I refer to notification no. 6/2010-CE(NT) dated 27 February, 2010 allowing full credit of duty paid on capital goods in the first year, if the aggregate value of clearances in the previous year did not exceed Rs 4 crores. Is the dispensation available in the first year for even large industries, or is it available for only small-scale industries (SSI)?
The dispensation is available where an assessee is eligible to avail of the exemption under notification 8/2003-CE dated 1.3.2003. Whether he actually avails of the same or not is not material. Secondly, the said notification no. 8/2003 is not restricted to SSI, although it is known as SSI exemption. Even large industries, whose turnover in the preceding financial year did not exceed Rs 4 crores, can avail of the exemption. So, the answer to your question is that new units, whether large or small, can avail of full credit of duty paid on capital goods in the first year.
We are importing goods, which we resell on payment of VAT/CST. We affix the retail selling price on the packages. Can we now avail of the exemption from payment of SAD, as announced in the Budget?
As per notification no. 29/2010-Cus. dated 27 February, 2010, additional duty of customs under Section 3(5) of the Customs Tariff Act, 1975 need not be paid on import of all pre-packaged goods intended for retail sale in relation to which it is required, under the provisions of Standards of Weights and Measures Act, 1976 or any other law for the time being in force, to declare on the package thereof the retail sale price of such goods. So, unless any law requires you to affix the retail selling price on the packages, the exemption will not be available. If you declare the retail selling price out of your own free will, then you have to pay the duty. You can claim a refund of the duty under notification no. 102/2007-Cus. dated 14.09.2007.
In this Budget, transport of goods by rail has been made a taxable service. Is there any abatement or do we have to pay tax on the full value of the service?
Notification no. 09/2010-ST dated 27 February, 2010 amends the basic notification no. 1/2006-ST dated 1.3.2006 so as to prescribe abatement of 70 per cent. So, you need pay service tax only on 30 per cent of the value of the ‘transport of goods by rail’ service.
Where can we find Reserve Bank instructions regarding payment for software downloaded through the Internet?
You may refer to Para C.7.3 of RBI Master Circular no. 8/2009-10 dated 1.7.2009. It says that where imports are made in non-physical form, i.e., software or data through internet / datacom channels and drawings and designs through email/ fax, banks should obtain a certificate from a Chartered Accountant that the software/data/drawing/design has been received by the importer. Banks should advise importers to keep the Customs Authorities informed of the imports made by them.
