UNION BUDGET 2016 Service Tax

Transcription

1 UNION BUDGET 2016 Service Tax Compiled by CMA Dr. Sanjay R. Bhargave 1

2 Service Tax Rate No change in Rate of Service Tax and Swachha Bharat Cess. Krishi Kalyan Cess A new cess namely Krishi Kalyan Cess is proposed to be levied at 0.50% on taxable value of service with effect from 1st June, Effectively Service Tax will be leviable as per following : Particulars Rate as % of taxable value Basic Service Tax 14.00% Swachha Bharat Cess 0.50% Krishi Kalyan Cess 0.50% Total 15.00% 2

3 Section 65B of the Finance Act, 1994 Changes Section 65B of the Finance Act, (Changes will come into force on enactment of the Finance Bill, 2016.) Explanation 2 of Section 65B(44) the Finance Act, 1994 is proposed to be amended, namely: (a) by a lottery distributor or selling agent on behalf of the State Government, in relation to promotion, marketing, organising, selling of lottery or facilitating in organising lottery of any kind, in any other manner, in accordance with the provisions of the Lotteries (Regulation) Act, 1998; Definition of approved vocational education course under Clause 11 of Section 65B of the Finance Act, 1994 is being omitted. 3

4 Amendments in Negative List Service covered under Clause (l) of Section 66D of the Finance Act, is being proposed to be deleted from Negative List. (w.e.f. enactment of Finance Bill, 2016) Clause (l) of Section 66D, services by way of a. Pre-school education and education up to higher secondary school or equivalent; b. Education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force; c. Education as a part of an approved vocational education course; As per Notification No. 09/2016-ST dated 1st March, 2016 the service tax exemption on them is being continued by incorporating them in the general exemption Notification No. 25/2012-ST dated

5 Amendments in Negative List Service covered under Clause (o) (i) of Section 66D of the Finance Act, is being proposed to be deleted from Negative List. (w.e.f ) Clause (o) (i) of Section 66D, Service of Transport of passengers, with or without accompanied belongings by (i) Stage Carriage. As a consequence, the above services become taxable with effect from However, such services by a non-air-conditioned contract carriage will continue to be exempted by way of exemption Notification No. 25/2012-ST, as amended by notification No. 09/2016-ST, dated 1st March,

6 Amendments in Negative List Service covered under Clause (p) (ii) of Section 66D of the Finance Act, is being proposed to be deleted from Negative List. (w.e.f ) Clause (p) (ii) of Section 66D, the services by way of transportation of goods- by an aircraft or a vessel from a place outside India to the first customs station of landing in India. However, such services by an aircraft will continue to be exempted by way of exemption Notification No. 25/2012-ST, as amended by Notification No. 09/2016-ST dated 1st March,

7 Declared Services Declared Service under Section 66E, Following shall be inserted, namely: (j) assignment by the Government of the right to use the radiofrequency spectrum and subsequent transfers thereof.. (Refer Clause 147 of the Finance Bill, 2016). Assignment of such right to use is a Service leviable to Service Tax and not sale of Intangible Goods. 7

8 Section 67A of the Finance Act, 1994 amended for Rule Making Powers Clause 148 of Finance Bill 2016 proposes to amend Section 67A, so as to insert a new sub-section (2) therein to empower the Central Government to prescribe the time or the point in time with respect to the rate of service tax. As per Sl. No. 2(1) of Notification No. 10/2016-ST, Section 67A is proposed to be amended to obtain specific rule making powers in respect of Point of Taxation Rules, Changes would come into force with effect from the date of enactment of the Finance Bill,

9 The Point of Taxation Rules, 2011 amended for Rule Making Powers Point of Taxation Rules, 2011 is being amended as a consequence of amendment to Sec 67A of Finance Act. The Point of Taxation Rules, 2011 have been framed under provisions of clause (a) and (hhh) of sub-section (1) of section 94. Now specific power is also being obtained under section 67A to make rules regarding point in time of rate of service tax. Changes shall come into effect from 1st March,

10 Amendment in Section 73 of The Finance Act, 1994 The limitation period for recovery of Service Tax not levied or paid or short-levied or short paid or erroneously refunded, for cases not involving fraud, collusion, suppression etc is proposed to be increased from eighteen months to thirty months. (Refer Clause 149 of the Finance Bill, 2016) 10

11 Amendment to Section 75 of Finance Act, 1994 Interest on delayed payment of Service Tax Clause 150 of the Finance Bill, 2016 seeks to amend Section 75 to insert a proviso to empower the Central Government to specify, by Notification, separate rate of interest in the case of person who collect service tax but fails to pay such amount so collected to the credit of the Central Government on or before the due date of payment. 11

12 Interest Notification No.13/2016 ST dated is issued to provide interest rates where the service tax has been collected but not deposited, rate of interest will be 24% p. a. In any other case it will be 15% as per Notification 13/2016 ST. In view of proviso to Section 73B, in case of assessee, whose value of taxable services in the preceding year/years covered by the notice is less than Rs. 60 Lakh, the rate of interest on delayed payment of service tax will be 12%. The changes shall come into force on the day the Finance Bill, 2016 receives the assent of the President. 12

13 Personal Penalty Clause 151 of the Finance Bill seeks to insert Explanation in Section 78A to provide for deemed conclusion of proceedings against any person liable under that Section subject to conclusion of proceedings as provided therein. 13

14 Clause 152 of Finance Bill, 2016 For filing complaints for punishable offences The monetary limit of Rs.50 lakhs for filing complaints for punishable offences is proposed to be enhanced to Rs. 2 Crores. 14

15 Power of Arrest in Respect of Offences Section 90 (2) of the Act, as the power of arrest in respect of offences under clauses (a), (b) and (c) of sub-section (1) of Section 89 is proposed to be withdrawn. (Clause 153 of Finance Bill, 2016) With this change, the prosecution will be restricted only in the cases where Service Tax has been collected but not paid to the credit of Central Government beyond a period of six months from the date on which such payment becomes due. 15

16 Power of Arrest in Respect of Offences The Clause 154 of Finance Bill, seeks to amend Sub Section (1) and omits Sub-Section (3) of Section 91, as the power of arrest in respect of offences under clauses (a), (b) and (c) of Sub-Section (1) of Section 89 is proposed to be withdrawn. 16

17 Power to Grant Rebate Section 93A of the Finance Act, 1994 is being amended so as to enable allowing of rebate by way of Notification as well as Rules. 17

18 Insertion of New Sec. 101, 102 and 103 Exemptions for the past period. Section 101: - No service tax shall be levied or collected during the period commencing from the 1st day of July, 2012 and ending with the 29th day of January, 2014 (both days inclusive) in respect of taxable services provided to an authority or a board or any other body (i) set up by an Act of Parliament or a State Legislature; or (ii) established by the Government, with ninety per cent or more participation by way of equity or control, to carry out any function entrusted to a municipality, by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration of canal, dam or other irrigation works. 18

19 Insertion of New Sec. 101, 102 and 103 Exemptions for the past period Section 102: No service tax shall be levied or collected during the period commencing from the 1st day of April, 2015 and ending with the 29th day of February, 2016 (both days inclusive), in respect of taxable services provided to the Government, a local authority or a Governmental authority, by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration of (a) a civil structure or any other original works meant predominantly for use other than for commerce, industry or any other business or profession; (b) a structure meant predominantly for use as (i) an educational establishment; (ii) a clinical establishment; or (iii) an art or cultural establishment; (c) a residential complex predominantly meant for self-use or for the use of their employees or other persons specified in Explanation 1 to clause (44) of section 65B of the said Act, under a contract entered into before the 1st day of March, 2015 and on which appropriate stamp duty, where applicable, had been paid before that date. 19

20 Insertion of New Sec. 101, 102 and 103 Exemptions for the past period Section 103: No service tax shall be levied or collected during the period commencing from the 1st day of April, 2015 and ending with the 29th day of February, 2016 (both days inclusive), in respect of services provided by way of construction, erection, commissioning or installation of original works pertaining to an airport or port, under a contract which had been entered into before the 1st day of March, 2015 and on which appropriate stamp duty, where applicable, had been paid before that date, subject to the condition that Ministry of Civil Aviation or, as the case may be, the Ministry of Shipping in the Government of India certifies that the contract had been entered into before the 1st day of March,

21 Refund Under New Section 101, 102 & 103 (2) Refund shall be made of all such service tax which has been collected but which would not have been so collected had subsection (1) (of respective new Sections) been in force at all material times. (3) Notwithstanding anything contained in this Chapter, an application for the claim of refund of service tax shall be made within a period of six months from the date on which the Finance Bill, 2016 receives the assent of the President. 21

22 Refund of Service tax on Services used beyond The Factory Clause 157 of the Finance Bill seeks to amend Notification No. 41/2012- ST, dated the 29th June, 2012 (amended vide notification No.1/2016-ST dated 3rd February, 2016) to give retrospective effect from to allow refund of service tax on services used beyond the factory or any other place or premises of production or manufacture of the said goods, for export of the said goods. 22

23 Broadening of Tax Base Exemptions Withdrawn Mega Exemption w.e.f. 1st March 2016 Construction, Erection, Commissioning or Installation of original works pertaining to Monorail and Metro in respect of contracts entered on or after 1st March 2016 will be taxable. [Entry No.14 for item no.(a)] However, exemption in respect of contracts entered into before 1st March 2016 (on which appropriate stamp duty is paid) shall continue. 23

24 Broadening of Tax Base Exemptions Withdrawn Mega Exemption w.e.f. 1st April, 2016 Clause (b) and clause (c) of entry No. 6 are being substituted as per following : (b) a partnership firm of advocates or an individual as an advocate other than a senior advocate, by way of legal services to- i) an advocate or partnership firm of advocates providing legal services; ii) any person other than a business entity; or iii) a business entity with a turnover up to rupees ten lakh in the preceding financial year; or (c) a senior advocate by way of legal services to a person other than a person ordinarily carrying out any activity relating to industry, commerce or any other business or profession; With these changes, Senior Advocates will be liable to discharge service tax liability under forward charge i.e. such services are not covered under Reverse charge mechanism. 24

25 Broadening of Tax Base Exemptions Withdrawn Mega Exemption Transportation of Passenger with or without accompanied belongings, by ropeway, cable car or aerial tramway will be taxable service w.e.f Clause (o) (i) of Section 66D pertaining to Service of Transport of passengers, with or without accompanied belongings by Stage carriage is being omitted from Therefore, service tax is being levied on transportation of passengers by stage carriage w.e.f

26 New Exemptions Effective from 1st March, 2016 Services in respect of specified courses (except executive development programme) provided by the Indian Institutes of Management (IIM) to its students. [Sr. No. 9B] Construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration services provided to the Government, a local authority or a governmental authority in respect of a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; a structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment; or 26

27 New Exemptions Effective from 1st March, 2016 a residential complex predominantly meant for self-use or the use of their employees or members of Parliament, Members of State Legislative, Members of Panchayats, Members of Municipalities, Person who holds in any post in pursuance of the provisions of Constitution, Chairperson or a member or a Director in a body established by the Central Government or State Government or local authority. Above exemption is available in respect of contracts entered prior to 1st March, 2015 and applicable stamp duty has been paid prior to such date. This exemption shall cease to apply with effect from 1st April [Sr. No. 12A] 27

28 New Exemptions Effective from 1st March, 2016 Services of assessing bodies empanelled centrally by Directorate General of Training, Ministry of Skill Development & Entrepreneurship under Skill Development Initiative (SDI) Scheme. [Sr. No. 9C] Skill or vocational training provided by project implementation partners under Deen Dayal Upadhyay Grameen Kaushalya Yojana. [Sr. No. 9D] 28

29 New Exemptions Effective from 1st March, 2016 Construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration services in respect of a civil structure or any other original works pertaining to: In-situ Rehabilitation of existing slum dwellers using land as a resource through private participation under Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana, only for existing slum dwellers. [Sr. No.13(ba)] Beneficiary-led individual house construction/ enhancement under Housing for All (Urban) Mission / Pradhan Mantri Awas Yojana. [Sr. No.13(bb)] 29

30 New Exemptions Effective from 1st March, 2016 Construction, erection, commissioning or installation of original works pertaining to low cost houses up to a carpet area of 60 square metres per house in a housing project approved by the competent authority under: Affordable housing in partnership component of the housing for All (Urban) Mission/Pradhan Mantri Awas Yojana Any housing scheme of a State Government. [Sr. No.14 (ca)] 30

31 New Exemptions Effective from 1st March, 2016 Construction, erection, commissioning, or installation of original works pertaining to an airport or port provided under a contract entered prior to 1st March 2015 and applicable stamp duty has been paid prior to such date and said fact is certified by Ministry of Civil Aviation or the Ministry of Shipping in the Government of India. This exemption shall cease to apply with effect from 1st April [Sr. No.14 (A)] 31

32 New Exemptions Effective from 1st April, 2016 Exemption limit for services by a performing artist in folk or classical art forms of music, dance or theatre is raised from Rs. 1 lakh to Rs. 1.5 lakhs per performance. [Sr. No. 16]. General insurance services provided under Niramaya Health Insurance scheme launched by National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disability. [Sr. No. 26q] Life insurance service provided by way of annuity under the National Pension System (NPS) regulated by Pension Fund Regulatory and Development Authority (PFRDA) of India. [Sr. No. 26C] 32

33 New Exemptions Effective from 1st April, 2016 Services provided by Employees Provident Organisation (EPFO) to employees. [Sr. No. 49] Fund Services provided by Insurance Regulatory and Development Authority of India (IRDA) to insurers. [Sr. No. 50] Services provided by Securities and Exchange Board of India (SEBI) for protecting the interests of investors in securities, promoting the development of and regulation of the securities market. [Sr. No. 51] 33

34 New Exemptions Effective from 1st April 2016 Services provided by Biotechnology Industry Research Assistance Council (BIRAC) approved biotechnology incubators to the incubatees subject to fulfillment of prescribed conditions. (Notification No. 32/2012-ST dtd being amended) 34

35 New Definitions In Noti. No.25/2012-ST (ba) Approved Vocational Education Course means, (a) a course run by an industrial training institute or an industrial training centre affiliated to the National Council for Vocational Training or State Council for Vocational Training offering courses in designated trades notified under the Apprentices Act, 1961 (52 of 1961); or (b) a Modular Employable Skill Course, approved by the National Council of Vocational Training, run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship. Above definition effective from such date on which the Finance Bill, 2016 receives the assent of the President 35

36 New Definitions In Noti. No.25/2012-ST (oa) educational institution means an institution providing services by way of: (i) pre-school education and education up to higher secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force; (iii) education as a part of an approved vocational education course (effective from such date on which the Finance Bill, 2016 receives the assent of the President) (zzd) Senior advocate has the meaning assigned to it in Section 16 of the Advocates Act, 1961 (25 of 1961).(Effective from ) 36

37 Abatements Notification No. 26/2012-ST is being amended vide Notification No. 08/2016-ST dated as per the following 37

38 Changes in abatement (Effective from 1st April 2016) Present Taxable value Taxable value w.e.f. 1 April 2016 Transport of passengers by rail 4.2% Without credit 4.2% With input service credit Transport of goods, other than in containers, by rail 4.2% Without credit 4.2% With Input service credit Transport of goods in containers by rail 4.2% Without credit 5.6% With Input service credit Transport of goods by vessel 4.2% Without credit 4.2% With Input service credit Nature of Service 38

39 Changes in abatement (Effective from 1st April 2016) Nature of Service Services by way of construction of residential complex, building, civil structure, or a part thereof Present Taxable value Taxable value w.e.f. 1 April %/ 4.2% 4.2% Services by a tour operator in 3.5%/ relation to packaged tour (defined 5.6% of amount where tour operator provides to the charged service recipient transportation, accommodation, food etc) 4.2% of amount charged Shifting of used household goods by a Goods Transport Agency (GTA) 4.2% 5.6% Services of a foreman to a chit fund 14% 9.8% 39

40 Amendments in Service Tax Rules Rule 2(1)(d)(i)(D)(II) is being modified so that legal services provided by a senior advocate shall be on forward charge. Rule 6 is being amended to add concept of One Person Company and to extend the benefit of quarterly payment of Service Tax and payment of Service Tax on receipt basis to One Person Company, which are available to individual and partnership firms whose aggregate value of services is upto Rs. 50 lakhs in the previous financial year. Benefit of quarterly payment of service tax is also being extended to HUF. 40

41 Amendment in Service Tax Rules Rule 7A is being amended to provide the service tax liability on single premium annuity (insurance) policies is being rationalized and the effective alternate service tax rate (composition rate) is being prescribed at 1.4% of the total premium charged, in cases where the amount allocated for investment or savings on behalf of policy holder is not intimated to the policy holder at the time of providing of Service. Rule 7(3A) is being inserted to provide for filing of Annual Return by 30th November of the succeeding financial year. This change shall come into effect from 1st April,

42 Amendment in Service Tax Rules Annual Return In Rule 7B sub-rule (2) is being inserted to provide for submission of revised annual return within the period of one month from the date of submission of the said annual return. In Rule 7C sub-rule 2 is being inserted to provide for payment of Rs. 100 per day for the period of delay in filing of such return subject to maximum of Rs.20,000/-. (vide Notification 19/2016- ST) 42

43 Point of Taxation Rules Explanation is being inserted in Rule 5 of the Point of Taxation Rules to provide that these rules will apply also in the case of new levy on Services. Explanation 2 is being inserted to provide that in following two specified situation new levy would not apply: Where a service is taxed for the first time then: No tax shall be payable to the extend the invoice has been issued and the payment received against such invoice before such service became taxable; No tax shall be payable if the payment has been received before the service becomes taxable and the invoice has been issued within 14 days of the date when the service is taxed for the first time 43

44 Reverse Charge Mechanism The following changes will come into effect from 1st April, (Refer Notification No.18/2016-ST dated ) Tax on Services provided by Mutual Fund Agents /Distributor to a Mutual Fund or Asset Management Company are being put under forward charge i.e. the Service Provider is being made liable to pay Service Tax. The liability to pay service tax on any service provided by Government or a local authority to business entities shall be on the service recipient. 44

45 Information Technology Software With effect from , media falling under Chapter 85 with recorded Information Technology Software has been notified under Section 4A of the Central Excise Act. Accordingly, Central Excise duty/cvd is to be paid on the value of such media with recorded Information Technology Software and the assessable value of such media is required to be determined on the basis of the retail sale price affixed on the package of such media under the Legal Metrology Act, 2009 (1 of 2010) or the rules made thereunder. In respect of transactions involving supply of such media bearing RSP, not amounting to sale/deemed sale, service tax is being exempted. (Notification No. 11/2016-CE dtd 1st March 2016) 45

46 Information Technology Software In situations like delivering Customized Software on media, such media with recorded Information Technology Software, is not required to bear the RSP when supplied domestically or imported., media with recorded Information Technology Software which is not required to bear RSP, is exempted from service tax to the extent of value representing the value of medium along with freight and insurance. The exemption is subject to the fulfillment of certain conditions. Thus, the levy of Central Excise duty/cvd and service tax will be mutually exclusive. (Notification No. 11/2016-CE and 11/2016-Customs, both dated 1st March 2016 refers) 46

47 Indirect Tax Dispute Resolution Scheme, 2016 Indirect Tax Dispute Resolution Scheme, 2016, is being introduced wherein in respect of cases pending before Commissioner (Appeals), the assessee, after paying the duty, interest and penalty equivalent to 25% of duty, can file a declaration. In such cases the proceedings against the assessee will be closed and he will also get immunity from prosecution. However, this scheme will not apply in certain specified type of cases. 47

48 Amendments in Cenvat Credit Rules, 2004 The following changes shall come into force from 1st April, Service by way of transportation of goods by a vessel from customs station of clearance in India to a place outside India is being excluded from the definition of exempted service. Cenvat credit of Service Tax paid on amount charged for the assignment by the Government or by any other person such as mines etc, can be taken proportionately and shall be spread over a period of time for which the rights have been assigned. 48

49 Rule 6 of Cenvat Credit Rules, 2004 Redrafted Salient features of redrafted Rule 6. Cenvat Credit shall not be allowed on such quantity of inputs and input services as is used in relation to manufacture of exempted goods and exempted services. Manufacturer manufacturing dutiable goods and exempted goods or service provider providing taxable services and exempted services shall have an option to pay an amount equal to 6% of value of exempted goods and 7 % of value of exempted services or to pay an amount as determined under sub rule (3A). 49

50 Rule 6 of Cenvat Credit Rules, 2004 Redrafted Sub-Rule (3A) provides the following No credit is allowed on inputs/input services used exclusively in the manufacture of exempted goods/ services. Full credit is allowed on the inputs/input services used exclusively in the manufacture of dutiable goods /taxable services. Credit on common inputs/input services is identified and the same is apportioned based on the turnover of the exempted/dutiable turnover 50

51 Rule 6 of Cenvat Credit Rules, 2004 Redrafted The manufacturer of final products or the provider of output service shall determine the credit required to be provisionally reversed u/r 6 (3A) in the following sequential steps : T = Full Cenvat Credit of all Inputs/Input Services A = Cenvat Credit of Inputs/Input Services attributable to manufacture of exempted goods/exempted services B = Cenvat Credit of Inputs/Input Services attributable to manufacture of dutiable goods/taxable services C (Common Cenvat Credit) = T (A + B) D (Ineligible Cenvat Credit) = (E/F) * C Where E is the sum total of Exempted Services + Exempted Goods removed (both for the preceding financial years) and F is the sum total of Exempted Services + Exempted Goods +Non-Exempted Services + Exempted Services (all for the preceding previous years) 51

52 Rule 6 of Cenvat Credit Rules, 2004 Redrafted In case no final products were manufactured or no output services were provided in the preceding financial year, the Cenvat credit attributable to ineligible common credit shall be deemed to be 50%. G (Eligible Cenvat Credit) = C D Final reconciliation and adjustments are provided for after close of financial year by 30th June of the succeeding financial year, as provided in the existing rule 52

53 Rule 6 of Cenvat Credit Rules, 2004 Redrafted Sub-rule (3AA) is being inserted to provide that a manufacturer or a provider of output service who has failed to follow the procedure of giving prior intimation, may be allowed by a Central Excise officer, competent to adjudicate such case, to follow the procedure and pay the amount prescribed subject to payment of 15% per annum. Sub-rule (3AB) is being inserted as transitional provision to provide that the existing Rule 6 of CCR would continue to be in operation upto , for the units who are required to discharge the obligation in respect of Financial Year

54 Rule 6 of Cenvat Credit Rules, 2004 Redrafted Sub-rule (3B) of Rule 6 is being amended so as to allow banks and other financial institutions to reverse credit in respect of exempted services on actual basis in addition to the option of 50%. 54

55 Rule 7 of Cenvat Credit Rules, 2004 Rule 7 of the Cenvat Credit Rules, 2004 dealing with distribution of credit on input services by an Input Service Distributor is being completely rewritten to allow the Input Service Distributer to distribute the input service credit to an outsourced manufacturing unit also in addition to its own manufacturing units. Outsourced manufacturing unit is being defined to mean either a job-worker who is required to pay duty on the value determined under the provisions of Rule 10A of the Central Excise Valuation (Determination of Price Of Excisable Goods) Rules,

56 Rule 7 of Cenvat Credit Rules, 2004 Input Service Distributor shall distribute CENVAT credit in respect of service tax paid on the input services subject to, inter alia, the following conditions, Credit attributable to a particular unit shall be distributed to that unit only. Credit attributable to more than one unit but not all shall be distributed to those units only and not to all units. Credit attributable to all units shall be distributed to all the units. Credit shall be distributed pro rata on the basis of turnover as is done in the present rules. 56

57 Rule 7B of Cenvat Credit Rules, 2004 Rule 7B is being inserted in Cenvat Credit Rules, 2004 to provided that a manufacturer having one or more factories shall be allowed to take credit on inputs received under the cover of an invoice issued by a warehouse of the said manufacturer, which receives inputs under cover of an invoice towards the purchase of such inputs. Procedure applicable to a first stage dealer or a second stage dealer would apply, mutatis mutandis, to such a warehouse of the manufacturer. 57

58 Rule 14 of Cenvat Credit Rules, 2004 Rule 14(2) prescribing the procedure based on FIFO method for determining the utilization of Cenvat Credit for purpose of interest is being omitted. Now, the utilization of Cenvat Credit shall be ascertained by examining whether during the period under consideration the minimum balance of credit in Cenvat account was equal to or more than the disputed amount of credit. 58

59 Notification 14/2016 C.E. (NT) Notification 14/2016 C.E. (NT) has been issued to revise time limit for filing Refund Claim under Rule 5 of the Cenvat Credit Rules 2004 in case of service provider, before the expiry of one year from the date of receipt of payment in convertible foreign exchange, where provision of service had been completed prior to receipt of such payment; or issue of invoice, where payment for the service had been received in advance prior to the date of issue of the invoice.. 59

60 Thank You Contact: CMA Dr. Sanjay R. Bhargave (M) (T) /