assignment by Government of the right to use the spectrum as well as subsequent transfers of assignment of such right to use is a ‘service’ leviable to Service tax and not sale of intangible goods and the liability to pay Service tax will on the Business Entity under Reverse Charge. But such changes shall be effective from the date of enactment of FB, 2016, leading to dispute for taxability for the interim period i.e. from April 1, 2016 to date of enactment of FB, 2016.
B: Changes in the Mega Exemption List of Services Vide Notification No. 9/2016-ST dated March 1, 2016 amendingNotification No. 25/2012-ST dated June 20, 2012
| Relevant Entry | Status of Exemption |
| Exemption Withdrawn | |
| Entry No. 6(b) & (c) | · Services provided by a senior advocate to an advocate or partnership firm of advocates and to a business entity;· Services provided by a person represented on an arbitral tribunal to an arbitral tribunal Service tax in the above instances would be levied under forward charge. However, legal services provided by a firm of advocates or an advocate other than senior advocate is being continuedunder Reverse Charge[Read withNotification No. 18/2016 – ST dated March 1, 2016, amending the Reverse Charge Notification] |
| Entry No. 23(c) | Exemption to services for transport of passengers, with or without accompanied belongings, by ropeway, cable car or aerial tramway |
| Exemption Amended | |
| Entry 16 | The threshold exemption limit of consideration charged for services provided by a performing artist in folk or classical art form of (i) music, or (ii) dance, or (iii) theatre, has been extended from Rs. 1 lakh to Rs. 1.5 Lakhs per performance (except brand ambassador). |
| New Exemptions | |
| Entry 9C | Services of assessing bodies empanelled centrally by Directorate General of Training, Ministry of Skill Development and Entrepreneurship by way of assessments under Skill Development Initiative (SDI) Scheme |
| Entry 9D | Services provided by training providers (Project implementation agencies) under Deen Dayal Upadhyaya Grameen Kaushalya Yojana under the Ministry of Rural Development by way of offering skill or vocational training courses certified by National Council For Vocational Training |
| Entry No. 26(q) | Services of general insurance business provided under ‘Niramaya’ Health Insurance scheme launched by National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disability Act, 1999 (44 of 1999) |
| Entry No. 26C | Services of life insurance business provided by way of annuity under the National Pension System regulated by Pension Fund Regulatory and Development Authority of India (PFRDA) under the Pension Fund Regulatory And Development Authority Act, 2013 (23 of 2013) |
| Entry No. 49 | Services provided by Employees’ Provident Fund Organisation (EPFO) to persons governed under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) |
| Entry No. 50 | Services provided by Insurance Regulatory and Development Authority of India (IRDA) to insurers under the Insurance Regulatory and Development Authority of India Act, 1999 (41 of 1999) |
| Entry No. 51 | Services provided by Securities and Exchange Board of India (SEBI) set up under the Securities and Exchange Board of India Act, 1992 (15 of 1992) by way of protecting the interests of investors in securities and to promote the development of, and to regulate, the securities market |
| Entry No. 52 | Services provided by National Centre for Cold Chain Development under Ministry of Agriculture, Cooperation and Farmer’s Welfare by way of cold chain knowledge dissemination |
C: Changes in Abatement Vide Notification No. 8/2016-ST dated March 1, 2016 amending Notification No. 26/2012-ST dated June 20, 2012
| Relevant S. No. | Status of Abatement |
| Present Abatement(s) amended | |
| S. No. 2 | Transport of goods by rail (other than “transport of goods in containers by rail by any person other than Indian Railway”) – Cenvat credit of input services available: Abatement of 70% presently available is continued but with Cenvat credit of input services being made available |
| S. No. 3 | Transport of passengers by rail – Cenvat credit of input services available: Abatement of 70% presently available is continued but with Cenvat credit of input services being made available |
| S. No. 10 | Transport of passengers by vessel – Cenvat credit of input services available: Abatement of 70% presently available is continued but with Cenvat credit of input services being made available |
| S. No.7 | Services of GTA in relation to transportation of goods other than used household goods: Abatement for “services of goods transport agency in relation to transportation of goods” is now substituted byterm “services of goods transport agency in relation to transportation of goods other than used household goods” with same abatement of 70% presently available. |
| S. No. 11 | Tour Operator services:· In cases where the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour, abatement of 90% is available with specified conditions; · This abatement of 90% cannot be claimed in such cases where the invoice, bill or challan issued by the tour operator, in relation to a tour, only includes the service charges for arranging or booking accommodation for any person and does not include the cost of such accommodation. There is no change in the rate of abatement or the conditions required to be fulfilled for claiming the said abatement; · Abatement rates in respect of services by a tour operator in relation to a tour other than the above, is being rationalised from 75% and 60% to 70%. Consequently, the definition of “package tour” as provided under clause ‘b’ in Paragraph 2, is being omitted. |
| S. No. 12 | Construction of complex, building, civil structure, or a part thereof – Uniform abatement of 70%:Present abatements of 75% (in case of a residential unit having carpet area of less than 2000 square feet and costing less than Rs. 1 crore) and 70% (in other cases)is amended to provide a uniform abatement at the rate of 70%, subject to fulfilment of the existing conditions. |
| New Insertions | |
| S. No. 2A | Transport of goods in containers by rail by any person other than Indian Railway: Reduced abatement rate of60% with Cenvat credit of input services |
| S. No. 7A | Transport of used household goods by a GTA: Abatement at 60% without availment of Cenvat credit on inputs, input services and capital goods by the service provider (as against abatement of 70% allowed on transport of other goods by GTA) |
| S. No. 8 | Services provided by foreman to a chit fund under the Chit Funds Act, 1982: Abatement of 30% subject to the condition that Cenvat credit of inputs, input services and capital goods has not been availed |
| Explanation ‘BA’ after paragraph B | Renting of motor-cab services:It is being made clear that cost of fuel should be included in the consideration charged for providing renting of motor-cab services for availing the abatement of 60% with no Cenvat credit on inputs, capital goods and input services (subject to specified conditions) |
D: Changes in Reverse Charge Mechanism Vide Notification No. 18/2016-ST dated March 1, 2016 amendingNotification No. 30/2012-ST dated June 20, 2012
| Relevant clause/sub-clause | Particulars |
| Paragraph I, in clause (A), sub-clause (ib) | Omitted to provide that services provided by mutual fund agents/distributor to a mutual fund or asset management company are being put under forward charge |
| In Paragraph I, in clause (A), sub-clause (iv), item (B) | Substituted to provide that legal services provided by a senior advocate shall be under forward charge |
| In Paragraph I sub clause (iv) in Item C | Term ‘support’ has been omitted for services provided or agreed to be provided by Government or Local authority to a Business Entity (supra) [Refer Notification No. 16/2016-ST dated March 1, 2016] |
| Corresponding changes have also been made in Table contained under Paragraph II. | |
E:Changes in Service Tax Rules Vide Notification No. 19/2016-ST dated March 1, 2016
| Relevant Rule | Particulars |
| Rule 2 | · Legal services provided by a senior advocate shall be on forward charge[Rule 2(1)(d)(i)(D)(II)]· Services provided by mutual fund agents/distributor to a mutual fund or asset management company put under forward charge [Rule 2(1)(d)(EEA)] · Liability to pay Service tax on any service provided by Government or local authorities to business entities shall be on the service recipient under reverse charge [Rule 2(1)(d)(i)(E) read with Notification No. 17/2016 – ST dated March 1, 2016] |
| Rule 6 | · Rule 6(1): Following benefits presently available to individual or proprietary firm or partnership firm, are being extended to One Person Company (OPC) whose aggregate value of taxable services provided from one or more premises is up to Rs. 50 lakhs in the previous financial year:ü Quarterly payment of Service tax and ü Payment of Service tax on receipt basis Further, the benefit of quarterly payment of Service tax is also being extended to HUF. · Rule 6(7A): The Service tax liability on single premium annuity (insurance) policies is being rationalised and the effective alternate Service tax rate (composition rate) is being prescribed at 1.4% of the total premium charged, in cases where the amount allocated for investment or savings on behalf of policy holder is not intimated to the policy holder at the time of providing of service |
| Rule 7 | · Annual Return: Service tax assessees above a certain threshold limit shall also submit an annual return for the financial year, in such form and manner as may be specified by the CBEC, by the 30thday of November of the succeeding financial year |
F: Changes in Cenvat Credit Rules, 2004 (“the Credit Rules”) vide Notification No. 13/2016-Central Excise (N.T) dated March 1, 2016
| Relevant Rule | Particulars |
| Rule 2(a) | Definition of ‘capital goods’:· Wagons of Sub Heading 8606 92 of the CETA and equipment and appliance used in an office located within a factory are being included in the definition of capital goods; · Cenvat credit on inputs and capital goods used for pumping of water, for captive use in the factory, is being allowed even where such capital goods are installed outside the factory. |
| Rule2(e) | Definition of ‘exempted service’:· Service by way of transportation of goods by a vessel from customs station of clearance in India to a place outside India is being excluded from the definition of “exempted service”. This would allow domestic shipping lines to take credit on inputs and input services used in providing the said services. |
| Rule 2(k) | Definition of ‘inputs’· All capital goods having value up to Rs. 10,000 per piece are being included in the definition of inputs. This would allow an assessee to take whole credit on such capital goods in the same year in which they are received. |
| Rule 4 | · Rule 4(5)(b): Manufacturer of final products is being allowed to take Cenvat credit on tools of Chapter 82 of the CETA in addition to credit on jigs, fixtures, moulds & dies, when intended to be used in the premises of job-worker or another manufacturer, who manufactures the goods as per specification of manufacturer of final products. It is also being provided that a manufacturer can send these goods directly to such other manufacturer or job-worker without bringing the same to his premises;· Rule 4(6): The validity of permission given by an Assistant Commissioner or Deputy Commissioner to a manufacturer of the final products for sending inputs or partially processed inputs outside his factory to a job-worker and clearance there from on payment of duty is extended from a financial year to 3 financial years; · Rule 4(7):Cenvat credit of Service tax paid on amount charged for assignment by Government or any other person of a natural resource such as radio-frequency spectrum, mines etc. shall be spread over the period of time for which the rights have been assigned. |
| Rule 6 | Revamp changes in Rule 6 of Credit Rules providing for reversal of Cenvat credit in respect of inputs and input services used in manufacture of exempted goods or for provision of exempted services, on following broad principles :· Option 1 – The assessee can pay an amount equal to 6% of value of the exempted goods and 7% of value of the exempted services. This amount will be capped at a maximum of the total credit taken with the assessee at the end of the period to which the payment relates; · Option 2 – Pay an amount as determined under Rule 6(3A) Formula. Cenvat credit on common inputs/input services is to be identified and the same is to be apportioned based on the exempted/dutiable turnover as only proportionate Cenvat credit on common inputs/input services will be allowed; ü No Cenvat credit will be allowed on inputs/input services used exclusively in the manufacture of exempted goods / services; ü Full credit is allowed on the inputs/input services used exclusively in the manufacture of dutiable goods / taxable service;ü Credit left thereafter is common credit and shall be attributed towards exempted goods and exempted services by multiplying the common credit with the ratio of value of exempted goods manufactured or exempted services provided to the total turnover of exempted and non-exempted goods and exempted and non-exempted services in the previous financial year; ü Final reconciliation and adjustments are provided for after close of financial year by 30th June of the succeeding financial year, as provided in the existing Credit Rules · No Cenvat credit on capital goods used for the manufacture of exempted goods or provision of exempted service for 2 years from the date of commencement of commercial production/date of installation or provision of service. · Explanation 3 to substituted Rule 6(1) of the Credit Rules provides that for the purpose of Rule 6 of the Credit Rules, ‘exempted services’ asdefined in Rule 2(e) of the Credit Rules shall include an activity, which is not a ‘service’ as defined in Section 65B(44) of the Finance Act. |
| Rule 7 | Distribution of Cenvat credit by Input Service Distributor (“ISD”) · Credit can be distributed to outsourced manufacturing unit – Outsourced manufacturing unit means job-worker paying duty under 10A of Central Excise Valuation (Determination of Price Of Excisable Goods) Rules, 2000 or contract manufacturer paying under Section 4A of the Central Excise Act, 1944; · Credit common to more than one unit to be distributed to respective unit;· Credit common to all units to be distributed to all the units; · Credit on services with ISD upto March 31, 2016 not to be distributed to outsourced manufacturing unit |
| Rule 9(a)(i) | Invoice issued by a service provider for clearance of inputs or capitals goods shall also be a valid document for availing Cenvat credit |
| Rule 9A | Annual return by a manufacturer of final products or provider of output services for each financial year to be filed by the 30th day of November of the succeeding year in the form as specified by a notification by the Board |
| Rule 14(2) | FIFO method for determining whether a particular credit has been utilized is being omitted. Now, whether a particular credit has been utilised or not shall be ascertained by examining whether during the period under consideration, the minimum balance of credit in the account of the assessee was equal to or more than the disputed amount of credit. |
(Author can be reached at Email: sonuandfirm@gmail.com)
Wednesday, 30 March 2016
Income tax Calculator for Financial Year 2015-16 Assessment Year 2016-17 in Excel Format
Attached is the Income tax calculator with flexi allocation kit for the FY 2015-2016, request you to post the same in the Tax Guru Web site.
Simple income tax calculator cum flexi allocation kit, for the use of salaried employees of govt and private sector, basis the latest budget proposals.
Tax slabs;
Rates for Individuals below 60 years
| Income slabs | Income tax rate |
| Income up to Rs. 2.50 lakhs | Nil |
| Rs. 2.50 to Rs. 5 lakhs | 10% |
| Rs.5 Lakhs to Rs. 10 Lakhs | 20% |
| Rs. 10 lakhs above | 30% |
Rates for Individuals below 60 years below 80 Years
| Income slabs | Income tax rate |
| Income up to Rs. 3 lakhs | Nil |
| Rs. 3 to Rs. 5 lakhs | 10% |
| Rs.5 Lakhs to Rs. 10 Lakhs | 20% |
| Rs. 10 lakhs above | 30% |
Rates for Individuals 80 years & above
| Income slabs | Income tax rate |
| Income up to Rs. 3 lakhs | Nil |
| Rs. 3 to Rs. 5 lakhs | Nil |
| Rs.5 Lakhs to Rs. 10 Lakhs | 20% |
| Rs. 10 lakhs above | 30% |
Surcharge of 12% on Income tax those taxable income exceeds Rs.1.00 crore will apply.
Education cess will apply 3% on the Income tax & Surcharge will apply for all.
Section 80C gives deduction for various savings schemes upto Rs. 1.50 lakhs and additional deduction of Rs.50,000 towards investment in NPS under 80CCD (1b).
ALSO READ
The Ministry of Corporate Affairs has notified the Companies (Auditor's Report) Order, 2016 (CARO 2016)
The Ministry of Corporate Affairs has notified the Companies (Auditor's Report) Order,
2016 (CARO 2016) vide its Notification no. S.O. 1228(E) dated 29 th March, 2016.
and shall be applicable for the financial year commencing on or after 1st April, 2015.
CARO 2016 has introduced a number of new reporting requirements by Statutory
Auditors and has cast much more responsibility on them as compared to the
CARO2015.
In this Article, an attempt has been made to compare the provisions of CARO 2015 and
CARO 2016 with the aim of highlighting the changes put forth by CARO, 2016 and the
revised requirements to be complied going forward. This is not an analysis of the CARO
2016 but a comparison with its previous order to throw light on the changes introduced
in order to facilitate an understanding of the new requirements and to prepare ahead.
While making the comparison, CARO 2015 has been taken as the basis to draw out a
comparison of the common stipulations between both the Orders and the additional
requirements of CARO 2016 have been stated separately for ease of understanding.
Monday, 28 March 2016
Deputy Chief Minister of Delhi Manish Sisodiya presented the Annual Budget for 2016-17 in Assembly on 28.03.2016 and rationalisesd VAT and Other Duties which may result in reduction in prices of readymade garments, shoes, watches and electric and hybrid vehicles. In this Article we have covered Highlights of Changes related to Taxes/ Duties and Extract of his Budget Speech related to Changes in Tax and Duty Structure.
HIGHLIGHTS OF GOVERNMENT OF NCT OF DELHI BUDGET- 2016-17 RELATED TO VALUE ADDED TAX, EXCISE DUTY, STAMP DUTY, LUXURY TAX ETC.
- Due to transparent, honest, efficient and effective governance, the overall revenue for the fiscal year 2015-16 has grown at an unprecedented rate of 17% as compared to previous
- Proper care has been taken in formulation of Tax Policy so that the dipstributive character of Delhi is maintained.
- VAT constitutes nearly 65% of total tax revenue.
- Multiple entries relating to some items create ambiguity and confusion which leads to harassment of traders. It has been attempted to simplify the taxation by bringing them into one entry.
- Utmost encouragement to voluntary compliance of tax has been attempted for a strong partnership with trade.
- VAT rate on battery operated transport means i.e. e-rickshaw, battery operated vehicle and hybrid automobile has been proposed to be reduced from 12.5% to 5%.
- VAT on Sweets and Namkeens has been proposed to be reduced from 12.5% to 5%.
- Tax rate on readymade garments costing above Rs.5,000/- has been proposed to be reduced from 12.5% to 5%.
- VAT on marble is proposed to be reduced from 12.5% to 5%.
- VAT rate on watches costing above Rs.5,000/- has been proposed to be reduced from 20% to 5%.
- Rationalization of tax on textiles and fabrics by applying uniform tax of 5% on all varieties of textiles and fabrics (including sarees except khadi and handloom fabrics) has been proposed.
- Tax on plastic waste has been proposed to be levied @5%.
- VAT on UPS units has been proposed to be increased to 12.5%.
- Currently footwears costing above Rs.500/- and school bags costing above Rs.300/- are taxable @12.5%. It is proposed to apply uniform VAT rate of 5% on all kinds of footwear and school bags irrespective of price.
- By launching of new scheme “Bill Banvao Inaam Pao” powerful impetus has been given to public participation.
- An award scheme has been launch for “Market Association”
- In Excise Department, the Inspector Raaj has been done away and point of levy of excise duty has been shifted from transport permit level to import permit level, this has resulted 31% increase in excise revenue collection.
- Luxuries Tax collection has increased 36.7%, while Entertainment Tax collection increased to 60%. Threshold limit of luxury tax is proposed to be increased from existing Rs.750 to 1500/- per day per room.
- Introduction of self declaration proposed in luxury tax.
- Amendments have been proposed in section 17 of Registration Act so as to make compulsory registration of several new instruments.
- It has been proposed to start online search facility for registered documents shortly. All legacy data since 1985 shall be scanned digitized and readily made available to public.
PART – B of Budget Speech of Delhi Budget 2016-17
115. Hon’ble Speaker Sir, I have dwelt at length upon the policies of the Government in Part-A of my Speech, and once again I state with the highest emphasis at my command that this Government is of, by and for the common man of Delhi. Every penny collected from the people, in the form of taxes and duties, is spent with utmost care and with all honesty and integrity.
116. It is a myth that only the rich pay taxes. The poor, the disadvantaged as consumers of goods and services also pay tax. Thus, while we have to mobilize greater resources to meet the goals outlined earlier we are committed to a tax structure which is just, fair and equitable.
121. Through our transparent, honest, efficient and effective governance, the overall revenue for the fiscal year 2015-16 has grown at an unprecedented rate of 17% compared to the previous year. This was possible through elimination of corruption at the highest levels and significant usage of technology at the levels where the citizens interface with the Government, deploying honest officers in sensitive positions, timely completion of infrastructural projects at reduced costs and reduction of all wasteful expenditure.
Value Added Tax
122. Sir, in the tax revenue, VAT constitutes the major part of our receipts, with nearly 65%- of total collections – and most of our developmental activities depend mainly on the buoyancy and elasticity of tax revenue from VAT. My taxation proposals are founded on the following principles:
123. The first and foremost principle of our taxation policy is to maintain the distributive character of Delhi’s trade.
124. Secondly, it is simplification of the existing system and promotion of an all-round ease of doing business.
125. Thirdly, multiple entries relating to the same item or a common group of items are a great source of ambiguity and confusion, which leads to harassment of traders and create a window for reporting manipulation leading to undesirable behaviour. We have tried to simplify it by bringing them under one entry to the extent possible.
126. Fourthly, our Government is fully committed to reducing tax arbitrage and will attempt to keep a uniform rate with neighbouring states. In several items such as sweets – namkeen, watches, readymade garments, lower tax rate in neighbouring States was causing erosion in the same. We have made efforts to remove such imbalances in our VAT structure.
127. Last and most important principle which is the motive force behind our taxation policy is to encourage voluntary compliance, and forge a strong partnership with the trade and the public.
128. Having regard to the above objectives, I propose modifications in the VAT rate which can be classified into two parts :
- Reduction in VAT rates
- Rationalization of tax rates
Reduction in VAT rates
129. Our Government is committed to check rising pollution due to automobiles and to promote use of environment friendly vehicles, VAT rate on battery operated transport means i.e. e-rickshaws, battery operated vehicles and Hybrid Automobiles (i.e. Battery driven with other fuel option), is proposed to be brought down from 12.5% to 5%.
130. Sweets and namkeens are presently taxable @ 12.5%, while the tax rate in Haryana and Uttar Pradesh is 5%. With a view to avoid geographical tax arbitrage, I propose to reduce the VAT on Sweets and namkeens to 5%.
131. At present, readymade garments upto ₹ 5000/- are taxed at 5%, those above ₹ 5000/- are taxed at 12.5%. Again in neighbouring States (U.P. and Haryana) all readymade garments are taxed at 5%. I propose to rationalize the tax rate by taxing all readymade garments @5%.
132. Marble in Delhi is currently taxable at 12.5% being an unspecified item. Marble Trade Association of Delhi has been requesting for lower tax rate to encourage people to buy marble from Delhi Traders only. I understand reducing the tax rate of marble from 12.5% to 5% would be in the interest of revenue and I propose accordingly.
Rationalizing of tax rate
133. Watches in Delhi are taxed differentially at 12.5% (watches upto ₹ 5000/-) and (20% watches above ₹ 5000/-), while they are taxed uniformly at 12.5% in neighbouring states. I propose a uniform VAT rate of 12.5% on all kind of watches.
134. Textile and fabric are presently covered under several entries in the tax rate schedules – some under the exempted list, while others in the taxable category of 5%. I propose to simplify this system by levying a uniform tax rate of 5% on all variety of textiles and fabrics (including sarees) except khadi and handloom fabrics.
135. Plastic waste continue to be exempted whereas plastic raw materials i.e. plastic granules, plastic power and master batches are taxable @5%. Since, plastic waste can also be recycled and used as raw material to make plastic articles, it is proposed to tax plastic waste also @5%.
136. Presently, inverters and UPS are taxable at general un-specified rate of 12.5%. However, there is a duplicate entry i.e. UPS units in Schedule III, which is leading to confusion. Therefore, I propose to omit this entry.
137. Presently, footwear above MRP ₹ 500/- are taxable @12.5%. I propose to rationalize the VAT rate on footwear by subjecting uniform rate of 5% to all footwear irrespective of price.
138. School Bags having MRP upto ₹ 300/- and MRP above ₹ 300/- are taxed at 5% and 12.5% respectively. I propose to rationalize by levying a uniform rate of 5% on all schools bags irrespective of price.
139. In the existing entry of Ferrous and Non-ferrous metals, there is no mention of aluminium or metal sheets, and some items are taxed at higher rate of 12.5%. To remove an ambiguity, I propose to modify the entry as “Ferrous and non-ferrous metals and alloys thereof including their sheets, foils and extrusions. Non-ferrous metals includes aluminium, copper, zinc etc.”
140. Sir, the Tobacco and tobacco products are currently taxable @20%. The relevant entry reads as under :-
“Tobacco and Gutkha, unmanufactured tobacco, bidis and tobacco used in manufacture of bid is and hooka tobacco”.
In order to make it more comprehensive, I propose to modify the entry as under :- “Un-manufactured tobacco, tobacco and tobacco products in all forms such as cigarettes (irrespective of form and length), chewing tobacco, gutkha, cigars, hookah tobacco, khaini, zarda, surti, bidis etc.”
141. In addition to reforms related to the VAT rates, this government has given a powerful impetus to the public participation in tax management by launching a new scheme of ‘Bill Banwao Inaam Pao’. Under this scheme, consumers in Delhi, while making any purchases can send the snapshot of retail bill / invoice to the department through a mobile application. This innovative scheme has promoted a unique partnership between the public and the VAT Department in the context of verification of sale / purchase transactions and compliance, which was based primarily on the visit of tax inspectors in the field only till now. Under the scheme 1% of the entries are shortlisted for award and prize money, thereby incentivizing the participation of consumers. The increasing success of the scheme can be measured from the fact that 8000 entries have been received in the month of February 2016 as against 4000 entries in the month of January 2016 when the scheme was launched.
142. The Government has also introduced a unique Reward scheme to acknowledge and further encourage market and trade associations contributing revenue over and above the targets set for the year. Such associations will get 10% of the revenue generated over and above the target set for the year. Besides this, top 10 performing market association will get cash reward of ₹ 5 lakh each. The award money is to be utilized for the overall improvement of the market and maintenance of public conveniences, beautification, repairs etc.
143. Mr. Speaker Sir, it is evident from the above details that our Government is decisively moving away from the past traditions of command, control and penetration of markets by the interventionist government to the role of an enabler and facilitator.
Excise Duty, Stamp Duty & Luxury Tax
144. Speaker sir, last year in my budget speech I had mentioned about streamlining the liquor trade and eradicating corruption. Today I am happy to inform this august house that the steps undertaken by the Government have started yielding results.
145. You may kindly recall that I had not increased excise duty on liquor last year. However steps were taken to plug loopholes to prevent leakage in excise revenue. We had shifted point of levy of Excise Duty from Transport Permit Level to Import Permit Level. Due to this and other reforms undertaken by the Government, there has been 31% increase in Excise Revenue Collections, from ₹ 3187 crore in 2014-15 to approximately ₹ 4200 crore this year, an all-time high. Inspector raj has been done away with. In the time to come, these existing reforms will not only continue but more such reforms are likely to be introduced.
146. The revenue collection from Luxury Tax has seen an increase of 36.7percent. As against last year’s ₹ 322 crore of revenue from Luxury Tax, this year will exceed ₹ 440 Crore is estimated to be collected.
147. As another step towards a simplified tax regime, I to announce the increase in threshold limit of Luxury Tax from existing ₹ 750 to ₹ 1500. This will reduce tax burden on citizens and tourists and make it easy for small hotels to do business.
148. As on today assessment of all hotels is compulsory. My Government has decided to introduce self declaration in Luxury Tax. Assessment will be done on random basis.
149. The revenue collection from Entertainment Tax has seen an increase of 60 percent. As against last year’s ₹ 148 crore of revenue from Entertainment Tax, this year exceed ₹ 237 Crore is estimated to be collected.
150. Sir, our Government is deeply conscious that tax rates/duties must be in line with economic realities. Given the slowdown in the real estate sector, our government (unlike previous policies) held the circle rates in urban areas stable and did not increase them. I am happy to announce that against stamp duty collection of ₹ 2779 crore up to 31st March, 2015, the stamp duty collection was ₹ 3359 crore up to 22/3/2015 which is 21% higher than last year. In order to keep up the momentum, various new initiatives are being proposed so as to enhance the quantum of stamp duty collection.
151. A separate Stamp Act for Delhi is on the anvil. The Bill aims to simplify provisions, reduce arbitrary power and at the same time increase revenue. Another new initiative has been on-line payment of stamp duty for companies issuing shares and debentures. Efforts are being made to bring more transactions into the net of registration and stamp duty. Amendments have been proposed in Section 17 of Registration Act so as to make compulsory registration of several new instruments.
152. Our Government proposes to start online search facility for registered documents shortly. All legacy data since 1985 shall be scanned, digitized and readily made available to public for search.
153. “I should love to satisfy all, if I possibly can; but in trying to satisfy all, I may be able to satisfy none. I have, therefore, arrived at the conclusion that the best course is to satisfy one’s own conscience and leave the world to form its own judgment, favorable or otherwise.” ― Mahatma Gandhi
Thursday, 24 March 2016
In a previous post we saw how and where we can place Adsense ads on our blog; however, these methods would only work when we place the ads on predetermined and fixed locations. For posts area, the most common places are below the title, at the beginning of the post or at the end of the post.
But what if we want to display an AdSense ad in the middle of a post?
Step 2. Replace the <data:post.body/> tag with this code:
Note: If you don't add the label to bring up the ad, then the ad will appear below the title by default.
And you don't have to worry about violating the Google's Terms of Service because applying this method we are not changing the structure of the ad
(Author can be reached at By- Sonu Mehla Mobile- 8285910007 E-Mail- sonuandfirm@gmail.com)
But what if we want to display an AdSense ad in the middle of a post?
We can manipulate the location of the ads to be displayed by adding a script inside the template and using a tag inside our post to where we want the AdSense ad to appear. Once added, we can place the ads anywhere, be it between paragraphs or in the middle of the content etc.
Manually inserting Adsense ads in the middle of posts in Blogger is pretty simple, just follow these steps below:
Before proceeding, it is recommended do backup your template (go toTemplate > click on the Backup/restore button)
Step 1. First thing we need to do is to "parse" the AdSense code, in other words, convert it to plain text. Then go to Template, click on the Edit HTML button, click anywhere inside the code area and look for this tag (CTRL + F):
<data:post.body/>Note: you may find it several times, but we need to stop at the second one or if you can't see any changes, test the third one
 |
| Screenshot |
<div expr:id='"adsmiddle1" + data:post.id'></div>Step 3. Put the converted Adsense code to where you see the <!-- Add here the code of your ad --> annotation, then save the changes by clicking on the Save template button.
<b:if cond='data:blog.pageType == "item"'>
<b:if cond='data:blog.pageType != "static_page"'>
<div style="clear:both; margin:10px 0">
<!-- Add here the code of your ad -->
</div>
</b:if>
</b:if>
<div expr:id='"adsmiddle2" + data:post.id'>
<data:post.body/>
</div>
<script type="text/javascript">
var obj0=document.getElementById("adsmiddle1<data:post.id/>");
var obj1=document.getElementById("adsmiddle2<data:post.id/>");
var s=obj1.innerHTML;
var r=s.search(/\x3C!-- adsense --\x3E/igm);
if(r>0) {obj0.innerHTML=s.substr(0,r);obj1.innerHTML=s.substr(r+16);}
</script>
Note: For centering ads, add the center tag before and after the AdSense code, like this:
<div style="clear:both; margin:10px 0">Step 4. When you create a New Post, add this tag inside the HTML section to where you want the Google AdSense ads to appear:
<center>
<!-- Add here the code of your ad -->
</center>
</div>
<!-- adsense -->For example:
<div>This is a demo text. This is a demo text. This is a demo text. This is a demo text. This is a demo text. This is a demo text. This is a demo text. This is a demo text. This is a demo text. This is a demo text.</div>
<!-- adsense --><div>This is a demo text. This is a demo text. This is a demo text. This is a demo text. This is a demo text. This is a demo text. This is a demo text. This is a demo text. This is a demo text. This is a demo text.</div>
 |
| Screenshot |
And you don't have to worry about violating the Google's Terms of Service because applying this method we are not changing the structure of the ad
(Author can be reached at By- Sonu Mehla Mobile- 8285910007 E-Mail- sonuandfirm@gmail.com)
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