BUDGET HIGHLIGHTS 2015 in Simple Language

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BUDGET HIGHLIGHTS 2015

BUDGET HIGHLIGHTS 2015 – EXCISE

  1. The rate of Excise duty has been increased from 12.00% to 12.50%
  2. The amendment is only applicable for the products bearing excise duty of 12%.
  3. The goods which fall under duty of 2% or 6% will continue in that regime only.
  4. The Education Cess and Secondary Higher Education Cess has been totally exempted.
  5. The Education Cess and Secondary Higher Education Cess is not exempted for imported goods and they will continue to be leviable as per the previous position.
  6. The balance of Education Cess and S.H.E.C will continue to stand in the books as it is if it cannot be utilized till further notification.
  7. However Customs Cess has not been exempted
  8. The Education Cess and Secondary Higher Education Cess is not exempted for imported goods and they will continue to be leviable as per the previous position.
  9. The balance of Education Cess and S.H.E.C will continue to stand in the books as it is if it cannot be utilized till further notification.
  10. However Customs Cess has not been exempted
  11. Time limit for availment of Cenvat Credit has been increased from 6 months to 1 year from the date of invoice.
  12. Now there has been included the provision regarding methodology for reversal of cenvat credit which is as follows:-
  • Opening Balance Utilized
  • Admissible Credit Utilized
  • Inadmissible Credit Utilized

BUDGET HIGHLIGHTS 2015 SERVICE TAX

  1. The rate for service tax has been proposed to be increased from 12.36 % to 14% till further notification.
  2. The above rate of 14% will be consolidated rate and subsuming Education Cess and Secondary Higher Education Cess.
  3. The new rate of tax have not been notified till now and the same rate i.e 12.36% will continue to be levied.
  4. A new cess has been introduced in the name of Swachh Bharat Cess for which the rate will be 2%.
  5. There is no clarification regarding Cenvat Credit of Swachh Bharat Cess.
  6. Now the service tax will be paid including the amount of reimbursements mentioned on the invoice.
  7. The Reverse Charge in case of manpower supply services will be @ 100% vis-à-vis 75% earlier.
  8. Now section 67 has been amended to include all reimbursable expenses paid during the provision of services in the value of services to determine service tax liability.
  9. With view to harmonize the abatements, the service tax will now be paid a uniform rate of 30% of the value of services for transport by vessel, railway & Roads.

BUDGET HIGHLIGHTS 2015 Income Tax

  1. Now Additional Depreciation u/s 32 will be provided in the subsequent year also on the assets for which 50% have been claimed due to Assets put to use for less than 180 days i.e
  • 10% in first year
  • -20% in subsequent year
  1. This clause is only applicable in case the said assets were put to use for less than 180 days.
  1. Wealth tax has been done away with for financial year 2015-16.
  2. A 2% additional surcharge will be applicable on Super Rich Individuals & Companies i.e whose total Income Exceeds 1.00 crore.
  3. Section 269SS and Section 269T have been amended to provide that any transaction involving procurement of  cash advance/repayment of cash advance for land exceeding Rs. 20000/- shall be through accounts payee cheque only. The said amendments are effective dated 01.06.2015.
  4. The threshold limit for Domestic Transfer Pricing has been increased from 5.00 crores to 20.00 crores.
  5. Deduction u/s 80D go up from Rs. 15 thousands to Rs. 25 thousands.
  6. For senior citizens the same will be raised from Rs. 20 thousands to Rs. 30 thousands.
  7. Deduction u/s 80G to Swachh Bharat Kosh & Clean Ganga Fund is eligible for 100% deduction.
  8. Earlier T.D.S was not to be deducted on payment made to transporters provided they furnish the Permanent Account Number under Section 194C .This was introduced vide Finance Act, 2009.However this provision was made only to exempt small transporters.
  9. However the same stands amended and now the T.D.S will not be deducted in case of transporters owning not more than 10 carriages during the year and falling u/s 44AE.
  10. The practical implication for the same will be that now the assesse will have to obtain a declaration in form of an affidavit from the transporter regarding the owning of carriages to satisfy the above mentioned condition along with the PAN.

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