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FINANCE BILL, 2018 PROVISIONS RELATING TO DIRECT TAXES

Memo - Bills - Memorandum Explaining the Provisions in The Finance Bill, 2018 - Bill - Memo - Introduction The provisions of Finance Bill, 2018 relating to direct taxes seek to amend the Income-tax Act, 1961 (hereafter referred to as 'the Act') to continue to provide momentum to the buoyancy in direct taxes through deepening and widening of the tax base, reducing the corporate tax rate for micro, small and medium enterprises, promoting horizontal equity in personal income-tax and enhanci .....

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me-tax in respect of income liable to tax for the assessment year 2018-19. In respect of income of all categories of assessees liable to tax for the assessment year 2018-19, the rates of income-tax have been specified in Part I of the First Schedule to the Bill. These are the same as those laid down in Part III of the First Schedule to the Finance Act, 2017 for the purposes of computation of advance tax , deduction of tax at source from Salaries and charging of tax payable in certain cases. (1) .....

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to deduction exceeds fifty lakh rupees but does not exceed one crore rupees, and (ii) at the rate of fifteen per cent. of such tax, where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds one crore rupees; (iii) surcharge will also be levied at the appropriate rates in cases where these persons are liable to tax under section115JC of the Act. (b) in the case of cooperative societies, firms or local authorities having total income exceeding one crore .....

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r the purposes of the Union calculated at the rate of seven per cent. of such income tax; (ii) having total income exceeding ten crore rupees, the amount of income-tax computed shall be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax; and (iii) surcharge will also be levied at the appropriate rates in cases where the company is liable to tax under section 115JBof the Act. (d) in the case of a company, other than a domestic comp .....

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ed at the appropriate rates in cases where the company is liable to tax under section 115JBof the Act. (e) In other cases (including sections 115-O, 115QA, 115R, 115TA or 115TD), the surcharge shall be levied at the rate oftwelve per cent.. (2) Marginal Relief- Marginal relief has also been provided in all cases where surcharge is proposed to be imposed. (3) Education Cess- For assessment year 2018-19, additional surcharge by way of Education Cess on income-tax and Secondary and Higher Education .....

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n specified in Part II of the First Schedule to the Bill. The rates for all the categories of persons will remain the same as those specified in Part II of the First Schedule to the Finance Act, 2017, for the purposes of deduction of income-tax at source during the financial year 2017-18. However, in case of long-term capital gain referred to in section 112A of the Act, tax shall now be deducted at source at the rate of 10 per cent.. (1) Surcharge- The amount of tax so deducted, in the case of a .....

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ggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees; and (b) in case of a firm or cooperative society, at the rate of twelve per cent. of such tax, where the income or the aggregate ofsuch incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees. The amount of tax so deducted, in the case of a company other than a domestic company, shall be increased by a surcharge,- (a) at the rate of two per cent. of such tax, .....

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-tax shall be discontinued. However, a new cess, by the name of Health and Education Cess shall be levied at the rate of four per cent. of income tax including surcharge wherever applicable, in the cases of persons not resident in India including company other than a domestic company. III. Rates for deduction of income-tax at source from Salaries , computation of advance tax and charging of income-tax in special cases during the financial year 2018-19. The rates for deduction of income-tax at so .....

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of persons leaving India for good during the financial year, assessment of persons who are likely to transfer property to avoid tax, assessment of bodies formed for a short duration, etc. The salient features of the rates specified in the said Part III are indicated in the following paragraphs- A. Individual, Hindu undivided family, association of persons, body of individuals, artificial juridical person. Paragraph A of Part-III of First Schedule to the Bill provides following rates of income-ta .....

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77; 5,00,001 to ₹ 10,00,000 20 per cent.. Above ₹ 10,00,000 30 per cent.. (ii) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year,- Upto ₹ 3,00,000 Nil. ₹ 3,00,001 to ₹ 5,00,000 5 per cent.. ₹ 5,00,001 to ₹ 10,00,000 20 per cent.. Above ₹ 10,00,000 30 per cent.. (iii) in the case of every individual, being a resident in India, who is of .....

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ent. of such income-tax in case of a person having a total income exceeding one crore rupees. However, in case of (i) above, the total amount payable as income-tax and surcharge on total income exceeding fifty lakh rupees but not exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees. Further, in c .....

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as those specified for financial year 2017-18. The amount of income-tax shall be increased by a surcharge at the rate of twelve per cent. of such income-tax in case of a co-operative society having a total income exceeding one crore rupees. However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rup .....

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rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees. D. Local authorities The rate of income-tax in the case of every local authority has been specified in Paragraph D of Part III of the First Schedule to the Bill. This rate will continue to be the same as that specified for the financial year 2017-18. The amount of income-tax shall be increased by a surcharge at the rate of twelve p .....

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e to the Bill. In case of domestic company, the rate of income-tax shall be twenty five per cent. of the total income if the total turnover or gross receipts of the previous year 2016-17 does not exceed two hundred and fifty crore rupees and in all other cases the rate of Income-tax shall be thirty per cent. of the total income. In the case of company other than domestic company, the rates of tax are the same as those specified for the financial year 2017-18. Surcharge at the rate of seven per c .....

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rore rupees. Surcharge at the rate of five per cent. shall continue to be levied if the total income of the company other than domestic company exceeds ten crore rupees. However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees but not exceeding ten crore rupees, shall not exceed the total amount payable as income-tax on a total income of one crore rupees, by more than the amount of income that exceeds one crore rupees. The total amount payable as i .....

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rate of four per cent. on the amount of tax computed, inclusive of surcharge (wherever applicable), in all cases. No marginal relief shall be available in respect of such cess. [Clause 2 & First Schedule] B. WIDENING AND DEEPENING OF TAX BASE Entities to apply for Permanent Account Number in certain cases Section 139A inter-alia provides that every person specified therein and who has not been allotted a permanent account number shall apply to the Assessing Officer for allotment of a Permane .....

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rtner, trustee, author, founder, karta, chief executive officer, principal officer or office bearer or any person competent to act on behalf of such entities shall also apply to the Assessing Officer for allotment of PAN. This amendment will take effect from lst April, 2018. [Clause 42] Widening of scope of Accumulated profits for the purposes of Dividend Section 2 of the Act defines various terms used in the Act. Clause (22) of the said section defines dividend to include distribution of accumu .....

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shareholder holds substantial interest (exceeding 20% of shareholding or interest) or any payment by such company on behalf of or for the individual benefit of such shareholder. Explanation 2 to the said clause provides the definition of the term accumulated profits for the purposes of the said clause, as all profits of the company up to the date of distribution or payment or liquidation, subject to certain conditions. Instances have come to light whereby companies are resorting to abusive arra .....

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fits so as to provide that in the case of an amalgamated company, accumulated profits, whether capitalised or not, or losses as the case may be, shall be increased by the accumulated profits of the amalgamating company, whether capitalized or not, on the date of amalgamation. This amendment will take effect from 1st April, 2018 and will accordingly apply in relation to assessment year 2018-19 and subsequent assessment years. [Clause 3] Application of Dividend Distribution Tax to Deemed Dividend .....

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ertainty in the taxation of deemed dividends, it is proposed to delete the Explanation to Chapter XII-D occurring after section 115Q of the Act so as to bring deemed dividends also under the scope of dividend distribution tax under section 115-O. Further, such deemed dividend is proposed to be taxed at the rate of 30 per cent. (without grossing up) in order to prevent camouflaging dividend in various ways such as loans and advances. This amendment relating to imposition of dividend distribution .....

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e (38) of section 10 of the Act. However, transactions in such long term capital assets carried out on a recognized stock exchange are liable to securities transaction tax (STT). Consequently, this regime is inherently biased against manufacturing and has encouraged diversion of investment in financial assets. It has also led to significant erosion in the tax base resulting in revenue loss. The problem has been further compounded by abusive use of tax arbitrage opportunities created by these exe .....

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10 per cent. will be applicable to such long term capital gains, if- i) in a case where long term capital asset is in the nature of an equity share in a company , securities transaction tax has been paid on both acquisition and transfer of such capital asset; and ii) in a case where long term capital asset is in the nature of a unit of an equity oriented fund or a unit of a business trust,securities transaction tax has been paid on transfer of such capital asset. Further, sub-section (4) of the .....

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ional Financial Services Centre( IFSC) and the consideration of such transfer is received or receivable in foreign currency. Further, the new provision of section 112A also proposes to provide the following:- i) The long term capital gains will be computed without giving effect to the first and second provisos to section 48, i.e. inflation indexation in respect of cost of acquisitions and cost of improvement, if any, and the benefit of computation of capital gains in foreign currency in the case .....

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up under a scheme of a mutual fund specified under clause (23D) of section 10 and,- a) In a case where the fund invests in the units of another fund which is traded on a recognized stock exchange, (I) A minimum of 90 per cent. of the total proceeds of such funds is invested in the units of such other fund ; and (II) such other fund also invests a minimum of 90 per cent. of its total proceeds in the equity shares of domestic companies listed on recognized stock exchange; and b) in any other case .....

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of such asset on such exchange on a date immediately preceding the 31st day of January, 2018 when such asset was traded on such exchange shall be the fair market value; and b) in a case where the capital asset is a unit and is not listed on recognized stock exchange, the net asset value of such asset as on the the 31st day of January, 2018. v) The benefit of deduction under chapter VIA shall be allowed from the gross total income as reduced by such capital gains. Similarly, the rebate under sect .....

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y or a Mutual Fund to its unit holders shall be chargeable to tax and such specified company or Mutual Fund shall be liable to pay additional income-tax on such distributed income at the rate specified in the section. However, in respect of any income distributed to a unit holder of equity oriented funds is not chargeable to tax under the said section. With a view to providing a level playing field between growth oriented funds and dividend paying funds, in the wake of new capital gains tax regi .....

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ion of long-term capital gains in the case of Foreign Institutional Investor The existing provisions of section 115AD of the Act inter alia, provide that where the total income of a Foreign Institutional Investor (FII) includes income by way of long-term capital gains arising from the transfer of certain securities, such capital gains shall be chargeable to tax at the rate of ten per cent. However, long term capital gains arising from transfer of long term capital asset being being equity shares .....

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rovisions of section 115AD are proposed to be amended accordingly. This amendment will take effect from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-20 and subsequent assessment years. [Clause 32] Tax deduction at source and manner of payment in respect of certain exempt entities The third proviso to clause (23C) of section 10 of the Act provides for exemption in respect of income of the entities referred to in sub-clause (iv) or sub-clause (v) or sub-clau .....

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rovisions of deduction of tax at source under Chapter XVII-B of the Act. This has led to lack of an audit trail for verification of application of income. In order to encourage a less cash economy and to reduce the generation and circulation of black money, it is proposed to insert a new Explanation to the section 11 to provide that for the purposes of determining the application of income under the provisions of sub-section (1) of the said section, the provisions of sub-clause (ia) of clause (a .....

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019 and will, accordingly, apply in relation to the assessment year 2019-20 and subsequent years. [Clause 5 & 6] Aligning the scope of business connection with modified PE Rule as per Multilateral Instrument (MLI). Under the existing provisions of Explanation 2 to clause (i) of sub-section (1) of section 9, "business connection" includes business activities carried on by non-resident through dependent agents. The scope of "business connection" under the Act is similar to .....

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of the DTAA, the person acting on the behalf of the non-resident, negotiates the contract but does not conclude the contract. Further, under paragraph 4 of Article 5 of the DTAAs, a PE is deemed not to exist when a place of business is engaged solely in certain activities such as maintenance of stocks of goods for storage, display, delivery or processing, purchasing of goods or merchandise, collection of information. This exclusion applies only when these activities are preparatory or auxiliary .....

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ntracts on behalf of the non-resident, but also a person who habitually plays a principal role leading to the conclusion of contracts. Similarly Action Plan 7 also recommends the introduction of an anti fragmentation rule as per paragraph 4.1 of Article 5 of OECD Model tax conventions, 2017 so as to prevent the tax payer from resorting to fragmentation of functions which are otherwise a whole activity in order to avail the benefit of exemption under paragraph 4 of Article 5 of DTAAs. Further, wi .....

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ies, as modified by MLI, shall become wider in scope than the current provisions in Explanation 2 to section 9(1)(i). Similarly, the antifragmentation rule introduced as per paragraph 4.1 of Article 5 of the OECD Model Tax Conventions, 2017 has narrowed the scope of the exception under Article 5(4), thereby expanding the scope of PE in DTAA vis-a-vis domestic provisions contained in Explanation 2 to section 9(1)(i). In effect, the relevant provisions in the DTAAs are wider in scope than the dome .....

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Act so as to align them with the provisions in the DTAA as modified by MLI so as to make the provisions in the treaty effective. Accordingly, clause (i) of sub-section (1) of section 9 is being proposed to be amended to provide that business connection shall also include any business activities carried through a person who, acting on behalf of the non-resident, habitually concludes contracts or habitually plays the principal role leading to conclusion of contracts by the non-resident . It is fu .....

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include Significant Economic presence The oranges upon the trees in California are not acquired wealth until they are picked, not even at that stage until they are packed, and not even at that stage until they are transported to the place where demand exists and until they are put where the consumer can use them. These stages, upto the point where wealth reached fruition, may be shared in by different territorial authorities. (excerpts from a report on double taxation submitted to League of Nati .....

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le 7 of DTAAs, business profit of an enterprise is taxable in the country in which the taxpayer is a resident. If an enterprise carries on its business in another country through a 'Permanent Establishment' situated therin, such other country may also tax the business profits attributable to the 'Permant Establishment'. For this purpose, Permanent Establishment means a fixed place of business through which the business of an enterprise is wholly or partly carried out provided tha .....

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interact with customers in another country without having any physical presence in that country resulting in avoidance of taxation in the source country. Therefore, the existing nexus rule based on physical presence do not hold good anymore for taxation of business profits in source country. As a result, the rights of the source country to tax business profits that are derived from its economy is unfairly and unreasonably eroded. OECD under its BEPS Action Plan 1 addressed the tax challenges in .....

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tools. It further recommended that revenue factor may be used in combination with the aforesaid factors to determine 'significance economic presence'. The scope of existing provisions of clause (i) of sub-section (1) of section 9 is restrictive as it essentially provides for physical presence based nexus rule for taxation of business income of the non-resident in India. Explanation 2 to the said section which defines business connection is also narrow in its scope since it limits the ta .....

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ia shall also constitute 'business connection'. Further, significant economic presence for this purpose, shall mean- (i) any transaction in respect of any goods, services or property carried out by a non-resident in India including provision of download of data or software in India if the aggregate of payments arising from such transaction or transactions during the previous year exceeds the amount as may be prescribed; or (ii) systematic and continuous soliciting of its business activit .....

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India. The proposed amendment in the domestic law will enable India to negotiate for inclusion of the new nexus rule in the form of 'significant economic presence' in the Double Taxation Avoidance Agreements. It may be clarified that the aforesaid conditions stated above are mutually exclusive. The threshold of revenue and the users in India will be decided after consultation with the stakeholders. Further, it is also clarified that unless corresponding modifications to PE rules are made .....

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ons of clause (ii) of section 28 is restrictive in its scope as far as taxation of compensation is concerned; a large segment of compensation receipts in connection with business and employment is out of the purview of taxation leading to base erosion and revenue loss. Therefore, it is proposed to amend section 28 of the Act to provide that any compensation received or receivable, whether revenue or capital, in connection with the termination or the modification of the terms and conditions of an .....

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essment years. [Clause 3, 9 & 21] Presumptive income under section 44AE in case of goods carriage Section 44AE, inter alia provides that, the profits and gains shall be deemed to be an amount equal to seven thousand five hundred rupees per month or part of a month for each goods carriage or the amount claimed to be actually earned by the assessee, whichever is higher. The current presumptive income scheme is applicable uniformly to all classes of goods carriages irrespective of their tonnage .....

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ofit margins of large capacity goods carriages are higher than small capacity goods carriages, the tax consequences are similar which is against the principle of tax equity. In view of the above, it is proposed to amend the section 44AE of the Act to provide that, in the case of heavy goods vehicle (more than 12MT gross vehicle weight), the income would deemed to be an amount equal to one thousand rupees per ton of gross vehicle weight or unladen weight, as the case may be, per month or part of .....

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y providing relief to certain section of the society, in particular, senior citizens and the salaried tax payers, keeping in view their personal circumstances like health, fixed source of income and higher cost of incidental expenses relating to employment. These changes are discussed in the following paragraphs. Deductions available to senior citizens in respect of health insurance premium and medical treatment Section 80D, inter-alia, provides that a deduction upto ₹ 30,000/- shall be al .....

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on shall be allowed on proportionate basis for the number of years for which health insurance cover is provided, subject to the specified monetary limit. . These amendments will take effect, from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-20 and subsequent assessment years. [Clause 24] Enhanced deduction to senior citizens for medical treatment of specified diseases Section 80DDB of the Act, inter-alia, provide that a deduction is available to an individ .....

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rdingly, apply in relation to the assessment year 2019-20 and subsequent assessment years. [Clause 25] Deduction in respect of interest income to senior citizen At present, a deduction upto ₹ 10,000/- is allowed under section 80TTA to an assessee in respect of interest income from savings account. It is proposed to insert a new section 80TTB so as to allow a deduction upto ₹ 50,000/- in respect of interest income from deposits held by senior citizens. However, no deduction under sect .....

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Section 16, inter-alia, provides for certain deduction in computing income chargeable under the head Salaries . it is proposed to allow a standard deduction upto ₹ 40,000/- or the amount of salary received, whichever is less. Consequently the present exemption in respect of Transport Allowance (except in case of differently abled persons) and reimbursement of medical expenses is proposed to be withdrawn. These amendments will take effect from 1st April, 2019 and will, accordingly, apply i .....

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s any income from- (i) the marketing of agricultural produce grown by its members, or (ii) the purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to its members, or (iii) the processing of the agricultural produce of its members The benefit shall be available for a period of five years from the financial year 2018-19. This amendment will take effect from 1st April, 2019 and will, accordingly, apply in relation to the .....

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in any of the previous years beginning on or after the 1st day of April, 2016 and ending on the 31st day of March, 2021; and (iii) it is engaged in the eligible business which involves innovation, development, deployment or commercialization of newproducts, processes or services driven by technology or intellectual property. In order to improve the effectiveness of the scheme for promoting start ups in India, it is proposed to make following changes in the taxation regime for the start ups:- (i .....

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able business model with a high potential of employment generation or wealth creation. The amendment will take effect, from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent assessment years. [Clause 26] Meassures to promote International Financial Services Centre (IFSC) Section 47 of the Act provides for tax neutrality relating to certain transfer. In order to promote the development of world class financial infrastructure in India, it is pro .....

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from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-20 and subsequent assessment years. Section 115JC of the Act provides for alternate minimum tax at the rate of 18.50 percent. of adjusted total income in the case of a non-corporate person. In order to promote the development of world class financial infrastructure in India, it is further proposed to amend the section 115JC so as to provide that in case of a unit located in an International Financial Servic .....

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100% in respect of emoluments paid to eligible new employees who have been employed for a minimum period of 240 days during the year. However, the minimum period of employment is relaxed to 150 days in the case of apparel industry. In order to encourage creation of new employment, it is proposed to extend this relaxation to footwear and leather industry. Further, it is also proposed to rationalize this deduction of 30% by allowing the benefit for a new employee who is employed for less than the .....

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ions to be non-speculative nature even though the contracts are settled otherwise than by the actual delivery or transfer of the commodity or scraps. The clause (e) to the said proviso provides that trading in commodity derivatives carried out in a recognised stock exchange, which is chargeable to commodity transaction tax is a non-speculative transaction. Commodity transaction tax (CTT) was introduced vide Finance Act 2013 to bring transactions relating to non-agricultural commodity derivatives .....

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n 43 to provide that a transaction in respect of trading of agricultural commodity derivatives, which is not chargeable to CTT, in a registered stock exchange or registered association, will be treated as non-speculative transaction. These amendments will take effect from 1st April, 2019 and will, accordingly, apply in relation to assessment year 2019-20 and subsequent assessment years. [Clause 12] Exemption of income of Foreign Company from sale of leftover stock of crude oil on termination of .....

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he CentralGovernment. Further clause (48B) of section 10 provides that any income accruing or arising to a foreign company on account of sale of leftover stock of crude oil after the expiry of the agreement or arrangement shall be exempt subject to such conditions as may be notified by the Central Government. The benefit of exemption is presently not available on sale out of the leftover stock of crude in case of termination of the said agreement or the arrangement. Given the strategic nature of .....

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and FTS payment by NTRO to a non-resident to be tax-exempt Section 195 requires a person to deduct tax at the time of payment or credit to a non-resident. Given the business exigencies of the National Technical Research Organisation (NTRO), it is proposed to amend section 10 so as to provide that the income arising to non-resident, not being a company, or a foreign company, by way of royalty from, or fees for technical services rendered in or outside India to, the NTRO will be exempt from income .....

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nter alia, for a deduction in respect of the amount of loss brought forward or unabsorbed depreciation, whichever is less as per books of account. Consequently, where the loss brought forward or unabsorbed depreciation is Nil, no deduction is allowed. This non-deduction is a barrier to rehabilitating companies seeking insolvency resolution. In view of the above, it is proposed to amend section 115JB to provide that the aggregate amount of unabsorbed depreciation and loss brought forward (excludi .....

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his amendment will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent assessment years. A clarificatory amendment is also proposed in section 115JB of the Act to provide that the provisions of section 115JB of the Act shall not be applicable and shall be deemed never to have been applicable to an assessee, being a foreign company, if- its total income comprises solely of profits and gains from business referred to in section 44 .....

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continuity in the beneficial owner of the shares carrying not less than 51 percent. of the voting power, on the last day of the year or years in which the loss was incurred. In general, the case of a company seeking insolvency resolution under Insolvency and Bankruptcy Code, 2016, involves change in the beneficial owners of shares beyond the permissible limit under section 79. This acts as a hurdle for restructuring and rehabilitation of such companies. In order to address this problem, it is p .....

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at during the resolution process under the Insolvency and Bankruptcy Code, 2016, the return shall be verified by an insolvency professional appointed by the Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016. This amendment will take effect from 1st April, 2018 and will, accordingly apply to return filed on or after the said date. [Clause 22 & 43] F. IMPROVING EFFECTIVENESS OF TAX ADMINISTRATION New scheme for scrutiny assessment Section 143 of the Act provides for the pro .....

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mal utilization of the resources, and introduction of team-based assessment. Therefore, it is proposed to amend the section 143, by inserting a new sub-section (3A), after sub-section (3), enabling the Central Government to prescribe the aforementioned new scheme for scrutiny assessments, by way of notification in the Official Gazette. It is further proposed to insert sub-section (3B) in the said section, enabling the Central Government to direct, by notification in the Official Gazette, that an .....

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m 1st April, 2018. [Clause 44] G. RATIONALISATION MEASURES Rationalisation of the provisions relating to Commodity Transaction Tax The existing clause (7) of section 116 of the Finance Act, 2013 provides the definition of taxable commodities transaction to mean a transaction of sale of commodity derivatives in respect of commodities, other than agricultural commodities, traded in recognised association. In order to align the definition of taxable commodities transaction with instruments allowed .....

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derivative, it is proposed to amend the provisions of section 117 so as to prescribe the rate at which sale of an option on commodity derivative shall be chargeable and such tax shall be payable by the seller. It is further proposed to amend the provisions of section 117 so as to prescribe the rate at which sale of an option on commodity derivative, where option is exercised, shall be chargeable and such tax shall be payable by the purchaser. The existing section 118 of the Finance Act, 2013 pro .....

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quent years. [Clause 215] Rationalisation of section 276CC relating to prosecution for failure to furnish return Section 276CC of the Act provides that if a person willfully fails to furnish in due time the return of income which he is required to furnish, he shall be punishable with imprisonment for a term, as specified therein, with fine. The sub-clause (b) of clause (ii) of proviso to the section 276CC further provides that a person shall not be proceeded against under the said section for fa .....

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ause shall not apply in respect of a company. This amendment will take effect from 1st April, 2018. [Clause 52] Rationalisation of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 Section 46 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 provides for the procedure for imposing penalty. Sub-section (4) of the said section provides that an order imposing a penalty shall be made with the approval of the Joint Commiss .....

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vide that the Joint Director shall also be vested with the power to approve an order imposing a penalty. It is also proposed to amend clause (b) of the said sub-section so as to include reference to the Assistant Director and Deputy Director therein. Section 55 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 provides for institution of proceedings for an offence under that Act. Sub-section (1) of the said section provides that a person shall not be proc .....

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l Director General or the Director General also to issue instructions or directions to the tax authorities under the said sub-section. It is also proposed to amend the marginal heading of the said section accordingly so as to include the reference of Principal Director General or Director General. These amendments will take effect from lst April, 2018. [Clause 216] Rationalisation of prima-facie adjustments during processing of return of income Sub-section (1) of the section 143 provides for pro .....

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the total income in the return. With a view to restrict the scope of adjustments, it is proposed to insert a new proviso to the said clause to provide that no adjustment under sub-clause (vi) of the said clause shall be made in respect of any return furnished on or after the assessment year commencing on the first day of April, 2018. This amendment will take effect from lst April, 2018 and will, accordingly, apply in relation to the assessment years 2018-2019 and subsequent years. [Clause 44] Ra .....

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pliance burden of such reporting:- (i) the time allowed for furnishing the Country-by-Country Report (CbCR), in the case of parent entity or Alternative Reporting Entity (ARE), resident in India, is proposed to be extended to twelve months from the end of reporting accounting year; (ii) constituent entity resident in India, having a non-resident parent, shall also furnish CbCR in case its parent entity outside India has no obligation to file the report of the nature referred to in sub-section (2 .....

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(v) Agreement would mean an agreement referred to in sub-section (1) of section 90 or sub-section (1) of section 90A, and also an agreement for exchange of the report referred to in sub-section (2) and sub-section (4) as may be notified by the Central Government; (vi) reporting accounting year has been defined to mean the accounting year in respect of which the financial andoperational results are required to be reflected in the report referred to in sub-section (2) and sub-section (4). These am .....

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, or distribution of such article or thing manufactured or produced by it, shall, at its option, be taxed at the rate of 25 per cent. subject to conditions specified therein. This benefit is available from assessment year 2017-18. However, there are certain incomes which are subject to a scheduler tax at a rate which is lower or higher than 25 per cent. Consequently tax payers have been subjected to unintended hardship or unwarranted relief. Accordingly it is proposed to amend section 115BA so a .....

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mployee subscribers Under the existing provisions of the clause (12A) of section 10 of the Act, an employee contributing to the NPS is allowed an exemption in respect of 40% of the total amount payable to him on closure of his account or on his opting out. This exemption is not available to non-employee subscribers. In order to provide a level playing field, it is proposed to amend clause (12A) of section 10 of the Act to extend the said benefit to all subscribers. This amendment will take effec .....

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is furnished on or before the due date specified under sub-section (1) of section 139 of the Act. This burden is not cast upon assesses claiming deductions under several other similar provisions. In view of the above, it is proposed to extend the scope of section 80AC to provide that the benefit of deduction under the entire class of deductions under the heading C.-Deductions in respect of certain incomes in Chapter VIA shall not be allowed unless the return of income is filed by the due date. T .....

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e is taxed as income both in the hands of the purchaser and the seller. It has been pointed out that this variation can occur in respect of similar properties in the same area because of a variety of factors, including shape of the plot or location. In order to minimize hardship in case of genuine transactions in the real estate sector, it is proposed to provide that no adjustments shall be made in a case where the variation between stamp duty value and the sale consideration is not more than fi .....

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in trade is converted into, or treated as, capital asset, the existing law does not provide for its taxability. In order to provide symmetrical treatment and discourage the practice of deferring the tax payment by converting the inventory into capital asset, it is proposed to amend the provisions of - (i) section 28 so as to provide that any profit or gains arising from conversion of inventory into capital asset or its treatment as capital asset shall be charged to tax as business income. It is .....

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he fair market value on the date of conversion shall be the cost of acquisition; (iv) clause (42A) of section 2 so as to provide that the period of holding of such capital asset shall be reckoned from the dateof conversion or treatment. These amendments will take effect, from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-20 and subsequent assessment years. [Clause 3, 9 & 18] Tax neutral transfers Section 47 provides for certain tax neutral transfers. Se .....

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d shall accordingly, apply in relation to the transaction made on or after 1st April, 2018. [Clause 21] Rationalization of the provisions of section 54EC Section 54EC of the Act provides that capital gain, arising from the transfer of a long-term capital asset, invested in the long-term specified asset at any time within a period of six months after the date of such transfer, shall not be charged to tax subject to certain conditions specified in the said section. The section also provides that l .....

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ising from long-term capital assets, being land or building or both and to make available funds at the disposal of eligible bond issuing company for more than three years, it is proposed to amend the section 54EC so as to provide that capital gain arising from the transfer of a long-term capital asset, being land or building or both, invested in the long-term specified asset at any time within a period of six months after the date of such transfer, the capital gain shall not be charged to tax su .....

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1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-20 and subsequent assessment years. [Clause 20] Rationalisation of the provisions of section 115BBE Section 115BBE provides for tax on income referred to in section 68 or section 69 or section 69A or section 69B or section 69C or section 69D at a higher rate of sixty percent. Sub-section (2) of said section provides that no deduction in respect of any expenditure or allowance or set-off of any loss shall be allo .....

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on to notified Income Computation and Disclosure Standards. At present, section 145 of the Act empowers the Central government to notify Income Computation and Disclosure Standards (ICDS). In pursuance the central government has notified ten such standards effective from 1st April 2017 relating to Assessment year 2017-18. These are applicable to all assesses (other than an individual or a Hindu undivided family who are not subject to tax audit under section 44AB of the said Act) for the purposes .....

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be allowed deduction. (ii) amend 40A of the Act to provide that no deduction or allowance in respect of marked to market loss or other expected loss shall be allowed except as allowable under newly inserted clause (xviii) of sub-section(1) of section 36. (iii) insert a new section 43AA in the Act to provide that, subject to the provisions of section 43A, any gain or loss arising onaccount of effects of changes in foreign exchange rates in respect of specified foreign currency transactions shall .....

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rest, dividend and capital gains. (v) amend section 145A of the Act to provide that, for the purpose of determining the income chargeable under the head Profits and gains of business or profession,- (a) the valuation of inventory shall be made at lower of actual cost or net realizable value computed in the manner provided in income computation and disclosure standards notified under (2) of section 145. (b) the valuation of purchase and sale of goods or services and of inventory shall be adjusted .....

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e valued at lower of actual cost or net realisable value in the manner providedin income computation and disclosure standards notified under (2) of section 145 and for this purpose the comparison of actual cost and net realisable value shall be done category-wise. (vi) insert a new section 145B in the Act to provide that- (a) interest received by an assessee on compensation or on enhanced compensation, shall be deemed to be the income of the year in which it is received. (b) the claim for escala .....

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ers have already complied with the provisions of ICDS for computing income for assessment year 2017-18. In order to regularise the compliance with the notified ICDS by a large number taxpayers so as to prevent any further inconvenience to them, it is proposed to bring the amendments retrospectively with effect from 1st April, 2017 i,e the date on which the ICDS was made effective and will, accordingly, apply in relation to assessment year 2017-18 and subsequent assessment years [Clause 10, 11, 1 .....

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h a new 7.75% GOI Savings (Taxable) Bonds, 2018. The interest received under the new bonds will continue to be taxed as in the case of the earlier once. The provisions of section 193 are proposed to be amended to allow for deduction of tax at source at the time of making payment of interest on such bonds to residents. However, no TDS will be deducted if the amount of interest is less than or equal to ten thousand rupees during the financial year. This amendment will take effect from 1st April, 2 .....

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d in any commercial activity; (b) they are established or constituted by or under a Central, State or Provincial Act or constituted by the Central Government or a State Government, with the object of regulating or administering any activity for the benefit of the general public. Under the existing provisions, the Central Government is required to notify each case separately even if they belong to the same class of cases. Consequently, the whole process of approval is considerably delayed. Accord .....

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unt under sub-section (1) of section 285BA, fails to furnish such statement within the prescribed time, he shall be liable to pay penalty of one hundred rupees for every day of default. The proviso to the said section further provides that in case such person fails to furnish the statement of financial transaction or reportable account within the period specified in the notice issued under sub-section (5) of section 285BA, he shall be liable to pay penalty of five hundred rupees for every day of .....

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Advance Rulings, and constitution of its benches, for giving advance rulings under Chapter XIX-B of the Act or under Chapter V of the Customs Act, 1962 or under Chapter IIIA of the Central Excise Act, 1944 or under Chapter VA of the Finance Act, 1994. In view of the proposed constitution of new Customs Authority for Advance Ruling under section 28EA of the Customs Act, it is proposed to amend the provisions of section 245-O so as to provide that such Authority shall cease to act as an Authority .....

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s Act, 1962. In order to avoid overlapping, it is also proposed that where the Authority is dealing with an application seeking advance ruling in the matters of the Act, the Revenue Member shall be the Member referred to in sub-clause (i) of clause (c) of sub-section (3). These amendments will take effect from 1st April, 2018. [Clause 48 & 49] Appeal against penalty imposed by Commissioner (Appeals) under section 271J Section 253 of the Act inter-alia provides that any assessee aggrieved by .....

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ustoms leviable on goods specified in the Second Schedule to the Customs Tariff Act, 1975. (c) Clause nos. in square brackets [ ] indicate the relevant clause of the Finance Bill, 2018. Amendments carried out through the Finance Bill, 2018 come into effect on the date of its enactment, unless otherwise specified. I. AMENDMENTS IN THE CUSTOMS ACT, 1962: S.No. Amendment Clause of the Finance Bill, 2018 1. Reference to import manifest and export manifest, wherever they occur in the Customs Act, to .....

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28); (c) provide that notification would mean a notification published in the Official Gazette and the word 'notify' would be construed accordingly (new sub-section 30AA refers). [56] 4. Section 11 is being amended so as to- (a) insert sub-section (3) providing that prohibition or restriction or obligation relating to import or export of any goods or class of goods or clearance thereof provided in any other law for the time being in force, or any rule or regulation made or any order or n .....

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h consequential changes in sub-section (3); (b) insert a new sub-section (2A) to provide legal backing for the risk-based selection of self-assessed Bill of Entry or Shipping Bill through appropriate selection criteria; (c) extend the scope of re-assessment by omitting specific reference to valuation, classification and exemption or concessions of duty availed consequent to any notification issued therefor under this Act from sub-section (5); (d) omit sub-section (6), in view of the new dedicate .....

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B [which does not exist] with the reference to section 28AA retrospectively; [59] 7. A new section 25A is being inserted, so as to empower the Central Government to exempt goods imported for repair, further processing or manufacture [ Inward Processing of Goods ] from payment of whole or any part of duty of customs, leviable thereon subject to certain conditions. [60] 8. A new section 25B is being inserted so as to empower Central Government to exempt goods re-imported after export for repair, f .....

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ection (7A) to provide for issuance of supplementary show cause notice in circumstances and in such manner as may be prescribed through regulations within the existing time period; (c) amend the existing sub-section (9) to: a. provide a definite time frame of six months and one year for adjudication of demand notices depending upon whether charges of collusion, willful misstatement, suppression have been invoked. These time periods shall be extendable by the officer senior to adjudicating author .....

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h cases the time specified in sub-section (9) shall apply not from the date of notice, but from the date when such reasons cease to exist. (e) insert a new sub-section (10A) to provide that where an order for refund is modified in appeal and the amount of refund so determined is less than the amount refunded, the excess amount so refunded shall be recovered along with interest thereon at the applicable rate, from the date of refund up to the date of recovery, as a sum due to the Government. (f) .....

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short-levy or short payment of duty or erroneous refund after 14th May, 2015 but before the date on which the Finance Bill, 2018 receives the assent of the President, shall continue to be governed by the provisions of section 28 as it stood immediately before the date on which such assent is received.; [61] 10. Section 28E is being amended so as to, - (a) omit clause (a) defining activity as it is no longer relevant; (b) substitute the existing definition of advance ruling so as to cover subject .....

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al Commissioner of Customs or Commissioner of Customs as Customs Authority for Advance Rulings by way of notification. Till such appointment by the Board, existing Authority shall continue to pronounce Advance Rulings. [63] 12. Section 28F is being amended so as to substitute the word "Authority" with the words "Appellate Authority" and to provide that on appointment of Customs Authority for Advance Rulings, the applications and proceedings pending before the erstwhile Author .....

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ndia; (d) add an explanation stating that the definition of resident shall be same as provided in clause (42) of section 2 of Income Tax Act, 1961. [65] 14. Sub-section (6) of section 28-I is being amended to reduce the time from six months to three months within which the authority shall pronounce its advance ruling. [66] 15. Section 28K is being amended so as to, - (a) omit the expression after excluding the period beginning with the date of such advance ruling and ending with the date of orde .....

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to- (a) provide for appeal by an officer duly authorized by Board by notification, or by an applicant against the ruling or an order passed by Customs Authority for Advance Rulings to the Appellate Authority constituted under Section 245-O of the Income Tax Act; (b) provide that the sections 28I and 28J shall apply mutatis mutandis to appeal proceedings. (c) provide that this section shall come into force only when customs authority for advance ruling is appointed under section 28EA. [68] 17. S .....

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being amended so as to: (a) include export goods in addition to imported goods as part of the information provided in the manifest; (b) provide for prescribing the manner of delivery of manifest through regulations. [71] 20. Section 41 is being amended so as to: (a) include imported goods in addition to export goods as part of the information provided in the manifest; (b) provide penalty provisions for late filing of manifest; (c) provide for prescribing the manner of delivery of manifest throug .....

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ior presentation of bill of entry, by substituting the words, within thirty days of' with the words, at any time not exceeding thirty days prior to in first proviso to sub-section (3); (d) provide for such other documents, as may be prescribed in addition to invoice, by necessary insertion to that effect in sub-section (4); (e) insert a new sub-section (4A) so as to provide for observance of the accuracy, authenticity, validity of the declarations made by the importer under this section and .....

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ction (1) to insert a reference to Customs Automated System; and (c) insert a new sub-section (2A) so as to provide for observance of the accuracy, authenticity, validity of the declarations made by the exporter under this section and compliance to the prohibitions or restrictions under this act or any other law for the time being in force. [76] 25. Section 51 is being amended so as to have a provision for clearance of goods by Customs Automated System in addition to existing clearance by the pr .....

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ent. [79] 28. Section 60 is being amended so as to have a provision for clearance of goods by Customs Automated System in addition to existing clearance by the proper officer. [80] 29. Section 68 is being amended so as to have a provision for clearance of goods by Customs Automated System in addition to existing clearance by the proper officer. [81] 30. Section 69 is being amended so as to have a provision for clearance of goods by Customs Automated System in addition to existing clearance by th .....

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hapter XI is being amended so as to include reference to courier. [85] 34. Section 83 is being amended so as to include reference to goods imported or exported by courier through the authorized courier. The extant provisions in the section relate to goods imported or exported by post only. [86] 35. Section 84 is being amended so as to include a reference to goods imported or exported by courier and to empower the Board to make regulations in this regard. The extant provisions in the section rela .....

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des, through an explanation, definition of controlled delivery. It also seeks to provide that controlled delivery shall be applicable on such consignment of goods and in such manner as may be prescribed in the regulations. [89] 38. Section 110 of the Customs Act, 1962 is being amended so as to: (a) substitute the existing proviso to sub-section (2) to provide that the Principal Commissioner of Customs or Commissioner of Customs may, for reasons to be recorded in writing, extend the six months pe .....

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empower the Board to fix monetary limits for adjudication of cases by officers below the rank of Joint Commissioner by way of notification. [91] 40. Section 124 is being amended so as to insert a second proviso to provide for issuance of supplementary show cause notice under such circumstances and in such manner as may be prescribed through regulations.; [92] 41. Section 125 of the Customs Act is being amended so as to: (a) insert a proviso to sub-section (1) to provide that where the demand pro .....

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ding.; (c) insert an explanation that for an order passed under sub-section (1) before the date on which the Finance Bill, 2018 receives the assent of the President, and no appeal against such order is pending, such option may be exercised within one hundred and twenty days from the date on which such assent is received.; [93] 42. Section 128A is being amended to allow Commissioner (Appeals) to remand back the matters to original adjudicating authority in specified categories of cases, namely: i .....

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procedure or documentation for a class of importers or exporters or for categories of goods or on the basis of the modes of transport of goods for: (a) maintenance of transparency in import and export documentation and procedure; or (b) expeditious clearance or release of goods entered for import or export; or (c) reduction in the transaction cost of clearance of importing or exporting goods; or maintenance of balance between customs control and facilitation of legitimate trade.; [95] 44. A new .....

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on of offences under the provisions of this Act or under the corresponding laws in force in that country; (b) authorize the Central Government to provide by a notification that the application of this section in relation to a contracting state with which reciprocal agreement or arrangements have been made, shall be subject to such conditions, exceptions or qualifications as are specified in the said notification.; (c) utilize the information received under sub-section (1) as evidence in investig .....

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greement entered into or any other arrangement made by the Central Government prior to the date on which the Finance Bill, 2018 receives the assent of the President, shall be deemed to have been done or taken under the provisions of this Section.; (f) insert a definition of contracting state and corresponding law referred to in this section.; [96] 45. Section 153 is being substituted so as to align it with the provisions of the section 169 of the CGST Act to include Speed Post, Courier, and regi .....

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port, bill of transshipment, declaration for transshipment, boat note and bill of coastal goods; (b) time and manner of finalization of provisional assessment; (c) manner of conducting pre-notice consultation; (d) circumstances under which, and the manner of issuing supplementary notice; (e) form and manner in which an application for advance ruling or appeal shall be made, and the procedure for the authority, under Chapter VB; (f) manner of clearance or removal of imported or export goods; (g) .....

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8] II. AMENDMENTS IN THE CUSTOMS TARIFF ACT, 1975 S.No. Amendment Clause of the Finance Bill, 2018 1. Section 3 is being amended so as to: (a) amend sub-section (7) to include reference to sub-section (8A); (b) insert a new sub-section (8A) to provide for value of goods when they are sold within the warehousing period for calculation of integrated tax; (c) amend the sub-section (9) to include reference to sub-section (10A); (d) insert a new sub-section (10A) to provide for value of goods when th .....

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letry preparations 2 3303 Perfumes and toilet waters 10% 20% 3 3304 Beauty or make-up preparations and preparations for the care of the skin (other than medicaments), including sunscreen or suntan preparations; manicure or pedicure preparations 10% 20% 4 3305 Preparations for use on the hair 10% 20% 5 3306 Preparations for oral or dental hygiene, including denture fixative pastes and powders; yarn used to clean between the teeth (dental floss), in individual retail packages 10% 20% 6 3307 Pre-sh .....

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r 9 6401, 6402, 6403, 6404, 6405 Footwear 10% 20% 10 6406 Parts of footwear 10% 15% Jewellery 11 7117 Imitation Jewellery 15% 20% Electronics / Hardware 12 8517 12 Cellular mobile phones 15% 20% 13 90 90, 99 99, 3926 90 91, 3926 90 99, 4016 99 90, 7318 15 00, 7326 90 99, 8504, 8506, 8507, 8517 70 90, 8518, 8538 90 00, 8544 19, 8544 42, 8544 49 Specified parts and accessories including lithium ion battery of cellular mobile phones 7.5%/10% 15% 14 8517 62 90 Smart watches / wearable devices 10% 20 .....

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pocket watches and other watches, including stop watches 10% 20% 21 9103 Clocks with watch movements 10% 20% 22 9105 Other clocks, including alarm clocks 10% 20% Toys and Games 23 9503 Tricycles, scooters, pedal cars and similar wheeled toys; dolls carriages; dolls; other toys; puzzles of all kinds 10% 20% 24 9504 Video game consoles and machines, articles for funfair, table or parlor games and automatic bowling alley equipment 10% 20% 25 9505 Festive, carnival or other entertainment articles 10 .....

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traveling menageries and travelling theatres 10% 20% Miscellaneous items 29 3406 Candles, tapers and the like 10% 25% 30 4823 90 90 Kites 10% 20% 31 9004 10 Sunglasses 10% 20% 32 9611 Date, sealing or numbering stamps, and the like 10% 20% 33 9613 Cigarette lighters and other lighters, whether or not mechanical or electrical, and parts thereof other than flints and wicks. 10% 20% 34 9616 Scent sprays and similar toilet sprays, and mounts and heads therefor; powder-puffs and pads for the applica .....

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however, remain unchanged.] 7.5% 10% C. Technical amendment not affecting rates of duty [Clause 101(b) of the Finance Bill, 2018] 1 Bifurcate the tariff item 0713 31 00 to create separate tariff items each for Moong Dal and Urad Dal. 2 Omit tariff item 0904 22 12 and entries relating thereto and create new tariff item 1209 91 70, in relation to chilly seed of genus capsicum. 3 Amend the tariff item 2917 39 20 to specify the isomers it covers. *Will come into effect immediately owing to a declar .....

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% Tariff rate of Export Duty on Electrodes of a kind used for furnaces (8545 11 00). The effective rate of Export duty on such electrodes will, however, remain Nil] - 20% *Will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931. V. OTHER PROPOSALS INVOLVING CHANGES IN BASIC CUSTOMS DUTY RATES S.No. Heading, sub-heading tariff item Commodity From To Food processing 1 0801 31 00 Cashew nuts in shell [Raw cashew] 5% 2.5% 2 2009 11 00 2009 12 00 2 .....

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ile phones of cellular mobile phones Applicable Rate Nil 8 8483 40 00, 8466 93 90, 8537 10 00 Ball screws, linear motion guides, CNC systems for manufacture of all types of CNC machine tools falling under headings 8456 to 8463 7.5% 2.5% 9 70 Solar tempered glass or solar tempered [anti-reflective coated] glass for manufacture of solar cells /panels/modules 5% Nil 10 70 Preform of silica for use in the manufacture of telecommunication grade optical fibres or optical fibre cables Nil 5% 11 8529/40 .....

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polished diamonds 2.5% 5% Medical Devices 16 Any Chapter Raw materials, parts or accessories for the manufacture of Cochlear Implants 2.5% Nil Rationalization in Customs duty rates Edible oils of vegetable origin 17 1508, 1509, 1510,1512, 1513, 1515 Crude edible vegetable oils like Ground nut oil, Olive oil, Cotton seed oil, Safflower seed oil, Saffola oil, Coconut oil, Palm Kernel/Babassu oil, Linseed oil, Maize corn oil, Castor oil, Sesame oil, other fixed vegetable fats and oils. 12.5% 30% 18 .....

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olomite or chromite 10% 7.5% 20 6901 Bricks, blocks, tiles and other ceramic goods of siliceous fossil meals or of similar siliceous earths 10% 7.5% 21 6902 Refractory bricks, blocks, tiles and similar refractory ceramic constructional goods, other than those of siliceous fossil meals or similar siliceous earths 5% 7.5% 22 6903 Other refractory ceramic goods 5% 7.5% VI. Levy of Social Welfare Surcharge, as a duty of Customs on imported goods [Clause 108 of the Finance Bill, 2018]: S.No. Heading, .....

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ate duties of customs 4 7106 Silver (including silver plated with gold or platinum), unwrought or in semi-manufactured form, or in powder form - 3% of aggregate duties of customs 5 7108 Gold (including gold plated with platinum), unwrought or in semi-manufactured form, or in powder form - 3% of aggregate duties of customs 6 Any Chapter Specified goods hitherto exempt from Education Cess and Secondary and Higher Education Cess on imported goods - Nil VII. Levy of the Road and Infrastructure Cess .....

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and high speed diesel oil - Nil 3 2710 Abolition of Additional Duty of Customs [Road Cess] on imported motor spirit commonly known as petrol and high speed diesel oil [Clause 106 of Finance Bill, 2018] ₹ 6 per litre Nil 4 Additional duty of customs under sections 3(1) of the Customs Tariff Act, 1975 in lieu of basic excise duty 2710 (i) Motor spirit commonly known as petrol ₹ 6.48 per litre ₹ 4.48 per litre 2710 (ii) High speed diesel oil ₹ 8.33 per litre ₹ 6.33 per .....

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r spirit commonly known as petrol and high speed diesel oil [clause 106 of Finance Bill, 2018] ₹ 6 per litre Nil 3. Basic excise duty on: (i) Unbranded Petrol ₹ 6.48 per litre ₹ 4.48 per litre (ii) Branded petrol ₹ 7.66 per litre ₹ 5.66 per litre (iii) Unbranded diesel ₹ 8.33 per litre ₹ 6.33 per litre (iv) Branded diesel ₹ 10.69 per litre ₹ 8.69 per litre 4. Road and Infrastructure Cess on (i) 5% ethanol blended petrol, (ii) 10% ethanol blen .....

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provided by the Naval Group Insurance Fund by way of life insurance to personnel of Coast Guard, under the Group Insurance Schemes of the Central Government, are proposed to be exempted from service tax for the period commencing from the 10th September, 2004 and ending with the 30th June, 2017 [103] 2. Services provided or agreed to be provided by the Goods and Services Tax Network (GSTN) to the Central Government or State Governments or Union territories administration, are proposed to be exem .....

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