► Peak rate of duty maintained at 10%. Basic duty rate
increased from 4% to 5% to align with state VAT rates.
► AED under AED (GSI) removed on sugar, textile and
textile products to enable states to levy VAT.
► Duty of 1% (without input Cenvat) imposed on 130 items,
which were earlier exempted. For specified items, option
provided to avail credit and discharge duty at 5%.
► Exemption to packaged or canned software (from value
that represents transfer of right to use) provided to cover
supplies made other than under MRP assessment.
► Interest rate for delayed payment of duty increased from
13% to 18% with effect from 1 April 2011 and penalty
provisions amended.
► Input and input services redefined to exclude specified
goods and services. Exempted services to include trading
“trading” for the purposes of computing credit reversal.
► Definition of capital goods amended to include goods
used outside the factory for generation of electricity for
captive use.
►Rule 6(5) of Credit Rules which specified input services
for full Cenvat credit availability (unless used exclusively
for exempted operations), deleted.
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