I. CBEC PROJECTED COLLECTIONS for the financial year 2014-15:
1. Service Tax : Rs. 2,15,973 crore
2. Central excise: Rs. 2,06,356 crore
3. Customs Duty: Rs, 2,01,819 crore
So from this financial year onwards, service tax collection is projected to exceed customs and excise duties.
Out of the governments proposed gross tax revenue of Rs. 13,64,524 crore for the current fiscal, the revenue from CBEC is expected to be around Rs.6,24,902 crores i.e. around 45%
II. Individual Income Tax Rates:
1. Exemption limit has been increased to Rs. 2.5. lakh from the present Rs. 2 lakhs and for senior citizens from Rs. 2.5 lakh to Rs. 3 lakh
2. Section 80C deuction has been increased from Rs. 1 lakhs to Rs. 1.5 lakh
3. Interest on Housing Loan has been increased from Rs. 1.5 lakh to Rs. 2 lakhs.
4. Annual limit for investment under PPF is increased from Rs. 1 lakh to Rs. 1.5 lakh
III. Important changes in Central Excise and Service Tax:
1. Rule 4(1) (for input credit) and Rule 4(7) (for input service credit) of CCR,2004 are being amended in order to fix a time limit of six months for availment of the CENVAT Credit.
2. CE valuation Rules are amended to provide that in cases where excisable goods are sold at a price below the manufacturing cost and there is no additional consideration flowing from the buyer to the seller directly or from a third person on behalf of the buyer, this price shall be the assessable value thus negating the Hon’ble Supreme Courts judgement in FIAT India Pvt. Ltd.
3. Section 35F of CEA is proposed to be replaced to make it mandatory to pay Pre-deposit of 7.5% of tax or penalty or both for first appeal and 10% CESTAT,
4. Baggage allowance is increased from Rs 35K to Rs. 45K.
5. Incremental interest rates for delayed payment of service tax for first six months 18%, above 6 months but upto 12 months 24% and above one year 30%.
6. Service tax credit of service tax paid on hire a car is allowed.
7. Extension of service on advertisement on sale of slots or space online, theatres, mobile etc., is taxable
8. The concept of auxiliary educational services is omitted and a new list of exempted services received by eligible educational institutions is introduced and renting of immovable property for educational institutions may henceforth be taxable.
9. SEZ units should obtain Form A-2 containing list of exempted services from excise officers within 15 days from submission of A-1 and if it is not issued within 15 days, authorization shall be deemed to be valid from date of application in A-1. However, if authorization is not given to service providers within three months by SEZ unit, service tax shall become payable.
10. In certain cases, the benefit of waiver of penalty which was earlier available for bona fide cases is now removed.