Top 10 Indirect-tax Budget 2014 proposals you must read: 1. Interest rates: Interest rates on delayed payment of service tax increased (up to 30%) (effective 1 October 2014): - Delay up to 6 months: 18% - Delay of 6 months to 1 year: 18% for first six months and 24% beyond 6 months - Delay of more than 1 year: 18% for first six months, 24% for six months and 30% for the period of delay beyond 1 year 2. Cenvat credit: Cenvat credit on inputs and input services should be availed within a period of six months from the date of issuance of invoice, bill, challan etc. (effective 1 September 2014) 3. Reverse charge: Point of taxation for service tax to be deposited on reverse charge mechanism to be payment date or the first day after a period of three months from the date of invoice, whichever is earlier (effective 1 October 2014) 4. Pre-deposit: Mandatory 7.5% pre- deposit of duty demanded/ penalty imposed or both for filing before the Commissioner (Appeals) or Tribunal (first stage) and 10% duty demanded/ penalty imposed or both for filing Tribunal (second stage). Pre-deposit subject to a ceiling of Rs. 10 crore (effective from the date when the Finance Act 2014 becomes effective) 5. Appeal: Appeal against Tribunal orders on issues involving taxability, excisability to lie directly before the Supreme Court, in addition to the appeals on involving rate and value related disputes (effective from the date when the Finance Act 2014 becomes effective) 6. Advance ruling: Resident private limited companies now eligible to seek Advance ruling (effective immediately) 7. Valuation of works contract: Categories of works contracts (viz relating to maintenance, repair, recondition, restoration and others category clubbed (effective 1 October 2014) 8. SEZ: Procedure for availing exemption for services provided to SEZ units/ developers (ie obtaining of forms A1 and A2) made time bound (effective immediately) 9. Excise Valuation: Supreme Court’s decision in the case of FIAT undone. Valuation Rules amended to provide that even where excisable goods are sold at a loss, Excise duty shall be payable on the transaction value, and not the notional market value (effective immediately) 10. Advertisement services: Service tax to be payable on sale of space or time for.advertisements on internet websites, out-of-home media, bill boards,conveyances, buildings, cell phones, ATM machines, tickets, commercial publications, aerial advertising etc. (effective from a date to be notified after the.Finance Act 2014 becomes effective)
Posted on: Fri, 11 Jul 2014 17:00:07 +0000
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