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EXCISE |
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S
Excise sops on expansion in HP,
Uttarakhand to stay |
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·
As per the notifications, any new unit set up or an existing
unit which has undergone substantial expansion that
commences commercial production before the cut-off date
i.e.31.03.2010, is entitled to exemption in respect of
excisable goods (other than those appearing in the negative
list) manufactured and cleared for a period of ten years
from the date of commencement of commercial production.
·
The notifications do not place a bar or restriction on any
addition/modification in the plant or machinery or on the
production of new products by an eligible unit after the
cut-off date and during the exemption period of ten years as
per the notification. |
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·
Therefore, in all the above situations, the benefit of the
excise duty exemption under the notifications would continue
to be available to eligible industrial units. |
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·
However the period of exemption would remain ten years and
would not get extended on account of such modifications or
additions. |
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[CBEC
Circular No. 939/29/09-CX, Dated: December 22, 2010] |
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MRP based Central Excise
Duty on Packaged Software |
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The
Government has brought the entire packaged software industry
under the MRP based central excise levy scheme by issuing
Notifications bearing
Nos 30/2010-CE
and
53/2010-Service Tax, both dated December 21, 2010.
In terms of
Notification No 30/2010-CE,
an abatement of 15% has been given on the MRP of the
packaged software, based on which, central excise duty will
have to be paid by the manufacturer and CVD to be paid by
the importer. Consequently, in terms of
Notification No. 53/2010-ST,
no service tax shall be payable on the license value in
terms of clause (v) of Section 65(105) (zzzze) of the
Finance Act, 2010. |
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Under the new dispensation,
it would be pertinent to note that the MRP based valuation
would be applicable only for the physical mode used for
licensing of the packaged software licenses, as contrasted
to the electronic mode of transfer, which is actually
covered by clause (vi) of Section 65(105(zzzze) of the
Finance Act, 1994. Hence, electronic transfer of licenses
for packaged software would still be outside of the central
excise levy and would, instead, get covered under the
service tax levy. |
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Notification Nos. 30/2010-CE
and
53/2010-Service Tax, both dated December 21,
2010 |
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