Notification & Circular as on dated September 23,2016

Notification: Service tax:

Exemption from Service tax on one time upfront amount payable to State Government Industrial Development Corporations/ Undertakings for granting long term (30 years, or more) lease of industrial plots to industrial units

The Central Government vide Notification No. 41/2016-Service Tax dated September 22, 2016 has exempted taxable service provided by State Government Industrial Development Corporations/ Undertakings to industrial units by way of granting long term (thirty years, or more) lease of industrial plots from so much of service tax leviable thereon under section 66B of the Finance Act, 1994 as is leviable on the one time upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable for such lease.

Notification: Customs:

Amendment in Notification No. 12/2012-Customs dated March 17, 2012 dealing with effective rate of duty on import of goods

The Central Government vide Notification No. 50/2016-Customs dated September 22, 2016 has made amendments in Notification No. 12/2012-Customs dated March 17, 2012 dealing with effective rate of duty on import of goods thereby amending the following-

In Serial number 447 dealing with raw material for manufacture or servicing of aircraft falling under heading 88.02 and manufacture of aircraft parts, following amendments have been made-

(i) Omission of the words “or servicing” in column (3), in item (a)

(ii) Substitution of the entry “72” for the entry “5” in column (6)

S.No.	Chapter or Heading or sub-heading or tariff item	Description of goods	Standard rate	Additional duty rate	Condition No.
(1)	(2)	(3)	(4)	(5)	(6)
447.	88 or any Chapter	Raw materials	Nil	–	5
		a) for manufacture of aircraft falling under heading 88.02;
		(b) for manufacture of parts of aircraft at (a)

Omission of the Condition No. 72 in the ANNEXURE which is as follows-

“if an officer not below the rank of a Deputy Secretary to the Government of India in the Ministry of Civil Aviation certifies in each case the description and quantity of such raw materials which are required for the manufacture or servicing of the specified aircraft or parts of such aircraft, as the case may be”

Circular: Customs:

Setting up of Customs Clearance Facilitation Committee for Land Customs Stations and Inland Container Depots

The Central Board of Excise and Customs (“the Board”) vide Circular No. 44/2016-Customs dated September 22, 2016 has stated that Customs Clearance Facilitation Committees (CCFC) have been set up at each sea port and airport tasked with the responsibility of ensuring expeditious Customs clearance of imported and export goods.

In this regard to have similar administrative arrangements for facilitation of trade in the Land Customs Stations, the Board has decided to set up CCFCs in the following Commissionerates having jurisdiction over the various Land Customs Stations,-

(i) Commissionerate of Customs (Preventive) Amritsar;

(ii) Commissioner of Customs (Preventive) Kolkata;

(iii) Commissioner of Customs (Preventive) Patna;

(iv) Commissioner of Customs (Preventive) Shillong.

Further, the CCFCs will also be set up in the Commissionerates having jurisdiction over the Inland Container Depots.

Also, the terms of reference for the CCFC has also been prescribed in the circular. The Board further says that CCFC shall meet once a month or as considered necessary by the chair.

The Board states that the Chief Commissioners concerned may periodically review the working of the CCFC and its impact on reducing delays in the Customs clearance time of imported and export goods and in resolving related trade grievances.

Trade Notice: DGFT

Refund of Terminal Excise Duty (TED) under Deemed Exports where Duty has been paid from Cenvat Credit and ab-initio waiver is not available.

The PARA 7.03 (c) of FTP 2015-20 provides for refund of Terminal Excise Duty if exemption is not available. The Para 7.05 (ii) of FTP 2015-20 states that supply of goods which are exempted ab-initio from payment of Terminal Excise Duty would be ineligible to get refund of TED.

Further, the Policy Circular No. 16 (RE-2012-2009-14) dated March 15, 2013 also while specifying the category where ab-initio exemption is there, specified that no refund of TED should be provided by RAs of DGFT/Office of Development Commissioners, because such supplies are ab-initio exempted from payment of excise duty.

Now, the Directorate General of Foreign Trade vide Trade Notice No. 17/2016 dated September 22, 2016 has in regard to representations from trade and industry, clarified that the refund of TED as per Foreign Trade Policy (FTP), subject to all other conditions, shall continue to be available where the ab-initio exemption was not provided and duty had been paid using Cenvat credit. However Department of Revenue has advised that necessary safeguards should be adopted to ensure that the TED is not already claimed (or shall not be otherwise claimed) as refund in any other manner, such as area based exemptions.

Further, it is reiterated that no refund of TED shall be allowed where ab-initio exemption was there, as already specified in the FTP.

Public Notice: DGFT

Merchandise Exports from India Scheme (MEIS)-Additions/amendments in Table 2[containing ITC (HS) code wise list of products with reward rates] of Appendix 3B

The Directorate General of Foreign Trade vide Public Notice No. 32/2015-2020 dated September 22, 2016 has notified certain additions/amendments in Table 2 [Containing ITC (HS) code wise list of products with rewards rates] of Appendix 3B thereby adding 2901 lines to MEIS Schedule viz. tiles @2% MEIS rate, bricks, tiles of Fly ash @3% MEIS rate etc.and certain amendments in rates of MEIS schedule.

Notification/ Circular: Uttar Pradesh Entry Tax

Imposition of entry tax on online shopping or e- commerce

The Uttar Pradesh Government vide Notification No. K.A. NI-2-1341/XI-9(107)/U.P. Act-30-07-Order-(165)-2016 dated September 21 ,2016 has made amendment in Schedule to the Uttar Pradesh Tax on Entry of Goods into Local Areas Act, 2007 by inserting entry no. 24 after 23 thereby imposing entry tax on all kind of goods described in Schedule -1 of Uttar Pradesh Value Added Tax Act 2008 purchased or order through online shopping or e-commerce and consigned or brought into local area from outside the state, otherwise than in connection with business or for personal use.

Further, the said notification is effective from September 22, 2016.

Furthermore, the Uttar Pradesh Government vide Circular No. 1617034 dated September 21, 2016 has prescribed the procedure regarding online form for E- commerce.

http://comtax.up.nic.in/Circulars/2016-17/Circular_no_1617034.pdf

Entry Tax @5% of value of goods on online shopping or e- commerce

The Uttar Pradesh Government vide Notification No. K.A. NI-2-1342/XI-9(107)/07-U.P. Act-30-07-Order-(166)-2016 dated September 21, 2016 has amended Notification No. KA.NI.-2-2757/XI-9(l)/08-U.P.Act-30-2007-Order-(31)-2008 dated September 29, 2008 dealing with levying and collection of tax on entry of prescribed goods at specified rates, thereby inserting a new entry namely-

SI. No	Description of goods	Rate of tax
1	2	3
16	All kind of goods except the goods described in Schedule-1 of-the Uttar Pradesh Value Added Tax Act, 2008, purchased or ordered through online shopping or E-Commerce and consigned or brought into local area from outside the State, otherwise than in connection with business or for personal use.	5% of the Value of goods

Exemption from entry tax on natural Gas for specified purposes

The Uttar Pradesh Government vide Notification No. K.A. NI-2-1343/XI-9(159)/15-U.P. Act-30-2007-Order-(167)-2016 dated September 21,2016 has exempted all supplier, dealers from the payment of tax on entry of the natural gas into the local area from any place outside local area for use in gas based power stations/ projects of NTPC Limited Dadri and NTPC Limited Auraiya, only for incremental generation of electricity over and above the base PLF, under the scheme issued by the office memorandum no. 4/2/2015-Th-1 dated March 27, 2015 of the Ministry of Power, Government of India, with effect from March 22, 2016 to March 31, 2017.

Notification & Circular as on dated September 23,2016

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Notification & Circular as on dated September 23,2016

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