TOP 10 INDIRECT TAX BUDGET-2014 PROPOSALS : 1. INTEREST RATES : Interest rates on delayed payment of Service Tax increase- ¤ Delay upto 6 months: 18%, ¤ Delay of 6 months to 1 year: 18% for 6 months and 24% beyond 6 months, ¤ Delay of more than 1 year: 18% for first 6 months, 24% for next 6 months and 30% for the period of delay beyond 1 year. [effective 1 October 2014] 2. CENVAT CREDIT : Cenvat Credit on Inputs & Input Services should be availed within a period of 6 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 3 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 Finane 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 Finane 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, reconfition, restoration and others category) clubbed. [effective 1 October 2014] 8. SEZ : Procedure for availing exemption for services provided to SEZ units/ developers (i.e. obtaining of Forms A1 and A2) made time bound. [effective immediately] 9. EXCISE VALUATION : Supreme Courts 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 the date when the Finane Act 2014 becomes effective]
Posted on: Fri, 11 Jul 2014 11:06:41 +0000
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