| Industry / Commerce / Finance
The Taxation Laws (Amendment) Bill, 2017
Customs Act, 1962
- The Taxation Laws (Amendment) Bill, 2017 was introduced in Lok
Sabha on March 31, 2017. It seeks to amend the Customs Act, 1962, the
Customs Tariff Act, 1975, the Central Excise Act, 1944, the Finance Act,
2001, the Finance Act, 2005, and repeal provisions of few Acts.
- Definition of ‘Customs Area’:
Currently, under the Customs Act, 1962 imported goods remain in the
‘customs area’ until they are cleared by customs authorities. Customs
area includes ports, airports, etc. The Bill extends the customs area
to include warehouses.
- Furnishing information to Proper Officer: The
Bill adds to a provision to the Act which requires several persons to
furnish information to a proper officer under the Act (customs
officer). Such persons and entities include: (i) income tax and state
GST authorities, (ii) Reserve Bank of India, (iii) banks and financial
institutions, (iv) stock exchanges and depositories (v) state
electricity boards, (vi) Registrar of Companies, (vii) Registrar and
Sub-registrar under the Registrar Act, 1908,(viii) registration
authority under the Motor Vehicles Act, 1988, and (ix) Post Master
General. The manner in which the information will have to be furnished
will be notified by the government.
Customs Tariff Act, 1975
- The proper officer
may serve a notice if the information is not furnished within the
specified time. Further, the officer may impose a fine after 30 days of
serving the notice. The fine will be of Rs 100/day, until the
information is furnished.
- Levy of IGST on imports: Goods
imported will be liable to pay the Integrated Good and Service Tax
(IGST). IGST will be levied on the aggregate of value of the imported
goods, Customs Duty levied under the Act, and any other amount
chargeable under any law.
Central Excise Act, 1944
- Levy of GST Compensation Cess on imports:
Goods imported will be liable to the GST Compensation Cess. The Cess
will be levied on the aggregate of value of the imported goods, Customs
Duty levied under the Act, and any other amount chargeable under any
- Levy of Excise Duty:
Currently, Central Excise Duty is levied on various excisable goods
such as tobacco, petroleum products, rubber, oils, vehicles, etc. This
is proposed to be changed to levy duty only on a certain kind of: (i)
petroleum products such as motor spirit, high speed diesel, aviation
turbine fuel, and (ii) tobacco products.
goods on which the excise duty was levied were mentioned in the Central
Excise Tariff Act, 1985. These will be moved to the Fourth Schedule of
the 1944 Act. Note that the 1985 Act is proposed to be repealed under
the Central Goods and Services Tax Bill, 2017.
Finance Act, 2001
under the Central Excise Tariff Act, 1985, the central government has
powers to change excise rates through notification in emergency
circumstances. The Bill inserts a similar provision in the 1944 Act.
Further, it also inserts a provision to allow the central government to
amend the newly inserted Fourth Schedule through notification.
Finance Act, 2005
Finance Act, 2001 levies the National Calamity Contingent Duty on a
variety of goods such as pan masala, tobacco products, telephones, motor
vehicles, crude oil, petroleum products, among others. The Bill seeks
to limit the levy only to tobacco products and crude oil.
Repeal of several laws
Finance Act, 2005 levies an Additional Excise Duty on several items
such as pan masala and tobacco products. The Bill removes petroleum
oils, crude and other related products from this list.
Bill seeks to repeal four laws which include the Sugar Cess Act, 1982
and the Jute Manufacturers Cess Act, 1983. It also repeals certain
provisions of 10 laws which include the Rubber Act, 1947, the Industries
(Development and Regulation) Act, 1951, and the Coal Mines
(Conservation and Development) Act, 1953. Any un-collected duties
(arrears) under the above Acts shall be collected by the respective
collecting agencies and remitted to the Consolidate Fund of India.
|Current Status: Passed|
|Introduction||Mar 31, 2017|
|Lok Sabha||Apr 6, 2017|
|Rajya Sabha||Deemed to be passed|