01 March 2016
Dear Sir, We are Mfg. and exporter of Electronics & Electrical Goods under chapter heading 8518, i what to know what is the changes in rate of excise duty in budget 2016-17. Previous rate of duty is 12%.
Thanks & Regards
P.S.Negi Manager Excise & Service Tax Mob. No.8826 999 710
1) Basic Excise Duty on 5 specified parts required for the manufacture of centrifugal pump is being reduced from 12.5% to 6%, subject to actual user condition. Notification No. 12/2012- Central Excise, dated 17th March, 2012 as amended by Notification No. 12/2016-Central Excise dated 1st March, 2016 [New S. No. 235A] refers.
2) Accessories of goods falling under tariff item 8426 41 00, heading 8427, 8429 and subheading 8430 10 are being included for the purposes of RSP based assessment of excise duty. S. No. 109 of Notification No.49/2008-Central Excise (N.T.), dated 24th December, 2008 as amended vide notification No. 12/2016-Central Excise (N.T.), dated 1st March, 2016 and Clause 142 (i) of the Finance Bill, 2016 refer. The Third Schedule to the Central Excise Act, 1944 is also being amended so as to include therein these accessories. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this change will come into force with immediate effect.
3) Wrist wearable devices (commonly known as „smart watches?) [8517 62] are being notified for the purposes of RSP basedassessment of excise duty with an abatement of 35%. Notification No. 49/2008-Central Excise (N.T.), dated 21.12.2008, as amended by notification No. 12/2016-Central Excise (N.T.) dated 1st March, 2016 [new S. No. 87A] refers. The Third Schedule to the Central Excise Act, 1944 is also being amended so as to include therein such wrist wearable devices (commonly known as „smart watches?). Clause 142 (i) of the Finance Bill, 2016 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this change will come into force with immediate effect.
4) Excise duty exemption is being withdrawn on charger/adapter, battery and wired headsets/speakers for use in manufacture of mobile handsets including cellular phones. S. No. 272 of Notification No. 12/2012-Central Excise, dated 17th March, 2012 as amended by notification No. 12/2016-Central Excise dated 1st March, 2016 refers.
5) Excise duty of „2% without CENVAT credit / 12.5% with CENVAT credit? is being prescribed for charger/adapter, battery and wired headsets/speakers, for manufacture of mobile handsets including cellular phone, subject to actual user condition. Notification No. 12/2012-Central Excise, dated 17th March, 2012 as amended by notification No.12/2016- Central Excise dated 1st March, 2016 [new S.Nos.263B, 263D, 263F, 263H] refers.
6) Further, excise duty is being exempted on inputs and parts for use in manufacture of charger/adapter, battery and wired headsets/speakers of mobile handsets including cellular phone. Excise duty is also being exempted on inputs and sub-parts for use in manufacture of 28 parts of charger/adapter, battery and wired headsets/speaker of mobile handsets including cellular phone. These exemptions are subject to actual user condition. Notification No.12/2012-Central Excise, dated 17th March, 2012 as amended vide notification No.12/2016-Central Excise dated 1st March, 2016 [new S. Nos.263C, 263E, 263G, 263I] refers.
7) Excise duty of „4% without CENVAT credit / 12.5% with CENVAT credit? is being prescribed for the following Consumer Premise Equipments (CPEs). (i) Routers [ tariff item 8517 69 30] (ii) Broadband Modems [tariff item 8517 62 30] (iii) Set-top boxes for gaining access to internet [tariff item 8517 69 60] (iv) Reception apparatus for television but not designed to incorporate a video display[tariff item 8528 71 00] (v) Digital Video Recorder (DVR)/Network Video Recorder (NVR) [tariff item 8521 90 90] (vi) CCTV Camera/IP Camera [tariff item 8525 80 20] (vii) Lithium-ion batteries, other than those for mobile handsets including cellular phones [tariff item 8507 60 00] Notification No.12/2012-Central Excise, dated 17th March, 2012 as amended by notification No.12/2016-Central Excise dated 1st March, 2016 [new S.Nos.262A, 263J, 263L, 263N, 263P, 263R, 263T] refer.
8) Further, excise duty is being exempted on parts, components and accessories for use in manufacture of Routers, broadband Modems, Set-top boxes for gaining access to internet, set top boxes for TV, digital video recorder (DVR) / network video recorder (NVR), CCTV camera / IP camera, lithium ion battery [other than those for mobile handsets]. Further, Excise Duty is also being exempted on sub-parts for use in manufacture of parts, components and accessories of the aforesaid Consumer Premise Equipments. These exemptions are subject to actual user condition. Notification No.12/2012-Central Excise, dated 17th March, 2012 as amended vide notification No.12/2016-Central Excise dated 1st March, 2016 [new S. Nos.262B, 263K, 263M, 263O, 263Q, 263S, 263U]
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