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Indirect Taxes Proposals Involving Change In Duty/Tax Rates: Customs & Excise Duty

February 1, 2017 Eximtutor Export

  1. PROPOSALS INVOLVING CHANGE IN DUTY / TAX RATES:

CUSTOMS:

 

Commodity Rate of Duty
  From To
I. Incentivizing domestic value addition, ‘Make in India’
A. Reduction in Customs duty on inputs and raw materials to reduce costs
Mineral fuels and Mineral oils
1. Liquefied Natural Gas BCD – 5% BCD – 2.5%
    Chemicals & Petrochemicals
2. Medium Quality Terephthalic Acid (MTA) & Qualified Terephthalic Acid (QTA) BCD – 7.5% BCD – 5%
    Metals
3. Nickel BCD – 2.5% BCD – Nil
    Finished Leather
4. Vegetable tanning extracts, namely, Wattle extract and Myrobalan fruit extract BCD – 7.5% BCD – 2.5%
    Capital Goods
5. Ball screws, linear motion guides and CNC systems for use in the manufacture of CNC machine tools, subject to actual user condition Ball screws and liner motion guides

BCD – 7.5%

CNC systems

BCD – 10%

 

 

BCD – 2.5%

    Renewable Energy
6. All items of machinery required for fuel cell based power generating systems to be set up in the country or for demonstration purposes, subject to certain specified conditions BCD – 10% /7.5%

 

CVD – 12.5%

BCD – 5%

 

CVD – 6%

7. All items of machinery required for balance of systems operating on biogas/ bio-methane/ by-product hydrogen, subject to certain specified conditions BCD – 10% /7.5%

 

CVD – 12.5%

BCD – 5%

 

CVD – 6%

    Miscellaneous
8. All parts for use in the manufacture of LED lights or fixtures, including LED lamps, subject to actual user condition Applicable BCD, CVD BCD – 5%

CVD – 6%

9. All inputs for use in the manufacture of LED Driver and MCPCB for LED lights or fixtures, including LED lamps, subject to actual user condition Applicable BCD 5%
B. Changes in Customs and Excise / CV duty to address the problem of duty inversions in certain sectors
    Chemicals & Petrochemicals
10. o-Xylene BCD – 2.5% BCD – Nil
11. 2-Ethyl Anthraquinone [29146990] for use in manufacture of hydrogen peroxide, subject to actual user condition BCD – 7.5% BCD – 2.5%
12. Vinyl Polyethylene Glycol (VPEG) for use in manufacture of Poly Carboxylate Ether, subject to actual user condition BCD – 10% BCD – 7.5%
    Textiles
13. Nylon mono filament yarn for use in monofilament long line system for Tuna fishing, subject to certain specified conditions BCD – 7.5% BCD – 5%
    Metals
14. Co-polymer coated MS tapes / stainless steel tapes for manufacture of specified telecommunication grade optical fibres or optical fibre cables, subject to actual user condition BCD – Nil BCD – 10%
15. MgO coated cold rolled steel coils [7225 19 90] for use in the manufacture of CRGO steel, subject to actual user condition BCD – 10% BCD – 5%
16. Hot Rolled Coils [7208] for use in the manufacture of welded tubes and pipes falling under heading 7305 or 7306, subject to actual user condition BCD – 12.5% BCD – 10%
    Automobiles
17. Clay 2 Powder (Alumax) for use in ceramic substrate for catalytic convertors, subject to actual user conditon BCD – 7.5% BCD – 5%
    Renewable Energy
18. Solar tempered glass for use in the manufacture of solar cells/panels/modules BCD – 5%

 

BCD – Nil

 

19. Parts/raw materials for use in the manufacture of solar tempered glass for use in solar photovoltaic cells/modules, solar power generating equipment or systems, flat plate solar collector, solar photovoltaic module and panel for water pumping and other applications, subject to actual user condition CVD – 12.5% CVD – 6%
20. Resin and catalyst for use in the manufacture of cast components for Wind Operated Energy Generators [WOEG], subject to actual user condition BCD – 7.5%

CVD – 12.5%

SAD – 4%

BCD – 5%

CVD – Nil

SAD – Nil

    Miscellaneous
21. Membrane Sheet and Tricot / Spacer for use in the manufacture of RO membrane element for household type filters, subject to actual user condition CVD – 12.5% CVD – 6%
C. Changes in Customs duty to provide adequate protection to domestic industry
Food Processing
22. Cashew nut, roasted, salted or roasted and salted BCD – 30% BCD – 45%
    Electronics / Hardware
23. Populated Printed Circuit Boards (PCBs) for use in the manufacture of mobile phones, subject to actual user condition SAD – Nil SAD – 2%
Miscellaneous
24. RO membrane element for household type filters BCD – 7.5% BCD – 10%
D. Promotion of cashless transactions and promote domestic manufacturing of devices used therefor
25. a)   Miniaturized POS card reader for m-POS (not including mobile phones or tablet computer),

b)  Micro ATM as per standards version 1.5.1,

c)   Finger Print Reader / Scanner, and

d)  Iris Scanner

Applicable BCD, CVD SAD BCD – Nil

CVD – Nil

SAD – Nil

26. Parts and components for manufacture of:

a)   miniaturized POS card reader for m-POS (not including mobile phones or tablet computer),

b)  micro ATM as per standards version 1.5.1,

c)   Finger Print Reader / Scanner, and

d)  Iris Scanner

Applicable BCD, CVD SAD BCD – Nil

CVD – Nil

SAD – Nil

II. Imposition of export duty to conserve domestic resources
27. Other aluminium ores, including laterite Nil 15%
III. Improving ease of doing business and Export Promotion
28. De-minimis customs duties exemption limit for goods imported through parcels, packets and letters Duty payable not exceeding Rs.100 per consignment CIF value not exceeding Rs.1000 per consignment
29. Limit of duty free import of eligible items for manufacture of leather footwear or synthetic footwear or other leather products for use in the manufacture of said goods for export 3% of FOB value of said goods exported during the preceding financial year 5% of FOB value of said goods exported during the preceding financial year
IV. Anti-avoidance measure
30. Silver medallion, silver coins, having silver content not below 99.9%, semi-manufactured form of silver and articles of silver CVD – Nil CVD – 12.5%

Note:  (a)  “Basic Customs Duty” means the customs duty levied under the Customs Act, 1962.

(b)  “CVD” means the Additional Duty of Customs levied under sub-section (1) of section 3 of the Customs Tariff Act, 1975.

(c)   “SAD” means the Special Additional Duty of Customs levied under sub-section (5) of section 3 of the Customs Tariff Act, 1975.

(d)  “Export duty” means duty of Customs leviable on goods specified in the Second Schedule to the Customs Tariff Act, 1975.

 

EXCISE

 

Commodity Rate of Duty
  From To
I. Public Health
A. Tobacco and Tobacco Products
1. Cigar and cheroots 12.5% or Rs.3755 per thousand, whichever is higher 12.5% or Rs.4006 per thousand, whichever is higher
2. Cigarillos 12.5% or Rs.3755 per thousand, whichever is higher 12.5% or Rs.4006 per thousand, whichever is higher
3. Cigarettes of tobacco substitutes Rs.3755 per thousand Rs.4006 per thousand
4. Cigarillos of tobacco substitutes 12.5% or Rs.3755 per thousand, whichever is higher 12.5% or Rs.4006 per thousand, whichever is higher
5. Others of tobacco substitutes 12.5% or Rs.3755 per thousand, whichever is higher 12.5% or Rs.4006 per thousand, whichever is higher
6. Paper rolled biris – handmade Rs.21 per thousand Rs.28 per thousand
7. Paper rolled biris – machine made Rs.21 per thousand Rs.78 per thousand
II. Incentivizing domestic value addition, ‘Make in India’
A. Renewable Energy
8. All items of machinery required for balance of systems operating on biogas/ bio-methane/ by-product hydrogen 12.5% 6%
B. Miscellaneous
9. Membrane Sheet and Tricot/Spacer for use in the manufacture of RO membrane element for household type filters, subject to actual user condition 12.5% 6%
10. All parts for use in the manufacture of LED lights or fixtures, including LED lamps, subject to actual user condition Applicable duty 6%
11. a.    Waste and scrap of precious metals or metals clad with precious metals arising in course of manufacture of goods failing in Chapter 71

b.   Strips, wires, sheets, plates and foils of silver

c.    Articles of silver jewellery, other than those studded with diamond, ruby, emerald or sapphire

d.   Silver coin of purity 99.9% and above, bearing a brand name when manufactured from silver on which appropriate duty of customs or excise has been paid

 

 

 

Nil

Nil, subject to the condition that no credit of duty paid on inputs or input services or capital goods has been availed by manufacturer of such goods
III. Promotion of cashless transactions and promote domestic manufacturing of devices used therefor
12. a)        Miniaturized POS card reader for m-POS (not including mobile phones or tablet computers),

b)       micro ATM as per standards version 1.5.1,

c)        Finger Print Reader / Scanner, and

d)       Iris Scanner

Applicable duty Nil
13. Parts and components for manufacture of:

a)        Miniaturized POS card reader for m-POS (not including mobile phones or tablet computers),

b)       Micro ATM as per standards version 1.5.1,

c)        Finger Print Reader / Scanner, and

d)       Iris Scanner

Applicable duty Nil

 

Note:    “Basic Excise Duty” means the excise duty set forth in the First Schedule to the Central Excise Tariff Act, 1985.

 

 

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