Brush-Up - 3 # Service Tax # - Service Tax Updates - 25th November, 2013‏‏

25th November, 2013 was booked for changes. CBEC have brought out the following amendments and clarifications.

1. E-Payment limit decreases

W.e.f. 1st January, 2014 the limit of e-payment of Service Tax & Central Excise Duty has been reduced from Rupees Ten  Lakhs to Rupees One Lakhs. It means that assessee having tax liability more than Rupees One Lakhs have to mandatory paid service tax through electronically mode. 

(Notification 16/2013 - Service Tax  dated 22nd November, 2013)

(http://www.servicetax.gov.in/st-notfns-home.htm)

2. VCES Clarification - Circular No.174/9/2013 – ST dated 25th November, 2013

CBEC has issued the the captioned circular to bring more clarity in VCES, 2013.

The said Circular is being issued in pursuance with the recently held interactive sessions at Chennai, Delhi and Mumbai, which were chaired by the Hon’ble Finance Minister. In the circular those issues have been answered / clarified which have not been specifically clarified hitherto or clarified adequately. 

Mainly the questions related to acceptance, rejection of declaration, tax dues etc. have been answered.

(http://www.servicetax.gov.in/st-circulars-home.htm)

3.  Central Excise :- Valuation Rules Amended (W.e.f 1st December, 2013)

Rules 8, 9 and 10 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 has been amended vide Notification No. 14/2013-CENT dated 22-11-2013

Old rules have been substituted by the new rules. 

Summary of new rules are as under : -

Rule 8 -  

Now in case of partly consumption goods, value of such goods taken as 110% COP. Earlier it covers the cases where the whole of excisable goods were captively consumed.

 Rule 9  -  

Now in case of part of the excisable goods not sold by the assessee  to or through the relative of the assessee , as per the amendment the value of such goods shall be the normal transaction value.

(Relative as per the sub-clauses (ii), (iii) or (iv) of clause (b) of  sub-section (3) of section 4 of the Act)

 Rule 10  - 

Now in case of part of goods unsold by the inter-connected undertaking, the value of such goods shall be determined in the manner prescribed in the rule.

(Earlier these Rules talks about when whole of the excisable goods are not sold by the assessee to or through the relative / inter-connected undertaking. Substituted rules talks about valuation of part of goods unsold by the assessee)

(http://www.cbec.gov.in/excise/cx-act/notfns-2013/cx-nt2013/cent14-2013.htm)

 Hope the information assist you in fulfilling Professional Commitments.

Warm Regards

Gaurav Arya

Chartered Accountant

"Victory is not a property of brilliants but it is a crown for those who pursue hard work with confidence and devotion"