BUDGET AND FINANCE BILL 2015 - KEY HIGHLIGHTS - INDIRECT TAX

1.      GST likely to be implemented by April, 2016.

2.    Online Central Excise / Service Tax Registration certificates to be issued within 2 working days.

3.    Assessees allowed to issue digitally signed invoices and maintain electronic records.

4.    Time limit for taking CENVAT Credit on inputs and input services increased from six months to one year.

5.    CUSTOMS

-    Customs duty reduced on certain inputs, raw materials, intermediates and components (in all 22 items).

-    Levy of Special Additional Duty (SAD) fully exempt on all goods, except populated printed circuit boards for use in manufacture of ITA bound items and reduction of the SAD on imports of certain other inputs and raw materials.

6.    EXCISE

-     Central Excise duty increased to 12.50% from existing 12.36%

-     Excise duty on leather footwear of retail sale price of more than `1,000 per pair reduced from 12% to 6%.

-     Clean Energy Cess increased from `100 to `200 per metric tonne of coal, etc. to finance clean environment initiatives.

-   Excise duty on sacks and bags of polymers of ethylene other than for industrial use increased from 12% to 15%.

7.    SERVICE TAX

-     Service Tax rate increased to 14% from existing 12.36%.

-     Service Tax exemption

·      For Common Effluent Treatment Plant.

·      On Varishta Bima Yojana.

·      Extended to certain Pre-cold storage warehousing.

·      On all ambulance services provided to patients. 

-  Negative List proposed to be amended and certain exemptions to be withdrawn to widen the tax base.

-     Manpower supply and security services when provided by individual, HUF, partnership firm to a body corporate brought to full reverse charge mechanism.

-   Proposal to levy Swachh Bharat Cess at a rate of 2% or less on all or certain services if need arises for financing and promoting initiatives towards Swachh Bharat.

-   Services provided by mutual fund agents, mutual fund distributors and lottery agents brought under reverse charge mechanism.

-     Credit of service tax to be allowed to service receiver of service tax paid under partial reverse charge mechanism.