Finance Act, 2005. · Indian Gazettes

REGISTERED NO. DL-(N)04/0007/2003-05 रजिस्ट्रीसं० डी० एल (एन)04/0007/2003-05

जयते भारत का राजपत्र The Gazette ofIndia

असाधारण

EXTRAORDINARY

भाग II- खण्ड 2

PART II- Section 2

प्राधिकार से प्रकाशित

PUBLISHED BY AUTHORITY

नई दिल्ली, सोमवार, फरवरी 28 , 2005/9 फाल्गुन, 1926

1] No. 1 ]

NEW DELHI, MONDAY, FEBRUARY 28, 2005/9 PHALGUNA, 1926

इस भाग में भिन्न पृष्ठ संख्या दी जाती है जिससे कि यह अलग संकलन के रूप में रखा जा सके ।

Separate paging is given to this Part in order that it may be filed as a separate compilation.

LOK SABНА

The followingBill was introduced in the Lok Sabha on 28th February, 2005:-

BILL NO . 35 OF 2005

A Bill to give effect to the financial proposals of the Central Government for the financial year 2005-2006.

BE it enacted by Parliament in the Fifty- sixth Year ofthe Republic of India as follows:-

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Finance Act, 2005 .

Short title and commencement (2) Save as otherwise provided in this Act, sections 2 to 64 shall be deemed to have come into force on the 1st day ofApril , 2005 .

CHAPTER II

RATES OF INCOME-TAX

Income-tax .

43 of 1961 .

2.(1) Subject to the provisions of sub- sections (2) and ( 3) , for the assessment year commencing on the 1st day ofApril, 2005 , income - tax shall be charged at the rates specified inPart I ofthe First Schedule and such tax as reduced by the rebate of income-tax calculated under Chapter VIII-A of the Income- tax Act , 1961 (hereinafter referred to as the Income-tax Act) shall be increased by a surcharge for purposes of the Union calculated in each case in themanner provided therein .

(2) In the cases to which Paragraph A of Part I of the First Schedule applies , where the assessee has , in the previous year, any net agricultural income exceeding five thousand rupees, in addition to total income, and the total income exceeds fifty thousand rupees , then,-

(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [ that is to say, as ifthe net agricultural income were comprised in the total incomeafter the first fifty thousand rupees ofthe total incone but without being liable totax] , only for the purpose of charging income-tax in respect of the total income; and [PART II- 2

THE GAZETTE OF INDIA EXTRAORDINARY

(b) the income-tax chargeable shall be calculated as follows:-

(i) the total income and the net agricultural income shall be aggregated and the amount of income - tax shall be determined in respect of the aggregate income at the rates specified in the said Paragraph A , as if such aggregate income were the total income;

(ii) the net agricultural income shall be increased by a sum of fifty thousand rupees , and the amount of income -tax shall be determined in respect ofthe net agricultural income as so increased at the rates specified in the said Paragraph A , as ifthe net agricultural income as so increased were the total income ;

(iii) the amount of income- tax determined in accordance with sub -clause (i) shall be reduced by the amount of income -tax determined in accordance with sub- clause (ii) and the sum so arrived at shall be the income - tax in respect ofthe total income:

Provided that the amount of income -tax so arrived at , as reduced by the amount of rebate of income- tax calculated under Chapter VIII - A , shall be increased by a surcharge for purposes of the Union calculated in each case in the manner provided in that Paragraph and the sum so arrived at shall be the income - tax in respect of the total income .

(3) In cases to which the provisions of Chapter XII or Chapter XII -A or section 115JB or sub - section ( 14) of section 161 or section 164 or section 164A or section 167B of the Income- tax Act apply, the tax chargeable shall be determined as provided in that Chapter or that section, and with reference to the rates imposed by sub- section ( 1 ) or the rates as specified in that Chapter or section , as the case may be:

Provided that the amount of income- tax computed in accordance with the provisions of section 111A or section 112 shall be increased by a surcharge for purposes of the Union as provided in Paragraph A, B , C, D or E, as the case may be , of Part I of the First Schedule:

Provided further that in respect of any income chargeable to tax under sections 115A, 115AB , 115AC, 115ACA , 115AD, 115B , 115BB , 115BBA, 115E and 115JB ofthe Income-tax Act, the amount of income- tax computed under this sub -section shall be increased by a surcharge for purposes of the Union , calculated,-

(a) inthe case ofevery individual, Hindu undivided family, association of persons and body of individuals , whether incorporated or not , at the rate of ten per cent . of such income-tax where the total income exceeds eight hundred and fifty thousand rupees;

(b) in the case ofevery co -operative society, firm , local authority and company, atthe rate of two and one -half per cent . of such income-tax;

(c) inthe case ofevery artificial juridical person referred to in sub - clause ( vii ) of clause (31 ) of section 2 of the Income- tax Act , at the rate of ten per cent. of such income-tax.

(4) In cases in which tax has to be charged and paid under section 115-0 or sub- section (2) ofsection 115R ofthe Income-tax Act, the tax shall be charged and paid at the rate as specified in those sections and shall be increased by a surcharge for purposes of the Union, calculated at the rate of ten per cent . of such tax.

(5) In cases in which tax has to be deducted under sections 193 , 194, 1944, 194B , 194BB, 194D and 195 ofthe Income- tax Act, at the rates in force, the deductions shall be made at the rates specified in Part II ofthe First Schedule and shall be increased, by a surcharge for purposes of the Union, calculated in each case , in the manner provided therein .

(6) In cases in which tax has to be deducted under sections 194C, 194E, 194EE, 194F, 194G, 194H, 194-1 , 194J , 194LA, 1968 , 196C and 196D ofthe Income- tax Act , the deductions shall be made at the rates specified in those sections and shall be increased by a surcharge for purposes ofthe Union, calculated ,- 3

THE GAZETTE OF INDIA EXTRAORDINARY

SEC .2]

(a) inthe case ofevery individual , Hindu undivided family, association ofpersons and body of individuals , whether incorporated or not, at the rate of ten per cent. of such tax where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ten lakh rupees ;

(b) inthe case ofevery firm , artificial juridical person referred to in sub- clause (vii) of clause( 31 ) of section 2 of the Income- tax Act , and domestic company, at the rate of ten per cent . of such tax;

(7) In cases in which tax has to be collected under the proviso to section 194B of the Income-taxAct, the collection shall be made at the rates specified in Part II of the First Schedule, and shall be increased, by a surcharge for purposes ofthe Union , calculated in the manner provided therein .

(8) In cases inwhich tax has to be collected under section 206C ofthe Income - taxAct, the collection shall be made at the rates specified in that section and shall be increased by a surcharge for purposes of the Union , calculated,-

(a)inthecase of every individual , Hindu undivided family, association ofpersons and body of individuals , whether incorporated or not , at the rate of ten per cent . of such tax where the amount or the aggregate of such amounts collected , and subject to the collection , exceeds ten lakh rupees ;

(b) inthe case of every firm , artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income- tax Act , and domestic company, at the rate of ten per cent . of such tax;

(9) Subject to the provisions of sub - section ( 10) , in cases in which income-tax has to be charged under sub - section ( 4) of section 172 or sub - section (2) of section 174 or section 174A or section 175 or sub-section (2) ofsection 176 of the Income - tax Act or deducted from , or paid on, income chargeable under the head " Salaries " under section 192 of the said Act or in which the "advance tax" payable under Chapter XVII -C ofthe said Act has to be computed at the rate or rates in force , such income - tax or, as the case may be , " advance tax " shall be so charged, deducted or computed at the rate or rates specified in Part III of the First Schedule and such tax as reduced by the rebate of income - tax calculated under Chapter VIII - A of the saidAct shall be increased by a surcharge for purposes ofthe Union , calculated in each case inthe manner provided therein:

Provided that in cases to which the provisions of Chapter XII or Chapter XII - A or Chapter XII - H or section 115JB or sub-section ( 1A) of section 161 or section 164 or section 164A or section 167B of the Income- tax Act apply, "advance tax" shall be computed with referenceto the rates imposed by this sub -section or the rates as specified in that Chapter or section, as the case maybe:

Provided further that the amount of " advance tax" computed in accordance with the provisions of section 111A or section 112 of the Income-tax Act shallbe increased by a surcharge for purposes ofthe Union as provided in Paragraph A , B , C, D or E, as the case may be, ofPart III ofthe First Schedule:

Provided also that in respect of any income chargeable to tax under sections 115A , 115AB , 115AC, 115ACA, 115AD, 115B , 115BB , 115BBA, 115E, 115JB and 115WA of the Income-tax Act, " advance tax" computed under the first proviso shall be increased by a surcharge for purposes of the Union , calculated,-

(a) in the case ofevery individual , Hindu undivided family, association of persons and body of individuals, whether incorporated or not , at the rate of ten per cent . of "advance tax" where the total income exceeds ten lakh rupees;

[PART II-

THE GAZETTE OF INDIA EXTRAORDINARY

(b) inthe case ofevery firm , artificial juridical person referred to in sub -clause (vii) of clause (31 ) of section 2 of the Income- tax Act , and domestic company, at the rate of ten per cent. of such " advance tax";

(c) inthe case ofevery company, other than domestic company, at the rate oftwo and one -half per cent . of such " advance tax" .

(10) In cases to which , Paragraph A ofPart III of the First Schedule applies , where the assessee has, in the previous year or, if by virtue of any provision of the Income- tax Act , income-tax is tobe charged in respect of the income ofa period other than the previous year, in such other period , any net agricultural income exceeding five thousand rupees, in addition to total income and the total income exceeds one lakh rupees , then , in charging income-tax under sub - section ( 2) of section 174 or section 174A or section 175 or sub - section (2) of section 176 of the said Act or in computing the " advance tax " payable under Chapter XVII - C ofthe said Act , at the rate or rates in force ,-

(a) the net agricultural income shall be taken into account, in the manner provided in clause (b ) [that is to say, as if the net agricultural income were comprised in the total income after the first one lakh rupees of the total income but without being liable to tax] , only for the purpose of charging or computing such income- tax or, as the case may be, " advance tax " in respect of the total income ; and

(b) such income-tax or, as the case may be , " advance tax" shall be so charged or computed as follows: -

(i) the total income and the net agricultural income shall be aggregated and the amount of income - tax or " advance tax" shall be determined in respect of the aggregate income at the rates specified in the said Paragraph A, as if such aggregate income were the total income;

(ii) the net agricultural income shall be increased by a sum of one lakh 'rupees , and the amount of income -tax or " advance tax " shall be determined in respect ofthe net agricultural income as so increased at the rates specified in the said Paragraph A, as ifthe net agricultural income were the total income;

(iii) the amount of income -tax or " advance tax " determined in accordance with sub-clause ( i ) shall be reduced by the amount ofincome- tax or, as the case may be , " advance tax" determined in accordance with sub -clause (ii) and the sum so arrived at shall be the income- tax or, as the case may be , " advance tax" in respect ofthe total income:

Provided that the amount of income-tax or " advance tax" so arrived at , as reducedby the rebate of income- tax calculated under Chapter VIII - A of the said Act, shall be increased by a surcharge for purposes of the Union calculated in each case , in the manner provided therein.

1 (FI) The amount of income- tax as specified in sub -sections ( 1 ) to ( 10 ) and as increased by a surcharge for purposes ofthe Union calculated in the manner provided therein, shall be further increased by an additional surcharge for purposes of the Union , to be called the "Education Cess on income - tax ", so as to fulfil the commitment ofthe Government to provide and finance universalised quality basic education , calculated at the rate of two per cent . of such income-tax and surcharge.

(12) For the purposes of this section and the First Schedule,-

(a)"domestic company " means an Indian company or any other company which, inrespect ofits income liable to income-tax under the Income-taxAct for the assessment 5

THE GAZETTE OF INDIA EXTRAORDINARY

SEC.2]

year commencing on the 1st day ofApril, 2005 , has made the prescribed arrangements for the declaration and payment within India of the dividends ( including dividends on preference shares) payable out of such income;

(b)"insurance commission " means any remuneration or reward, whether byway ofcommission or otherwise, for soliciting or procuring insurance business ( including business relatingto the continuance , renewal or revival of policies of insurance);

(c) " net agricultural income " , in relation to a person , means the total amount of agricultural income, from whatever source derived , of that person computed in accordance with the rules contained in Part IV ofthe First Schedule;

(d) all other words and expressions used in this section and the First Schedule butnot defined in this sub - section and defined in the Income- tax Act shall have the meanings respectively assigned to them in that Act .

CHAPTER II

DIRECTTAXES

Income-tax

3. In section 2 ofthe Income- tax Act, with effect from the 1st day ofApril , 2006,- Amendment ofsection 2 .

(a) in clause (7), in sub -clause (a) , for the words " assessment ofhis income " , the words " assessment ofhis income or assessment of fringe benefits " shall be substituted;

(b) after clause (234 ) , the following clause shall be inserted , namely:--

(23B) " fringe benefits " means any fringe benefits referred to in section 115WB;' ;

(c) in clause (42A ) , in the proviso, after the words , brackets , figures and letter "clause (23D) of section 10 " , the words "or a zero coupon bond" shall be inserted;

(d) in clause (43 ), after the words "the aforesaid date " , the words, figures and letters " and in relation to the assessment year commencing on the 1st day of April, 2006, and any subsequent assessment year includes the fringe benefit tax payable under section 115WA " shall be inserted;

(e) in clause (47), after sub-clause ( iv) , the following sub-clause shall be inserted, namely:--

"(iva) the maturity or redemption of a zero coupon bond ; or";

(1) after clause (47) and the Explanation relating thereto, the following shall be inserted, namely: -

"(48) " zero coupon bond" means a bond-

(a) issued by any infrastructure capital company or infrastructure capital fund or public sector company on or after the 1st day ofJune, 2005;

(b) in respect of which no payment and benefit is received or receivable before maturity or redemption from infrastructure capital company or infrastructure capital fund or public sector company; and

(c)which the Central Government may, by notification in theOfficial Gazette, specify in this behalf.

Explanation. For the purposes of this clause , the expressions "infrastructure capital company " and " infrastructure capital fund " shall have the same meanings respectively assigned to them in clauses (a) and (b ) of Explanation 1 to clause (23G) ofsection 10. ' .

Amendment of section 10 .

4.Insection 10 ofthe Income- taxAct, with effect from the 1st day ofApril , 2006,- (a) in clause (4) , in sub-clause (ii) , the second proviso shall be omitted;

(b) in clause(6BB) , for the words , figures and letters " entered into after the 31st day ofMarch, 2005" , the words, figures and letters " entered into after the 30th day of September, 2005 " shall be substituted ;

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II-

(c) in clause (10D) , in sub -clause (c) , in the second proviso , for the words , brackets, figures and letter " Explanation to sub- section (2A) of section 88 " , the words , brackets , figures and letters "Explanation to sub- section ( 3 ) of section 80C or the Explanationto sub- section ( 24) of section 88, as the case may be " shall be substituted;

(d) in clause ( 15) , in sub-clause ( iv) , in item (fa) , the words , figures and letters "before the 1st day ofApril , 2005 " shall be omitted;

(e) in clause (15A) , in the proviso, for the words , figures and letters " the 1st day ofApril , 2005 ", the words , figures and letters " the Ist day ofOctober, 2005" shallbe substituted.

5. In section 10A of the Income-tax Act , in sub-section ( 1A) , after clause ( ii), the followingproviso shall be inserted with effect from the 1st day ofApril, 2006 , namely: -

Amendment ofsection 10A .

"Provided that no deduction under this section shall be allowed to any undertaking , which begins to manufacture or produce articles or things or computer software after the 31st day of March, 2009 , in any Special Economic Zone ." .

Amendment of section 16

6. In section 16 of the Income- tax Act, clause ( i) shall be omitted with effect from the 1st day ofApril , 2006 .

Amendment of section 17 .

7. In section 17 of the Income-tax Act, in clause (2) , for sub -clause (vi) , the following sub -clause shall be substituted , with effect from the Ist day ofApril , 2006 , namely:-

"(vi) the value of any other fringe benefit or amenity (exeluding the fringe benefits chargeable to tax under Chapter XII - H) as may be prescribed:" .

8. Insection 32 of the Income- tax Act, in sub -section ( 1 ) ,-

Amendment of section 32.

(a) for clause (iia) , the following clause shall be substituted with effect fromthe 1stday ofApril, 2006 , namely:-

'( iia) in the case of any new machinery or plant (other than ships and aircraft) , which has been acquired and installed after the 31st day of March , 2005, by an assessee engaged in the business of manufacture or production of any article or thing , a further sum equal to twenty per cent . of the actual cost of such machinery or plant shall be allowed as deduction under clause ( ii) :

Provided that no deduction shall be allowed in respect of---

(A) any machinery or plant which , before its installation by the assessee , was used either within or outside India by any other person; or

(B) any machinery or plant installed in any office premises or any residential accommodation, including accommodation in the nature of a guest-house; or

(C) any office appliances or road transport vehicles ; or

(D)any machinery or plant, the whole ofthe actual cost ofwhich is allowed as a deduction (whether by way of depreciation or otherwise ) in computing the income chargeable under the head " Profits and gains of business or profession" of any one previous year; ' ;

10 of 1949.

(b) in clause ( iii), in the Explanation , in clause (2), for the words " an Indian company", the words , brackets , letter and figures " an Indian company or in a scheme ofamalgamation of a banking company, as referred to in clause (c) of section 5 ofthe Banking Regulation Act , 1949 with a banking institution as referred to in sub -section (15) of section 45 of the said Act , sanctioned and brought into force by the Central Government under sub- section ( 7) of section 45 of that Act, of any assetby the banking company to the banking institution " shall be substituted .

Amendment of section 33AC .

9. Insection 33 AC of the Income-tax Act , in sub -section ( 4) , for the words " such sale proceeds", the words , brackets , letter and figure " so much of such sale proceeds which represent the amount credited to the reserve account and utilised for the purposes mentioned in clause (c) of sub -section ( 3) " shall be substituted and shall be deemed to have been substituted with effect from the 1st day ofApril , 2004.

THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

of section 35. Amendment 10. In section 35 of the Income-tax Act , in sub - section (2AB) , in clause (5) , for the figures , letters and words " 31st day of March, 2005 " , the figures , letters and words " 31stday ofMarch , 2007" shall be substituted with effect from the 1st day ofApril , 2006.

of section 35DDA. Amendment 11. In section 35DDA of the Income-tax Act , in sub - section (1 ) , for the words "at the time of his voluntary retirement " , the words " in connection with his voluntary retirement" shall be substituted and shall be deemed to have been substituted with effect from the 1st day ofApril , 2004.

Amendment of section36.

12. In section36 ofthe Income-tax Act , in sub- section (1 ), with effect from the 1st day of April,2006,-

(a) after clause (iii) , the following shall be inserted, namely:-

'(iiia) the pro rata amount of discount on a zero coupon bond having regard to the period of life of such bond calculated in the manner as maybe prescribed.

Explanation.-For the purposes of this clause , the expressions--

(i)"discount " means the difference between the amount received or receivable by the infrastructure capital company or infrastructure capital fund or public sector company issuing the bond and the amount payable by such company or fund or public sector company on maturity or redemption of such bond;

(ii)"period of life of the bond " means the period commencing from the date of issue of the bond and ending on the date of the maturity or redemption of such bond;

(üi) " infrastructure capital company" and " infrastructure capital fund" shall have the same meanings respectively assigned to them in clauses (a) and (b ) ofExplanation 1 to clause (23G) of section 10; ' ;

(b) after clause (xii) , the following shall be inserted, namely:

'(xiii) any amount of banking cash transaction tax paid by the assessce during the previous year on the taxable banking transactions entered into by him.

Explanation. For the purposes of this clause, the expressions "banking cash transaction tax" and "taxable banking transaction " shall have the same meanings respectively assigned to them under Chapter VII ofthe Finance Act, 2005.' .

Amendment of section 40.

13. In section 40 of the Income - taxAct, in clause (a), after sub-clause (ib), the following sub-clause shall be inserted with effect from the 1st day ofApril , 2006, namely:-

Amendment of section43 .

"(ic) any sum paid on account of fringe benefit tax under Chapter XП -Н; " . 14. In section 43 ofthe Income- tax Act, in clause ( 5) , with effect from the 1st day of April,2006,-

(A) inthe proviso,-

(i) in clause (c) , the word " or" shall be inserted at the end;

(ii) after clause ( c) , as so amended , the following clause shall be inserted, namely:-

42 of 1956 .

"(d) an eligible transaction in respect oftrading in derivatives refered to in clause (aa) of section 2 ofthe Securities Contracts (Regulation)Act, 1956 carried out in a recognised stock exchange;" ;

(B) after the proviso, the following Explanation shall be inserted, namely:-

'Explanation .-For the purposes of this clause , the expressions-

(1) " eligible transaction " means any transaction,-

15 of 1992.

42 of 1956 .

22 of 1996 .

(A) carried out electronically on screen-based systems through a stock broker or sub- broker or such other intermediary registered under section 12 of the Securities and Exchange Board of India Act, 1992 in accordance with the provisions of the Securities Contracts (Regulation) Act, 1956 or the Securities and Exchange Board of IndiaAct, 1992 or the Depositories Act, 1996 and the rules, regulations orbye- laws made or directions issued under thoseActs or by banks or mutual funds on a recognised stock exchange; and 8

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II-

(B) which is supported by a time stamped contract note issued by such stock broker or sub - broker or such other intermediary to every client indicating in the contract note the unique client identity number allotted under any Act referred to in sub - clause (A) and permanent account number allotted under this Act;

42 of 1956 .

(it) "recognised stock exchange" means a recognised stock exchange as referred to in clause (1) of section 2 ofthe Securities Contracts (Regulation) Act, 1956 and which fulfils such conditions as may be prescribed and notified by the Central Government for this purpose." .

Amendment of section 67.

15. In section 47 ofthe Income - tax Act , after clause (via) , the following clause shall be inserted , namely:-

10 of 1949.

'(viaa) any transfer, in a scheme of amalgamation of a banking company with a banking institution sanctioned and brought into force by the Central Government under sub - section (7) of section 45 of the Banking Regulation Act , 1949, of a capital asset by the banking company to the banking institution.

Explanation. For the purposes of this clause ,-

10 of 1949 .

(1) " banking company " shali have the same meaning assigned to it in clause (c) of section 5 of the Banking Regulation Act , 1949;

10 of 1949 .

(ii) " banking institution" shall have the same meaning assigned to it in sub-section ( 15) of section 45 ofthe Banking Regulation Act, 1949; ' .

Amendment of section 49 .

16. In section49 of the Income -taxAct , in sub - section ( 1) , in clause ( iii) , in sub -clause (e) , after the words , brackets , figures and letter " or clause ( via) " , the words, brackets , figures and letters " or clause (via) or clause ( viaa) " shall be inserted .

17. In section 54EC of the Income-tax Act , for sub - section (3 ) , the following sub- section shall be substituted with effect from the 1st day ofApril , 2006, namely:-

Amendment of section 54EC .

"(3) Where the cost of the long -term specified asset has been taken into account for the purposes of clause (a) or clause ( b) of sub - section ( 1 ) ,-

(a) adeduction from the amount of income - tax with reference to such cost shall not be allowed under section 88 for any assessment year ending before the 1stday ofApril , 2006;

(b) a deduction from the income with reference to such cost shall not be allowed under section 80C for any assessment year beginning on or after the 1st day ofApril , 2006. " .

18. In section 54ED of the Income- tax Act , for sub-section ( 3 ) , the following sub- section shall be substituted with effect from the 1st day of April , 2006, namely:-

Amendment of section 54ED .

"(3) Where the cost of the specified equity shares has been taken into account for the purposes of clause (a) or clause (b) of sub- section ( 1 ) ,-

(a) adeduction from the amount of income - tax with reference to such cost shall not be allowed under section 88 for any assessment year ending before the Istday ofApril , 2006;

(b) a deduction from the income with reference to such cost shall not be allowed under section 80C for any assessment year beginning on or after the 1stday ofApril, 2006." .

19. After section 72A of the Income- tax Act , the following section shall be inserted, namely:-

10 of 1949 .

'72AA . Notwithstanding anything contained in sub-clauses ( i) to ( iii) of clause (IB) of section 2 or section 72A , where there has been an amalgamation of a banking company with any other banking institution under a scheme sanctioned and brought into force by the Central Government under sub- section ( 7) of section 45 of the Banking Regulation Act, 1949, the accumulated loss and the unabsorbed depreciation of such banking company shall be deemed to be the loss or, as the case may be, allowance for depreciation of such banking institution for the previous year in which the scheme of amalgamation was brought into force and other provisions of this Act relating to set-off and carry forward of loss and allowance for depreciation shall apply accordingly.

Insertion of new section 72AA Provisions relating to carry forward and set - off of accumulated loss and unabsorbed depreciazion allowance is scheme of amalgamation ofbanking company in certain cases.

THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

Explanation. For the purposes of this section ,-

(1) "accumulated loss" means so much of the loss of the amalgamating banking company under the head " Profits and gains of business or profession " (not being a loss sustained in a speculation business ) which such amalgamating banking company, would have been entitled to carry forward and set -off under theprovisions of section 72 if the amalgamation had not taken place;

(ii) "banking company" shall have the same meaning assigned to it in clause (c) ofsection 5 of the Banking Regulation Act, 1949 ;

10 of 1949 .

(iii) " banking institution " shall have the same meaning assigned to it in sub-section ( 15 ) ofsection 45 of the Banking Regulation Act, 1949 ;

(iv) " unabsorbed depreciation " means so much of the allowance for depreciation ofthe amalgarnating banking company which remains to be allowed and which would have been allowed to such banking company ifamalgamation had not taken place.' .

20. In section 73 of the Income- tax Act , in sub-section (4) , for the words " eight Amendment of section 73 .

assessment years ", the words " four assessment years " shall be substituted with effect from the 1st dayofApril , 2006 .

21.After section 80B of the Income- tax Act , the following section shall be inserted with effect from the 1st day ofApril, 2006, namely:--

Insertion of new section 80C .

'80C.(1 ) In computing the total income ofan assessee, being an individual or a Hindu undivided family, there shall be deducted, in accordance with and subject to the provisions of this section , the whole of the amount paid or deposited in the previous year, out ofhis income chargeable to tax, being the aggregate of the sums referred to in sub-section (2), as does not exceed one lakh rupees .

(2) The sums referred to in sub- section ( 1 ) shall be any sums paid or deposited in the previous year by the assessee

Deduction in respect of life insurance premia, deferred annuity, contributions toprovident fund, subscription to certain equity shares or debentures, etc. (i) toeffect or to keep in force an insurance on the life ofpersons specified in sub-section (4) ;

(ii) to effect or to keep in force a contract for a deferred annuity, not being an annuity plan referred to in clause (xii), on the life ofpersons specified in sub- section(4):

Provided that such contract does not contain a provision for the exercise bythe insured of an option to receive a cash payment in lieu of the payment of the annuity,

(iii) by way ofdeduction from the salary payable by or on behalf ofthe Government to any individual being a sum deducted in accordance with the conditions ofhis service, for the purpose of securing to him a deferred annuity or making provision for his spouse or children, in so far as the sum so deducted does not exceed one- fifth of the salary;

(iv) as acontribution by an individual to any provident fund to which the Provident FundsAct, 1925 , applies;

19 of 1925.

(v) as a contribution to any provident fund set up by the Central Government and notified by it in this behalf in the Official Gazette, where such contribution is to an account standing in the name ofany person specified in sub-section (4);

(vi) as acontribution by an employee to a recognised provident fund;

fund; (vii) as a contribution by an employee to an approved superannuation

(viii) as subscription to any such security of the Central Government or anysuch deposit scheme as that Government may, by notification in the Official Gazette, specify in this behalf, 10

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II-

46 of 1959 .

(ix) as subscription to any such savings certificate as defined in clause (c) ofsection 2 of the Government Savings Certificates Act , 1959 , as the Central Government may, by notification in the Official Gazette, specify in this behaif;

58 of 2002 .

(x) as a contribution, in the name of any person specified in sub - section (4), for participation in the Unit - linked Insurance Plan , 1971 (hereafter in this section referred to as the Unit - linked Insurance Plan ) specified in Schedule II of theUnit Trust of India (Transfer ofUndertaking and Repeal ) Act , 2002 ;

(xi) as a contribution in the name of any person specified in sub- section (4) for participation in any such unit - linked insurance plan of the LIC Mutual Fund notified under clause (23D) ofsection 10, as the Central Goverument may, by notification in the Official Gazette , specify in this behalf;

(xii) to effect or to keep in force a contract for such annuity plan of the Life Insurance Corporation or any other insurer as the Central Goverument may, by notification in the Official Gazette , specify;

(xiii) as subscription to any units of any Mutual Fund notified under clause (23D) of section 10 or from the Administrator or the specified company under any plan formulated in accordance with such scheme as the Central Government may,by notification in the Official Gazette , specify in this behalf;

(xiv) as a contribution by an individual to any pension fund set up by any Mutual Fund notified under clause (23D) of section 10 or by the Administrator or the specified company , as the Central Government may, by notification inthe Official Gazette , specify in this behalf;

53 of 1987.

(xv) as subscription to any such deposit scheme of, or as a contribution to any such pension fund set up by, the National Housing Bank established under section 3 of the National Housing Bank Act , 1987 ( hereafter in this section referred to as the National Housing Bank ) , as the Central Government may, by notification in the Official Gazette, specify in this behalf;

(xvi) as subscription to any such deposit scheme of-

(a) a public sector company which is engaged in providing long- term finance for construction or purchase ofhouses in India for residential purposes; or

(b) any authority constituted in India by or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning , development or improvement of cities , towns and villages , or for both ,

as the Central Government may, by notification in the Official Gazette , specify in thisbehalf;

(xvii) as tution fees (excluding any payment towards any development fees or donation or payment of similar nature) , whether at the time of admission orthereafter,-

(a) to anyuniversity, college, school or other educational institution situated within India;

(b) for the purpose of full- time education of any of the persons specified in sub- section (4) ;

(xviii) for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head " Income from house property" (or which would, if it had not been used for the assessee's own residence , have been chargeable to tax under that head) , where such payments are made towards or by way of-

(a) any instalment or part payment of the amount due under any self- financing or other scheme of any development authority, housing board or other authority engaged in the construction and sale of house property on ownership basis ; or 11

THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

(b) any instalment or part payment of the amount due to any company or co - operative society of which the assessee is a shareholder or member towards the cost of the house propertyerty allotted to him; or

(1) the Central Government or any State Government , or

(2) any bank, including a co -operative bank, or

(3) the Life Insurance Corporation , or

(4) the National Housing Bank, or

(5) any public company formed and registered in India with the main object of carrying on the business of providing long -term finance for construction or purchase ofhouses in India for residential purposes which is eligible for deduction under clause ( viii) of sub- section ( 1 ) of section 36 , or

(6) any company in which the public are substantially interested or any co -operative society, where such company or co- operative society is engaged in the business of financing the construction of houses , or

(7) the assessee's employer where such employer is an authority or a board or a corporation or any other body established or constituted under a Central or State Act , or

(8) the assessee's employer where such employer is a public company or a public sector company or a university established by law or a college affiliated to such university or a local authority or a co-operative society ; or

(a) stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee ,

but shall not include any payment towards or by way of-

(A) the admission fee , cost of share and initial deposit which a shareholder of a company or a member of a co - operative society has to pay for becoming such shareholder or member ; or

(B) the cost of any addition or alteration to, or renovation or repair of, thehouse property which is carried out after the issue ofthe completion certificate in respect of the house property by the authority competent to issue such certificate or after the house property or any part thereof has either been occupied by the assessee or any other person on his behalf or been let out ; or

(xix) as subscription to equity shares or debentures forming part of any eligible issue of capital approved by the Board on an application made by a public company or as subscription to any eligible issue of capital by any public financial institution in the prescribed form .

Explanation . For the purposes of this clause,-

(1)"eligible issue of capital " means an issue made by a public company formed and registered in India or a public financial institution and the entire proceeds ofthe issue are utilised wholly and exclusively for the purposes of any business referred to in sub -section (4) of section 80 - IA;

1 of 1956 .

(ii) " public company" shall have the meaning assigned to it in section 3 of the Companies Act , 1956 ;

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II-

I of 1956 .

(iii) "public financial institution" shall have the meaning assigned to it in section 4A of the Companies Act, 1956;

(xx) as subscription to any units of any mutual fund referred to in clause (23D) of section 10 and approved by the Board on an application made by such mutual fund in the prescribed form:

Provided that this clause shall apply ifthe amount of subscription to such units is subscribed only in the eligible issue of capital of any company.

Explanation.-For the purposes of this clause " eligible issue of capital " means an issue referred to in clause ( 1) of the Explanation to clause (xix) of sub-section (2) .

(3) The provisions of sub- section (2 ) shall apply only to so much ofany premium or other payment made on an insurance policy other than a contract for a deferred annuity as is not in excess of twenty per cent. of the actual capital sum assured .

Explanation. In calculating any such actual capital sum assured , no account shall be taken-

(1) ofthe value of any premiums agreed to be returned , or

(ii ) of any benefit by way of bonus or otherwise over and above the sum actually assured, which is to be or may be received under the policy by any person.

(4) The persons referred to in sub- section (2 ) shall be the following , namely:---

(a) for the purposes of clauses (i) , (v) , (x) and (xi) of that sub -section ,-

( i) in the case ofan individual , the individual , the wife or husband and any child of such individual , and

(ii) in the case ofa Hindu undivided family, any member thereof;

(b) for the purposes of clause ( ii) of that sub -section , in the case of an individual , the individual ; the wife or husband and any child of such individual ;

(c) for the purpose of clause ( vii ) of that sub- section, in the case of an individual , any two children ofsuch individual .

(5) Where, in any previous year, an assessee-

(1) terminates his contract of insurance referred to in clause (1) of sub- section (2) , by notice to that effect or where the contract ceases to be in forcehy reason of failure to pay any premium , by not reviving contract of insurance ,

(a) in case ofany single premium policy, within two years after the date of commencement of insurance; or

(b) in anyother case , before premiums have been paid for two years; or (ii) terminates his participation in any unit- linked insurance plan referred to inclause (x) or clause (xi) of sub -section (2) , by notice to that effect or where he ceases to participate by reason of failure to pay any contribution , by not reviving his participation, before contributions in respect of such participation have been paid for five years ; or

(iii) transfers the house property referred to in clause (xviii) of sub- section (2) before the expiry of five years from the end of the financial year in which possession of such property is ohtained by him, or receives back, whether byway ofrefund or otherwise, any sum specified in that clause,

then,--

(a) no deduction shall be allowed to the assessee under sub-section (1 ) with reference to any of the sums , referred to in clauses (1) , (x) , (xi) and (xviii) of sub-section (2 ) , paid in such previous year ; and

(b) the aggregate amount ofthe deductions of income so allowed in respect ofthe previous year or years preceding such previous year , shall be deemed to be the income of the assessee of such previous year and shall be liable to tax in the assessment year relevant to such previous year .

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(6) If any equity shares or debentures , with reference to the cost of which a deduction is allowed under sub-section ( 1 ), are sold or otherwise transferred by the assessee to any person at any time within a period of three years from the date oftheir acquisition , the aggregate amount of the deductions of income so allowed in respect of such equity shares or debentures in the previous year or years preceding the previous year in which such sale or transfer has taken place shall be deemed to be the income ofthe assessee ofsuch previous year and shall be liable to tax in the assessment year relevant to such previous year.

Explanation . A person shall be treated as having acquired any shares or debentures on the date on which his name is entered in relation to those shares or debentures in the register of members or ofdebenture-holders , as the case maybe, of the public company.

(7) For the purposes of this section ,-

1 (a) the insurance, deferred annuity, provident fund and superannuation fund referred to in clauses ( i) to ( vii) ;

(b) unit- linked insurance plan and annuity plan referred to in clauses (xii) to (xiiia) ;

(xiiic) to (xiva) ;

(d) amount borrowed for purchase or construction of a residential house referred to in clause (xv),

ofsub-section ( 2) ofsection 88 shall be eligible for deduction under the corresponding provisions ofthis section and the deduction shall be allowed in accordance with the provisions ofthis section .

(8) In this section ,-

58 of 2002 .

(1) "Administrator" means the Administrator as referred to in clause(a) of section 2 ofthe Unit Trust ofIndia (Transfer ofUndertaking and Repeal)Act, 2002;

(ii) "contribution" to any fund shall not include any sums in repayment ofloan;

(iii)" insurance" shall include-

(a) a policy ofinsurance on the life of an individual or the spouse or the child of such individual or a member of a Hindu undivided family securing the payment of specified sum on the stipulated date of maturity, ifsuch person is alive on such date notwithstanding that the policy of insurance provides only for the return ofpremiums paid (with or without any interest thereon ) in the event of such persondying before the said stipulated date;

(b) apolicy of insurance effected by an individual or a member of a Hinduundivided family for the benefit ofa minor with the object of enabling the minor, after he has attained majority to secure insurance on his own life byadopting the policy and on his being alive on adate(after such adoption) specified in the policy in this behalf;

31 of 1956 .

(iv) "Life Insurance Corporation" means the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956;

1 of 1956.

(v)"public company" shall have the same meaning as in section 3 of the Companies Act, 1956;

18 of 1944 .

(vi) "security" means a Government security as defined in clause (2) of section 2 of the Public Debt Act, 1944;

58 of 2002 .

(vii)" specified company" means a company as referred to in clause(A) of section 2 ofthe Unit Trust ofIndia (Transfer ofUndertaking and Repeal) Act, 2002;

(viii) " ransfer" shall be deemed to include also the transactions referred to in clause (1) ofsection 269UA . ' .

[PART 1]

THE GAZETTE OF INDIA EXTRAORDINARY

22. In section 80CCC of the Income-tax Act , for sub - section (3 ) , the following sub- section shall be substituted with effect from the 1st day ofApril , 2006, namely:-

Amendment a section 800CC .

"(3) Where any amount paid or deposited by the assessee has been taken into account for the purposes of this section ,-

(a) a rebate with reference to such amount shall not be allowed under section 88 for any assessment year ending before the 1st day of April , 2006;

(b) a deduction with reference to such amount shall not be allowed under section 80C for any assessment year beginning on or after the 1st day ofApril, 2006.".

23. In section 80CCD of the Income- tax Act , for sub- section ( 4) , the following sub- section shall be substituted with effect from the 1st day of April , 2006 , namely:-

Amendment of section 80CCD.

"(4) Where any amount paid or deposited by the assessee has been allowed as a deduction under sub - section ( 1 ) ,

(a) no rebate with reference to such amount shall be allowed under section 88 for any assessment year ending before the 1st day of April , 2006;

(b) no deduction with reference to such amount shall be allowed under section 80C for any assessment year beginning on or after the 1st day ofApril , 2006.".

24.After section 80CCD ofthe Income-tax Act , the following section shall be inserted with effect fromthe 1st day ofApril , 2006 , namely:--

Insertion of new section 80CCE

"80CCE . The aggregate amount of deductions under section 80C, section 80CCC and section 80CCD shall not, in any case, exceed one lakh rupees ." .

Limit on deductions under sections 80C, 80CCC and 80CCD.

25. For section 80E of the Income- tax Act, the following section shall be substituted with effect from the 1st day ofApril, 2006, namely:-

Substitution of new section for section 80E .

Deduction in respect of interest on loan taken for higher education.

'80E. (1) In computing the total income ofan assessee,being an individual , there shall be deducted, in accordance with and subject to the provisions of this section, any amount paid by him in the previous year, out of his income chargeable to tax, by wayof interest on loan taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education.

(2)Thededuction specified in sub -section (1 ) shall be allowed in computing the total income in respect of the initial assessment year and seven assessment years immediately succeeding the initial assessment year or until the interest referredto in sub-section ( 1 ) is paid by the assessee in full , whichever is earlier.

(3) For the purposes of this section,

(a)"approved charitable institution" means an institution specified in , or, asthe case maybe, an institution established for charitable purposes and notified by the Central Government under clause (23C) of section 10 or an institution referred to in clause (a ) of sub- section (2) ofsection 80G;

10 of 1949.

(6)" financial institution" means a banking company to which the Banking RegulationAct, 1949 applies (including any bank or banking institution referred to in section 51 ofthat Act) ; or any other financial institution which the Central Government may, by notification in the Official Gazette, specify in thisbehalf,

(c)"higher education " means full - time studies for any graduate or post- graduate course in engineering, medicine, management or for post -graduate course in applied sciences or pure sciences including mathematics and statistics; (a)" initial assessment year " means the assessment year relevant to the previous year, in which the assessee starts paying the interest on the loan.".

Amendment of section 80-1A.

26. In section 80 - IA of the Income- tax Act, in sub-section (4), in clause ( i), in sub- clause (a), after the words " consortium ofsuch companies ", the words " or by an authority or aboard or a corporation or any other body established or constituted under any Central or StateAct" shall be inserted with effect from the 1st day ofApril , 2006.

SEC .2]

THE GAZETTE OF INDIA EXTRAORDINARY

27. In section 80- IB ofthe Income- tax Act, with effect from the 1st day ofApril, 2006 , Amendment of section 80- IB .

(a) in sub-section (4) , in the fourth proviso , for the figures , letters and words "31st day of March, 2005 " , the figures , letters and words " 31st day of March , 2007 " shall be substituted;

(b) insub-section ( 84) , in clause ( iii) , for the figures , letters and words " 1st day of April , 2005 ", the figures , letters and words " Ist day of April , 2007" shall be substituted .

Omission of section 801 .

28. Section 80L of the Income-tax Act shall be omitted with effect from the 1st day of April,2006.

Amendment of section 88 .

29. In section 88 of the Income -tax Act , after sub - section (8), the following sub-section shall be inserted with effect from the 1st day ofApril , 2006 , namely :--

"(9) No deduction from the amount of income- tax shall be allowed under this section to an assessee , being an individual or a Hindu undivided family for the assessment year beginning on the 1st day of April , 2006 and subsequent years ." .

Omission of section 88B .

30. Section 88B ofthe Income-tax Act shall be omitted with effect from the 1st day of April,2006.

Omission of section 88C .

31. Section 88C of the Income- tax Act shallbe omitted with effect from the 1st day of April,2006.

Omission of section 88D.

32. Section 88D of the Income - tax Act shall be omitted with effect from the 1stday of April,2006.

section 112 . Amendment of 33. In section 112 of the Income-tax Act , in sub - section (1 ) , in the proviso occurring below clause(d) , after the words " being listed securities or unit " , the words " or zero coupon bond" shall be inserted with effect from the ist day ofApril, 2006.

Amendment of section 115A .

34. In section 115A of the Income-tax Act , in sub - section ( 1) , in clause ( b) , with effect from the 1stday ofApril , 2006,-

(i) in sub -clause (A) , for the words, figures and letters " agreement made after the 31st day of May, 1997 " , the words , figures and letters " agreement made after the 31st day of May, 1997 but before the 1st day of June , 2005" shall be substituted;

(ii) after sub - clause (A) , the following sub -clause shall be inserted , namely:--

"(AA) the amount of income- tax calculated on the income by way of royalty, ifany, included in the total income, at the rate of ten per cent. if such royalty is received in pursuance of an agreement made on or after the 1st day of June, 2005;",

(iii) in sub-clause (B) , for the words , figures and letters " agreement made after the 31st day ofMay, 1997; and ", the words, figures and letters " agreement made after the 31st day ofMay, 1997 but before the 1st day of June , 2005; " shall be substituted;

(iv) after sub-clause (B), the following sub-clause shall be inserted, namely:-

"(BB) the amount of income- tax calculated on the income by way of fees for technical services, if any, included in the total income, at the rate of ten per cent. ifsuch fees for technical services are received in pursuance of an agreement madeon or after the 1st day of June, 2005; and" .

Amendment of section 115JAA .

35. In section 115JAA of the Income- tax Act, with effect from the 1st day of April, 2006,-

(a) after sub-section ( 1 ), the following sub- section shall be inserted , namely:-

"( IA) Where any amount of tax is paid under sub-section ( 1) of section 115JB by an assessee, being a company for the assessment year commencing on the 1st day ofApril, 2006 and any subsequent assessment year, then, credit in respect oftax so paid shall be allowed to him in accordance with the provisions ofthis section. " ;

(b) in sub-section (2 ) , for the words , brackets , figures and letters " under sub- section ( 1) of section 115JA" , the words, brackets, figures and letters " under sub- [PART I

THE GAZETTE OF INDIA EXTRAORDINARY

section ( 1) of section 115JA or under sub-section ( 1 ) of section 115JB , as the casemay be," shall be substituted.

36. In section 115VD of the Income-tax Act, clause (vii) shall be omitted with effect from the 1st day ofApril , 2006.

Amendment of section 115VD.

37. After Chapter XII -G of the Income- tax Act , the following Chapter shall be inserted with effect fromthe 1st day ofApril, 2006, namely:--

Insertion of new Chapter XII -H.

'CHAPTERXI -H

INCOME- TAX ON FRINGE BENEFITS

A.-Meaning of certain expressions

115W. In this Chapter, unless the context otherwise requires ,-

Definitions .

(a) "employer " means ,--

(1) an individual or a Hindu undivided family engaged in a business or profession, the profits and gains whereof are assessable to income-tax under the head " Profits and gains ofbusiness or profession" ;

(ii) a company;

(iii) a firm;

(iv) an association of persons or a body of individuals, whether incorporated or not;

(v) a local authority; and

(vi) every artificial juridical person, not falling within any of the preceding sub-clauses;

(b)" fringe benefit tax " or "tax" means the tax chargeable under section 115WA.

B.-Basisofcharge

Charge of fringebenefit tax .

115WA. ( 1 ) In addition to the income- tax charged under this Act, there shall be charged for every assessment year commencing on or after the 1st day ofApril , 2006, additional income- tax (in this Act referred to as fringe benefit tax) in respect ofthe fringe benefits provided or deemed to have been provided by an employer to his employees during the previous year at the rate of thirty per cent . on the value ofsuch fringebenefits.

(2)Notwithstanding that no income- tax is payable by an employer on his total income computed in accordance with the provisions of this Act, the tax on fringe benefits shall be payable by such employer .

115WB. (1 ) For the purposes of this Chapter, " fringe benefits " means-

Fringe benefits .

(a) anyprivilege, service, facility or amenity, directly or indirectly, provided by an employer to his employees (including former employee or employees)by reason oftheir employment ; or

(b) any reimbursement, directly or indirectly, made by the employer to his employees for any purpose;

(c) any free or concessional ticket provided by the employer for private journeys ofhis employees or their family members ; and

(d) any contribution by the employer to an approved superannuation fund.

(2)The fringe benefits shall be deemed to have been provided, if the employer has, inthe course of his business or profession (including any activity whether or not such activity is carried on with the object ofderiving income, profits or gains ) incurred any expense on, or made any payment for, the following purposes , namely:

(A) entertainment;

(B) festival celebrations;

(D)use ofclub facilities;

THE GAZETTE OF INDIA EXTRAORDINARY

Sec:2]

(E)provision of hospitality of every kind by the employer to any person, whether by way of provision of food or beverages or in any other manner whatsoever and whether or not such provision is made by reason ofany express or implied contract or custom or usage oftrade but does not include expenditure onor payment for, food or beverages provided bythe employer to his employees inoffice or factory;

(F) maintenance of any accommodation in the nature of guest house;

(G) conference;

(H) employeewelfare;

(1) use ofhealth club, sports and similar facilities;

(J) salespromotion including publicity,

(K) conveyance, tour and travel including foreign travel ;

(L) hotel, boarding and lodging;

(M) repair, running and maintenance ofmotorcars;

(N) repair, running and maintenance ofaircrafts;

(0) consumption offuel other than industrial fuel;

(P)use of telephone;

(2) scholarship to the children of the employees ;

(3) Forthe purposes of sub-section ( 1 ), the privilage, service, facility or amenity does not include perquisites in respect ofwhich tax is paid or payable by the employee under Chapter IV or any benefit or amenity in the nature of free or subsidised transport orany such allowance provided by the employer to its employees for journeys by the employees fromtheir residence to the place ofwork or such place ofworkto theplace ofresidence.

Value of fringe benefits.

115WC. ( 1 ) For the purposes ofthis Chapter, the value of fringe benefits shall be theaggregate of the following, namely:-

(a) cost atwhich the benefits referred to in clause (c) of sub-section (1 ) of section 115WB, is provided by the employer to the public as reduced by the amount, if any, paid, or recovered from his employee or employees:

Provided that in a case where the expenses of the nature referred to in clause (c) ofsub-section ( 1 ) ofsection 115WB are included in any other clause of sub-section (2) of the said section, the total expenses included under such other clause shall be reduced by the amount ofexpenditure referred to in the said clause (c) for computing the value of fringebenefits;

(b) actual amount of the contribution referred to in clause (D) of sub- section (1 ) of section 115WB;

(d) fifty per cent . of the expenses referred to in clause (E) of sub-section (2) ofsection 115WB .

Providedthat in the case of an employer engaged in the business ofhotel, theprovisions ofthis clause shall have effect as if for the words "fifty per cent.", thewords "five per cent. " had been substituted;

(e) fiftyper cent of the expenses referred to in clauses (F) to (J) of sub- section (2) of section 115WB;

( twentyper cent. ofthe expenses referred to in clauses (AK) to (L) ofsub- section (2) ofsection 115WB;

(g) twenty per cent ofthe expenses referred to in clauses (AM) and (N) of sub-section (2) of section 115WB ;

Provided that in the case of an employer engaged in the business of carriage ofpassengers or goods either by motor car or by aircraft, as the case maybe, the provisions ofthis clause shall have effect as iffor thewords "twenty percent.", the words "five per cent. " had been substituted.

THE GAZETTE OF INDIA EXTRAORDINARY

[PARTI-

Explanation. For the purposes of calculating twenty per cent . of the expenses referred to in clauses (M) and (N) of sub-section (2) ofsection 115WB, thedepreciation on motor cars and aircrafts referred to in the said clauses shall be included, inthe fringe benefits;

(h) twenty per cent . of the expenses referred to in clause (0) of sub- section(2) ofsection 115WB;

Provided that in the case of an employer engaged in the business of carriage ofpassengers or goods , the provisions of this clause shall have effect as if for the words "twenty per cent. " , the words " five per cent . " had been substituted;

(1) tenper cent. ofthe expenses referred to in clause (P) of sub-section (2) ofsection 115WB ; and

(1) actual amount incurred in providing scholarship referred to in clause (2) ofsub-section (2) of section 115WB .

C.-Procedureforfiling of return in respect offringe benefits , assessment and payment of tax in respect thereof

Return of fringe benefits .

115WD. (1) Without prejudice to the provisions contained in section 139, every employer who during a previous year has paid or made provision for payment offringe benefits to his employees , shall, on or before the due date , furnish or cause to be furnished a return of fringe benefits to the Assessing Officer in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may beprescribed, in respect of the previous year .

Explanation. In this sub- section , " due date " means ,-

(a) where the employer is-

(1) a company; or

(ii) a person(other than a company) whose accounts are required to beaudited under this Act or under any other law for the time being in force,

the 31st day of October of the assessment year;

year. (b) inthe case ofany other employer, the 31st day of July ofthe assessment

(2) In the case of any employer who, in the opinion of the Assessing Officer, is responsible for paying fringe benefit tax under this Act and who has not furnished a return under sub - section ( 1 ) , the Assessing Officer may, after the due date, issue a notice to him and serve the same upon him, requiring him to furnish within thirty days from the date of service of the notice , the return in the prescribed form and verified inthe prescribed manner and setting forth such other particulars as maybe prescribed.

(3)Any employer responsible for paying fringe benefit tax who has not furnished a return within the time allowed under sub- section ( 1) or within the time allowed under a notice issued under sub-section (2 ) , may furnish the return for any previous year, at anytimebefore the expiry of one year from the end ofthe relevant assessment year or beforethe completion of the assessment, whichever is earlier.

(4) If any employer, having furnished a return under sub- section ( 1 ), or in pursuance of a notice issued under sub-section (2), discovers any omission or any 19

THE GAZETTE OF INDIA EXTRAORDINARY

SBC.2]

wrong statementtherein, he may furnish a revised return at any time before the expiry ofone year from the end ofthe relevant assessment year or before the completion of the assessment, whichever is earlier.

Assessment.

115WE. ( 1) Where a return has been made under section 115WD,-

(i) ifany tax or interest is found due on the basis of such return, after adjustment of any advance tax paid, any tax paid on self-assessment and any amount paid otherwise by way of tax or interest, then without prejudice tothe provisions of sub-section (2) , an intimation shall be sent to the assessee specifying the sum so payable, and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provisions of this Act shall apply accordingly; and

(ii) ifany refund is due on the basis of such return , it shall be granted to the assessee and an intimation to this effect shall be sent to the assessee: Provided that except as otherwise provided in this sub -section, the acknowledgment of the return shall be deemed to be an intimation under this sub- section where either no sum is payable by the assessee or no refund is due to him: Provided further that no intimation under this sub- section shall be sent after the expiry ofone year from the end of the financial year in which the return is made .

(2) Where a retum has been furnished under section 115WD; the Assessing Officer shall, ifhe considers it necessary or expedient to ensure that the assessee has not under -stated the value of fringe benefits or has not under-paid the tax in any manner, serve on the assessee a notice requiring him on a date to be specified therein, either to attend his office or to produce, or cause to be produced, any evidence on which the assessee may rely in support ofthe return:

Provided that no notice under this sub- section shall be served on the assessee after the expiry of twelve months from the end of the month in which the return is furnished.

(3) On the day specified in the notice issued under sub- section ( 2), or as soon afterwards as maybe, after hearing such evidence as the assessee may produce and such other evidence as the Assessing Officer may require on specified points, and after taking into account all relevant material which he has gathered, the Assessing Officer shall , by an order in writing, make an assessment of the value of the fringe benefits paid or payable by the assessee , end determine the sum payable by him or refund of any amount due to him on the basis of such assessment.

(4) Where a regular assessment under sub- section (3 ) or section 115WF is

made,-

(a) any tax or interest paid by the assessee under sub-section ( 1 ) shall be deemed to have been paid towards such regular assessment;

(b) if no refund is due on regular assessment or the amount refunded under sub-section ( 1 ) exceeds the amount refundable on regular assessment, thewhole or the excess amount so refunded shall be deemed to be tax payable bythe assessee and the provisions of this Act shall apply accordingly.

115WF. (1) Ifany person, being an employer-

Bestjudgment sscssment .

(a)failstomake the return required under sub-section (1) ofsection 115WD and has not made a return under sub-section (3) or a revised return under sub- section (4) ofthat section, or

(b) fails to comply with all the terms of a notice issued under sub-section (2) of section 115WD or fails to comply with a direction issued under sub- section (2A) of section 142, or 20

THE GAZETTE OF INDIA EXTRAORDINARY

[PART I

(c) having made a return , fails to comply with all the terms of a notice issued under sub - section (2) of section 115WE ,

theAssessingOfficer, after taking into account all relevant material which the Assessing Officerhas gathered, shall , after giving the assessee an opportunity ofbeing heard, make the assessment of the fringe benefits to the best of his judgment and determine the sum payable by the assessee on the basis of such assessment:

Provided that such opportunity shall be given by the Assessing Officer by serving a notice calling upon the assessee to show cause , on a date and time to be specified in the notice as to why the assessment should not be completed to the best ofhisjudgment:

Provided further that it shall not be necessary to give such opportunity in a case where a notice under sub- section (2) of section 115WD has been issued prior to the making of an assessment under this section .

Fringe benefits escaping assessment .

115WG. If theAssessir.g Officer has reason to believe that any fringe benefits chargeable to tax have escaped assessment for any assessment year , he may, subject to the provisions of sections 115WH, 150 and 153 , assess or reassess such fringe benefits and also any other fringe benefits chargeable to tax which have escaped assessment and which come to his notice subsequently in the course ofthe proceedings under this section, for the assessment year concerned ( hereafter referred to as the relevant assessment year) .

Explanation. For the purposes ofthis section, the following shall also be deemed tobe cases where fringe benefits chargeable to tax have escaped assessment, namely:-

(a) where no return offringe benefits has been furnished by the assessee;

(b) where a return of fringe benefits has been furnished by the assessee but noassessment has been made and it is noticed by the Assessing Officer that the assessee has understated the value of fringe benefits in the return;

Issue of notice where fringe benefits have escaped assessment.

115WH( 1) Before making the assessment or reassessment under section 115WG, theAssessing Officer shall serve on the assessee a notice requiring him to furnish within such period as may be specified in the notice, a return of the fringe benefits in respect of which he is assessable under this Chapter during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed, and the provisions of this Chapter shall, so far as may be , apply accordingly as if such return were a return required to be furnished under section 115WD.

(2) TheAssessing Officer shall, before issuing any notice under this section, record his reasons for doing so.

(3) No notice under sub- section ( 1) shall be issued for the relevant assessment year after the expiry of six years from the end of the relevant assessment year .

Explanation.In determining fringe benefits chargeable to tax which have escaped assessment for the purposes of this sub-section , the provisions of the Explanation to section 115WG shall apply as they apply for the purposes of that section.

(4) In a case where an assessment under sub-section (3) of section 115WE or section 115WG has been made for the relevant assessment year, no notice shall be issued under sub- section ( 1) by an Assessing Officer , after the expiry of four years from the end of the relevant assessment year , unless the Chief Commissioner or Commissioner is satisfied , on the reasons recorded by the Assessing Officer, that it is afitcase for the issue of such notice .

Payment of fringebenefit tax .

115WI . Notwithstanding that the regular assessment in respect of any fringe benefits is to be made in a later assessment year, the tax on such fringe benefits shall bepayable in advance during any financial year, in accordance with the provisions of section 115WJ , in respect ofthe fringe benefits which would be chargeable to tax for the assessment year immediately following that financial year , such fringe benefits beinghereafter in this Chapter referred to as the "current fringe benefits".

SEC.2]

THE GAZETTE OF INDIA EXTRAORDINARY

Advance tax in respect. of fringe benefits.

115WJ . (1) Every assessee who is liable to pay advance tax under section 115WI, shall on his own accord , pay advance tax on his current fringe benefits calculated in the manner laiddown in sub-section (2).

(2)The amount ofadvance tax payable by an assessee in the financial year shall bethirtyper cent. ofthe value ofthe fringe benefits referred to in section 115WC, paid orpayable in each quarter and shall be payable on or before the 15th day ofthe month following such quarter:

Provided that the advance tax payable for the quarter ending on the 31st day of March ofthe financial year shall be payable on or before the 15th day of March ofthe said financial year .

(3)Wherean assessee has failed to pay the advance tax for any quarter orwhere the advance tax paid by him is less than thirty per cent. ofthe value of fringe benefits paidor payable in that quarter, he shall be liable to pay simple interest at the rate ofone per cent, on the amount by which the advance tax paid falls short of, thirty per cent. of the value of fringe benefits for any quarter, for every month or part of the month for which the shortfall continues .

Interest for default in furnishing benefits . return of fringe 115WK. ( 1) Where the return of fringe benefits for any assessment year under sub-section ( 1 ) or sub-section (3) of section 115WD or in response to a notice under sub-section (2 ) of that section, is furnished after the due date, or is not furnished, the employer shall be liable to pay simple interest at the rate of one per cent . for every month or part ofa month comprised in the period commencing on the date immediately following the due date, and,-

(a)where the return is furnished after the due date, ending on the date of furnishing ofthe return; or

(b)where no return has been furnished, ending on the date ofcompletion of the assessment under section 115WF,

onthe amount of tax on the value of fringe benefits as determined under sub-section (1) ofsection 115WE or regular assessment as reduced by the advance tax paid under section 115WJ .

Explanation 1.In this section, "due date" means the date specified in the Explanation to sub-section (1) ofsection 115WD as applicable in the case ofthe employer.

Explanation 2.-Where, in relation to an assessment year , an assessment is madefor the first time under section 115 WG, the assessment so made shall be regarded as a regular assessment for the purposes of this section.

(2)Theprovisions contained in sub-sections (2) to (4) ofsection 234A shall, so far as maybe, apply to this section .

115WL. Save as otherwise provided in this Chapter, all other provisions ofthis Act shall , as far as may be, apply in relation to fringe benefits also ..

Application ofother provisions of thisAct.

38. In section 119 of the Income-tax Act, in sub -section (2) , in clause (a), with effect from the 1stday ofApril,2006,-

Amendment ofsection 119.

(1) for theword, figures and letters "sections 115P, 1155" , the word, figures and letters "sections 115P, 115S, 115WD, 115WE, 115WF, 115WG , 115WH, 115WJ , 115WK" shall be substituted;

(it) for the words" any class of incomes", the words "any class of incomes or fringe benefits" shall be substituted.

Amendment of section 124.

39. In section 124 ofthe Income-taxAct, in sub-section (3), with effect from the 1st day ofApril,2006,-

(1) inclause(a),

(4) for the words, brackets and figures "under sub-section ( 1) of section 139", the words, brackets , figures and letters " under sub-section ( 1 ) of section 115WD or under sub -section (1) of section 139" shall be substituted;

[PART II-

THE GAZETTE OF INDIA EXTRAORDINARY

(B) for the words, brackets and figures " sub-section (2) of section 143 ", the words , brackets , figures and letters " sub- section (2) of section 115WE or sub-section (2) of section 143 " shall be substituted;

(ii) in clause (b), for the words , brackets and figures " sub -section (1 ) of section 142 or under section 148 for the making of the return or by the notice under the first proviso to section 144 " , the words , brackets, figures and letters " sub-section (2) of section 115WD or sub-section (1) of section 142 or under sub- section ( 1 ) of section 115WH or under section 148 for the making of the return or by the notice under the first proviso to section 115WF or under the first proviso to section 144" shall be substituted.

40. In section 139 of the Income-taxAct,-

Amendment of section 139 .

(a) in sub-section (1 ), with effect from the 1st day ofApril , 2006,-

(1) inclause(a), for the word "company" , the words "company or a firm " shall be substituted;

(ii) in clause (b ), for the words " other than a company" , the words " other than a company or a firm" shall be substituted;

(iii) in the first proviso,-

(A) clause (iii) shallbe omitted;

(B) in clause (vi), the word " or " shall be inserted at the end;

"(vii) has incurred an expenditure of fifty thousand rupees or moretowards consumption ofelectricity,";

(iv) inthe third proviso, for the word "company", the words " company or a firm" shall be substituted;

(v) after the third proviso, the following proviso shall be inserted , namely:-

"Provided also that every person, being an individual or a Hindu undivided family or an association of persons or a body of individuals , whether incorporated or not, or an artificial juridical person, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year, without giving effect tothe provisions ofsection 10A or section 10B or section 10BA or Chapter VI -Aexceeded the maximum amount which is not chargeable to income- tax, shall , on or before the due date , furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.";

(b) in sub-section (9) , in the Explanation , in clause (c), in sub -clause (1), for the words, figures and letters "before the 1st day of April , 2005", the words, figures and letters"before the 1st day ofApril , 2006" shall be substituted.

Amendment of section 139A .

41. In section 139A ofthe Income- tax Act, in sub- section ( 1 ), with effect from the 1st dayofApril, 2006,-

(a) inclause(iii) , for the words, brackets , figures and letter " sub- section (4A) of section 139", the following shall be substituted, namely:-

"sub- section (4A) of section 139; or

(iv) being an employer, who is required to furnish a return offringe benefits under section 115WD ," ;

(b) in sub-section (7), the following Explanation shall be inserted , namely:-

"Explanation . For the removal ofdoubts , it is hereby declared that any person, who has been allotted a permanent account number under any clause other than clause (iv ) of sub- section ( 1 ) , shall not be required to obtain another permanent account number and the permanent account number already allotted to him shall be deemed to be the permanent account number in relation to fringe benefit tax." .

SBC .2]

THE GAZETTE OF INDIA EXTRAORDINARY

Amendment of section 140 .

42. In section 140 of the Income- tax Act, in the opening portion, for the words and figures "under section 139" , the words, figures and letters "under section 115WD or section 139" shall be substituted with effect from the 1st day ofApril , 2006.

43. In section 140A ofthe Income- tax Act, with effect from the 1st day ofApril , 2006, Amendment of section 140A.

(a) in sub-section ( 1) , for the word and figures "section 139", the words, figures and letters " section 115WD or section 115WH or section 139" shall be substituted;

(b) for sub-section(14), the following sub-section shall be substituted, namely:-

"(1A) For the purposes of sub- section ( 1 ) , interest payable,-

(a) under section234A shall be computed on the amount ofthe tax on the total income as declared in the return as reduced by the advance tax, ifany, paid and any tax deducted or collected at source;

(ii) under section 115WK shallbe computed on the amount oftax on the value ofthe fringe benefits as declared in the return as reduced by the advance tax, paid, if any.";

(c) in sub-section (2), for the word and figures " section 143 " , the words, figures and letters" section 115WE or section 115WF or section 143 " shall be substituted.

Amendment of section 142.

44.In section 142 of the Income-tax Act, in sub-section ( 1 ), for the words, figures and brackets" under section 139 or in whose case the time allowed under sub-section (1) ofthat section", the words, figures, letters and brackets "under section 115WD or section 139 or in whose case thetime allowed under sub-section ( 1) of section 139" shall be substituted with effect from the 1st day ofApril , 2006.

45. In section 153 of the Income- tax Act, with effect from the 1st day ofApril , 2006,-

section 153. Amendment of (a) after sub-section ( 1 ) , the following sub-sections shall be inserted, namely:-

"( IA) No order of assessment shall be made under section 115WE or section 115WF at any time after the expiry of two years, from the end of the assessment year in which the fringe benefits were first assessable.

(1B) No order ofassessment or reassessment shall be made under section 115WGafter the expiry ofone year from the end ofthe financial year in which the notice under section 115WH was served.";

(b) in sub-section(2.4) , for the words , brackets and figures " in sub-sections ( 1 ) and(2)" , thewords, brackets , figures end letters " in sub-sections ( 1 ) , ( 14), ( 1B) and (2)" shall be substituted;

(c) insub-section (3) , for the words, brackets and figures " sub- sections ( 1) and (2) ", the words, brackets , figures and letters " sub-sections ( 1) , ( 1A), (IB) and (2) " shall be substituted;

Amendment of section 153B.

46. In section 153B of the Income-tax Act, in sub-section ( 1 ), after clause (b) end beforetheExplanation , the following proviso shall be inserted and shall be deemed to have been insertedwith effect from the 1st day ofJune, 2003 , namely:-

"Providedthat in case ofother person referred to in section 153C, the period of limitation for making the assessment or reassessment shall be the period as referredto inclause(a) or clause (b) ofthis sub-section or one year from the end ofthe financial year in which books of account or documents or assets seized or requisitioned are handed over under section 153C to the Assessing Officer having jurisdiction over such other person, whichever is later.".

47. Inthe Income-tax Act, with effect from the 1st day ofJune, 2003,-

Amendment of section 153C.

(a) section 153C shall be numbered as sub- section ( 1 ) thereof and in sub-section ( 1 ) as so numbered, the following proviso shall be inserted and shall be deemed tohave been inserted, namely:-

[PART

THE GAZETTE OF INDIA EXTRAORDINARY

"Provided that in case of such other person , the reference to the date of initiation ofthe search under section 132 or making ofrequisition under section 132A in the second proviso to section 153A shall be construed as reference to the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person.";

(b) after sub-section (1 ) as so numbered, the following sub-section shall be inserted and shall be deemed to have been inserted , namely:-

"(2)Wherebooks ofaccount or documents or assets seized or requisitioned as referred to in sub- section ( 1) has or have been receivedby the Assessing Officer havingjurisdiction over such other person after the due date for furnishing the return of income for the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A and in respect of such assessment year-

(a) no return of income has been furnished by such other person and no notice under sub- section ( 1 ) ofsection 142 has been issued to him, of

(b) a return of income has been furnished by such other person but no notice under sub- section (2) of section 143 has been served and limitation ofserving the notice under sub-section (2) ofsection 143 has expired, or

before the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person, such Assessing Officer shall issue the notice and assess or reassess total income of such other person of such assessment year in the manner provided in section 153A. " .

48. In section 194 A ofthe Income-tax Act, in sub-section (3) , with effect from the 1stday ofJune, 2005,-

Amendment of section 194.4 .

(f) after clause (ix),the following clause shall be inserted , namely:---

"(x) to such income which is paid or payable by an infrastructure capital companyor infrastructure capital fund or a public sector company in relation to azero couponbond issued on or after the 1st day ofJune , 2005 by such company or fund or public sector company;";

(ii) for the Explanation, the following Explanations shall be substituted , namely:-

Explanation 1. For the purposes of clauses (i) , ( vii) and (viia), "time deposits" means deposits (excluding recurring deposits) repayable on the expiry offixed periods.

Explanation 2. For the purposes of clause (x), " infrastructure capital company" and "infrastructure capital fund" shall have the meanings respectively assigned to them in clauses (a) and (b) ofExplanation I to clause (23G) of section 10. ' .

Amendment of section 194C .

49. In section 194C ofthe Income- tax Act, in sub- section (3) , in clause (1) , with effect from the 1st day of June, 2005,-

(a) intheproviso, for the words "under this section ; or ", the words " under this section: " shall be substituted;

(8) after the proviso , the following provisos shall be inserted, namely:

THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

"Provided further that no deduction shall be made under sub - section (2) , from the amount of any sum credited or paid or likely to be credited or paid during the previous year to the account of the sub -contractor during the course of business of plying, hiring or leasing goods carriages , on production of a declaration to the person concerned paying or crediting such sum, in the prescribed form and verified in the prescribed manner and within such time as may be prescribed, if such sub - contractor is an individual who has not owned more than two goods carriages at any time during the previous year :

Provided also that the person responsible for paying any sum as aforesaid to the sub-contractor referred to in the second proviso shall furnish to the prescribed income- tax authority or the person authorised by it such particulars as may be prescribed in such form and within such time as may be prescribed; or";

'Explanation . For the purposes of clause ( i), "goods carriage " shall have the sarne meaning as in the Explanation to sub - section ( 7) of section 44ΑΕ. ' .

Amendment of section 199 .

50. In section 199 ofthe Income- tax Act, in sub -section (3) , for the figures , letters and words " 1st day ofApril , 2005 " , the figures , letters and words " 1st day ofApril , 2006" shall be substituted.

Amendment of section 203 .

51. In section 203 of the Income- taxAct, in sub - section (3) , for the figures , letters and words " 1st day of April , 2005 " , the figures , letters and words " 1st day ofApril , 2006" shall be substituted.

52.After section 206 of the Income-taxAct, the following section shall be inserted with effect from the 1st day of June, 2005 , namely: -

Insertion of new section 206A.

Furnishing of quarterly return inrespect of payment of interest to residents without deduction of tax.

" 206A . ( 1 ) Any banking company or co- operative society or public company referred to in the proviso to clause ( i) of sub-section (3) of section 194A responsible for paying to a resident any income not exceeding five thousand rupees by way of interest (other than interest on securities) , shall prepare quarterly returns for the period ending on the 30th June , the 30th September, the 31st December and the 31st March in each financial year and deliver or cause to be delivered to the prescribed income-tax authority or the person authorised by such authority the quarterly returns as aforesaid, in the prescribed form , verified in such manner and within such time as may be prescribed , on a floppy, diskette , magnetic cartridge tape, CD- ROM or any other computer readable media.

(2) The Central Government may, by notification in the Official Gazette , require any person other than a person mentioned in sub - section ( 1) responsible for paying to a resident any income liable for deduction of tax at source under Chapter XVII, to prepare and deliver or cause to be delivered quarterly returns in the prescribed form andverified in such manner and within such time as may be prescribed, to the prescribed income-tax authority or the person authorised by such authority on a floppy, diskette, magnetic cartridge tape, CD- ROM or any other computer readable media." .

53. In section 206C of the Income-taxAct,-

Amendment of section 206C .

(a) insub -section (4) , in the proviso , for the figures , letters and words " 1st day of April , 2005 " , the figures , letters and words " 1st day of April, 2006" shall be substituted;

(b) in sub-section (5), in the first proviso, for the figures , letters and words " 1st day ofApril , 2005" , the figures, letters and words " 1st day of April , 2006" shall be substituted.

Amendment of section 238 .

54. In section 238 of the Income-tax Act, after sub-section ( 1 ) , the following sub- section shall be inserted with effect from the 1st day ofApril , 2006 , namely:-

[PARTI

THE GAZETTE OF INDIA EXTRAORDINARY

"(14) Where the value of fringe benefits provided or deemed to have been provided by one employer is included under any provisions of Chapter XII -H in the value of fringe benefits provided or deemed to have been provided by any other employer , the latter alone shall be entitled to a refund under this Chapter in respect of such fringe benefits.".

Amendment of section 239 .

55. In section 239 ofthe Income- taxAct, in sub- section (2) , after clause (c), the following clause shall be inserted with effect from the 1st day ofApril, 2006, namely:-

"(d)where the claim is in respect offringe benefits which are assessable forany assessment year commencing on the first day ofApril , 2006, one year from the lastday of such assessment year." .

56. In section 244A ofthe Income-tax Act, with effect from the 1st day ofApril, 2006,-

Amendment of section 244A.

(a) in sub-section ( 1 ) , in clause (a), 一

(1) for thewords "out ofany tax ", the words, figures and letters "out ofany taxpaidunder section 115WJ or " shall be substituted;

(ii) inthe proviso, for the words "under sub-section ", the words, brackets , figures and letters "under sub- section ( 1 ) of section 115WE or sub- section" shall be substituted;

(b) in sub-section (3 ), for the words " result of an order under " , the words, brackets , figures and letters " result of an order under sub-section (3) ofsection 115WE or section 115WF or section 115WG or " shall be substituted;

"Provided that in respect of assessment of fringe benefits, the provisions ofthis sub-section shall have effect as if for the figures " 1989", the figures. "2006" had been substituted." .

57. In section 246A of the Income- tax Act, in sub- section ( 1 ), with effect from the 1st day ofApril, 2006,-

Amendment of section 246A.

(1) after clause(a), the following clauses shall be inserted, namely:-

"(aa) an order of assessment under sub- section ( 3 ) of section 115WE or section 115WF, where the assessee, being an employer objects to the value of fringe benefits assessed;

(ab) an order of assessment or reassessment under section 115WG; " ;

(i) inclause (1), in sub-clause (B), for the word, figures and letter " section 271F" , thewords, figures and letters "section 271F, section 271FB" shall be substituted.

58. In section 271 ofthe Income-tax Act, with effect from the 1st day ofApril, 2006,- Amendment of section 271 .

(a) in sub-section ( 1 ),

(A) inclause (b), for the words, brackets and figures "under sub-section (1) of section 142", the words , brackets , figures and letters "under sub- section (2) ofsection 115WD or under sub-section (2) of section 115WE or under sub- section (1 ) of section 142" shail be substituted;

(B) in clause(c), for the words " income" , the words " income, or " shall be substituted;

THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

"(d)has concealed the particulars ofthe fringe benefits or furnished inaccurate particulars of such fringe benefits ,";

(D) insub -clause ( iii) ,-

(i) fortheword,brackets and letter " clause ( c)", the words , brackets and letters " clause ( c) or clause ( d)" shall be substituted;

(ii) for the word " income" , at both the places where it occurs , the words " income or fringe benefits " shall be substituted;

(b) after sub-section (5), the following sub - section shall be inserted, namely:-

"(6) Any reference in this section to the income shall be construed as a reference to the income or fringe benefits , as the case may be, and the provisions ofthis section shall , as far as may be , apply in relation to any assessment in respect of fringe benefits also .".

59.After section 271FA of the Income- tax Act, the following section shall be inserted witheffect from the 1st day ofApril , 2006, namely:-

Insertion of new section 271FB.

Penalty for failure to furnish return offringe benefits.

"271FB. If an employer, who is required to furnish a return offringe benefits , as required under sub - section ( 1 ) of section 115WD, fails to furnish such return within thetime prescribed under that sub- section, theAssessing Officer may direct that such employer shall pay, by way of penalty, a sum of one hundred rupees for every day duringwhich the failure continues .",

Amendment of section 272A.

60. In section 272A of the Income- tax Act, in sub -section ( 2) , after clause (k) , the following clause shall be inserted with effect from the 1st day of June, 2005, namely:-

"(1) to deliver or cause to be delivered the quarterly return within the time specified insub -section (1) of section 206A," .

Amendment of section 273B .

61. In section 273B of the Income- tax Act, for the word, figures and letters " section 271FA" , the words , figures and letters " section 271FA, section 271FB " shall be substituted with effect from the 1st day ofApril, 2006 .

Amendment of section 276CC .

62. In section 276CC of the Income- tax Act, with effect from the 1st day of April , 2006,-

(a) in the opening portion, after the words " in due time", the words , brackets, figures and letters " the return of fringe benefits which he is required to furnish under sub -section ( 1 ) of section 115WD or by notice given under sub -section (2) ofthe said section or section 115WH or " shall be inserted;

(b) intheproviso, for the words , brackets and figures "return of income under sub-section ( 1) of section 139", the words , brackets, figures and letters "return of fringebenefits under sub- section (1) ofsection 115WD or return of income under sub- section ( 1) of section 139" shall be substituted.

Amendment of. section 278 , 63. In section 278 of the Income-tax Act, for the words " any income chargeable to tax", the words " any income or any fringe benefits chargeable to tax" shall be substituted with effect from the 1st day ofApril, 2006.

Amendment of section 295.

64. Insection 295 ofthe Income- tax Act, in sub - section (2), clause (e) shall be omitted with effect from the 1st day ofApril , 2006.

[PART II

THE GAZETTE OF INDIA EXTRAORDINARY

CHAPTER IV

INDIRECT TAXES

Customs

65. In section 28E of the Customs Act, 1962 (hereinafter referred to as the Customs 52 of 1962. Act),-

Amendment ofsection 28E.

(a) for clause (c) , the following clause shall be substituted, namely:-

'(c) "applicant " means-

(i) (a) a non - resident setting up a joint venture in India in collaboration with a non - resident or a resident; or

(b) aresident setting up ajoint venture in India in collaboration with a non-resident; or

who or which , as the case may be, proposes to undertake any business activity inIndia;

(ii) a joint venture in India; or

(iii) a resident falling within any such class or category ofpersons, as the Central Government may, by notification in the Official Gazette , specify in this behalf,

and which or who , as the case may be , makes application for advance ruling under sub -section ( 1 ) of section 28H; ' ;

(b) in clause(e) , for the words " Authority for Advance Rulings ", the words and brackets "Authority for Advance Rulings (Central Excise, Customs and Service Tax) " shall be substituted.

Amendment ofsection 28F.

66. In section 28F of the Customs Act , in sub -section (1 ) , for the words " the Authority for Advance Rulings " " , the words and brackets " the Authority for Advance Rulings (Central Excise, Customs and Service Tax) " shall be substituted.

67. In section 28H ofthe Customs Act , in sub-section (2), after clause (d), the following clause shall be inserted , namely:--

Amendment of section 28H.

"(e) determination of Rules of origin of goods and such other matters relating

thereto." .

68. In section 127MA of the Customs Act ,-

Amendment ofsection 127MA .

(a) in sub-section (6), for the word, figures and letter " section 127C" , the words , figures , letters and brackets " section 127C and sub-section ( 1) of section 127-1 " shall besubstituted;

(b) after sub - section (7) , the following sub - section shall be inserted , namely:-

"(8) The Settlement Commission may, if it is of opinion that any person who made an application under sub -section (5) has not co-operated with the proceedings before it, send the case back to the Appellate Tribunal and the provisions containing in section 129A, section 129B and section 129C shall , so far as may be , apply accordingly. " .

69. In section 128A ofthe CustomsAct, in sub-section (5), for the words "Commissioner ofCustoms " , the words ", Chief Commissioner of Customs " shall be substituted.

70. In section 129A of the Customs Act,-

Amendment of section 128A . Amendment of section 129A.

(a) after sub -section ( 1A ) , the following sub-section shall be inserted , namely:-

"(IB) TheBoard may, by notification in the Official Gazette, constitute a Committee consisting oftwo Chief Commissioners or Customs for the purposes ofthis Act. ";

THE GAZETTE OF INDIA EXTRAORDINARY

SEC.2]

(b) in sub-section ( 2) ,-

(1) for the words " The Commissioner of Customs may, if he is " , the words "The Committee of ChiefCommissioners ofCustoms may, ifit is" shallbe substituted;

(ii) for the words "on his behalf" , the words " on its behalf shallbe substituted.

Amendment ofsection 129D.

71. In section 129D of the Customs Act , for the word "Board" , occurring in sub- sections (1 ) and (3) , the words " Committee of Chief Commissioners of Customs " shell respectively be substituted.

Customs tariff

51 of1975.

72.For section 3 ofthe Customs TariffAct, 1975 (hereinafter referred to as the Customs TariffAct) , the following section shall be substituted, namely:-

Substitution ofnew section for section 3.

Levy of additional 3.( 1)Any article which is imported into India shall, in addition, be liable to a duty (hereafter in this section referred to as the additional duty) equal to the excise duty for the time being leviable on a like article if produced or manufactured in India and ifsuch excise duty on a like article is leviable at any percentage of its value, the additional duty to which the imported article shall be so liable shall be calculated at that percentage ofthe value of the imported article:

duty equal to excise duty, maks tax, local taxes and other charges.

Providedthat in case of any alcoholic liquor for human consumption imported into India, the Central Government may, by notification in the Official Gazette, specify the rate ofadditional duty having regard to the excise duty for the time being leviable on a like alcoholic liquor produced or manufactured in different States or, ifa like alcoholic liquor is not produced or manufactured in any State, then , having regardto the excise dutywhich would be leviable for the time being in different States onthe class or description of alcoholic liquor to which such imported alcoholic liquor helongs.

Explanation. In this sub - section , the expression " the excise duty for the time being leviable on a like article ifproduced or manufactured in India" means the exciseduty for the time being in force which would be leviable on a like article if produced or manufactured in India or , if a like article is not so produced or manufactured, which would be leviable on the class or description of articles to which the imported article belongs , and where such duty is leviable at different rates, the highest duty.

52 of 1962.

(2) For the purpose ofcalculating under sub-sections (1) and (3 ), the additional duty on any imported article, where such duty is leviable at any percentage of its value, the value of the imported article shall , notwithstanding anything contained in section 14 of the Customs Act, 1962, be the aggregate of-

(1) the value of the imported article determined under sub-section (1 ) of section 14 or the tariff value of such article fixed under sub-section (2) ofthat section, as the case may be; and.

52 of 1962 .

(il) anyduty ofcustoms chargeable on that article under section 12 ofthe Customs Act, 1962, and any sum chargeable on that article under any law for the timebeing in force as an addition to, and in the same manner as , a duty of customs, but does not include

(a) theduty referred to in sub -sections ( 1) , (3) and (5);

(b) the safeguard duty referred to in sections 8B and 8C;

(c) the countervailing duty referred to in section 9; and

(d) the anti -dumping duty referred to in section 9A:

Provided that in case of an article imported into India, ---

THE GAZETTE OF INDIA EXTRAORDINARY

[PART-

60 of 1976 .

(a) in relation to which it is required, under the provisions ofthe Standards ofWeights and Measures Act, 1976 or the rules made thereunder or under any other law for the time being in force, to declare on the package thereof the retail saleprice ofsuch article; and

1 of 1944.

(b) where the like article produced or manufactured in India, or in case where such like article is not so produced or manufactured, then, the class or description ofarticles to which the imported article belongs , is the goods specified bynotification in the Official Gazette under sub-section ( 1 ) of section 4A ofthe Central ExciseAct, 1944, the value of the imported article shall be deemed to be the retail sale price declared on

the imported article less such amount of abatement, if any, from such retail sale price as

the Central Government may, by notification in the Official Gazette , allow in respect of

1 of 1944.

such like article under sub-section (2) ofsection 4A ofthe Central Excise Act, 1944.

Explanation. Where on any imported article more than one retail sale price is declared,themaximum of such retail sale price shallbe deemed to be the retail sale price forthe purposes of this section.

(3) If the Central Government is satisfied that it is necessary in the public interest to levy on any imported article [ whether on such article duty is leviable under sub- section ( 1 ) or not ] such additional duty as would counter -balance the excise duty leviable on any raw materials , components and ingredients of the same nature as , or similar to those, used in the production or manufacture of such article, it may, by notification in the Official Gazette, direct that such imported article shall, in addition,be liable to an additional duty representing such portion of the excise duty leviable on such raw materials , components and ingredients as, in either case, may be determined by rules made by the Central Government in this behalf.

(4) In making any rules for the purposes of sub - section (3 ), the Central Government shall have regard to the average quantum of the excise duty payable on the raw materials , components or ingredients used in the production or manufacture of such like article .

(5) Ifthe Central Government is satisfied that it is necessary in the public interest to levy on any imported article [whether on such article duty is leviable under sub- section ( 1 ) or , as the case may be , sub -section ( 3 ) or not) such additional duty as would counter-balance the sales tax, value added tax, local tax or any other charges for the timebeing leviable on a like article on its sale, purchase or transportation in India, itmay,by notification in the Official Gazette, direct that such imported article shall , in addition, be liable to an additional duty at a rate not exceeding four per cent. of the value of the imported article as specified in that notification.

Explanation. In this sub-section, the expression " sales tax, value added tax, local tax or any other charges for the time being leviable on a like article on its sale , purchase or transportation in India" means the sales tax, value added tax, local tax or other charges for the time being in force , which would be leviable on a like article if sold, purchased or transported in India or, if a like article is not so sold , purchased or transported, which would be leviable on the class or description of articles towhich the imported article belongs , and where such taxes , or, as the case may be, such charges are leviable at different rates, the highest such tax or, as the case may be, such charge..

52 of 1962 .

(6) For the purpose of calculating under sub- section (5) , the additional duty on any imported article, the value of the imported article shall , notwithstanding anything contained in sub- section ( 2) of section 14 of the Customs Act, 1962,be the aggregate of

52 of 1962 .

(i) the value of the imported article determined under sub-section (1) of section 14 ofthe Customs Act, 1962 or the tariff value of such article fixed under sub-section (2 ) of that section, as the case may be ; and 31

THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

52 of 1962 .

(ii) anyduty ofcustoms chargeable on that article under section 12 ofthe Customs Act, 1962. and any sum chargeable on that article under any law for the time being in force as an addition to , and in the same manner as , a duty of customs, but does not include-

(a) theduty referred to in sub-section (5);

(b) the safeguardduty referred to in sections 8B and 8C;

(c)the countervailing duty referred to in section 9; and

(a) the anti-dumping duty referred to in section 9A.

(7)The duty chargeable under this section shall be in addition to any other duty imposed under this Act or under any other law for the time being in force.

52. of 1962.

(8)Theprovisions ofthe Customs Act, 1962 and the rules and regulationsmade thereunder, including those relating to drawbacks , refunds and exemption from duties shall , so far as may be , apply to the duty chargeable under this section as they apply in relation to the duties leviable under that Act .' .

73. Section 3A ofthe Customs TariffAct shall be omitted.

74. In the Customs Tariff Act, the First Schedule shall be amended in the manner as specified in the Second Schedule.

Omission of section 3A. Amendment ofFirst Schedule,

Excise

1 of 1944 .

Amendment ofsection 5.A.

75. In section 5A ofthe Central Excise Act, 1944 (hereinafter referred to as the Central ExciseAct), after sub- section ( 1) , the following sub-section shall be inserted, namely:

"( 14) For the removal of doubts , it is hereby declared that where an exemption under sub-section ( 1) in respect of any excisable goods from the whole of the duty of excise leviable thereon has been granted absolutely, the manufacturer ofsuch excisable goods shall not pay the duty of excise on such goods." .

76. In section 23A of the Central ExciseAct,

Amendment of section 23A.

(a) for clause(c) , the following clause shall be substituted, namely:-

(1) (a) a non-resident setting up a joint venture in India in collaboration with a non-resident or a resident; or

(b) aresident setting up ajoint venture in India in collaborationwith a non-resident; or

(c)awhollyowned subsidiary Indian company, ofwhich the holding company is a foreign company,

who or which , as the case may be , proposes to undertake any business activity in India;

(if) ajoint venture in India; or

(iii) a resident falling within any such class or category ofpersons, as the Central Government may, by notification in the Official Gazette, specify in this bebalf,

and which or who , as the case may be, makes application for advance ruling under sub- section (1) ofsection 23C;' ;

(b) in clause(e), for the words " Authority for Advance Rulings " , the words and brackets "Authority for Advance Rulings (Central Excise, Customs and Service Tax) " shall be substituted.

77. In section 32PA of the Central Excise Act,-

Amendment of section 32PA.

(a) in sub-section (6) , for the word , figures and letter " section 32F ", thewords, figures, letters and brackets " section 32F and sub-section (1 ) of section 32L " shall be substituted;

[PART I

THE GAZETTE OF INDIA EXTRAORDINARY

(b) after sub-section ( 7) , the following sub-section shall be inserted, namely:-

"(8) The Settlement Commission may, if it is of opinion that any person who made an application under sub-section (5) has not co-operated with the proceedingsbefore it, send the case back to the Appellate Tribunal and the provisions containing in section 35B, section 35C and section 35D shall , so far as maybe, apply accordingly." .

Amendment ofsection 35A .

78. In section 35A ofthe Central Excise Act, in sub- section (5) , for the words " and the Commissioner of Central Excise" , the words " , the Chief Commissioner of Central Excise and the Commissioner ofCentral Excise " shall be substituted.

79. In section 35B of the Central Excise Act,

Amendment of section 35B.

(a) after sub -section ( 1A) , the following sub - section shall be inserted, namely:-

54 of 1963 .

"(1B) The Central Board of Excise and Customs constituted under the CentralBoards ofRevenueAct, 1963 may, by notification in the Official Gazette, constitute a Committee consisting oftwo Chief Commissioners ofCentral Excise for the purposes of thisAct." ;

(b) in sub-section ( 2) ,

(1) for the words "The Commissioner of Central Excise may, if he is " , the words"The Committee of Commissioners ofCentral Excise may, if it is " shall be substituted;

(ii) for the words " on his behalf" , the words "on its behalf" shall be substituted..

Amendment of section 35E .

80. In section 35E of the Central ExciseAct, for the word "Board " , occurring in sub- sections (1) and (3); the words "Committee ofChiefCommissioners ofCentral Excise " shall respectivelybe substituted .

81. For the Third Schedule to the Central Excise Act, the Schedule specified in the Third Schedule shall be substituted.

Substitution of new Schedule for Third Schedule.

82.(1) In the Central Excise Rules, 1944, made by the Central Government in exercise of thepowers conferred by section 37 of the Central Excise Act,-

Amendment ofCentral Excise Rules, 1944.

(a) rule57CC as insertedby the Central Excise (Third Amendment) Rules, 1996, published in the Official Gazette , vide notification of the Government of India in the Ministry ofFinance (Department ofRevenue), No. GS.R. 324(E) , dated the 23rd July, 1996;

(b) rule 57CC as substituted by the Central Excise (Amendment) Rules, 1997 , published in the Official Gazette, vide notification of the Government of India in the Ministry of Finance (Department of Revenue) , No. GS.R. 122(E), dated the 1st March, 1997; and

(c) rule 57D as substituted by the Central Excise (Second Amendment) Rules , 2000, published in the Official Gazette, vide notification of the Government of India in theMinistry of Finance (Department of Revenue), No. GS.R. 203 (E), dated the 1st March, 2000, as substituted as rule 57AD by rule 5 of the Central Excise [ Second Amendment (Amendment ) ] Rules, 2000, published in the Gazette of India, vide notification ofGovernment of India in the Ministry ofFinance ( Department ofReveur), No. GS.R. 298(E) , dated the 31st March, 2000,

shall stand amended and shall be deemed to have been amended retrospectively in the manner as specified in column (3 ) of the Fourth Schedule on and from the corresponding datespecified in column (4) ofthat Schedule against each ofthe rules specified in column (2) ofthat Schedule .

(2)Any action taken or anything done or purported to have been taken or done, at any timeduring the period commencing on and from the 1st day ofAugust, 1996 and ending with 33 THE GAZETTE OF INDIA EXTRAORDINARY

SEC.2]

the 30th day of June , 2001 under the rule as amended by sub -section ( 1 ), shall be deemed to be , and always to have been , for all purposes, as validly and effectively, taken or done as if the amendment made by sub - section ( 1 ) had been in force at all material times , and accordingly, notwithstanding anything contained in any judgment, decree or order of any court , tribunal orother authority-

(a) no suit or other proceedings shall be instituted, maintained or continued in any court, tribunal or, as the case may be, other authority against the Central Government or Central Excise Officer for recovery of the amount under the rule as amended by sub- section (1) and no enforcement shall be made by any court, tribunal or other authority ofany decree or order for non - recovery of the said amount, as if the amendments made by that sub - section had been in force at all material times;

(b) recovery shall be made of the amount which has not been paid but which would have been paid as if the amendment made by sub - section ( 1) had been in force at all material times , within a period of thirty days from the day on which the Finance Bill, 2005 receives the assent of the President.

(3) Notwithstanding the supersession of the Central Excise Rules , 1944 referred to in sub-section ( 1 ) , for the purposes ofthat sub - section , the Central Government shall have and shall be deemed to have the power to make rules with retrospective effect as ifthe Central Government had the power to make rules under section 37 of the Central Excise Act , retrospectively at all material times .

Explanation. For the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable if this section had not come into force .

Amendment of rule 6 of the CENVAT Credit Rules, 2001.

83.(1) In the CENVAT Credit Rules , 2001 , made by the Central Government in exercise ofthe powers conferred by section 37 ofthe Central Excise Act, rule 6 thereof as published inthe Official Gazette vide notification ofthe Government of India in the Ministry ofFinance (Department ofRevenue), No. GS.R. 445 (E), dated the 21st June, 2001 shall stand amended and shall be deemed to have been amended retrospectively in the manner as specified in column (2) ofthe Fifth Schedule on and from the corresponding date specified in column (3 ) ofthat Schedule against the rule specified in column ( 1 ) of that Schedule .

(2) Any action taken or anything done or purported to have been taken or done at any time during the period commencing on and from the 1st day ofJuly, 2001 and ending with the 28th day ofFebruary, 2002 under the rule as amended by sub -section (1), shall be deemed to be, and always to have been, for all purposes , as validly and effectively taken or done as if the amendment made by sub -section ( 1) had been in force at all material times , and accordingly, notwithstanding anything contained in anyjudgment, decree or order of any court, tribunal or other authority-

(a) no suit or other proceedings shall be instituted, maintained or continued in any court, tribunal or, as the case may be, other authority against the Central Government orCentral Excise Officer for recovery of the amount under the rule as amended by sub- section ( 1) and no enforcement shall be made by any court, tribunal or other authority of any decree or order for the non - recovery of the said amount, as if the amendments made by that sub - section had been in force at all material times;

(b) recovery shall be made of the amount which has not been paid but which would have been paid as if the amendment made by sub - section (1 ) had been in force at all material times , within a period ofthirty days from the day on which the Finance Bill, 2005 receives the assent of the President .

(3) Notwithstanding the supersession ofthe CENVAT Credit Rules, 2001 referred to in sub-section ( 1 ) , for the purposes of that sub - section , the Central Government shall have and shall be deemed to have the power to make rules with retrospective effect as if the Central Government had the power to make rules under section 37 of the Central Excise Act, retrospectively at all material times .

THE GAZETTE OF INDIA EXTRAORDINARY

[PART

Explanation. For the removal ofdoubts , it is hereby declared that no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable if this section had not come into force.

Amendment of notification issued under section 5A of the Central Excise Act

84. ( 1) The notification of the Government of India in the Ministry of Finance (Department ofRevenue) , No. GS.R. 277 (E) , dated the 1st March, 1988 , issued under sub- section ( 1) of section 5A ofthe Central Excise Act by the Central Government , shall stand amended and shall be deemed to have been amended in the manner as specified in the Sixth Schedule, for the period commencing on and from the 21st day of February, 2000 to the 28th dayofFebruary, 2003 (both days inclusive) retrospectively, and accordingly, notwithstanding anything contained in anyjudgment, decree or order ofany court, tribunal or other anthority, any action taken or anything done or purported to have been taken or done under the said notification , shall be deemed to be and always to have been, for all purposes , as validly and effectively taken or done as if the notification as amended by this sub- section had been in force at all material times .

(2) For the purposes of sub-section ( 1) , the Central Government shall have and shall be deemed to have the power to amend the said notification referred to in the said sub- section with retrospective effect as if the Central Government had the power to amend the said notification under sub- section (1 ) of section 5A ofthe Central Excise Act, retrospectively, at all material times .

(3) No recovery shall be made of all such amounts of duty or interest or penalty or fine or other charges which have not been collected or, as the case may be, for which demand notices have been issued under section 11A or, recovery proceeding have been initiated under section 11 ofthe Central Excise Act, as ifthe amendment made by sub -section ( 1) , had been in force at all material times .

(4)Refund shall be made of all such duties which have been collected but which would nothave been so collected ifthe amendment made by sub-section (1 ) had been in force at all material times, subject to the provisions of section 11B of the Central ExciseAct .

(5) Notwithstanding anything contained in section 11B of the Central Excise Act, an application for the claim ofrefund of the duty of excise under sub- section (4) shall be made withinone month from the day on which the Finance Bill , 2005 receives the assent of the President.

85.(1) Inthe case of goods specified in the Seventh Schedule , being goods produced or manufactured in India, there shall be levied and collected for the purposes of the Union , by surcharge, an additional duty of excise , at the rates specified in the said Schedule.

Additional dutyofexcise (pan masala and certain tobacco products).

(2) The additional duty of excise referred to in sub - section ( 1) shall be in addition to any other duty ofexcise chargeable on such goods under the Central Excise Act or any other law for the time being in force.

(3) The provisions of the Central Excise Act and the rules made thereunder , including those relating to refunds and exemptions from duties and imposition of penalty, shall, as far as maybe, apply in relation to the levy. and collection of the additional duty of excise leviable under this section in respect of goods specified in the Seventh Schedule as they apply in relation to the levy and collection of the duty of excise on such goods under the Central ExciseAct or, as the case may be , the rules made thereunder.

ExciseTariff

5 of 1986.

86. The Central Excise Tariff Act, 1985 (hereinafter referred to as the Central Excise TariffAct),-

Amendment ofFirst Schedule and Second Schedule.

(a) the First Schedule shall be amended in the manner specified in the Eighth Scbedule;

(b) the Second Schedule shall be amended in the manner specified in the Ninth Schedule .

THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

Amendment ofChapter 15 ofFirst Schedule.

87.( 1) In Chapter 15 , after NOTE 4, the following NOTE shall be inserted and shall bedeemed to have been inserted for the period commencing on and from the 1st day of March, 1986 and ending with the 28th day of February, 2005 (both days inclusive) , namely:-

"5. In relation to refined edible vegetable oils falling under Heading Nos . or headings 15.02 and 15.03 , the process of refining, that is to say, any one or more ofthe processes , namely, treatment ofcrude oil with an alkali , bleaching and deodorisation, shall amountto 'manufacture " ." .

(2)Anyaction taken or anything done or purported to have been taken or done atany timeduring the period commencing on and from the 1st day of March, 1986 and ending with the 28th day ofFebruary, 2005 (both days inclusive) (hereafter in this section referred to as the said period) under the Central Excise Tariff Act, shall be deemed to be, and to have always been , for all purposes , as validly and effectively taken or done as ifthe amendment madeby sub-section ( 1 ) had been in force at all material times and , accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority-

(a) all duties ofexcise levied , assessed or collected during the said period on any excisable goods under the Central Excise Act, shall be deemed to be and shali be deemed alwaysto have been , as validly levied, assessed or collected as if the amendment made by sub -section ( 1 ) had been in force at all material times ;

(b) no suit or other proceeding shall be instituted, maintained or continued in any court, tribunal or other authority for the refund of, and no enforcement shall be made by any court , tribunal or other authority of any decree or order directing the refund of, any such duty of excise which have been collected and which would have beenvalidly collected if the amendment made by sub-section ( 1) had been in force at all material times.

(3) For the purposes of sub -section ( 1 ) , the Central Government shall have and shall be deemed to have the power to amend the Chapter referred to in the said sub-section with retrospective effect as if the Central Government had the power to amend the said Chapter , retrospectively, at all material times .

Explanation-For the removal of doubts , it is hereby declared that no act or omission on the part ofany person shall be punishable as an offerice which would not have been so punishable if this section had not come into force.

CHAPTERV

SERVICETAX

86. In the Finance Act, 1994 ,-

Amendment ofAct32 of 1994.

(a) in section65, with effect from such date as the Central Government may,by notification in the Official Gazette , appoint,-

(i) in clause(9), for the words "service or repair ", the words " service, repair, reconditioning or restoration" shall be substituted;

(ii) in clause ( 15) , for the words " collecting the broadcasting charges on behalf of the said agency" , the words " collecting the broadcasting charges or permitting the rights to receive any form of communication like sign, signal , writing, picture, image and sounds ofall kinds by transmission of electromagnetic waves through space or through cables , direct to home signals or by any other means to cable operator including multisystem operator or any other person on behalf of the said agency" shall be substituted;

(iii) inclause(16), for the words " collecting the broadcasting charges on behalf of the said agency" , the words " collecting the broadcasting charges or permitting the rights to receive any form of communication like sign, signal , writing, picture, image and sounds of all kinds by transmission ofelectromagnetic waves through space or through cables , direct to home signals or by any other 36

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II-

means to cable operator, including multisystem operator or any other person on behalf of the said agency" shall be substituted;

(iv) for clause ( 17) , the following clause shall be substituted , namely:

'(17) "beauty treatment" includes hair cutting, hair dyeing, hair dressing, face and beauty treatment , cosmetic treatment , manicure , pedicure or counselling services on beauty, face care or make - up or such other similar services;';

(v) inclause(19),—

(i) insub-clause (iv ) , the following Explanation shall be inserted at the end , namely:-

'Explanation. For the removal of doubts , it is hereby declared that forthe purposes of this sub-clause, " inputs " means all goods or services intended for use by the client,' ;

(ii) for sub-clause (v), the following sub-clause shallbe substituted, namely:-

"(v) production or processing of goods for, or on behalf of, the client;";

(iii) for the Explanation , the following Explanation shallbe substituted, namely:-

'Explanation-For the removal of doubts , it is hereby declared that for the purposes of this clause,-

(a) "commission agent " means any person who acts on behalfofanother person and causes sale or purchase ofgoods , or provision or receipt of services , for a consideration, and includes any person who , while acting on behalf of another person-

(1) deals with goods or services or documents of titleto such goods or services ; or

(ii) collects payment of sale price of such goods or services; or

(iii) guarantees for collection or payment for such goods or services ; or

(iv) undertakes any activities relating to such sale or purchase of such goods or services;

(b) " information technology service " means any service in relation todesigning, developing or maintaining ofcomputer software, or computerised data processing or system networking, or any other service primarily in relation to operation ofcomputer systems;';

(vi) after clause(24a), the following clause shall be inserted , namely:-

'(246) " cleaning activity" means cleaning , including specialised cleaning services such as disinfecting, exterminating or sterilising ofobjects orpremises , of

(1) commercial or industrial buildings and premises thereof, or (ii) factory, plant or machinery, tank or reservoir of such commercial or industrial buildings and premises thereof,

butdoes not include such services in relation to agriculture, horticulture, animal husbandry or dairying;' ;

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(vii) after clause( 25), the following clauses shall be inserted, namely:--

"(25a) "club or association" means any person or body of persons providing services ,facilities or advantages , for a subscription or any other amount,to its members , but does not include-

(1) any body established or constituted by or under any law for the timebeing in force; or

(ii) anyperson or body of persons engaged in the activities of trade unions , promotion of agriculture, horticulture or animal husbandry; of

(iii) any person or body of persons engaged in any activity having objectives which are in the nature of public service and are ofa charitable, religious or political nature; or

(iv) any person or body of persons associated with press or media;

(256) " commercial or industrial construction service " means-

thereof, or (a) construction of a new building or a civil structure or apart

(b) construction of pipeline or conduit; or

(c) completion and finishing services such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services , in relation to building or civil structure; or

(d) repair, alteration , renovation or restoration of, or similar services in relation to, building or civil structure, pipeline or conduit, which is-

(1)used, or to be used, primarily for, or

(ii) occupied, or to be occupied, primarily with; or

(iii) engaged, or to be engaged, primarily in,

commerce or industry, or work intended for commerce or industry, but does not include such services provided in respect of roads, airports, railways , transport terminals , bridges, tunnels and dams;';

(viii) for clause(30a), the following clause shall be substituted, namely:

(30a)"construction of complex " means-

(a) construction ofa new residential complex or a part thereof, or

(b)completion and finishing services in relation to residential complex such as glazing, plastering, painting, floor and wall tiling. wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acousticapplications or fittings and other similar services; or

(ix) after clause (36), the following clause shall be inserted, namely:-

"(364) "dredging" includes removal ofmaterial including, silt, sediments, rocks, sand, refuse, debris , plant or animal matter inany excavating, cleaning, deepening, widening or lengthening, either permanentlyor temporarily, ofany river, port, harbour, backwater or estuary;';

[PARTI

THE GAZETTE OF INDIA EXTRAORDINARY

(x) for clause (39a) , the following clause shall be substituted , namely:-

(39a) " erection, commissioning or installation " means any service provided by a commissioning and installation agency, in relation to,-

(i) erection , commissioning or installation of plant, machinery or equipment; or

(ii) installation of

(a)-electrical and electronic devices , including wirings or fittings therefor, or

(b) plumbing, drain laying or other installations for transport of fluids; or

(d) thermal insulation, sound insulation , fire proofing or water proofing ; or

(e) lift and escalator, fire escape staircases or travelators; or

() such other similar services;' ;

(xi) for clause (47), the following clause shall be substituted , namely:-

"(47) " franchise " means an agreement by which the franchisee is granted representational right to sell or manufacture goods or to provide service or undertake any process identified with franchisor, whether or not a trade mark, service mark, trade name or logo or any such symbol , as the case maybe, is involved; ';

(xii) in clause(556), in sub-clause (a) , for the words ", whether permanently or otherwise" , the word " temporarily " shall be substituted;

(xiii) after clause (63), the following clause shall be inserted, namely:-

(63a) " mailing list compilation and mailing " means any service in relation to-

(1) compiling and providing list of name , address and any other information froin any source; or

(ii) sending document, information , goods or any other material in apacket, by whatever name called, by addressing , stuffing, sealing, metering or mailing,

for, or on behalf of, the client;' ;

(xiv) for clause (64) , the following clause shall be substituted, namely:--

'(64) " maintenance or repair " means any service provided by

(i) any person under a contract or an agreement; or

(ii) a manufacturer or any person authorised by him , inrelation to,-

(a) maintenance or repair including reconditioning or restoration, or servicing of any goods or equipment, excluding motor vehicle; or

(b)maintenance or management of immovable property;' ; (xv) for clause(68), the following clause shall be substituted, namely:-

'(68) " manpower recruitment or supply agency " means any commercial concern engaged in providing any service , directly or indirectly, SEC.2]

THE GAZETTE OF INDIA EXTRAORDINARY

in any manner for recruitment or supply of manpower , temporarily or otherwise, to a client;';

(xvi) in clause(76a) , after the words " other than his own" , the words "but including a place provided by way oftenancy or otherwise by the person receiving , such services " shall be inserted;

(xvii) after clause (76a) , the following clause shall be inserted, namely:-

1 of 1944.

'(766) "packaging activity" means packaging of goods including pouch filling,bottling, labelling or imprinting ofthe package, but does not include any packaging activity that amounts to 'manufacture' within the meaning of clause (f) of section 2 ofthe Central Excise Act, 1944;';

(xviii) after clause (91 ) , the following clause shall be inserted, namely:

(91a) " residential complex " means any complex comprising of-

(1) a building or buildings , having more than twelve residential units;

(ii) acommon area; and

(iii) anyone or more offacilities or services such as park, lift, parking space, community hall , common water supply or effluent treatment system,

located within a premises and the layout of such premises is approved by an authority under any law for the time being in force , hut does not include a complex which is constructed by a person directly engagingany other person for designing or planning of the layout, and the construction ofsuch complex is intended for personal use as residence by such person .

Explanation. For the removal ofdoubts , it is hereby declared that for the purposes ofthis clause,-

(a) " personal use " includes permitting the complex for use as residence by another person on rent or without consideration;

(6) " residential unit " means a single house or asingle apartment intended for use as a place of residence;' ;

(xix) after clause (97) , the following clause shall be inserted, namely:-

(97a) " site formation and clearance , excavation and earthmoving and demolition" includes ,-

(1) drilling, boring and core extraction services for construction, geophysical , geological or similar purposes; or

(it)soil stabilization ; or

(iii) horizontal drilling for the passage ofcables or drain pipes;

(iv) land reclamation work; or

(v) contaminated top soil stripping work; or

(vi) demolition and wrecking of building, structure or road,

but does not include such services provided in relation to agriculture , irrigation, watershed development and drilling , digging, repairing, renovating or restoring of water sources or water bodies;' ;

(xx) for clause (98) , the following clause shall be substituted, namely:-

'(98) "sound recording " means recording of sound on any media or device including magnetic storage device, and includes services relating to recording of sound in any manner such as sound cataloguing, storing [PART II-

THE GAZETTE OF INDIA EXTRAORDINARY

of sound and sound mixing or re- mixing or any audio post-production activity,':

(xxi) after clause( 104a) , the following clause shall be inserted, namely:--

(1046) " survey and map- making " means geological , geophysical orany other prospecting , surface , sub - surface or aerial surveying or map- making of any kind , but does not include survey and exploration of mineral;';

(xxxii) in clause ( 105),-

(a) for the words " service provided ", the words " service provided or to be provided " shall be substituted:

(b) for sub-clause (k), the following sub-clause shall be substituted, namely:

"(k) to a client , by a manpower recruitment or supply agency in relationto the recruitment or supply of manpower, temporarily or otherwise, in any manner: " :

( in sub -clause (m) , for the words "provided to the client in relation to such use and also the services , if any, rendered as a caterer " , the words "provided or to be provided to the client in relation to such use and also the services , if any, provided or to be provided as a caterer " shall be substituted:

(d ) in sub -clause (zk) , for the words " collecting the broadcasting charges on behalf of the said agency " , the words " collecting the broadcasting charges or permitting the rights to receive any form of communication like sign, signal , writing, picture , image and sounds ofall kinds by transmission of electro-magnetic waves through space or through cables, direct to home signals or by any other means to cable operator, including multisystem operator or any other person on behalf of the said agency" shall be substituted;

(e) in sub-clause (zo) , for the words " or repair of motor cars ", the words ", repair, reconditioning or restoration of motor cars, light motor vehicles" shall be substituted;

(1) sub-clause (zz ) shallbe omitted;

(g) in sub-clause (zzk) , for the words , brackets and letters " sub- clauses (zm) and (zp)", the word, brackets and letters " sub-clause (zm) " shall be substituted;

(h) in sub-clause (zzq), for the words " construction service" , the words " commercial or industrial construction service " shall be substituted;

(1) in sub-clause (zzw ), for the word " rendered " , the words "provided or to be provided " shall be substituted;

(1) after sub-clause (zzy) , the following sub-clauses shall be inserted, namely:-

"(zzz) to any person, by any other person, in relation to transport of goods other than water , through pipeline or other conduit;

(zzza) to any person, by any other person, in relation to site formation and clearance, excavation and earthmoving anddemolition and such other similar activities;

(zzzb) to any person , by any other person , in relation to dredging;

THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

(zzzc) to any person , by any other person , other than by an agency under the control of, or authorised by, the Government, in relation to survey and map- making;

(zzzd) to any person , by any other person , in relation to cleaning activity;

(zzze) to its members , by any club or association in relation to provision ofservices , facilities or advantages for a subscription or any other amount;

(zzzf) to any person , by any other person, in relation to packaging activity;

(zzzg) to any person , by any other person, in relation to mailing list compilation and mailing;

(zzzh) to any person , by any other person, in relation to construction ofcomplex; ";

(4) at the end, the following Explanation shall be inserted, namely:--

"Explanation. For the removal of doubts, it is hereby declared that where any service provided or to be provided by a person, who has established a business or bas a fixed establishment from which the service is provided or to be provided, or has bis permanent address or usual place of residence , in a country other than India and such service is received or to be received by a person who has his place of business , fixed establishment, permanent address or, as the case may be, usual place of residence, in India, such service shall be deemed to be taxable service for the purposes ofthisclause;" ;

(xxiii) for clause ( 120), the following clause shall be substituted, namely:-

'(120) " video-tape production " means the process ofany recording ofanyprogramme , event or function on a magnetic tape or on any other media or device and includes services relating thereto such as editing, cutting, colouring, dubbing, title printing, imparting special effects , processing, adding, modifying or deleting sound , transferring from one media or device to another, or undertaking any video post -production activity, in any manner;';

(8) in section 66, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint,-

(i) forthebrackets and letters " ( zzj) , (zzk)", the brackets and letters "(zzk)" sball be substituted;

(ii) for the word, brackets and letters " and (zzy) " , the brackets , letters and word", (zzy) , (zzz), (zzza), (zzzb), (zzzc), (zzzd), (zzze ), (zzzf) , (zzzg) and (zzzh) " shall be substituted;

(1) for the words " rendered by him " , the words "provided or to be provided by him" shall be substituted;

(ii) after Explanation 2, the following Explanation shall be inserted, namely:-

"Explanation 3.- For the removal of doubts , it is hereby declared that the gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision ofsuch service.";

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II-

(d) section 69 shall be numbered as sub -section (1 ) thereof, and after sub- section ( 1) as so numbered, the following sub -section shall be inserted, namely:--

"(2) The Central Government may, by notification in the Official Gazette, specify such other person or class of persons , who shall make an application for registration within such time and in such manner and in such form as may be prescribed.";

(e) section 70 shall be numbered as sub -section ( 1 ) thereof, and after sub- section ( 1 ) as so numbered, the following sub - section shall be inserted, namely:-

"(2) The person or class of persons notified under sub - section (2) of section 69, shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency as may be prescribed. " ;

() insection 73 , for the words "Assistant Commissioner of Central Excise or, as the case maybe, the Deputy Commissioner of Central Excise " , wherever they occur, the words " Central Excise Officer " shall be substituted;

(g) in section 74, for the words "Assistant Commissioner of Central Excise or, as the case may be, the Deputy Commissioner of Central Excise " , wherever they occur, the words " Central Excise Officer " shall be substituted;

(h) in section 78 , in the first proviso , for the words "Assistant Commissioner of Central Excise or, as the case maybe, the Deputy Commissioner of Central Excise ", the words " Central Excise Officer " shall be substituted;

(i) in section 83 , for the figures and letter " 15 , 35F, " , the figures and letters " 15, 33A, 35F " shall be substituted;

(1) after section 83, the following section shall be inserted , namely:-

Power of adjudication.

54 of 1963 .

'83A. Where under this Chapter or the rules made thereunder any person is liable to a penalty, such penalty may be adjudged by the Central Excise Officer conferred with such power as the Central. Board of Excise and Customs constituted under the Central Boards of Revenue Act , 1963 , may, by notification inthe OfficialGazette, specify." ;

(k) in section 84,-

(a) insub-section (1 ), for the words "which has been taken by the Assistant Commissioner of Central Excise or, as the case maybe , Deputy Commissioner of Central Excise", the words " in which an adjudicating authority subordinate to him has passed any decision or order " shall be substituted;

(b) in sub -section (3), for the words " the Assistant Commissioner ofCentral Excise or, as the case may be, Deputy Commissioner of Central Excise " , the words " such adjudicating authority " shall be substituted;

(1) in section 85 ,-

(a) for sub -section ( 1 ) , the following sub- section shall be substituted, namely:-

"(1) Any person aggrieved by any decision or order passed by an adjudicating authority subordinate to the Commissioner ofCentral Excise may appeal to the Commissioner ofCentral Excise (Appeals) . " ;

(b) in sub-section (3 ), for the words " the Assistant Commissioner of Central Excise or, as the case maybe, Deputy Commissioner of Central Excise " , the words "such adjudicating authority " shall be substituted;

(m) in section 86,-

(a) in sub-section ( 1 ) , for the word and figures " section 84 " , the words, letter and figures " section 73 or section 83A or section 84 " shallbe substituted;

SBC.2]

THE GAZETTE OF INDIA EXTRAORDINARY

(b) in sub -section (2), for the word and figures " section 84 " , the words , letter and figures " section 73 or section 83A or section 84 " shall be substituted;

(c) in sub- section ( 24 ) , for the words " the Assistant Commissioner of Central Excise or, as the case may be, Deputy Commissioner ofCentral Excise to appeal" , the words " any Central Excise Officer to appeal onhis behalf" shall be substituted;

(a) insub-section(4), for the words "Assistant Commissioner ofCentral Excise orDeputyCommissioner ofCentral Excise " , the words " any Central Excise Officer subordinate to him " shall be substituted;

(n) in section 94, in sub- section (2),

(1) in clause (b), for the words and figures "under section 69 ", the words , brackets and figures " under sub- sections ( 1) and ( 2) of section 69" shall be substituted;

(ii) inclause(c) , for the words and figures " under section 70 " , the words , brackets and figures " under sub - sections ( 1 ) and (2 ) of section 70 " shall be substituted;

(0) in section 96A,-

(i) for clause(b), the following clause shall be substituted, namely:

(b) " applicant " means any person who ,

(1) (a) a non - resident setting up a joint venture in India in collaboration with a non - resident or a resident; or

(b) is a resident setting up a joint venture in India in collaboration with a non- resident; or

who or which, as the case may be, proposes to undertake any

business activity in India;

(ii) is ajoint venture in India; or

(iii) a resident falling within any such class or category of persons, as the Central Government may, by notification in theOfficial Gazette, specifyin this behalf,

and which or who , as the case may be, makes application for advance ruling under sub-section (1) of section 96C;;

(ii) in clause (a), for the words "Authority for Advance Rulings", the words and brackets " Authority for Advance Rulings ( Central Excise, Customs and Service Tax) " shall be substituted.

CHAPTER VI

CENTRAL SALES TAX

74 of 1956 .

Amendment ofsection 2.

89. In section 2 ofthe Central Sales TaxAct, 1956 (hereinafter referred to as the Central Sales TaxAct) ,

(a) in clause (h) , the following proviso shall be inserted at the end, namely:

"Provided that in the case ofa transfer ofproperty in goods (whether as goods or in some other form) involved in the execution ofa works contract, the sale price ofsuch goods shall be determined in the prescribed manner by making such deduction from the total consideration for the works contract as maybe prescribed and such price shall be deemed to be the sale price for the purposes ofthis clause . ";

[PART II-

THE GAZETTE OF INDIA EXTRAORDINARY

(b) for clause (1) , the following clause shall be substituted, namely:-

'(i) "sales tax law " means any law for the time being in force in any State or part thereof which provides for the levy of taxes on the sale or purchase of goods generally or on any specified goods expressly mentioned in that behalf and includes value added tax law, and " general sales tax law " incans any law for the timebeing in force in any State or part thereofwhich provides for the levy oftax onthe sale or purchase of goods generally and includes value added tax law; ';

(ja) "works contract " means a contract for carrying out any work which includes assembling, construction , building, altering , manufacturing, processing, fabricating , erection , installation , fitting out, improvement , repair or commissioning of any movable or immovable property; ' .

Amendment ofsection 5 .

90.In section 5 of the Central Sales Tax Act , after sub - section (3 ) , the following sub- sections shall be inserted , namely:-

'(4) The provisions of sub - section (3 ) shall not apply to any sale or purchase of goods unless the dealer selling the goods furnishes to the prescribed authority in the prescribed manner a declaration duly filled and signed by the exporter to whom the goods are sold in a prescribed form obtained from the prescribed authority.

(5) Notwithstanding anything contained in sub - section ( 1 ) , if any designated Indian carrier purchases Aviation Turbine Fuel for the purposes of its international flight , such purchase shall be deemed to take place in the course ofthe export of goods out ofthe territory ofIndia.

Explanation. For the purposes of this sub - section , "designated Indian carrier " means any carrier which the Central Government may, by notification in the Official Gazette, specify in this behalf.' .

Amendment ofsection 6 .

91. In section 6 of the Central Sales Tax Act, for sub- section (3 ) , the following sub- sections shall be substituted , namely:-

"(3) Notwithstanding anything contained in this Act , no tax under this Act sball be payable by any dealer in respect of sale of any goods made by such dealer, in the courseofinter-State trade or commerce , to any official , personnel , consular or diplomatie agent of-

(i) any foreign diplomatic mission or consulate in India; or

(ii) the United Nations or any other similar international body,

entitled to privileges under any convention or agreement to which India is a party or under any law for the time being in force, if such official , personnel, consular or diplomatic agent , as the case may be , has purchased such goods for himself or for the purposes of such mission, consulate, United Nations or other body.

(4) The provisions of sub- section (3) shall not apply to the sale of goods made in the course of inter- State trade or commerce unless the dealer selling such goods furnishes to the prescribed authority a certificate in the prescribed manner on the prescribed formduly filled and signed by the official , personnel , consular or diplomatic agent, as the case may be. " .

Amendment of section 13 .

92. In section 13 ofthe Central Sales Tax Act, in sub-section ( 1 ) , clause (aa) shall be re- lettered as clause (ab ) thereof, and before clause (ab ) as so re- lettered , the following clause shall be inserted, namely:-

"(aa) the manner ofdetermination of the sale price and the deductions from the total consideration for a works contract under the proviso to clause (1) ofsection 2; " .

CHAPTER VII

BANKING CASH TRANSACTION ΤΑΧ

93. (1 ) This Chapter extends to the whole of India except the State of Jammu and Extent, commencement Kashmir. and

application.

THE GAZETTE OF INDIA EXTRAORDINARY

SEC.2]

(2) It shall come into force on the 1st day of June, 2005 .

(3) It shall apply to taxable banking transactions entered into on or after the commencement ofthis Chapter.

Definitions.

94. In this Chapter, unless the context otherwise requires ,-

43 of 1961 .

(1) "Appellate Tribunal " means the Appellate Tribunal constituted under section 252 ofthe Income-taxAct, 1961 ;

(2) "Assessing Officer " means the Income- tax Officer or Assistant Commissioner ofIncome-tax or Deputy Commissioner ofIncome- tax or Joint Commissioner ofIncome- tax or Additional Commissioner of Income- tax who is authorised by the Board to exercise or perform all or any ofthe powers and functions conferred on , or assigned to, anAssessing Officer under this Chapter;

(3) "banking cash transaction tax " means tax leviable on the taxable banking transactions under the provisions of this Chapter;

54 of 1963.

(4) "Board" means the Central Board of Direct Taxes constituted under the CentralBoards ofRevenue Act, 1963;

43 of 1961 .

(5) "person" shall have the same meaning as in clause ( 31 ) of section 2 of the Income-taxAct, 1961 and includes an office or establishment of the Central Govemment or the Government of a State;

(6) "prescribed" means prescribed by rules made by the Board under this Chapter,

23 of 1955 .

38 of 1959 .

5 of 1970.

40 of 1980.

2 of 1934.

(7) "scheduled bank " means the State Bank of India constituted under the State Bank of India Act, 1955, a subsidiary bank as defined in the State Bank of Indis (Subsidiary Banks ) Act, 1959, a corresponding new bank constituted under section 3 ofthe Banking Companies (Acquisition and Transfer ofUndertakings) Act, 1970, or under section 3 ofthe Banking Companies (Acquisition and Transfer ofUndertakings) Act, 1980, or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934;

(8) " taxable banking transaction " means-

(a) atransaction, being withdrawal of cash (by whatever mode) exceeding ten thousand rupees on any single day by a person from any scheduled bank, or,

(b) atransaction , being purchase of a bank draft or banker's cheque or any other financial instrument on payment of cash exceeding ten thousand rupees on any single day by a person from any scheduled bank; or

(c) a transaction, being receipt ofcash from any scheduled bank exceeding ten thousand rupees on any single day by a Person on encashment of term deposit, whether on maturity or otherwise, from that bank;

26 of 1881 .

2 of 1934.

10 of 1949 .

(9) words and expressions used but not defined in this Chapter and defined in theNegotiable Instruments Act, 1881 , the Reserve Bank of India Act, 1934, the Banking Regulation Act, 1949, the Income- tax Act, 1961 , or the rules or regulations made thereunder, shall apply, so far as may be, in relation to banking cash transaction tax.

43 of 1961

Chargeof transaction banking cash tax .

95. (1) On and from the commencement of this Chapter, there shallbe charged a banking cash transaction tax, in respect of every taxable banking transaction of the value exceedingten thousand rupees and entered into on or after the 1st day of June,2005, at the rate of0.1 per cent. ofthe value of every such taxable banking transaction.

(2)Thebanking cash transaction tax referred to in sub-section ( 1 ) shallbe payable,-

(i) inrespect oftaxable banking transaction referred to in sub-clause (a) of clause(8) of section 94, by the person who withdraws the cash from any scheduled bank;

(ii) in respect of taxable banking transaction referred to in sub-clause (b) of clause (8) ofsection 94,by the person who purchases a bank draft ofbanker's cheque or any other financial instrument from any scheduled bank;

[PART II-

THE GAZETTE OF INDIA EXTRAORDINARY

(iii) in respect of taxable banking transaction referred to in sub -clause (c) of clause (8) of section 94 , by the person who received the cash on encashment of term deposit;

(iv) in respect oftaxable banking transaction being withdrawal of cash exceeding ten thousand rupees by way of bearer cheque or such other instrument , by the bearer ofsuch cheque or instrument to whom such payment is made in cash by the scheduled bank:

Provided that no banking cash transaction tax shall be payable ifthe amount of term deposit is credited to any account with the bank.

96. The value of taxable banking transaction shall be ,-

Value of taxable banking transaction .

(1) in respect of taxable banking transaction referred to in sub -clause (a ) of clause(8) ofsection 94 , the amount of cash withdrawn;

(ii) in respect of taxable banking transaction referred to in sub - clause (b) of clause (8) of section 94 , the amount of cash deposited ;

(iii) in respect of taxable banking transaction referred to in sub -clause (c ) of clause (8) ofsection 94 , the amount of cash received on encashment of term deposit.

Collection and recovery of banking cash transaction tax.

97. (1 )Every scheduled bank shall collect the banking cash transaction tax from every person, being a person referred to in clause (i) or clause (ii) or clause ( iii) ofsub -section (2) of section 95 who enters into a taxable banking transaction with that bank, at the rate specified in section 95.

(2)The banking cash transaction tax collected during any calendar month in accordance with the provisions of sub- section ( 1 ) shall be paid by every scheduled bank to the credit of the Central Government by the fifteenth day of the month immediately following the said calendar month .

(3)Any scheduled bank , who fails to collect the tax in accordance with the provisions ofsub- section ( 1 ) , shall , notwithstanding such failure , be liable to pay the tax to the credit of the Central Government in accordance with the provisions of sub -section (2).

Scheduled bank to furnish prescribed return.

98.(1) Every scheduled bank (hereafter in this Chapter referred to as assessee) shall , within the prescribed time after the end of each financial year , prepare and deliver or cause to be delivered to the Assessing Officer or to any other authority or agency authorised by the Board in this behalf, a return in such form arid verified in such manner and setting forth such particulars as may be prescribed , in respect of all taxable banking transactions entered into during such financial year in the scheduled bank .

(2) Where any assessee fails to furnish the return under sub- section ( 1 ) within the prescribed time , the Assessing Officer may issue a notice to such assessee and serve it upon him , requiring him to furnish the return in the prescribed form and verified in the prescribed manner setting forth such particulars within such time as may be prescribed.

(3)Any assessee who has not furnished the return within the time allowed under sub- section ( 1 ) or sub -section (2 ) , or having furnished a return under sub-section ( 1 ) or sub- section (2), discovers any omission or wrong statement therein , may furnish a return or a revised return, as the case maybe , at any time before the assessment is made.

Assessment.

99.(1) For the purposes of making an assessment under this Chapter, the Assessing Officer may serve on any assessee, who has furnished a return under sub - section ( 1 ) or sub- section (3) of section 98 or upon whom a notice has been served under sub- section (2) of section 98 (whether a return has been furnished or not) , a notice requiring him to produce or cause to be produced on a date to be specified therein such accounts or documents or other evidence as the Assessing Officer may require for the purposes of this Chapter and may, from time to time, serve further notices requiring the production of such further accounts or documents or other evidence as he may require.

(2) The Assessing Officer , after considering such accounts, documents or other evidence, if any, as he has obtained under sub- section ( 1 ) and after taking into account any SEC.2]

THE GAZETTE OF INDIA EXTRAORDINARY

other relevant material which he has gathered , shall , by an order in writing, assess the value of taxable bariking transactions during the relevant financial year and determine the amount of banking cash transaction tax payable or refundable on the basis of such assessment :

Provided that no assessment shall be made under this sub - section after the expiry of two years from the end of the relevant financial year.

(3) Every assessee , in case any amount is refunded to it on assessment under sub- section ( 2) , shall, within such time as may be prescribed, refund such amount to the concerned person from whom such amount was collected.

ofmistake. Rectification 100. (1 ) With a view to rectifying any mistake apparent from the record, the Assessing Officer may amend any order passed by him under the provisions ofthis Chapter within one year from the end of the financial year in which the order sought to be amended was passed.

(2) Where any matter has been considered and decided in any proceeding by way of appeal relating to an order referred to in sub-section (1 ), the Assessing Officer passing such order may, notwithstanding anything contained in any law for the time being in force, amend the order under that sub - section in relation to any matter other than the matter which has been so considered and decided.

(3) Subject to the other provisions of this section , the Assessing Officer may-

(a) make an amendment under sub - section ( 1) ofhis own motion; or

(b) make such amendment if any mistake is brought to his notice by the assessee.

(4) An amendment, which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, shall not be made under this section unless the Assessing Officer concerned has given notice to the assessee of his

intention so to do and has allowed the assessee a reasonable opportunity of being heard. (5) Where an amendment is made under this section , an order shall be passed in writingby the Assessing Officer .

(6) Subject to the other provisions ofthis Chapter , wbere any such amendment has the effectofreducing the assessment, the Assessing Officer shall make any refund , which may be due to such assessee .

(7) Where any such amendment has the effect ofenhancing the assessment or reducing the refund already made , the Assessing Officer shall make an order specifying the sum payable by the assessee and the provisions of this Chapter shall apply accordingly.

interest on delayed payment of banking cash transaction tax .

101. Every assessee who fails to credit the banking cash transaction tax or any part thereof as required under section 97, to the account of the Central Government within the period specified in that section, sball pay simple interest at the rate of one per cent . of such tax for every month or part of a month by which such crediting of the tax or any part thereof is delayed.

102. Any assessee who-

(a) fails to collect the whole or any part of the banking cash transaction tax as required under section 97; or

Penalty for failure to collect or pay banking cash transaction Lax.

(b) having collected the banking cash transaction tax, fails to pay such tax to the credit ofthe Central Government in accordance with the provisions of sub-section (2) ofsection97,

shall be liable to pay,-

(i) inthecase referred to in clause (a) , in addition to paying the tax in accordance with the provisions ofsub -section (3) ofsection 97 , or interest, ifany, in accordance with the provisions of section 101 , by way of penalty, a sum equal to the amount of banking cash transaction tax that it failed to collect; and

(ii) in thecase referred to in clause ( b) , in addition to paying the tax in accordance withthe provisions of sub-section ( 2) of section 97 and interest in accordance with the [PART II-

THE GAZETTE OF INDIA EXTRAORDINARY

provisions of section 101 , by way of penalty , a sum of one thousand rupees for every day during which the failure continues , so , however, that the penalty under this clause shall not exceed the amount of banking cash transaction tax that it failed to pay.

103. Ifan assessee fails to furnish in due time the return which it is required to furnish under sub - section ( 1 ) of section 98 or by notice given under sub - section (2) of that section , it shall be liable to pay, by way of penalty, a sum of one hundred rupees for every day during which the failure continues .

Penalty for failure to furnish prescribed return.

Penalty for failureto comply with notice.

104. Ifthe Assessing Officer in the course of any proceedings under this Chapter is satisfied that any person has failed to comply with a notice under sub -section ( 1 ) of section 99, he may direct that such person shall pay, by way of penalty, in addition to any banking cash withdrawal transaction tax and interest, if any, payable by him , a sum of ten thousand rupees for each such failure.

105. Notwithstanding anything contained in the provisions of section 102 or section 103 or section 104, no penalty shall be imposable for any failure referred to in the said provisions if the assessee proves that there was reasonable cause for the said failure:

Penalty not to be imposed in certain casca.

Provided that no order imposing a penalty under this Chapter shall be made unless the assessee has been given a reasonable opportunity of being heard .

106. The provisions ofthe following sections of the Income-tax Act , 1961 , as in force from time to time, shail apply, so far as may be , in relation to banking cash transaction tax as theyapply in relation to income-tax:-

Application of certain provisions of Act 43 of 1961 .

120,131,133A, 156, 178, 220 to 227 , 229, 232, 260A, 261 , 262, 265 to 269, 278B, 282 and 288 to 293 .

Appeals to Commissioner of Income- tax (Appeals)

107. (1 ) Any assessee aggrieved by any assessment order passed by the Assessing Officer under section 99 or any order under section 100, or denying his liability to be assessed under this Chapter , or by an order levying penalty under this Chapter, may appeal to the Commissioner ofIncome -tax (Appeals) within thirty days from the date of receipt ofthe order oftheAssessing Officer.

(2) Every appeal under sub -section (1) shall be in the prescribed form and shall be verified in the prescribed manner and shall be accompanied by a fee of one thousand rupees .

43 of 1961 .

(3) Where an appeal has been filed under the provisions of sub -section ( 1 ), the provisions ofsections 249 to 251 of the Income- tax Act, 1961 , shall , as far as may be, apply.

108. (1 )Any assessee aggrieved by an order passed by a Commissioner of Income-tax (Appeals) under section 107 may appeal to the Appellate Tribunal against such order .

Appeals to Appellate Tribunal.

(2) The Commissioner of Income -tax may, if he objects to any order passed by the Commissioner of Income- tax (Appeals ) under section 107, direct the Assessing Officer to appeal to the Appellate Tribunal against such order.

(3) Every appeal under sub- section ( 1 ) or sub - section (2) shall be filed within sixty days of the date on which the order sought to be appealed against is received by the assessee, or by the Commissioner of Income -tax, as the case may be .

(4) Every appeal under sub - section ( 1 ) or sub - section (2) shall be in the prescribed form and shall be verified in the prescribed manner and in the case of an appeal filed under sub -section ( 1 ) shall be accompanied by a fee of one thousand rupees .

43 of 1961 .

(5) Where an appeal has been filed before the Appellate Tribunal under sub-section (1) or sub -section (2), the provisions of sections 252 to 255 ofthe Income- tax Act, 1961 , shall , as far as may be , apply.

False statement in verification , etc..

109. (1 ) Ifa person makes a statement in any verification under this Chapter or anyrule made thereunder, or delivers an account or statement , which is false, and which he either knows or believes to be false , or does not believe to be true , he shall be punishable with imprisonment for a term which may extend to three years and with fine.

THE GAZETTE OF INDIA EXTRAORDINARY

SEC: 2]

2 of 1974.

(2)Notwithstanding anything contained in the Code of Criminal Procedure , 1973 , an offence punishable under sub - section ( 1 ) shall be deemed to be non - cognizable within the meaning ofthat Code.

Institution of proceedings.

110.A person shall not be proceeded against for any offence under section 109 except with the previous sanction of the Chief Commissioner of Income-tax.

Power to make rules .

111. (1 ) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Chapter .

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any ofthe following matters, namely:-

(a) the time within which the return shall be delivered or caused to be delivered to the Assessing Officer or to any other agency and the form and the manner in which such return shall be furnished under sub -section ( 1) or sub -section (2) of section 98 ;

(b) the time within which the return shall be furnished on receipt of notice under sub - section ( 2) of section 98;

99;

(d)the form inwhich an appeal under section 107 or section 108 maybe filed and the manner in which they may be verified;

(e) any other matter which by this Chapter is to be , or may be , prescribed .

(3) Every rule made under this Chapter shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period ofthirty days which may be comprised in one session or in two or more successive sessions , and if, before the expiry ofthe session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made , the rule shall thereafter have effect only in such modified form or be of no effect , as the case may be; so , however, that any such modification or annulment shali be without prejudice to the validity of anything previously done under that rule .

Power to remove difficulties.

112.(1 ) If any difficulty arises in giving effect to the provisions of this Chapter, the Central Government may, by order published in the Official Gazette , not inconsistent with the provisions of this Chapter, remove the difficulty:

Provided that no such order shall be made after the expiry of a period of two years from the date on which the provisions of this Chapter come into force .

(2) Every order made under this section shall be laid , as soon as may be after it is made, before each House of Parliament .

CHAPTERVIII

MISCELLANEOUS

113. In section 3 of the Government Savings Banks Act, 1873 , in the definition of "depositor " , the following proviso shall be inserted, namely:-

Amendment ofAct 5 of 1873.

'Provided that on and after the date on which the Finance Bill, 2005 receives the assent of the President , the provisions of this clause shall have effect as if for the words " a person " , the words " an individual " had been substituted.' .

114. After section 8A of the Indian Stamp Act, 1899, the following section shall be inserted , namely:-

Insertion of new section 8B in Act 2 of 1899 .

Corporatisation and '8B . Notwithstanding anything contained in this Act or any other law for the time being in force,-

(a) a scheme for corporatisation or demutualisation, or both of a recognised stock exchange; or

demutualisation schemes and related instru- ments not liable toduty.

[PART I-

THE GAZETTE OF INDIA EXTRAORDINARY

(b) any instrument, including an instrument of, or relating to , transfer of any property, business , asset whether movable or immovable, contract, right, liability and obligation , for the purpose of, or in connection with , the corporatisation or demutualisation , or both of a recognised stock exchange pursuant to a scheme ,

42of1956.

asapprovedby the Securities and Exchange Board of India under sub -section (2) of section 4B ofthe Securities Contracts (Regulation)Act, 1956, shall not be liable to duty under thisAct or any other law for the time being in force.

Explanation-For the purposes of this section,-

42 of 1956.

(a) the expressions " corporatisation " , "demutualisation " and " scheme " shall have the meanings respectively assigned to them in clauses ( aa) , (ab ) and (ga) ofsection 2 ofthe Securities Contracts (Regulation )Act, 1956;

15 of 1992.

(b) "Securities and Exchange Board of India " means the Securities and Exchange Board of India established under section 3 of the Securities and ExchangeBoard of IndiaAct, 1992.1.

115. Section 2 ofthe Contingency Fund of India Act, 1950 shall be numbered as sub- section ( 1) thereof, and after sub -section (1) as so numbered , the following sub- section shall be inserted, namely:-

Amendment of section 2 ofAct 49 of 1950.

"(2)On and from the date on which the Finance Bill, 2005 receives the assent of thePresident, the sum which shall be paid from and out ofthe Consolidated Fund of India into theContingency Fund of India under sub-section (1) shall stand enhancedto fivehundred crores of rupees.".

116. For the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act , 1957, the Schedule specified in the Tenth Schedule shall be substituted.

Substitution of new Sche- dule for First Scheduleto Act58 of1957.

117. In section 2 ofthe Government Savings Certificates Act, 1959, for clause(a) , the following clauses shall be substituted, namely:--

'(a) "holder" , in relation to a savings certificate, means-

Amendment of section 2 ofAct 46 of 1959.

(1) a person who holds the savings certificate issued in accordance with the provisions ofthis Act and of any rules made thereunder at any time before thedate on which the Finance Bill , 2005 receives the assent ofthe President; and

(it) an individual who holds the savings certificate issued in accordance with the provisions ofthis Act and of any rules made thereunder at any time on or after the date on which the Finance Bill , 2005 receives the assent of the President;

9 of 1875 .

(aa) "minor " means a person who is not deemed to have attained his majority under the MajorityAct, 1875; ' .

118. For the Schedule to the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 , the Schedule specified in the Eleventh Schedule shall be substituted.

Substitution of newSchedule for Scheduleto Act40 of 1978.

119. In the Finance (No. 2) Act, 1998, in the Second Schedule, for the entry in column (3), the entry "Rupee two per litre " shall be substituted.

Amendment ofSecond Scheduleto Act 21 of 1998 .

120.In the Finance Act, 1999 , in the Second Schedule , for the entry in column (3 ), the entry "Rupee two per litre " shall be substituted.

Amendment ofSecond Scheduleto Act 27 of 1999.

121. Section 10 of the Central Road Fund Act, 2000 shall be numbered as sub- section (1) thereof, and after sub - section (1 ) as so numbered, the following sub - section shall be inserted, namely:

Amendment of section 10 ofAct 54 of 2000.

SEC.2]

THE GAZETTE OF INDIA EXTRAORDINARY

21 of 1998 .

27 of 1999 .

"(2) Notwithstanding anything contained in clause (viii) of sub-section ( 1), the Central Government shall , with effect from the 1st day of March, 2005, allocate fifty paise from the amount of rupee two as amended by sections 119 and 120 ofthe FinanceAct, 2005 as the additional duty of customs and the additional duty.of excise on petrol , levied under sub-section ( 1 ) of section 103 and sub-section (1) of section 111 , as the case may be, of the Finance (No. 2) Act, 1998 and the additional duty of customs and the additional duty of excise on high speed diesel oil levied under sub-section (1 ) of section 116 and sub-section (1 ) of section 133 , as the case may be , ofthe Finance Act, 1999, exclusively for the development and maintenance ofnational highways." .

122. For the Seventh Schedule to the Finance Act, 2001 , the Schedule specified in the Twelfth Schedule shall be substituted .

Substitution of new Schedule, fir Seventh Schedule toAct 14 of 2001 .

123. In the FinanceAct, 2003 ,-

(a) section 128 shall be omitted;

Amendment ofAct32 of 2003.

(b) in section 134, the Explanation shall be omitted;

(a) insection 169, the portion beginning with the words " and the amendment so made " and ending with the words " repealed by a Central Act " shall be omitted with effect from the 31st day ofMarch, 2005;

(e) the Fourth Schedule shall be omitted .

124. In the Finance (No. 2)Act, 2004,-

Amendment ofAct 23 of 2004.

(a) in section 88, after sub- section (4) , the following sub-sections shall be inserted, namely:-

58 of 1957.

"(5) Notwithstanding anything contained in sub-section (4), the following procedure shall be followed for the recovery ofthe CENVAT credit of additional dutyleviable under section 3 ofthe Additional Duties ofExcise (Goods ofSpecial Importance) Act, 1957 which has been availed but which would not have been avaited if the amendment made by sub- section ( 1 ) was in force at al ا material times (hereinafter referred to in this section as the amount of credit) , namely:-

5 of 1986.

(i) the Central Excise Officer shall , on or before the 25th day of May, 2005, serve notice on the person from whom the recovery is to be made (hereinafter referred to as the assessee ), requiring the assessee to declare the amount of credit utilised by him on different dates for payment ofdutyofexcise (hereinafter referred to as the CENVAT duty) leviable under the First Schedule or the Second Schedule to the Central Excise TariffAct, 1985;

(ii) the assessee shail furnish the declaration as required under clause( i) on or before the 31st day ofMay, 2005;

(ii) the Central Excise Officer shall , after considering the declaration made by the assessee under clause ( if), determine the amount of credit utilised on different dates for payment of CENVAT duty;

(iv) the Central Excise Officer shall separately determine the amount ofinterest on the amount of credit (hereinafter referred to as the amount of interest) utilised for paying the CENVAT duty, in accordance with the provisions of clause (v);

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II-

(v) the amount of interest on amount of credit utilised for paying the CENVAT duty shall be at a rate of thirteen per cent . per annum for the period beginning on and from the day when each time the amount ofcredit was so utilised and ending on the 10th day of September, 2004;

(vi) the Central Excise Officer shall , on or before the 15th day of June, 2005 , inform the assessee, in writing , the amount of credit and the amount of interest so determined under clauses ( iii) and ( iv) ;

(vii) the assessee shall pay an amount equal to one-thirty sixth part of each ofthe amount determined under clauses ( iii) and (iv) by the fifth day of everymonth, commencing from the month , following the month ofreceipt of information ofthe amount determined by the Central Excise Officer;

(viii) theassessee may make payment on his own towards the amount of credit or, as the case may be , the amount of interest, in excess of the amount required to be paid up to a particular month;

(ix) where the assessee pays the total amount of credit and the amount of interest so determined under clauses ( iii) and ( iv) , respectively, the Central Excise Officer shall issue an order confirming the payment of credit and the amount of interest and discharging the assessee from any recovery ofthe amount of credit;

58 of 1957.

(x) for the purposes of this sub - section , it is hereby clarified that the amount of credit has been fully utilised first towards payment ofthe CENVAT duty before utilising the CENVAT credit of additional duty leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 paid on or after the 1st day of April , 2000 for payment of the CENVAT duty.

(6) Where the assessee fails to furnish the declaration as required under clause ( i) , or has furnished the declaration but failed to pay the amount by the day as specified in clause ( vii ) , of sub - section ( 5) , the provisions of sub -section ( 4) shall apply subject to the modification that the notice , requiring the assessee to show cause why he should not pay the amount specified in the notice , shall be served upon him within three months from the date ofhis such failure ." ;

(b) in section94, in sub-section (1), clause (a) shall be re- lettered as clause (aa) thereof, and before clause (aa) as so re-lettered, the following clause shall be inserted, namely:-

51 of 1975.

"(a) the additional duty referred to in sub- section (5) of section 3 of the

Customs TariffAct, 1975; " .

(i) against Sl . No.1 , under column (3 ) relating to rate , for the figures and words" 0.075 per cent. " , the figures and words " 0.1 per cent . " shall be substituted; (ii) against Sl . No. 2, under column (3 ) relating to rate , for the figures and words "0.075 per cent. " , the figures and words "0.1 per cent. " shall be substituted;

(iii) against Sl . No. 3 , under column (3 ) relating to rate, for the figures and words "0.015 per cent . ", the figures and words " 0.02 per cent . " shall be substituted;

(iv) against Sl . No. 4, under column (3 ) relating to rate, for the figures and words " 0.01 per cent . " , the figures and words "0.0133 per cent . " shall be substituted;

(v) against Sl . No. 5 , under column (3) relating to rate, for the figures and words "0.15 per cent. " , the figures and words " 0.2 per cent . " shall be substituted.

Declaration under the Provisional Collection ofTaxes Act, 1931

16 of 1931 .

It ishereby declared that it is expedient in the public interest that the provisions of clauses 72, 74, 85 , 86, 119, 120 and 123 (d) ofthis Bill shall have immediate effect under the Provisional Collection ofTaxes Act, 1931 .

53 THE GAZETTE OF INDIA EXTRAORDINARY

SEC . 2]

THE FIRST SCHEDULE

(See section 2)

PART I

INCOME-TAX

Paragraph A

In the case of every individual or Hindu undivided family or association of persons or body of individuals , whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) ofclause (31) ofsection 2 of the Income-tax Act , not being a case to which any other Paragraph of this Part applies ,-

Rates of income-tax

Nil;

(1) where the total income does not exceed Rs . 50,000

10 per cent. of the amount by which the total income exceeds Rs . 50,000 ;

(2) where the total income exceeds Rs . 50,000but does not exceed Rs . 60,000

Rs . 1,000 plus 20 per cent. of the amount by which the total income exceeds Rs . 60,000 ;

(3) where the total income exceeds Rs . 60,000 but does not exceed Rs . 1,50,000

(4) where the total income exceeds Rs . 1,50,000

Rs . 19,000 plus 30 per cent . ofthe amount by which the total income exceeds Rs . 1 ;50,000.

Surcharge on income-tax

The amount of income -tax computed in accordance with the preceding provisions of this Paragraph, or in section 111A or section 112 , shall ,-

(i) in the case of every individual or Hindu undivided family or association of persons or body of individuals having a total income exceeding eight hundred and fifty thousand rupees , be reduced by the amount of rebate of income -tax calculated under Chapter VIII - A, and the income -tax as so reduced, be increased by a surcharge for purposes of the Union calculated at the rate of ten per cent . of such income-tax; (ii) in the case of every person , other than those mentioned in item ( i) , be increased by a surcharge for purposes ofthe Union calculated at the rate of ten per cent . of such income-tax:

Provided that in case of persons mentioned in item (i) above having a total income exceeding eight hundred and fifty thousand rupees , the total amount payable as income- tax and surcharge on such income shall not exceed the total amount payable as income - tax on a total income of eight hundred and fifty thousand rupees by more than the amount of income that exceeds eight hundred and fifty thousand rupees .

ParagraphB

Inthe case of every co- operative society,-

Rates of income-tax

(1) where the total income does not exceed Rs . 10,000 10 per cent. of the total income;

Rs.1,000 plus 20 per cent. of the amount by which the total income exceeds Rs . 10,000;

(2) where the total income exceeds Rs . 10,000 but does not exceed Rs . 20,000

(3) where the total income exceeds Rs . 20,000

Rs . 3,000 plus 30 per cent. of the amount by which the total income exceeds Rs . 20,000.

Surcharge on income-tax

The amount of income -tax computed in accordance with the preceding provisions of this Paragraph , or in section 111A or section 112 , shall , in the case of every co - operative society, be increased by a surcharge for purposes of the Union calculated at the rate of two and one -half per cent. of such income -tax .

[PART II- THE GAZETTE OF INDIA EXTRAORDINARY

ParagraphC

Inthe case of every firm,-

Rateofincome-tax

35per cent.

On the whole of the total income

Surcharge on income-tax

The amount of income-tax computed at the rate hereinbefore specified, or in section 111A or section 112, shall, in the case of every firm , be increased by a surcharge for purposes of the Union calculated at the rate of two and one -half per cent. of such income-tax.

Paragraph D

Inthe case ofevery local authority,-

Rateofincome-tax

30per cent.

On the whole of the total income

Surcharge on income-tax

The amount of income- tax computed at the rate hereinbefore specified , or in section 111A or section 112, shall, in the case ofevery local authority, be increased by a surcharge for purposes of the Union calculated at the rate of two and one - half per cent. of such income-tax.

Paragraph E

In the case ofa company,

Rates of income-tax

35per cent ofthe total income;

I. In the case of a domestic company

II. In the case of a company other than a domestic company--

(1) on so much of the total income as

consists of,-

(a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day ofMarch, 1961 but before the 1st day ofApril , 1976 ; or

(b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with theGovernment or the Indian concern after the 29th day of February, 1964 but before the 1st day ofApril, 1976,

50 per cent.;

and where such agreement has , in either case, been approved by the Central Government

40per cent.

(ii) on the balance, ifany, ofthe total income

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions ofthis Paragraph, or in section 111A or section 112 , shall , in the case of every company, be increased by a surcharge for purposes ofthe Union calculated at the rate of two and one-half per cent . of such income- tax.

55 THE GAZETTE OF INDIA EXTRAORDINARY

SBC.2]

PART II

RATES FOR DEDUCTION OF TAX AT SOURCE IN CERTAIN CASES

Ineverycase in which under the provisions ofsections 193 , 194, 1944, 1948, 194BB, 194D and 195 of the Income- taxAct, tax is to be deducted at the rates in force, deduction shall be made from the income subject to the deduction at the following rates:-

Rate of income-tax 1. In the case of a person other than a comparry-

(a)where the person is resident in India-

10percent.;

(i) on income by way of interest other than " Interest on securities"

30per cent.;

(ii) on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

30percent.;

(iii) on income by way of winnings from horse races

10 per cent.;

(iv) on income by way of insurance commission

10percent.;

(v) on income by way of interest payable on-

(A) any debentures or securities other than a security ofthe Central or State Government for money issued by or on behalf of any local authority or acorporation established by a Central, State of Provincial Act;

(B) anydebentures issued by a company where such debentures are listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation ) Act, 1956 (42 of 1956) and any rules made thereunder

20per cent.;

(vi) on any other income

(8) where the person is not resident in India-

(i) in the case of a non-resident Indian-

20 per cent;

(A) on any investment income

10per cent.;

(B)on income by way of long -term capital gains referred to in section 115E

20percent.;

(C) onother income by way of long - term capital gains [not being long-term capital gains referred to in clauses (33) , (36) and (38) ofsection 10]

20percent.;

(D) on income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency

30percent.;

(E) on incomeby way of winnings from lotteries , crossword puzzles, card games and other games of any sort

30percent.;

(F) on income by way of winnings from horse races

30percent.;

(G) onthewhole ofthe other income

(ii) in the case of any other person-

20per cent;

(A) on income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency

30per cent.;

(B) on incomeby way of winnings from lotteries, crossword puzzles, card games and other games of any sort

30 per cent.;

20per cent.;

(D) on incomebyway of long- term capital gains [ not being long-term capital gains referred to in clauses (33) , (36) and (38) of section 10 ]

30percent.

(E) on the whole of the other income

2. In the case of a company-

(a) where the company is a domestic company-

(1) on income by way of interest other than " Interest on securities "

20percent.;

30per cent.;

(ii) on incomeby way of winnings from lotteries, crossword puzzles, card games and other games of any sort 56

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II-

30 per cent.;

(iii) on income by way of winnings from horse races

20 per cent.;

(iv) on any other income

(b) where the company is not a domestic company-

30 per cent.;

(1) on incomeby way of winnings from lotteries, crossword puzzles, card games and other games of any sort

(ii) on income by way of winnings from horse races

30 per cent.;

20per cent.;

(iii) on incomebyway of interest payable byGovernment or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency

(iv) on income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day ofMarch, 1976 where such royalty is in consideration for the transfer ofall or any rights ( including the granting ofa licence) in respect of copyright in any book on a subject referred to in the first proviso to sub- section ( 1A) ofsection 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub- section ( 14) of section 115A of the Income- tax Act, to a person resident in India-

30per cent.;

(A) where the agreement is made before the 1st day of June, 1997

20 per cent.;

(B) where the agreement is made on or after the 1st day of June , 1997 but before the 1st day of June, 2005

10 per cent.;

(v) on income by way of royalty [ not being royalty ofthe nature referred to in sub - item (b )( iv ) ] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern , the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, ofthe Government of India, the agreement is inaccordancewith that policy-

50 per cent.;

(A)wherethe agreement is made after the 3 I st day ofMarch , 1961 but before the 1stday ofApril, 1976

30 per cent.;

(B) where the agreement is made after the 31st day ofMarch, 1976 but before the 1st day of June , 1997

20 per cent.;

(D) where the agreement is made on or after the 1st day of June, 2005

10 per cent.;

(vi) on incomeby wayoffees for technical services payable byGovernment or an Indian concern in pursuance of an agreement inade by it with the Government orthe Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, ofthe Government of India, the agreement is in accordance with that policy-

50 per cent.;

(A) where the agreement is made after the 29th day of February, 1964 but before the 1st day ofApril , 1976

30 per cent.;

(B)where the agreement is made after the 31st day of March , 1976 but before the 1st day of June, 1997

20per cent.;

10 per cent.;

(D)where the agreement is made on or after the 1st day of June , 2005

20per cent.;

(vii) on income by way of long- term capital gains [ not being long - term capital gains referred to in clauses ( 33) , ( 36) and (38) of section 10]

(viii) on any other income

40percent.

Explanation. For the purpose of item 1(b) (1) of this Part, " investment income " and " non -resident Indian " shall have the meanings assigned to them in Chapter XII -A ofthe Income-taxAct.

1 57 THE GAZETTE OF INDIA EXTRAORDINARY

SBC.2]

Surcharge on income-tax

The amount of income-tax deducted in accordance with the provisions of

(A) item 1, ofthis Part, shall be increased by a surcharge, for purposes of the Union, calculated,- (1) inthecase ofevery individual, Hindu undivided family, association ofpersons and body ofindividuals, whether incorporated or not, at the rate often per cent. ofsuch tax where the income or the aggregate ofsuch incomes paid or likely to be paid and subject to the deduction exceeds ten lakh rupees;

(ii) inthe case ofevery firm and artificial juridical person referred to in sub-clause (vii) ofclause (31 ) of section 2 of the Income-tax Act, at the, rate often per cent, of such tax;

(B) item-2 of this Part, shall be increased by a surcharge , for purposes ofthe Union, calculated,- (1) in the case ofevery domestic company at the rate of ten per cent. of such income tax;

(if) inthe case ofevery company other than a domestic company at the rate oftwo and one-half per cont. ofsuch income-tax.

PART II

RATES POR CHARGING INCOME TAX IN CERTAIN CASES, DEDUCTING INCOME TAX FROM INCOME CHARGEABLE UNDER THE HEAD "SALARIES" AND COMPUTING " ADVANCE TAX"

In cases in which income- tax has to be charged under sub -section (4) of section 172 of the Income-tax Act or sub-section (2) of section 174 or section 174A or section 175 or sub-section (2) of section 176 of the said Act or deducted from, or paid on, from income chargeable under the head "Salaries " under section 192 of the said Act or in which the " advance tax " payable under Chapter XVII-C of the said Act has to be computed at the rate or rates in force, such income-tax or, as the case may be, "advance tax " [not being "advance tax" in respect of any income chargeable to tax under Chapter XII or Chapter XII -A or fringe benefits chargeable to tax under Chapter XII-H or income chargeable to tax under section 115JB or sub-section ( IA ) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act at the rates as specified in that Chapter or section or surcharge on such "advance tax" in respect of any income chargeable to tax under section 115A or section 115AB or section 115AC or section 115ACA or section 115AD or section 115B or section 115BB or section 115BBA or section 115E or section 11-5JB or fringe benefits chargeable to tax under section 115WA ] shall be charged, deducted or computed at the following rate or rates:-

Paragraph A

(1) Inthe case ofevery individual other than the individual referred to in items (II) and (III) ofthis Paragraph or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) ofsection 2 of the Income-tax Act, not being a casetowhich any other Paragraph of this Part applies,-

Rates ofincome-tax

Nil;

(1) where the total income does not exceed Rs . 1,00,000

10 per cent. of the amount by which the total income exceeds Rs. 1,00,000;

(2) where the total income exceeds Rs . 1,0,000 but does not exceed Rs . 1,50,000

Rs. 5,000 plus 20 per cent. of the amount by which the total income exceeds Rs. 1,50,000;

(3) where the total income exceeds Rs. 1,50,000 but does not exceed Rs. 2,50,000

(4) where the total income exceeds Rs . 2,50,000

Rs.25,000 plus 30 per cent. of the amount by whichthetotal income exceeds Rs. 2,50,000.

(II) Inthe case ofevery individual, being a woman resident in India, and below the age of sixty- five years at any time during the previous year,-

Rates of income- tax

Nil;

(1) where the total income does not exceed Rs. 1,25,000

10 per cent. of the amount by which the total income exceeda Rs. 1,25,000;

(2) where the total income exceeds Rs . 1,25,000 but does not exceed Rs. 1,50,000

Rs . 2,500 plus 20 per cent. of the amountby which the total income exceeds Rs. 1,50,000;

(3) wherethetotal income exceeda Rs . 1,50,000 but does not exceedRs. 2,50,000

(4) where the total income exceeds Rs.2,50,000

Rs . 22,500 plus 30 per cent . of the amountby which the total income exceeds Rs. 2,50,000.

[PART I- THE GAZETTE OF INDIA EXTRAORDINARY

(III) Inthe case of every individual, being a resident in India, who is of the age of sixty- five years or more at any time during the previous year,-

Ratesof income-tax

Nil;

(1) where the total income does not exceed Rs . 1,50,000

20 per cent, of the amount by which the total income exceeds Rs: 1,50,000;

(2) where the total income exceeds Rs . 1,50,000 but does not exceed Rs . 2,50,000

(3) where the total income exceeds Rs . 2,50,000

Rs . 20,000 plus 30 per cent . of the amount by which the total incoine exceeds Rs . 2,50,000 .

Surcharge on income- tax

The amount of income -tax computed in accordance with the preceding provisions of this Paragraph or in section 111A or section 112 shall ,

(i) inthe case of every individual or Hindu undivided family or association ofpersons or body of individuals having a total income exceeding ten lakh rupees , be reduced by the amount of rebate of income -tax calculated under Chapter VIII -A, and the income- tax as so reduced, be increased by a surcharge for purposes of the Union calculated at the rate of ten per cent . of such income-tax;

(ii) in the case ofevery person , other than those mentioned in item (1), be increased by a surcharge for purposes ofthe Union calculated at the rate of ten per cent . of such income- tax:

Provided that in case of persons mentioned in item ( 1) above having a total income exceeding ten lakh rupees, the total amount payable as income - tax and surcharge on such income shall not exceed the total amount payable as income - tax on a total income of ten lakh rupees by more than the amount of income that exceeds ten lakh rupees.

ParagraphB

Inthe case ofevery co-operative society,

Rates of income-tax

10 per cent . ofthe total income;

(1 ) where the total income does not exceed Rs . 10,000

Rs . 1,000 plus 20 per cent. of the amount by which the total income exceeds Rs . 10,000 ;

(2) where the total income exceeds Rs . 10,000 but does not exceed Rs . 20,000

(3) where the total income exceeds Rs . 20,000

Rs . 3,000 plus 30 per cent. of the amount by which the total income exceeds Rs . 20,000 .

Paragraph C

Inthe case ofevery finn,-

Rateof income-tax

30per cent.

On the whole of the total income

Surcharge on income- tax

The amount of income- tax computed at the rate hereinbefore specified, or in section 111A or section 112, shall, in the case ofevery firm, be increased by a surcharge for purposes of the Union calculated at the rate of ten per cent . of such income-tax.

ParagraphD

In the case of every local authority,-

Rate ofincome-tax

30per cent .

On the whole of the total income

ParagraphE

In the case of a company,-

Rates of income-tax

30 per cent. ofthe total income;

I. In the case of a domestic company

II. In the case of a company other than a domestic company-

(1) on so much of the total incoine as consists of,-

(a) royalties received from Government or an

Indian concern in pursuance of an agreement made by itwith the Government or the Indian concern 59 THE GAZETTE OF INDIA EXTRAORDINARY

SEC: 2 ]

after the 31st day of March, 1961 but before the 1st day ofApril, 1976; or

(b) fees for rendering technical services received from Government or an Indian concern inpursuance of an agreement made by itwith the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976,

50 per cent.;

and where such agreement has, in either case , been approved bythe Central Government

40percent.

(ii) on the balance , if any, of the total income

Surcharge on income-tax

The amount of income -tax computed in accordance with the preceding provisions of this Paragraph, or in section 111A or section 112, shall, in the case of every company,be increased by a surcharge for purposes of the Union calculated,-

(1) in the case of every domestic company at the rate of ten per cent. of such income-tax;

(it) in the case of every company other than a domestic company at the rate of two and one-half per cent

PART IV

[See section 2( 12) (c) ]

RULES FOR COMPUTATION OF NET AGRICULTURAL INCOME

Rule 1. Agricultural income ofthe nature referred to in sub-clause (a) ofclause ( 14 ) of section 2 of the Income- taxAct shallbe computed as if it were income chargeable to income- tax under that Act under the head " Income from other sources" and the provisions of sections 57 to 59 ofthat Act shall, so far as may be, apply accordingly:

Provided that sub- section (2) of section 58 shall apply subject to the modification that the reference to section40A therein shallbe construed as not including a reference to sub -sections ( 3) and (4) of section 40A .

Rule 2.-Agricultural income ofthe nature referred to in sub-clause (b) or sub-clause (c) ofclause ( 14 ) ofsection 2ofthe Income-tax Act [ other than income derived from any building required as a dwelling -house bythe receiver of the rent or revenue of the cultivator or the receiver of rent- in -kind referred to in the said sub-clause (c) ] shall be computed as if it were income chargeable to income -tax under that Act under the head " Profits and gains of business or profession" and the pro sions of sections 30, 31, 32, 36, 37, 38 , 40, 40A [ other than sub-sections (3) and (4) thereof) , 41 , 43, 43A, 43B and 43C ofthe Income-tax Act shall , so far as may be, apply accordingly.

Rule3. Agricultural income of the nature referred to in sub-clause (c) of clause ( IA) of section 2 of the Income- taxAct, being income derived from any building required as a dwelling-houseby the receiver of the rent or revenue, or the cultivator or the receiver of rent- in -kind referred to in the said sub-clause (c) shall be computed as if it were income chargeable to income -tax under that Act under the head " Income from house property" and the provisions of sections 23 to 27 of that Act shall , so far as maybe, apply accordingly.

Rule 4. Notwithstanding anything contained in any other provisions of these rules, in a case-

(a) where the assessee derives income from sale of tea grown and manufactured by him in India, such income shallbe computed in accordance with rule 8 ofthe Income -tax Rules, 1962, and sixty per cent ofsuch income shallbe regarded as the agricultural income ofthe assessee;

(b) where the assessee derives income from sale of centrifuged latex or cenex or latex based crepes (such as pale latex crepe) or brown crepes (such as estate brown crepe , re - milled crepe , smoked blanket crepe or flat bark crepe) of technically specified block rubbers manufactured or processed by him from rubber plants grown byhim in India, such income shall be computed in accordance with rule 7A ofthe Income-tax Rules, 1962, and sixty- five per cent. of such income shall be regarded as the agricultural income of the assessee;

(c)wherethe assessee derives income from sale of coffee grown and manufactured by him in India, such income shallbe computed in accordance with rule 7B of the Income- tax Rules, 1962, and sixty per cent, or seventy-five per cent. , as the case may be , of such income shall be regarded as the agricultural income of the assessee .

[PART II- THE GAZETTE OF INDIA EXTRAORDINARY

Rule5.-Where the assessee is a member of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm ) which in the previous year has either no income chargeable to tax under the Income-tax Act or has total income not exceeding the maximum amount not chargeable to tax in the case of an association ofpersons or a body of individuals (other than a Hindu undivided family, a company or a firm) but has any agricultural income then, the agricultural income or loss of the association or body shall be computed in accordance with these rules and the share of the assessee in the agricultural income or loss so computed shall be regarded as the agricultural income or loss of the assessee.

Rule 6. Where the result of the computation for the previous year in respect of any source of agricultural income is a loss, such loss shall be set off against the income of the assessee, if any, for that previous year from any other source ofagricultural income :

Provided that where the assessee is a member of an association of persons or a body of individuals and the share ofthe assessee in the agricultural income of the association or body, as the case may be, is a loss , such loss shall not be set off against any income of the assessee from any other source of agricultural income.

Rule 7. Any sum payable by the assessee on account of any tax levied by the State Government on the agricultural income shall be deducted in computing the agricultural income .

Rule 8 .--( 1 ) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day ofApril , 2005, any agricultural income and the net result ofthe computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 1997 or the 1st day ofApril, 1998 or the 1st day ofApril, 1999 or the 1st day ofApril, 2000 or the 1st day ofApril, 2001 or the 1st day of April , 2002 or the 1st day ofApril, 2003 or the 1st day of April , 2004 , is a loss , then, for the purposes of sub -section (2 ) of section 2 of this Act,-

(1) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day ofApril , 1997, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1998 or the 1st day ofApril , 1999 or the Ist day ofApril , 2000 or the 1st day ofApril, 2001 or the 1st day ofApril , 2002 or the 1st day ofApril, 2003 or the Istday ofApril , 2004,

(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day ofApril , 1998, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day ofApril , 1999 or the 1st day ofApril , 2000 or the 1st day ofApril, 2001 or the 1st day ofApril , 2002 or the 1st day ofApril, 2003 or the 1st day ofApril , 2004,

(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day ofApril , 1999, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day ofApril , 2000 or the 1st day ofApril , 2001 or the 1st day ofApril, 2002 or the 1st day ofApril, 2003 or the ist day ofApril , 2004 ,

(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day ofApril , 2000, to the extent , if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April , 2001 or the 1st day ofApril , 2002 or the 1st day ofApril, 2003 or the 1st day ofApril , 2004,

(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day ofApril , 2001 , to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day ofApril , 2002 or the 1st day ofApril , 2003 or the 1st day ofApril, 2004,

(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day ofApril , 2002 , to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day ofApril, 2003 or the 1st day ofApril , 2004,

(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day ofApril , 2003 , to the extent, if any , such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day ofApril, 2004,

(viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st dayofApril , 2004,

shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April , 2005 .

(2) Where the assessee has , in the previous year relevant to the assessment year commencing on the 1st day of April, 2006 , or , ifby virtue ofany provision ofthe Income-taxAct, income- tax is to be charged in respect of the income THE GAZETTE OF INDIA EXTRAORDINARY

SEC.2]

61 of a period other than the previous year, in such other period, any agricultural income and the net result ofthe computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day ofApril , 1998 or the 1st day ofApril , 1999 or the 1st day ofApril , 2000 orthe 1stday ofApril, 2001 or the 1st day ofApril, 2002 or the 1st day ofApril , 2003 or the 1st day ofApril ,2004or the 1st day ofApril , 2005 , is a loss, then, for the purposes of sub- section ( 10) of section 2 of this Act,-

(4) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day ofApril , 1998, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1999 or the 1st day ofApril, 2000 or the 1st day ofApril, 2001 or the Ist day ofApril, 2002 or the 1st day ofApril, 2003 or the 1st day ofApril, 2004 or the 1st day ofApril , 2005,

(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day ofApril , 1999, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day ofApril, 2000 or the 1st day ofApril, 2001 or the ist day ofApril , 2002 or the 1st day ofApril , 2003 or the 1st day ofApril, 2004 or the 1st day ofApril, 2005,

(iii) the loss so computed for the previous year relevant to the assessment year commencing on the lat day ofApril , 2000, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day ofApril , 2001 or the 1st day ofApril, 2002 or the 1st day ofApril , 2003 or the 1st day ofApril, 2004 or the 1st day ofApril, 2005,

(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day ofApril , 2001 , to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day ofApril, 2002 or the 1st day ofApril, 2003 or the 1st day ofApril, 2004 or the 1st day ofApril , 2005,

(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day ofApril , 2002, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day ofApril, 2003 or the 1st day ofApril, 2004 or the 1st day ofApril, 2005 ,

(vi) the loss so computed for the previous year relevant to the assessment year commencing on the lat day ofApril, 2003, to the extent, if arry, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day ofApril, 2004 of the 1st day ofApril, 2005,

(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day ofApril, 2004, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day ofApril, 2005,

(viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st dayofApril, 2005, shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day ofApril , 2006 .

(3) Where any person deriving any agricultural income from any source has been succeeded in such capacity by another person , otherwise thanby inheritance, nothing in sub- rule ( 1) or sub-rule (2 ) shall entitle any person, other than the person incurring the loss, to have it set off under sub -rule (1 ) or, as the case may be, sub-rule (2). (4) Notwithstanding anything contained in this Rule, no loss which has not been determined by the Assessing Officer under the provisions of these Rules or the Rules contained in Part IV ofthe First Schedule to the FinanceAct, 1997(26 of 1997), or ofthe First Schedule to the Finance (No. 2)Act, 1998 (21 of 1998 ), or ofthe First Schedule to the FinanceAct, 1999 (27 of 1999) , or of the First Schedule to the Finance Act, 2000 (10 of 2000 ), or ofthe First Schedule to the Finance Act, 2001 ( 14 of 2001 ) , or of the First Schedule to the Finance Act, 2002 (20 of 2002) , or ofthe First Scheduleto the Finance Act, 2003 ( 32 of2003 ), or of the First Schedule to the Finance (No. 2) Act, 2004 (23 of2004) shallbe set off under sub- rule ( 1) or, as the case may be, sub-rule (2) .

Rule 9. Where the net result of the computation made in accordance with these rules is a loss, the loss so computed shallbe ignored and the net agricultural income shallbe deemed to be nil

Rule 10:--The provisions of the Income-tax Act relatingto procedure for assessment (including the provisions of section 288A relating to rounding off of income) shall , with the necessary modifications, apply in relation to the computation ofthe net agricultural income of the assessee as they apply in relation to the assessment ofthe total income.

Rule 11.-For the purposes of computing the net agricultural income of the assessee, the Assessing Officer shall have the same powers as he has under the Income- tax Act for the purposes of assessment of the total income.

[PARTII-- THE GAZETTE OF INDIA EXTRAORDINARY

THE SECOND SCHEDULE

(See section 74)

PART I

Inthe First Schedule to the Customs TariffAct,-

(1) inChapter 6, for the entry in column (4) occurring against all the tariff items of heading 0603 , the entry " 60%" shall be substituted;

(2) in Chapter 25, ---

(1) for the entry in column (4 ) occurring against all the tariff items ofall the headings (except headings 2504 and 2510 ), the entry " 15% " shall be substituted;

(ii) for the entries incolumn (4) and column (5 ) occurring against all the tariff items ofheading 2504, the entries " 15%" and " 15 % " shall respectively be substituted;

(3) inChapter26, in tariff items 26201100, 2620 1900, 2620 30 10 and 2620 30 90, for the entry in column(4) occurring against each of them, the entry " 15 %" shall be substituted;

(4) in Chapter 27,-

(1) for the entry in column (4 ) occurring against all the tariff items of heading 2701 (except tariff items 2701 1200, 2701 20 10 and 2701 2090) , the entry " 15%" shall be substituted;

(ii) for the entry in column (4) occurring against the tariff item 2705 0000, the entry " 15% " shall be substituted;

(iii) for the entry in column (4) occurring against all the tariff items of headings 2706, 2707 and 2708, the entry " 15%" shall be substituted;

(iv) for the entry in column (4) occurring against all the tariff items ofheading 2710 , the entry " 15%" shall be substituted;

(v) for the entry in column (4 ) occurring against all the tariff items of headings 2712 and 2713 , the entry "15%" shall be substituted;

(vi) for the entry in column (4) occurring against all the tariff items ofheading 2715, the entry " 15%" shall be substituted.

(5) In Chapter 28, for the entry in column (4) occurring against all the tariff items (except tariff items 2801 2000 , 2812 1010,2812 1021 , 28121022,28121041,2812 10 42,2812 1043,2812 1047,28121060,28141000 , 28142000, 2845 1000, 285100 91 and 28510099 ), the entry " 15 %" shall be substituted.

(6) in Chapter 29,-

(1) for the entry in column (4) occurring against all the tariff items (except tariff items 2901 1000 , 29012100, 29012200, 2901 23 00, 2901 24 00, 2901 29 10,2901 2920,2901 2990 , 29021100,2902 1900,29022000,29023000, 2902 41 00 , 2902 42 00, 2902 43 00, 2902 4400, 2902 50 00, 290260 00, 290270 00, 2902 90 10, 2902 9020, 2902 90 30, 2902 90 40, 2902 90 50, 2902 90 90, 2903 1500, 2903 21 00, 2903 30 11,2903 30 19, 2904 90 80, 2905 19 10, 2905 19 90, 2905 43 00, 2905 44 00, 2918 1910, 2918 19 90, 2920 10 10,2920 10 20, 2920 90 41 , 2920 9042,2920 90 43 , 2920 90 44,2920 90 45, 2920 90 47, 2920 90 48, 2920 90 51, 2920 90 52, 2920 9053 , 2920 90 54,2920 90 55, 2920 90 56, 2920 90 57, 2920 90 58 , 2920 90 61,2920 90 62, 2920 90 63,2920 90 64, 2920 90 65,2920 90 66, 2920 90 99 , 2921 19 11 , 2921 19 14, 2921 1990, 2922 11 11 , 2922 11 12, 2922 11 13 , 2922 11 14, 2922 11 15,2922 11 16, 2922 1190, 2922 12 11 , 2922 12 12,2922 12 90, 2922 19 10, 2922 19 20, 2922 19 30,2922 1990, 2926 1000 , 2930 90 91, 2930 90 99, 2933 39 30 , 2936 1000, 2936 21 00, 2936 22 10, 293622 90, 2936 23 10, 2936 23 90, 2936 24 00, 2936 25 00, 2936 26 10, 2936 26 90, 2936 27 00, 2936 28 00, 29362910, 2936 29 20, 2936 29 30, 293629 40, 2936 29 50, 2936 29 90, 2936 90 00, 2937 11 00, 2937 1200, 2937 1900, 2937 2100, 2937 2200, 293723 00, 2937 2900, 29373100, 2937 39 00, 2937 4000, 2937 5000, 29379000, 2939 29 10, 2939 29 90, 2939 41 10, 2939 41 20, 293941 90, 2939 4200, 293943 00,29394900, 2939 51 00, 2939 59 00, 2941 10 10, 2941 1020, 2941 1030, 2941 1040, 2941 1050, 2941 1090, 2941 20 10, 29412090, 2941 30 10, 2941 3020, 2941 3090 , 2941 4000, 2941 5000, 2941 90 11,2941 90 12, 2941 90 13 , 29419014, 294190 19, 29419020, 2941 9030, 2941 9040,2941 9050, 2941 90 60 and29419090), the entry " 15% " shall be substituted;

(ii) for the entries in column (4) and column (5) occurring against all the tariff items ofheading 2936, the entries " 15 % " and " 15 %" shall respectively be substituted;

(iii) in tariffitems 29371100, 2937 1200, 2937 1900, 29372100, 29372200, 29372300,29372900,29373100, 293739 00, 293740 00, 2937 50 00, 29379000, 2939 41 10,2939 41 20, 2939 41 90, 2939 4200, 293943 00, 63 THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

293949 00, 2939.51 00 and 2939 5900, for the entries in column (4) and column (5 ) occurring against each ofthem, the entries " 15 % " and " 15 % " shall respectively be substituted;

(iv) for the entries in column (4) and column (5 ) occurring against all the tariff items of heading 2941 , the entries " 15% " and " 15 % " shall respectively be substituted;

(7) in Chapter 30,-

(1) for the entries in column (4) and column (5 ) occurring against all the tariff items (except tariff items of headings 3005 and 3006) , the entries " 15 %" and " 15% " shall respectively be substituted;

(i) in tariff items 3005 10 10,3005 1020, 3005 1090, 3005 90 10,3005 90 20, 3005 90 30, 30059040,30059050, 300590 60,3005 90 70, 3005 90 90, 3006 1010, 3006 1020, 3006 2000, 30063000, 30064000,30065000,30067000 and 3006 80 00, for the entry in column (4) occurring against each of them , the entry " 15 %" shall be substituted;

(8) in Chapter 31 , for the entry in column (4) occurring against all the tariff items (except tariff items 31022100, 31025000,31043000, 3105 2000, 3105 3000, 31054000, 3105 5100, 31055900,3105 6000,3105 90 10 and 31059090), the entry " 15 %" shall be substituted;

(9) in Chapter 32, for the entry in column (4) occurring against all the tariff items (except all the tariff item of heading 3201 ) , the entry " 15 % " shall be substituted;

(10) in Chapter 33 ,-

(1) for the entry in column (4) occurring against all the tariff items (except tariff items 3301 11 00,3301 1200, 3301 13 00,3301 1400,3301 19 10, 3301 1990, 33012100, 3301 22 10,33012290,33012300 , 3301 2400,3301 25 10, 3301 2520, 3301 25 30, 33012540 , 3301 2590, 3301 2600, 33012911,3301 29 12, 3301 29 13,3301 29 14,33012915, 3301 29 16 , 3301 29 17, 3301 29 18 , 3301 2921 , 3301 29 22, 3301 29 23 , 3301 29 24, 3301 29 25, 3301 29 26, 3301 29 27, 3301 29 28 , 3301 29 31 , 3301 29 32, 3301 29 33 , 3301 29 34, 3301 29 35, 3301 29 36, 3301 2937 , 3301 29 38 , 3301 29 41 , 3301 29 42 , 3301 2943 , 3301 29 44, 3301 2945, 3301 29 46, 3301 2947, 3301 2948 , 3301 2949 , 3301 29 50, 3301 29 90 , 3301 30 10,3301 3091 , 3301 3099, 3301 90 11,3301 90 12,3301 90 13 , 3301 90 14,3301 90 15 , 3301 90 16,3301 90 17, 3301 90 21 , 330190 22, 3301 90 23 , 3301 90 24, 3301 9025, 3301 90 29,3301 9031 , 3301 90 32, 3301 90 33, 3301 9041 , 3301 90 49 , 3301 90 51 , 3301 9059, 3301 90 60, 3301 90 71 , 3301 9079, 3301 9090, 3302 10 10 and 3302 1090), the entry " 15 % " shall be substituted;

( ii) for the entry in column (4 ) occurring against all the tariff items of sub- heading 3302 10, the entry "100%" shall be substituted;

(11) in Chapter 34,--

(1) for the entry in column (4) occurring against all the tariff items (except tariff items 3402 11 10, 3402 11 90 , 3402 12 00, 3402 13 00 and 3402 1900) , the entry " 15%" shall be substituted;

(ii) in tariff items 340211 10,3402 11 90, 3402 12 00, 3402 13 00 and 3402 1900, forthe entries in column(4) and column ( 5 ) occurring against each of them, the entries " 15 % " and " 15% " shall respectively be substituted;

(12) in Chapter 35 , for the entry in column(4) occurring against all the tariff items (except tariff items 3501 1000, 3501 90 00, 3502 11 00, 3502 1900, 3502 2000, 3502 90 00, 3503 00 10, 35030020, 3503 00 30, 3503 00 90,3504 00 10, - 3504 00 91,3504 00 99, 3505 10 10, 3505 10 90 and 3505 2000) , the entry " 15% " shall be substituted;

(13) in Chapter 36, for the entry in column (4) occurring against all the tariff itens, the entry " 15 % " shall be substituted;

(14) in Chapter 37, for the entry in column (4) occurring against all the tariff items (except tariff items 3701 2000 and 3702 20 00 ) , the entry " 15 % " shall be substituted;

(15) in Chapter 38,-

(1) for the entry in column (4) occurring against all the tariff items (except tariff items 3801 10 00, 3802 1000,3809 1000, 3812 10 00 , 3818 00 10 , 3818 00 90, 3823 11 11,3823 11 12,3823 11 19,3823 11 90, 3823 12 00, 3823 13 00 , 3823 1900, 3823 70 10, 3823 70 20, 3823 70 30, 3823 70 40, 3823 70 90, 382460 10 and 3824 60 90) , the entry " 15 %" shall be substituted;

(ii) in tariff items 3801 1000, 3802 10 00 and 3812 10 00, for the entries in column (4) and column (5) occurring against each of them , the entries " 15% " and " 15 % " shall respectively be substituted;

(16) in Chapter 39, for the entry in column (4) occurring against all the tariff items , the entry " 15 %" shall be substituted;

[PART II THE GAZETTE OF INDIA EXTRAORDINARY

(17) inChapter40, for the entry in column (4) occurring against all the tariff items (except, tariff items 4001 10 10, 4001 1020,40012100, 4001 22 00,4001 29 10, 4001 29 20,4001 2930, 4001 29 40, 4001 29 90 and 4011 3000 ), the entry " 15%" shall be substituted;

(18) in Chapter 41 , for the entry in column (4) occurring against all the tariff iterns (except all the tariff items of headings 4101 , 4102 and 4103 ) , the entry " 15 %" shall be substituted;

(19) in Chapter 42, for the entry in column (4) occurring against all the tariff items , the entry " 15 % " shall be substituted;

(20) in Chapter 43, for the entry in column (4) occurring against all the tariff items of headings 4303 and 4304, the entry " 15%" shall be substituted;

(21 ) in Chapter 44 , for the entry in column (4) occurring against all the tariff items (except all the tariff items of headings 4401 , 4402 and 4403 ), the entry " 15 %" shall be substituted;

(22) in Chapter 45 , for the entry in column (4) occurring against all the tariff items , the entry " 15%" shall be substituted;

(23 ) in Chapter 46, for the entry in column (4) occurring against all the tariff items, the entry " 15 %" shall be substituted;

(24) in Chapter 48, for the entry in column (4) occurring against all the tariff items (except tariff items 4801 00 10 and 4801 00 90) , the entry " 15 %" shall be substituted;

(25) in Chapter 49, for the entry in column ( 4) occurring against all the tariff items (except tariff iterns 4902 10 10, 49021020, 4902 90 10,4902 90 20, 49040000,49051000, 4905 91 00, 4905 99 10 and 4905 99 90), the entry " 15%" shall be substituted;

(26) inChapter 50, for the entry in column (4) occurring against all the tariff items of headings 5004, 5005, 5006 and 5007, the entry " 15 % " shall be substituted;

(27) in Chapter 51 ,-

(1) in tariff items 51051000,510521 00, 5105 29 90, 5105 31 00, 5105 39 00 and 5105 40 00, for the entry in column (4) occurring against each of them , the entry " 15 % " shall be substituted;

(ii) for the entry in column (4) occurring against all the tariff iteins of headings 5106 , 5107 , 5108 , 5109 and 5110, the entry " 15% " shall be substituted;

(ii) for the entry in column (4) occurring against all the tariff iterns of sub -heading 5111 11 , the entry "15% or Rs . 135 per sq . metre , whichever is higher " shall be substituted;

(iv) for the entry in column (4) occurring against all the tariff items of sub-heading 5111 19, the entry "15% or Rs . 150 per sq . metre , whichever is bigher " shall be substituted;

(v) for the entry in column (4) occurring against all the tariff items ofsub -heading 511120, the entry "15% or Rs . 80 per sq. metre, whichever is higher " shall be substituted;

(vi) for the entry in column (4) occurring against all the tariff items of sub -heading 5111 30, the entry "15% or Rs . 75 per sq . metre , whichever is higher" shall be substituted;

(vii) for the entry in column (4) occurring against all the tariff items of sub- heading 5111 90, the entry "15% or Rs . 90 per sq . metre , whichever is higher " shall be substituted;

(viii) for the entry in column (4) occurring against all the tariff items of sub -heading 5112 11 , the entry "15% or Rs . 125 per sq. metre, whichever is higher" shali be substituted;

(ix) for the entry in column (4) occurring against all the tariff items ofsub- heading 511219 , the entry" 15 % or Rs . 155 per sq . metre , whichever is higher" shall be substituted;

(x) for the entry in column (4) occurring against all the tariff iterns of sub-heading 511220 , the entry " 15% or Rs . 85 per sq. metre , whichever is higher" shall be substituted;

(xi) for the entry in column (4) occurring against all the tariff items ofsub-heading 511230 , the entry " 15% or Rs . 110 per sq. metre, whichever is higher " shall be substituted;

(xii) for the entry in column (4) occurring against all the tariff items of sub - heading 5112 90, the entry "15% or Rs . 135 per sq. metre, whichever is higher" shall be substituted;

(xiii) for the entry in column (4) occurring against all the tariff iterns , of heading 5113, the entry " 15% or Rs. 60 per sq . metre , whichever is higher" shall be substituted;

Sec.2]

65 THE GAZETTE OF INDIA EXTRAORDINARY

(28) inChapter 52,-

(1) for the entry in column (4) occurring against all the tariff iterns ofheadings 5204, 5205, 5206 and 5207, the entry " 15%" shall be substituted;

(if) for the entry in column (4) occurring against all the tariff items of sub-headings 5208 11, 5208 12, 5208 13 , 5208 19, 520821 , 5208 22, 5208 23, 5208 29, 5208 31 , 5208 32 and 520833, the entry "15%" shall be substituted;

(iil) for the entry in column ( 4) occurring against all the tariff items ofsub-heading 5208 39, the entry "15% or Rs . 150 per kg. , whichever is higher" shall be substituted;

(tv) for the entry in column (4) occurring against all the tariff items of sub-heading 5208 41 , the entry "15% or Rs . 9 per sq. metre , whichever is higher " shall be substituted;

(v) for the entry in column (4) occurring against all the tariff items of sub-heading 5208 42, the entry "15% or Rs . 37 per sq . metre, whichever is higher " shall be substituted;

(vi) for the entry in column (4) occurring against all the tariff items ofsub-heading 5208 43 , the entry " 15%" shall be substituted;

(vii) for the entry in column ( 4) occurring against all the tariff items of sub-heading 5208 49 , the entry "15% or Rs . 200 per kg. , whichever is higher" shall be substituted;

(viii) for the entry in column (4) occurring against all the tariff items of sub-heading 5208 51, the entry "15% or Rs . 27 per sq . metre , whichever is higher" shall be substituted;

(ix) for the entry in column (4) occurring against all the tariff items of sub-heading 5208 52, the entry "15%dr Rs. 23 per sq. metre , whichever is higher " shall be substituted;

(x) for the entry in column (4) occurring against all the tariff items of sub-heading 5208 53, the entry " 15% or Rs . 35 per sq . metre, whichever is higher" shall be substituted;

(xi) for the entry in column (4) occurring against all the tariff items of sub-heading 5208 59, the entry "15% or Rs. 50 per sq. metre , whichever is higher" shall be substituted;

(xii) for the entry in column (4) occurring against all the tariff items ofsub-headings 5209 11 and 520912, the entry " 15%" shall be substituted;

(xiii) in tariff item 5209 19 00, for the entry in column (4) , the entry " 15% " shallbe substituted;

(xiv) forthe entry in column (4) occurring against all the tariff items ofsub-headings 520921, 520922 and 5209 29, the entry " 15 %" shall be substituted;

(xy) for theentry in column (4) occurring against all the tariff items ofsub-headings 520931 , 5209 32 and 5209 39, the entry " 15 % or Rs . 150 per kg. , whichever is higher" shall be substituted;

(xvi) forthe entry in column (4) occurring against all the tariff items of sub-heading 5209.41 , the entry " 15% or Rs. 32 per sq. metre , whichever is higher " shall be substituted;

(xvi) in tariff item 52094200, for the entry in column (4 ), the entry " 15% or Rs . 25 per sq . metre, whichever is higher" shall be substituted;

(xviii) for the entryin column (4) occurring against all the tariff items of sub-heading 520943, the entry "15% or Rs . 30 per sq . metre , whichever is higher" shall be substituted;

(xix) for the entry in column (4) occurring against all the tariff items of sub-heading 520949, the entry "15% or Rs . 150 per kg. , whichever is higher " shall be substituted;

(xx) forthe entryin column (4) occurring against all the tariff items ofsub-headings 520951 and520952, the entry " 15% or Rs. 30 per sq . metre, whichever is higher" shall be substituted;

(xx ) for the entry in column (4 ) occurring against all the tariff items of sub-heading 3209 59, the entry "15% or Rs . 38 per sq . metre , whichever is higher " shall be substituted;

(xxii) for the entry in column (4) occurring against all the tariff items of sub-headings 5210 11 and 5210 12, the entry " 15% " shall be substituted;

(xxiii) in tariff item 5210 19 00, for the entry in column (4), the entry " 15 % " shall be substituted;

PART II- THE GAZETTE OF INDIA EXTRAORDINARY

(xxiv) for the entry in column (4) occurring against all the tariff items of sub- headings 521021 , 5210 22, 5210 29, 5210 31 and 521032, the entry " 15 %" shall be substituted;

(zxv) for the entry in column (4) occurring against all the tariff items of sub -heading 5210 39, the entry " 15% or Rs . 150 per kg. , whichever is higher " shall be substituted;

(xxvi) for the entry in column (4 ) occurring against all the tariff items of sub- heading 5210 41 , the entry " 15% or Rs . 15 per sq . metre, whichever is higher " shall be substituted;

(xxvii) for the entry in column (4) occurring against all the tariff items of sub- heading 5210 42, the entry " 15% or Rs . 25 per sq. metre , whichever is higher " shall be substituted;

(xxviii) for the entry in column (4) occurring against all the tariff items of sub-heading 5210 49, the entry "15% or Rs . 185 per kg. , whichever is higher" shall be substituted;

(xxix) for the entry in column (4 ) occurring against all the tariff items of sub- headings 5210 51 , 5210 52 and 5210 59, the entry " 15% or Rs . 15 per sq . metre , whichever is higher" shall be substituted;

(xxx) for the entry in column (4 ) occurring against all the tariff items of sub -headings 521111 and 5211 12, the entry " 15 % " shall be substituted;

(xxxi) in tariff item 5211 19 00, for the entry in column (4) , the entry " 15% " shall be substituted;

(xxxii) for the entry in column (4) occurring against all the tariff items ofsub- headings 521121 , 5211 22 and 5211 29 , the entry " 15 % " shall be substituted;

(xxxiii) for the entry in column (4) occurring against all the tariff items of sub- headings 521131 , 521132 and5211 39, the entry " 15% or Rs . 150 per kg. , whichever is higher " shall be substituted;

(xxxiv) for the entry in column (4) occurring against all the tariff items ofsub -heading 521141 , the entry "15% or Rs . 44 per sq. metre , whichever is higher " shall be substituted;

(xoory) in tariff item521142 00, for the entry in column (4) , the entry " 15% or Rs. 18 per sq. metre, whichever is higher" shall be substituted;

(xxxvi) for the entry in column (4 ) occurring against all the tariff items of sub -heading 521143 , the entry "15% or Rs . 40 per sq. metre , whichever is higher" shall be substituted;

(xxxvii) for the entry in column (4) occurring against all the tariff items of sub -heading 521149, the entry "15% or Rs . 150 per kg . , whichever is higher " shall be substituted;

(xxxviii) for the entry in column (4) occurring against all the tariff items ofsub-headings 5211 51 , 521152 and 5211 59, the entry " 15% or Rs . 18 per sq . metre , whichever is higher " shall be substituted;

(xoxoxxix) in tariff items 52121100, 5212 12 00, 5212 13 00 and 5212 14 00, for the entry in column (4 ) occurring against each of them, the entry " 15 % " shall be substituted;

(x1) in tariff item 5212 15 00 , for the entry in column (4), the entry " 15 % or Rs . 165 per kg. , whichever is higher" shall be substituted;

(xli) in tariffitems 52122100, 52122200 and 521223 00, for the entry in column (4) occurring against each of them, the entry " 15 % " shall be substituted;

(xlii) in tariff item 5212 24 00 , for the entry in column (4) , the entry " 15% or Rs . 20 per sq . metre, whichever is higher" shall be substituted;

(xliii) in tariff item 5212 25 00, for the entry in column (4), the entry " 15% or Rs. 165 per kg. , whichever is higher" shall be substituted;

(29) in Chapter 53 , for the entry in column (4) occurring against all the tariff items (except tariff items 5301 1000 , 5301 21 00, 5301 29 00, 5301 30 00, 5302 1000 and 5302 9000), the entry " 15% " shall be substituted;

(30) in Chapter 54,-

(1) for the entry in column (4) occurring against all the tariff items ofheadings 5401, 5402, 5403 and 5404, the entry " 15 % " shall be substituted;

(ii) in tariff item 5405 00 00, for the entry in column (4) , the entry " 15 % " shall be substituted;

(iii) for the entry in column (4 ) occurring against all the tariff items of heading 5406, the entry " 15% " shall be substituted;

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

67 (iv) for the entry in column (4) occurring against all the tariff items of sub-heading 5407 10, the entry "15% or Rs . 115 per kg. , whichever is higher" shall be substituted;

(v) for the entry in column (4) occurring against all the tariff items ofsub-headings 5407 20 and 540730, the entry " 15 %" shall be substituted;

(vi) for the entry in column (4) occurring against all the tariff items of sub- heading 5407 41 , the entry " 15% or Rs . 30 per sq . metre, whichever is higher" shall be substituted;

(vii) for the entry in column (4) occurring against all the tariff items of sub-heading 5407 42, the entry "15% or Rs . 60 per sq . metre, whichever is higher " shall be substituted;

(viii) in tariff item 540743 00 , for the entry in column (4), the entry " 15% or Rs . 67 per sq . metre,whichever is higher " shall be substituted;

(ix) for the entry in column (4) occurring against all the tariff items of sub-heading 5407 44 , the entry "15% or Rs . 58 per sq . metre , whichever is higher " shall be substituted;

(x) for the entry in column (4) occurring against all the tariff items of sub- heading 5407 51 , the entry " 15% or Rs . 11 per sq. metre , whichever is higher " shall be substituted;

(xi) for the entry in column (4) occurring against all the tariff items of sub- heading 5407 52, the entry" 15% or Rs . 38 per sq. metre , whichever is higher" shall be substituted;

(xii) in tariff item 5407 53 00, for the entry in column ( 4), the entry " 15% or Rs . 50 per sq . metre, whichever is higher" shall be substituted;

(xiii) for the entry in column (4 ) occurring against all the tariff items of sub-heading 5407 54, the entry " 15% or Rs . 20 per sq . metre , whichever is higher " shall be substituted;

(xiv) for the entry in column (4 ) occurring against all the tariff items of sub -beading 5407 61 , the entry "15% or Rs . 150 per kg. , whichever is higher " shall be substituted;

(xv) in tariff item5407 69 00, for the entry in column (4) , the entry " 15% or Rs . 60 per sq . metre, whichever is higher" shall be substituted;

(xvi) for the entry in column (4) occurring against all the tariff items of sub-heading 5407 71 , the entry "15% or Rs . 10 per sq . metre , whichever is higher " shall be substituted;

(xvii) in tariff item 5407 72 00, for the entry in column (4),the entry" 15% or Rs . 24 per sq . metre, whichever is bigher" shall be substituted;

(xviii) in tariff item 5407 73 00, for the entry in column (4 ), the entry " 15% or Rs. 60 per sq . metre, whichever is higher" shall be substituted;

(xix) in tariff item 5407 7400, for the entry in column (4), the entry " 15% or Rs . 38 per sq . metre,whichever is higher" shall be substituted;

(xx) for the entry in column (4) occurring against all the tariff items of sub- beading 5407 81 , the entry "15% or Rs . 10 per sq . metre , whichever is higher" shall be substituted;

(xx ) for the entry in column (4) occurring against all the tariff items of sub-heading 5407 82, the entry " 15% or Rs . 42 per sq. metre , whichever is higher" shall be substituted;

(xxii) in tariff item 5407 83 00, for the entry in column (4), the entry " 15% or Rs. 67 per sq. metre, whichever is higher" shall be substituted;

(xxiii) for the entry in column (4) occurring against all the tariff items ofsub-heading 5407 84, the entry "15% or Rs . 38 per sq. metre , whichever is higher" shall be substituted;

(xxiv) for the entry in column (4) occurring against all the tariff items of sub-heading 540791 , the entry "15% or Rs . 15 per sq . metre , whichever is higher" shall be substituted;

(xv) in tariff item 5407 92 00, for the entry in column (4) , the entry " 15 % or Rs. 67 per sq. metre , whichever is higher" shall be substituted;

(xxvi) in tariff item 5407.93 00, for the entry in column (4), the entry " 15% or Rs . 45 per sq. metre, whichever is higher' shall be substituted;

[PART 11- THE GAZETTE OF INDIA EXTRAORDINARY

(xxvil) in tariff item 5407 94 00, for the entry in column (4), the entry " 15 % or Rs . 67 per sq . metre, whichever is higher " shall be substituted;

(xxviii) in tariff item 5408 10 00, for the entry in column (4) , the entry " 15 % " shall be substituted;

(xxix) for the entry in column (4 ) occurring against all the tariff items of sub- heading 5408 21 , the entry " 15%" shall be substituted;

(xxx) for the entry in column ( 4) occurring against all the tariff items of sub -heading 5408 22, the entry " 15% or Rs . 45 per sq. metre , whichever is higher " shall be substituted;

(xxx) in tariff item 5408 23 00 , for the entry in column (4), the entry " 15 % or Rs . 47 per sq. metre, whichever is higher" shall be substituted;

(xxxit) for the entry in column (4) occurring against all the tariff items ofsub-heading 5408 24, the entry "15% or Rs . 87 per sq. metre , whichever is higher" shall be substituted;

(xxxiii) for the entry in column (4) occurring against all the tariff items of sub- heading 540831 , the entry " 15% or Rs . 25 per sq. metre, whichever is higher" shall be substituted;

(xxxiv ) for the entry in column (4) occurring against all the tariff items of sub- heading 5408 32 , the entry "15% or Rs . 44 per sq . metre, whichever is higher" shall be substituted;

(xoxoxy) in tariff item 5408 33 00, for the entry in column (4) , the entry " 15 % or Rs. 10 per sq . metre, whichever is higher" shall be substituted;

(xxxxvi) for the entry in column (4) occurring against all the tariff items of sub- heading 5408 34 , the entry " 15% or Rs . 11 per sq. metre , whichever is higher" shall be substituted;

(31) In Chapter 55,-

(1) forthe entry in column (4) occurring against all the tariff items of headings 5501 , 5502, 5503, 5504, 5505, 5506, 5507, 5508 , 5509 and 5510 , the entry " 15 % " shall be substituted;

(ii) in tariff items 5511 10 00 and 5511 2000 , for the entry in column (4) against each of them , the entry "15% or Rs . 31 per kg. , whichever is higher" shall be substituted;

(iii) for the entry in column (4) occurring against all the tariff items of sub- heading 5511 30, the entry " 15% or Rs . 30 per kg. , whichever is higher" shall be substituted;

(iv) for the entry in column (4) occurring against all the tariff items of sub- heading 5512 11 , the entry " 15%" shall be substituted;

(v) for the entry in column (4) occurring against all the tariff items ofsub- heading 5512 19, the entry "15% or Rs. 42 per sq . metre, whichever is higher" shall be substituted;

(vi) for the entry in column ( 4) occurring against all the tariff items of sub- heading 5512 21 , the entry "15%" shall be substituted;

(vit) for the entry in column (4) occurring against all the tariff items of sub-heading 5512 29 , the entry "15% or Rs . 47 per sq. metre, whichever is higher " shall be substituted;

(viii) for the entry in column (4) occurring against all the tariff items of sub-heading 551291 , the entry "15%" shall be substituted;

(ix) for the entry in column (4) occurring against all the tariff items ofsub-heading 551299 , the entry" 15% or Rs . 65 per kg. , whichever is higher" shall be substituted;

(x) for the entry in column (4) occurring against all the tariff items of sub -headings 5513 11 , 5513 12, 5513 13 and 5513 19, the entry " 15 % " shall be substituted;

(xi) in tariff items5513 21 00 and 5513 22 00, for the entry in column (4) occurring against each ofthem, the entry " 15% or Rs . 150 per kg. , whichever is higher " shall be substituted;

(xii) in tariff item 5513 23 00, for the entry in column (4) , the entry " 15% or Rs. 125 per kg. or Rs . 25 per sq. metre, whichever is highest " shall be substituted;

(xiii) in tariff item 55132900, for the entry in column (4), the entry " 15 % or Rs. 185per kg. , whichever is higher" shall be substituted;

Sec. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

69 (xiv) in tariff item 551331 00, for the entry in column (4), the entry " 15% or Rs . 21 per sq.metre,whichever is higher" shall be substituted;

(xv) in tariff item 5513 32 00 , for the entry in column (4), the entry " 15 % or Ra. 170 per kg. ,whichever is higher" shallbe substituted;

(xvi) in tariff item 5513 33 00, for the entry in column (4 ), the entry " 15% or Rs. 22 per sq . metre, whichever is higher" shall be substituted;

(xvii) in tariff item 5513 3900, for the entry in column (4), the entry " 15% or Rs . 125 per kg. or Rs. 30 per sq.metre, whichever is higher" shallbe substituted;

(xviii) in tariff item 5513 41 00, for the entry in colunun (4) , the entry " 15% or Ra. 25 per sq .metre, whichever is bigher" shall be substituted;

(xix) in tariff item 5513 42 00, for the entry in column (4), the entry " 15 % or Rs . 12 por aq .metre,whichever is higher" shall be substituted;

(xx) in tariffitem 5513 43 00, for the entry in column (4), the entry " 15% or Rs. 20 per aq. metre, whichever ishigher" shallbe substituted;

(xx) in tariff item5513 49 00, for the entry in column (4), the entry " 15 % or Rs. 185 per kg. ,whichever is higher" shall be substituted;

(xxii) for the entry in column (4 ) occurring against all the tariff items of sub-headings 5514 11,5514 12, 5514 13 and 5514 19, the entry " 15 %" shall be substituted;

(xxiti) in tariff item 5514 21 00 , for the entry in column (4), the entry " 15 % or Rs . 100 per kg. orRs. 30 per aq. metre, whichever is higher" shall be substituted;

(xxiv) in tariff item 55142200, for the entry in column (4), the entry " 15% orRs . 140 per kg. , whichever is higher" shall be substituted;

(xv) in tariff item 551423 00, for the entry in column (4) , the entry " 15 % or Rs. 160 per kg. ,whichever is higher" shall be substituted;

(xxxvi) in tariff item 55142900, for the entry in column(4), the entry " 15% or Rs. 170 per kg. , whichever is bigher" shall be substituted;

(xxxvii) in tariff item 5514 31 00, for the entry in column (4), the entry " 15% or Rs. 64 per sq. metre, whichever is higher" shall be substituted;

(xxviii) in tariff item 5514 32 00, for the entry in column (4 ), the entry " 15 % or Rs. 43 per sq.metrs, whichever is higher" shall be substituted;

(xxix) in tariff item 551433 00, for the entry in column (4) , the entry " 15 % or Ra. 180 per kg.; whichever is higher" shall be substituted;

(xxx) in tariff item 5514 39 00 , for the entry in column (4), the entry " 15% or Rs. 31 per sq. metre, whichever is higher" shall be substituted;

(xxx) in tariff item 55144100, for the entry in column (4), the entry " 15 % or Rs. 26 per sq . metre,whichever is higher" shall be substituted;

(poil) in tariff item 5514 42 00 , for the entry in column (4), the entry " 15% or Rs . 140 per kg. ,whichever is higher" shallbe substituted;

(xxxiii) in tariff item 5514 43 00 , for the entry in column (4), the entry " 15 % or Rs. 31 per aq. metre, whichever is higher" shall be substituted;

(xxx ) in tariff item 551449 00, for the entry in column(4), the entry " 15% or Rs. 160 per kg. ,whichever is higher" shallbe substituted;

(xxxv) for the entry in column (4) occurring against all the tariff items of sub- heading 5515 11 , the entry "15% or Rs . 40 per sq . metre , whichever is higher" shallbesubstituted;

(xxxvi) for the entry in column (4) occurring against all the tariff items ofsub-heading 5515 12, the entry "15% or Rs. 95 per kg. , whichever is higher" shallbe substituted;

[PART II- THE GAZETTE OF INDIA EXTRAORDINARY

(xxxvii) for the entry in column (4) occurring against all the tariff items of sub- heading 5515 13, the entry "15% or Rs . 75 per sq. metre, whichever is higher" shall be substituted;

(xxxviii) for the entry in column (4 ) occurring against all the tariff items of sub-heading 5515 19, the entry "15% or Rs . 45 per sq . metre , whichever is higher" shall be substituted;

(xxxix) for the entry in column (4) occurring against all the tariff items ofsub- heading 551521 , the entry "15% or Rs . 79 per sq . metre , whichever is higher " shall be substituted;.

(x1) for the entry in column (4) occurring against all the tariff items ofsub-heading 5515 22, the entry " 15% or Rs . 140 per kg. , whichever is higher" shall be substituted;

(xii) for the entry in column (4) occurring against all the tariff items of sub -heading 5515 29, the entry "15% or Rs . 30 per sq . metre, whichever is higher " shall be substituted;

(xlii) for the entry in column (4) occurring against all the tariff items of sub -heading 5515 91 , the entry "15% or Rs . 57 per sq. metre , whichever is higher " shall be substituted;

(xliii) for the entry in column (4) occurring against all the tariff items of sub -heading 5515 92, the entry "15% or Rs . 55 per sq . metre, whichever is higher" shall be substituted;

(zliv) for the entry in column (4 ) occurring against all the tariff items of sub- heading 5515 99 , the entry "15% or Rs . 35 per sq . metre , whichever is higher" shall be substituted ;

(xiv) for the entry in column (4 ) occurring against all the tariff items of sub- heading 5516 11 , the entry "15%" shall be substituted;

(xvi) in tariff item 5516 1200 , for the entry in column (4) ,the entry " 15 % or Rs . 35 per sq . metre, whichever is higher shall be substituted;

(xlvii) in tariff item 5516 13 00 , for the entry in column (4) , the entry " 15 % or Rs . 40 per sq . metre, whichever is higher" shall be substituted;

(xlviii) for the entry in column (4) occurring against all the tariff items of sub-heading 5516 14 , the entry " 15% or Rs. 12 per sq. metre , whichever is higher" shall be substituted;

(xlix) for the entry in column (4) occurring against all the tariff items of sub- heading 5516 21 , the entry " 15%" shall be substituted;

(1) in tariff itens 5516 22 00 and 551623 00, for the entry in column (4 ) occurring against each ofthem, the entry " 15% or Rs . 150 per kg. , whichever is bigher" shall be substituted;

(11) in tariff item 55162400, for the entry in column (4) , the entry " 15 % or Rs . 12 per sq. metre, whichever is higher" shall be substituted;

(lii) for the entry in column (4) occurring against all the tariff items of sub- heading 5516 31 , the entry " 15%" shall be substituted;

(liii) in tariff items 5516 3200 , 5516 33 00 and 55163400 , for the entry in column (4) occurring against each of them, the entry " 15% " shall be substituted;

(liv) for the entry in column (4) occurring against all the tariff items of sub-heading 5516 41 , the entry "15%" shall be substituted ;

(iv) in tariff items 5516 4200 , for the entry in column (4 ) , the entry " 15% " shall be substituted;

(Ivi) in tariff items 5516 43 00 and 5516 44 00, for the entry in column (4), occurring against each ofthem, the entry " 15% or Rs . 12 per sq. inetre , whichever is higher " shall be substituted;

(Ivii) for the entry in column (4 ) occurring against all the tariff items of sub - heading 551691, the y "15%" shall be substituted;

(Iviii) in tariff item 5516 92 00 , for the entry in coluinn (4 ) , the entry " 15 % " shall be substituted;

(lix) in tariff item 551693 00, for the entry in column (4 ) , the entry " 15 % or Rs. 21 per sq . metre, whichever is higher " shall be substituted;

(x) in tariff iteın 5516 94 00 , for the entry in column (4) , the entry " 15% or Rs . 40 per sq. metre , whichever is higher " shall be substituted;

SEC.2]

THE GAZETTE OF INDIA EXTRAORDINARY

71 (32) in Chapter 56, for the entry in column (4) occurring against all the tariff items, the entry " 15% " shall be substituted;

(33) in Chapter 57,-

(1) for the entry in column (4) occurring against all the tariff items ofheading 5701 , the entry " 15 % " shali be substituted;

(ii) in tariff item 5702 1000, for the entry in column(4), the entry " 15 % " shallbe substituted;

(iii) for the entry in column (4) occurring against all the tariff items of sub-headings 5702 20 and 570231, the entry " 15 % " shall be substituted;

(iv) for the entry in column (4) occurring against all the tariff items ofsub-heading 5702 32, the entry"15% orRs.105 per sq. metre , whichever is higher" shall be substituted;

(v) for the entry in column (4) occurring against all the tariff items of sub- headings , 5702 39 and 570241 , the entry " 15%" shall be substituted;

(vi) for the entry incolumn (4) occurring against all the tariff items ofsub-heading 570242, the entry" 15% or Rs . 80 per sq. metre , whichever is higher " shall be substituted;

(vii) for the entry in column (4) occurring against all the tariff items ofsub-headings, 5702 49 and 5702: 51 , the entry " 15% " shall be substituted;

(viii) for the entry in column (4) occurring against all the tariff items ofsub-heading 5702 52, the entry "15% or Rs . 105 per sq . metre, whichever is higher" shall be substituted;

(ix) for the entry in column (4) occurring against all the tariff items ofsub-headings 570259 and570291, the entry " 15%" shall be substituted;

(x) for the entry in column (4) occurring against all the tariff items ofsub-heading 5702 92, the entry " 15% or Rs . 110 per sq . metre, whichever is higher" shall be substituted;

(xi) for the entry in column (4) occurring against all the tariff items of sub-headings 5702 99 and5703 10, the entry " 15% " shall be substituted;

(xii) for the entry in column (4) occurring against all the tariff items of sub-heading 5703 20, the entry "15% or Rs . 70 per sq. metre , whichever is higher" shall be substituted;

(xiii) for the entry in column (4) occurring against all the tariff items of sub- heading 5703 30, the entry "15% or Rs . 55 per sq . metre , whichever is higher" shall be substituted;

(xiv) for the entry in column (4) occurring against all the tariff items of sub-heading 5703 90, the entry "15%" shall be substituted;

(xv) in tariff item5704 10 00, for the entry in column (4), the entry " 15 %" shallbe substituted;

(xvi) for the entry in column (4) occurring against all the tariff items of sub-heading 5704 90, the entry "15% or Rs . 35 per sq . metre , whichever is higher " shall be substituted;

(xvif) for the entry in column (4) occurring against all the tariff items of heading 5705, the entry " 15 %" shall be substituted;

(34) in Chapter 58,-

(1) intariff item 5801 1000, for the entry in column (4), the entry " 15% or Rs. 210 per sq. metre, whichever is higher" shall be substituted;

(ii) in tariff item 5801 21.00 , for the entry in column (4), the entry" 15 % or Rs. 80 per sq. metre, whichever is higher" shall be substituted;

(iii) for the entry in column (4) occurring against all the tariff items ofsub-heading 5801 22, the entry "15% or Rs . 75 per sq. metre, whichever is higher " shall be substituted;

(iv) in tariff item5801 23 00 , for the entry in column (4) , the entry " 15% or Rs . 80 per sq. metre ,whichever is higher shall be substituted;

[PART II- THE GAZETTE OF INDIA EXTRAORDINARY

(v) intariff item 5801 24 00, for the entry in column (4) , the entry " 15 % or Rs. 135 per sq. metre,whichever is higher" shall be substituted;

(vi) in tariff itern5801 25 00, for the entry in column (4 ) , the entry " 15% or Rs . 120 per sq. metre , whichever is higher" shall be substituted;

(vii) in tariff item 5801 26 00, for the entry in column (4 ), the entry " 15% or Rs . 180 per sq . metre, whichever is higher" shall be substituted;

(viii) in tariff item5801 31 00, for the entry in column (4), the entry " 15% or Rs . 75 per sq . metre, whichever is higher" shall be substituted;

(ix) intariff item5801 32 00, for the entry in column (4) , the entry " 15% or Rs . 180 per sq. metre , whichever is higher" shall be substituted;

(x) in tariff item 5801 33 00, for the entry in column (4 ) , the entry " 15% or Rs . 150 per sq . metre, whichever is higher" shall be substituted;

(xi) for the entry in column (4) occurring against all the tariff items ofsub- heading 5801 34 , the entry " 15% or Rs . 140 per sq. metre , whichever is higher" shall be substituted;

(xii) intariff item 5801 35 00, for the entry in column (4 ), the entry " 15 % or Rs. 68 per sq . metre, whichever is higher" shall be substituted;

(xiii) for the entry in column (4) occurring against all the tariff items of sub -heading 5801 36, the entry "15% or Rs . 130 per sq . metre, whichever is higher " sball be substituted;

(xiv) for the entry in column (4) occurring against all the tariff items of sub-heading 5801 90, the entry "15% or Rs. 35 per sq . metre, whichever is higher " shall be substituted;

(xv) in tariff item 5802 11 00 , for the entry in column (4) , the entry " 15 % " shall be substituted;

(xvi) for the entry in column (4) occurring against all the tariff items of sub- heading 5802 19, the entry "15% or Rs . 60 per sq. metre, whichever is higher " shall be substituted;

(xvii) in tariff item 5802 2000 , for the entry in column (4 ), the entry " 15 %" shall be substituted;

(xviii) in tariff item 5802 30 00, for the entry in column (4) , the entry " 15% or Rs. 150 per kg. , whichever is higher" shall be substituted;

(xix) for the entry in column (4) occurring against all the tariff iterns of heading 5803, the entry " 15% " shall be substituted;

(xx) for the entry in column (4) occurring against all the tariff items ofheading 5804, the entry " 15% or Rs. 200 per kg. , whichever is higher " shall be substituted;

(xxx) for the entry in column (4) occurring against all the tariff items ofheadings 5805, 5806, 5807, 5808 and 5809, the entry " 15 % " shall be substituted;

(xxii) in tariff item 5810 1000 , for the entry in column (4) , the entry " 15% or Rs . 200 per kg. , whichever is higher" shall be substituted;

(xxiii) in tariff items 581091 00, for the entry in column (4 ), the entry " 15% " shall be substituted;

(xxiv) for the entry in column (4) occurring against all the tariff items of sub-heading 5810 92, the entry "15%" shall be substituted;

(xxv) in tariff items 5810 99 00, for the entry in column (4) , the entry " 15 % " shall be substituted;

(xxvi) for the entry in column (4) occurring against all the tariff items of heading 5811 , the entry " 15%" shall be substituted;

(35) in Chapter 59, for the entry in column (4) occurring against all the tariff items, the entry " 15% " shall be substituted;

(36) inChapter 60 ,-

(1) for the entry in column (4) occurring against all the tariff items (except tariff item 6001 92 00), the entry "15%" shall be substituted;

(ii) in tariff item 6001 92 00, for the entry in column (4) , the entry " 15 % or Rs . 100 per kg. whichever is higher" shall be substituted;

73 THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

(37) in Chapter 61 ,-

(i) for the entry in column (4) occurring against all the tariff items ofsub -heading 6101 10 , the entry " 15% or Rs . 700 per piece , whichever is higher " shall be substituted;

(ii) in tariff item 6101 2000, for the entry in column (4) , the entry " 15 % or Rs . 540 per piece, whichever is higher " shall be substituted ;

(iii) for the entry in column (4) occurring against all the tariff items of sub -heading 6101 30 , the entry" 15% or Rs . 530 per piece , whichever is higher " shall be substituted;

(iv) for the entry in column (4) occurring against all the tariff items of sub- heading 6101 90, the entry " 15%" shall be substituted;

(v) in tariff item 6102 10 00, for the entry in column (4) , the entry " 15 % or Rs . 595 per piece, whichever is higher" shall be substituted;

(vi) in tariff item 6102 20 00 , for the entry in column (4) , the entry " 15 % or Rs . 425 per piece, whichever is higher" shall be substituted;

(vii) for the entry in column (4) occurring against all the tariff items of sub -heading 6102 30 , the entry " 15% or Rs . 475 per piece , whichever is higher " shall be substituted ;

(viii) for the entry in column (4) occurring against all the tariff items of sub-heading 6102 90, the entry " 15%" shall be substituted;

(ix) for the entry in column (4) occurring against all the tariff items ofheading 6103, the entry " 15%" shall be substituted;

(x) in tariffitems 6104 1100, 6104 12 00 and 6104 13 00 , for the entry in column (4) occurring against each of them, the entry " 15% " shall be substituted;

(xi) for the entry in column (4) occurring against all the tariff items of sub - heading 6104 19, the entry " 15% or Rs . 460 per piece , whichever is higher " shall be substituted ;

(xii) in tariff items 6104 21 00, 6104 22 00 and 6104 23 00, for the entry in column (4) occurring against each ofthem, the entry " 15 %" shall be substituted;

(xiii) for the entry in column (4) occurring against all the tariff items of sub - heading 6104 29, the entry " 15%" shall be substituted;

(xiv) in tariff items 6104 31 00 , 6104 32 00 and 6104 33 00, for the entry in column ( 4) occurring against each of them, the entry " 15% " shall be substituted;

(xv) for the entry in column (4) occurring against all the tariff items of sub -heading 6104 39, the entry " 15%" shall be substituted;

(xvi) in tariff item 610441 00, for the entry in column (4), the entry " 15 % or Rs . 255 per piece , whichever is higher" shall be substituted;

(xvii) in tariff item 6104 42 00 , for the entry in column (4 ), the entry " 15 % " shall be substituted;

(xviii) in tariff items 6104 43 00 and 6104 44 00 , for the entry in column (4) occurring against each ofthem, the entry " 15% or Rs . 255 per piece , whichever is higher" shall be substituted;

(xix) for the entry in column (4) occurring against all the tariff items of sub- heading 6104 49, the entry " 15% or Rs . 220 per piece , whichever is higher" shall be substituted;

(xx) intariff items 6104 51 00, 6104 52 00 and 6104 53 00 , for the entry in column (4) occurring against each ofthem, the entry " 15% or Rs.110 per piece, whichever is higher " shall be substituted;

(xxi) for the entry in column (4) occurring against all the tariff items of sub - heading 6104 59 , the entry " 15% or Rs . 110 per piece , whichever is higher" shall be substituted;

(xxii) in tariff item 6104 61 00, for the entry in column ( 4) , the entry " 15 % " shall be substituted;

(xxiii) in tariff items 6104 62 00 and 6104 63 00, for the entry in column (4) occurring against each ofthem, the entry " 15% or Rs . 98 per piece , whichever is higher " shall be substituted;

[PART I THE GAZETTE OF INDIA EXTRAORDINARY

(xxiv) for the entry in column (4) occurring against all the tariff items of sub - heading 610469 , the entry " 15 %" shall be substituted;

(xxxv) for the entry in column (4 ) occurring against all the tariff items ofsub- headings 6105 10 and 6105 20, the entry " 15% or Rs . 83 per piece , whichever is higher " shall be substituted;

(xxvi) for the entry in column (4) occurring against all the tariff items ofsub- heading 6105 90 , the entry "15% or Rs . 90 per piece, whichever is higher" shall be substituted;

(xxvii) in tariff item 6106 1000, for the entry in column (4) , the entry " 15% or Rs. 90 per piece , whichever is higher" shall be substituted;

(xxviif) for the entry in column (4) occurring against all the tariff items of sub -heading 6106 20, the entry "15% or Rs . 25 per piece, whichever is higher " shall be substituted;

(xxix) for the entry in column (4) occurring against all the tariff items of sub -heading 6106 90 , the entry "15% or Rs . 135 per piece, whichever is higher" shall be substituted;

(xxx) intariff item 6107 1100, for the entry in column (4) , the entry " 15% or Rs . 24 per piece , whichever is higher" shall be substituted;

(xxxi) for the entry in column (4) occurring against all the tariff items of sub -heading 6107 12, the entry "15% or Rs . 30 per piece, whichever is higher " shall be substituted;

(xxxii) for the entry in column (4) occurring against all the tariff items ofsub- heading 6107 19, the entry "15%" shall be substituted;

(xxxiii) in tariff item 6107 21 00, for the entry in column (4) , the entry " 15 % " shall be substituted;

(xxxiv) for the entry in column (4) occurring against all the tariff items ofsub- headings 610722, 610729, 6107 91,610792 and 6107 99, the entry " 15 % " shall be substituted;

(xxxy) for the entry in column (4) occurring against all the tariff items of sub -headings 6108 11 and 6108 19, the entry " 15 %" shall be substituted;

(xxcxv ) in tariff item 61082100, for the entry in colurnn (4), the entry " 15 % or Rs. 25 per piece , whichever is higher" shall be substituted;

(xxxxvii) for the entry in column (4) occurring against all the tariff items ofsub- heading 6108 22, the entry "15% or Rs . 25 per piece , whichever is higher" shall be substituted;

(xxxviif) for the entry in column (4) occurring against all the tariff items ofsub-heading 6108 29, the entry "15%" shall be substituted;

(xxxix) in tariff item 6108 31.00 , for the entry in column (4), the entry " 15 % " shall be substituted;

(xl) for theentry in column (4) occurring against all the tariff items ofsub- headings 6108 32 and 610839, the entry " 15%" shall be substituted:

(xli) in tariff item 610891 00, for the entry in column (4), the entry " 15 % or Rs . 65 per piece, whichever is higher" shall be substituted;

(xlii) for the entry in column (4) occurring against all the, tariff items ofsub- heading 6108 92, the entry "15% or Rs . 60 per piece, whichever is higher " shall be substituted;

(xliii) for the entry in column (4) occurring against all the tariff items of sub- heading 6108 99, the entry "15%" shall be substituted;

(xliv) in tariff item 6109 1000, for the entry in column (4) , the entry " 15 % or Rs . 45 per piece, whichever is higher" shall be substituted;

(xiv) for the entry in column (4) occurring against all the tariff items of sub-heading 6109 90, the entry "15% or Rs . 50 per piece, whichever is higher" shall be substituted;

(xvi) for the entry in column (4) occurring against all the tariff items of sub- heading 6110 11 , the entry "15% or Rs . 275 per piece, whichever is higher " shall be substituted;

(xlvii) in tariff items 6110 1200 and 6110 1900 , for the entry in column (4) occurring against each ofthem, the entry " 15% or Rs . 275 per piece, whichever is higher " shall be substituted;

75 THE GAZETTE OF INDIA EXTRAORDINARY

SBC.2].

(xlviii) in tariff item 6110 20 00 , for the entry in column (4), the entry " 15% or Rs . 85 per piece,whichever is higher" shall be substituted;

(xlix) for the entry in column ( 4) occurring against all the tariff items of sub-heading 6110 30, the entry "15% or Rs . 110 per piece , whichever is higher " shall be substituted;

(4) in tariff item 6110 9000, for the entry in column (4) , the entry " 15% or Rs. 105 per piece, whichever is higher" shall be substituted;

(li) for the entry in column (4) occurring against all the tariff items ofheadings 6111 and 6112, the entry " 15%" shall be substituted;

(lii) in tariff item 61130000, for the entry in column (4 ), the entry " 15%" shall be substituted;

(liii) for the entry in column (4) occurring against all the tariff items ofheadings 6114, 6115, 6116 and6117, the entry " 15%" shall be substituted;

(38) in Chapter 62,

(1) intariff item6201 11 00, for the entry in column (4), the entry " 15 % or Rs. 385 per piece, whichever is higher" shall be substituted;

(if) for the entry incolumn (4) occurring against all the tariff items ofsub-heading 6201 12, the entry" 15% orRs. 385 per piece, whichever is higher" shall be substituted;

(iii) for the entry in column (4) occurring against all the tariff items of sub -heading 6201 13, the entry "15% or Rs . 320 per piece , whichever is higher " shall be substituted;

(iv) for the entry in column (4) occurring against all the tariff items of sub-heading 6201 19, the entry "15%" shall be substituted;

(v) in tariff item 6201 91:00 , for the entry in column (4), the entry " 15% or Rs . 220 per piece,whichever is higher" shall be substituted;

(vi) in tariff item6201 9200, for the entry in column (4), the entry " 15% or Rs . 210 per piece, whichever is higher" shall be substituted;

(vii) in tariff item 6201 93 00, for the entry in column (4 ), the entry" 15% or Rs.180 per piece,whichever is higher" shall be substituted;

(viii) for the entry in column (4) occurring against all the tariff items of sub-heading 6201 99, the entry "15%" shall be substituted;

(ix) for theentry in column (4) occurring against all the tariff items ofsub-heading 6202 11 , the entry" 15% orRs. 385 per piece, whichever is higher" shall be substituted;

(x) in tariff item 62021200, for the entry in column (4 ), the entry " 15% or Rs . 210 per piece, whichever is higher" shall be substituted;

(xi) in tariff item 6202 13.00, for the entry in column (4), the entry " 15 % or Rs . 385 per piece, whichever is higher" shall be substituted;

(xii) for the entry in column (4) occurring against all the tariff items of sub-heading 6202 19, the entry "15%" shall be substituted;

(xiii) for the entry in colump (4) occurring against all the tariff items of sub-heading 6202 91 , the entry " 15% or Rs . 220 per piece , whichever is higher" shall be substituted;

(xiv) for the entry in column (4) occurring against all the tariff items of sub-heading 620292, the 'entry "15% or Rs. 160 per piece, whichever is higher" shall be substituted;

(xv) for theentryincolumn (4) occurring against all the tariff items ofsub-heading 620293, the antry"15% orRs . 220 per piece, whichever is higher" shall be substituted;

(xvi) for the entry in column (4) occurring against all the tariffitems ofsub-heading 6202 99, the entry "15%" shall be substituted;

(xvi) in tariff item 6203 11 00 , for the entry in column (4), the entry" 15% or Rs.1100 per piece,whichever is higher" shall be substituted;

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II- 76

(xviii) in tariff item 6203 12 00 , for the entry in column (4) , the entry " 15 % or Rs.720 per piece, whichever is higher" shall be substituted;

(xix) for the entry in column ( 4) occurring against all the tariff items of sub - heading 6203 19, the entry "15% or Rs . 1110 per piece , whichever is higher " shall be substituted;

(xx) in tariff items 6203 2100, 6203 22 00, 6203 23 00 and 6203 29 00, for the entry in column (4) occurring against each of them , the entry " 15 % or Rs.145 per piece , whichever is higher " shall be substituted;

(xx ) in tariff item 6203 31 00 , for the entry in column (4 ) ,the entry " 15% or Rs . 815 per piece , whichever is higher" shall be substituted;

(xxii) in tariff item6203 32 00 , for the entry in column (4 ), the entry " 15% or Rs . 440 per piece, whichever is higher " shall be substituted;

(xiii) in-tariff item 6202 33 00 , for the entry in column (4), the entry " 15 % or Rs . 320 per piece, whichever is higher" shall be substituted ;

(xxiv) for the entry in column (4) occurring against all the tariff items of sub - heading 6203 39 , the entry "15% or Rs . 755 per piece, whichever is higher" shall be substituted;

(xxv) in tariff item6203 41 00, for the entry in column (4 ) , the entry " 15 % or Rs . 285 per piece ,whichever is higher" shall be substituted;

(xxvi) in tariff item6203 42 00, for the entry in column (4 ), the entry " 15% or Rs . 135 per piece,whichever is higher" shall be substituted;

(xxvii) in tariff item 6203 43 00 , for the entry in column (4 ), the entry " 15 % or Rs. 110 per piece, whichever is higher " shall be substituted;

(xxviii) for the entry in column (4) occurring against all the tariff items ofsub-heading 6203 49, the entry "15% or Rs . 110 per piece , whichever is higher " shall be substituted;

(xxix) in tariff item 6204 11 00, for the entry in column (4), the entry " 15 % or Rs . 550 per piece, whichever is higher" shall be substituted;

(xxx) in tariff item6204 12 00, for the entry in column (4) , the entry " 15 % " shall be substituted;

(xxx ) intariff item6204 13 00, for the entry in column (4 ), the entry " 15 % or Rs . 550 per piece, whichever is higher" shall be substituted;

(xxxii) for the entry in column (4 ) occurring against all the tariff items of sub- heading 6204 19, the entry "15% or Rs . 500 per piece , whichever is higher" shall be substituted;

(xxxiii) in tariff item 6204 21 00 , for the entry in column (4), the entry " 15 % " shall be substituted;

(xxxiv) for the entry in column (4 ) occurring against all the tariff items of sub- heading 6204 22, the entry "15%" shall be substituted;

(xxxy) in tariff item 6204 23 00, for the entry in column (4) , the entry " 15% " shall be substituted ;

(xxxxvi) for the entry in column (4) occurring against all the tariff items of sub-heading 6204 29 , the entry "15%" shall be substituted;

(xxxvii) in tariff item 6204 3100, for the entry in column (4), the entry " 15% or Rs . 370 per piece, whichever is higher " shall be substituted;

(xxxviii) in tariff item 6204 32 00 , for the entry in column (4), the entry " 15% or Rs . 650 per piесе, whichever is higher" shall be substituted;

(xxxix) intariffitem 6204 33 00, for the entry in column (4), the entry " 15 % or Rs . 390 per piece, whichever is higher" shall be substituted;

(x1) for the entry in column (4) occurring against all the tariff items ofsub- heading 6204 39, the entry" 15% or Rs . 350 per piece, whichever is higher " shall be substituted;

(xli) for the entry in column (4) occurring against all the tariff items of sub- heading 6204 41 , the entry "15% or Rs . 145. per piece, whichever is higher" shall be substituted;

(xiii) for the entry in column (4 ) occurring against all the tariff items of sub-heading 6204 42 , the entry "15% or Rs . 116 per piece, whichever is higher " shall be substituted;

SEC . 2]

THE GAZETTE OF INDIA EXTRAORDINARY

77 (xliii) for the entry in column (4) occurring against all the tariff items of sub-heading 6204 43 , the entry "15% or Rs . 145 per piece , whichever is higher " shall be substituted;

(xliv) in tariff item 6204 44 00 , for the entry in column (4 ), the entry " 15 % or Rs . 145 per piece, whichever is higher" shall be substituted;

(xiv) for the entry in column (4) occurring against all the tariff items of sub-heading 6204 49, the entry " 15% or Rs . 145 per piece, whichever is higher" shall be substituted;

(xlvi) in tariff itern 6204 51 00 , for the entry in column (4), the entry " 15 % or Rs . 485 per piece , whichever is higher" shall be substituted;

(xlvii) in tariff items 6204 52 00 and 6204 5300, for the entry in column (4) occurring against each ofthem, the entry " 15 % " shall be substituted;

(xlviii) for the entry in column (4 ) occurring against all the tariff items ofsub-heading 6204 59 , the entry "15%" shall be substituted ;

(xlix) for the entry in column (4) occurring against all the tariff items of sub- heading 6204 61; the entry " 15% or Rs . 285 per piece , whichever is higher " shall be substituted;

(1) intariff item 6204 62 00, for the entry in column (4 ), the entry " 15 % or Rs . 135 per piece, whichever is higher " shall be substituted;

(li) intariff item6204 63 00, for the entry in column (4) , the entry " 15 % " shall be substituted;

(lii) for the entry in column (4) occurring against all the tariff items ofsub-heading 6204 69, the entry" 15% orRs . 135 per piece , whichever is higher " shall be substituted;

(liii) in tariff item 6205 1000, for the entry in column (4 ) , the entry " 15% or Rs . 200 per piece, whichever is higher" shall be substituted;

(liv) in tariff item6205 20 00, for the entry in column (4), the entry " 15 % or Rs . 85 per piece, whichever is higher" shall be substituted;

(v) in tariff item 6205 3000, for the entry in column (4), the entry " 15 % or Rs . 120 per piece, whichever is higher " shall be substituted;

(Ivi) for the entry in column (4) occurring against all the tariff items of sub-heading 6205 90, the entry "15% or Rs.95 per piece , whichever is higher" shall be substituted;

( vii) for the entry in column (4) occurring against all the tariff items of sub- heading 6206 10, the entry " 15 %" shall be substituted;

(iviii) in tariff item 6206 20 00, for the entry in column (4 ), the entry " 15 % or Rs . 135 per piece, whichever is higher" shalt be substituted;

(lix) intariff item 6206 3000 , for the entry in column (4), the entry " 15 % or Rs. 95 per piece, whichever is higher" shall be substituted;

(br) intariff item 6206 4000, for the entry in column (4 ), the entry " 15 % or Rs . 120 per piece, whichever is higher" shall be substituted;

(xi) in tariff item 6206 90 00, for the entry in column (4), the entry " 15 % " shall be substituted;

(xii) in tariff item 6207 1100, for the entry in column (4), the entry " 15 % or Rs. 28 per piece, whichever is higher" shall be substituted;

(lxiil) for the entry in column (4) occurring against all the tariff items of sub- heading 6207 19, the entry "15% or Rs . 30 per piece, whichever is higher" shall be substituted;

( xiv) in tariff item 6207 21 00 , for the entry in column (4), the entry " 15 % " shall be substituted;

(brv) in tariff items 6207 2200 and 6207 29 00, for the entry in column (4) occurring against each ofthem, the entry " 15%" shall be substituted;

(Lovi) for the entry in column (4) occurring against all the tariff items of sub- heading 6207 91 , the entry "15%" shall be substituted;

(Lavii) in tariff item 6207 92 00, for the entry in column (4) , the entry " 15%" shall be substituted;

[PART II- THE GAZETTE OF INDIA EXTRAORDINARY

(lxviii) for the entry in column (4) occurring against all the tariff items of sub- heading 6207 99, the entry "15% or Rs . 70 per piece, whichever is higher" shall be substituted;

(Ixix) in tariff item 6208 11 00, for the entry in column (4 ), the entry " 15% or Rs . 80 per piece, whichever is higher" shall be substituted;

(box) for the entry in column (4) occurring against all the tariff items of sub -heading 6208 19 , the entry "15% or Rs . 60 per piece , whichever is higher" shall be substituted;

(bxxi) in tariff items 6208 21 00 and 6208 22 00, for the entry in column (4 ) occurring against each ofthem, the entry " 15% " shall be substituted;

(lxxii) for the entry in column (4) occurring against all the tariff items of sub- heading 6208 29 , the entry "15%" shall be substituted;

(lxxiii) for the entry in column (4) occurring against all the tariff items of sub- heading 6208 91 , the entry "15% or Rs . 95 per piece, whichever is higher " shall be substituted;

(Lxxiv) for the entry in column (4) occurring against all the tariff iterns ofsub -heading 6208 92, the entry "15% or Rs . 65 per piece, whichever is higher" shall be substituted;

(Lury) for the entry in column (4) occurring against all the tariff items of sub- heading 6208 99, the entry " 15%" shall be substituted;

(Lxxvi) for the entry in column (4) occurring against all the tariff items of heading 6209 , the entry " 15%" shall be substituted;

(borvii) in tariff item 6210 10 00, for the entry in column (4), the entry " 15 % " shall be substituted;

(boxviii) for the entry in column (4) occurring against all the tariff items ofsub-heading 621020, the entry "15% or Rs . 365 per piece, whichever is higher " shall be substituted;

(xxix) for the entry in column (4) occurring against all the tariff items of sub-heading 621030, the entry "15% or Rs. 305 per piece, whichever is higher" shall be substituted;

(Inox) for the entry in column (4) occurring against all the tariff items ofsub-heading 621040, the entry "15% or Rs . 65 per piece, whichever is higher" shall be substituted;

(Looxi) in tariff item 6210 5000, for the entry in column (4), the entry " 15 % or Rs . 65 per piece, whichever is higher" shall be substituted;

(boccil) in tariff items 62111100,6211 1200, 6211 20 00 and 62113100, for the entry in column (4) occurring jagainst each ofthem, the entry " 15% " shall be substituted;

(boxxiii) in tariffitems 62113200 and 6211 33 00, for the entry in column (4) occurring against each of them, The entry " 15% or Rs.135 per piece, whichever is higher" shall be substituted;

(Axxxiv) in tariff items 62113900 and 6211 4100, for the entry in column (4) occurring against each ofthem, the entry " 15% " shall be substituted;

(Lxxxv) for the entry in column (4) occurring against all the tariff items of sub-heading 621142, the entry "15% or Rs . 135 per piece, whichever is higher" shall be substituted;

(boxxvi) intariff item 62114300, for the entry in column (4), the entry " 15% or Rs. 135 per piece, whichever is higher" shall be substituted;

(korvii) in tariff items 6211 4900, for the entry in column (4), the entry " 15 %" shall be substituted;

(boxxviii) for the entry in column (4) occurring against all the tariff items of heading 6212, the entry" 15% or Rs . 30 per piece, whichever is higher" shall be substituted;

(Axxxix) for the entry in column (4) occurring against all the tariff items of heading 6213 , the entry " 15%" shall be substituted;

(xc) for the entry in column (4) occurring against all the tariff items ofsub-heading 6214 10, the entry " 15% orRs . 390 per piece , whichever is higher" shall be substituted;

(xi) for the entry in column (4) occurring against all the tariff items ofsub-heading 6214 20, the entry "15% or Rs . 180 per piece, whichever is higher" shall be substituted;

79 THE GAZETTE OF INDIA EXTRAORDINARY

SBC.2]

(xcit) in tariff items 6214 3000 and 6214 4000 , for the entry in column (4) occurring against each ofthem, the entry " 15%" shall be substituted;

(xciil) for the entry in column (4) occurring against all the tariff items of sub-heading 6214 90, the entry "15% or Rs . 75 per piece, whichever is higher " shall be substituted;

(xciv) for the entry in column (4) occurring against all the tariff items ofheading 6215, the entry "15% or Rs . 55 per piece , whichever is higher " shall be substituted;

(xcv) for the entry in column (4) occurring against all the tariff items ofheadings 6216 and 6217, the entry "15%" shall be substituted;

(39) in Chapter 63 ,-

(1) for the entry in column (4) occurring against all the tariff items (except tariff items 6301 20 00, 630221 00 and 6302 31 00), the entry " 15 % " shall be substituted;

(ii) in tariff item 6301 2000, for the entry in column (4 ), the entry " 15 % or Rs . 275 per piece, whichever is higher" shall be substituted;

(iii) in tariff item 630221 00, for the entry in column (4), the entry " 15% or Rs . 108 per kg. ,whichever is higher" shall be substituted;

(tv) in tariff item6302 31 00, for the entry in column (4), the entry " 15% or Rs. 96 per kg. , whichever is higher" shall be substituted;

(40) in Chapter 64, for the entry in column (4 ) occurring against all the tariff items, the entry " 15% " shall be substituted;

(41) in Chapter 65, for the entry in column (4) occurring against all the tariff items, the entry "15%" shallbe substituted;

(42) in Chapter 66, for the entry in column (4 ) occurring against all the tariff items, the entry " 15 % " shall be substituted;

(43) in Chapter 67, for the entry in column (4) occurring against all the tariff items, the entry " 15 %" shall be substituted;

(44) in Chapter 68, for the entry in column (4) occurring against all the tariff items, the entry " 15 % " shall be substituted;

(45) in Chapter 69, for the entry in column (4) occurring against all the tariff items, the entry " 15%" shallbe substituted;

(46) in Chapter 70, for the entry in column (4) occurring against all the tariff items, the entry " 15 % " shallbe substituted;

(47) in Chapter 71 , for the entry in column ( 4) occurring against all the tariff items, the entry " 15% " shall be substituted;

(48) is Chapter 72, for the entry in column (4) occurring against all the tariff items, the entry "20% " shall be substituted;

(49) in Chapter 73 , for the entry in column (4 ) occurring against all the tariff items, the entry " 15% " shall be substituted;

(50) in Chapter 74, for the entry in column (4 ) occurring against all the tariff items, the entry " 15 % " shall be substituted;

(51) inChapter 76, for the entry in column ( 4) occurring against all the tariff items ofheading 7615 , the entry " 15%" shall be substituted;

(52) in Chapter 78, for the entry in column (4 ) occurring against all the tariff items, the entry " 15% " shall be substituted;

(53) in Chapter 79, for the entry in column (4) occurring against all the tariff items, the entry " 15% " shall be substituted;

(54) in Chapter 81 , for the entry in column (4) occurring against all the tariff items, the entry " 15%" shall be substituted;

[PART II- THE GAZETTE OF INDIA EXTRAORDINARY

(55) in Chapter 82, for the entry in column (4) occurring against all the tariff items, the entry " 15 % " shall be substituted;

(56) in Chapter 83 , for the entry in column (4) occurring against all the tariff items, the entry " 15 % " shall be substituted;

(57) in Chapter 84,-

(1) for the entry in column (4) occurring against all the tariff items ofheadings 8401 , 8402, 8403, 8404, 8405 and 8406, the entry " 15 %" shall be substituted;

(ii) intariff items 8407 1000 and 8407 29 00, for the entry in column (4) occurring against each ofthem, the entry " 15 % " shall be substituted;

(iii) for the entry in column (4) occurring against all the tariff items of sub - headings 8407 31 , 8407 32, 8407 33,8407 34 and 840790 , the entry " 15 %" shall be substituted;

(iv) for the entry in column (4 ) occurring against all the tariff items of headings 8408, 8409, 8410, 8411, 8412, 8413 , 8414,8415 , 8416, 8417, 8418,8419,8420, 8421 , 8422, 8423 , 8424, 8425, 8426, 8427, 8428, 8429, 8430, 8431,8432,8433,8434, 8435, 8436, 8437, 8438, 8439, 8440, 8441 , 8442, 8443 , 8444, 8445, 8446, 8447, 8448, 8449, 8450, 8451,8452, 8453, 8454 and 8455 , the entry " 15% " shall be substituted;

(v) in tariff items 8456 10 00, 8456 20 00 and 8456 3000 , for the entry in column (4 ) occurring against each ofthem , the entry " 15 %" shall be substituted;

(vi) for the entry in column (4) occurring against all the tariff items of sub -heading 8456 99, the entry " 15%" shall be substituted;

(vii) for the entry in column (4) occurring against all the tariff items of headings 8457,8458,8459,8460, 8461, 8462, 8463, 8464, 8465, 8466, 8467 and 8468, the entry " 15 % " shall be substituted;

(viii) in tariff item 8469 11 00 , for the entry in column (4) , the entry " Free " shall be substituted;

(ix) in tariff item 8469 12 00, for the entry in column (4) , the entry " 15 % " shall be substituted ;

(x) for the entry in column ( 4 ) occurring against all the tariff items of sub -headings 8469 20 and 8469 30, the entry " 15% " shall be substituted;

(xi) for the entry in column (4) occurring against all the tariff items of heading 8470 , the entry " Free" shall be substituted;

(xii) in tariff item 8471 10 00, for the entry in column (4 ) , the entry "Free " shall be substituted;

(xiii) for the entry in column (4) occurring against all the tariff items ofsub-headings 8471 30 and 8471 41 , the entry " Free" shall be substituted;

(xiv) in tariff items 8471 49 00 and 8471 50 00, for the entry in column (4) occurring against each ofthem, the entry " Free " shall be substituted;

(xv) for the entry in column (4) occurring against all the tariff items of sub -heading 8471 60 , the entry "Free" shall be substituted;

(xvi) in tariff items 8471 80 00 and 8471 90 00, for the entry in column (4 ) , the entry "Free " shall be substituted;

(xvii) for the entry in column (4) occurring against all the tariff iteins of heading 8472, the entry " 15%" shall be substituted;

(xviii) in tariff item 8473 1000 , for the entry in column (4) , the entry " 15 % " shall be substituted; (xix) in tariff items 8473 21 00 and 8473 29 00, for the entry in column (4) occurring against each of them, the entry "Free" shall be substituted;

(xx) for the entry in column (4) occurring against all the tariff items of sub -heading 8473 30 , the entry "Free" shall be substituted;

(xxi) for the entry in column (4) occurring against all the tariff items of sub -heading 8473 40, the entry " 15%" shall be substituted;

(xxii) in tariff item 8473 50 00 , for the entry in column (4) , the entry "Free " shall be substituted;

( xiii) for the entryin column (4 ) occurring against all the tariff items ofheadings 8474, 8475, 8476, 8477, 8478,8479, 8480, 8481 , 8482, 8483 , 8484 and 8485, the entry " 15 %" shall be substituted;

(58) in Chapter 85, Sac. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(1) for the entryincolumn (4) occurring against all the tariff items ofheadings 8501 , 8502, 8503, 8504,8505, 8506,8507, 8509, 8510 , 8511 , 8512, 8513 , 8514, 8515 and 8516, the entry " 15 %" shall be substituted;

(ii) for the entry in column (4) occurring against all the tariff items ofheading 8517, the entry "Free" shall be substituted;

(iif) for the entry in column (4) occurring against all the tariff items of headings 8518 and 8519, the entry " 15%" shall be substituted;

(iv) in tariff item 8520 10 00, for the entry in column (4) , the entry " 15%" shall be substituted ;

(v) intariff item 8520 2000, for the entry in column (4) , the entry " Free " shall be substituted:

(vi) in tariff item 8520 32 00, for the entry in column (4), the entry " 15 % " shall be substituted;

(vii) for the entry in column (4) occurring against all the tariff items ofsub-headings 8520 33, 8520 39 and 8520 90, the entry " 15 % " shall be substituted;

(viii) for the entry in column (4) occurring against all the tariff items ofheadings 8521 and 8522, the entry "15%" shall be substituted;

(ix) for theentryin column (4) occurring against all the tariff items of sub-headings 8523 11 , 8523 12, 8523 13 and 8523 20, the entry " Free " shall be substituted;

(x) in tariff item 8523 30 00, for the entry in column (4) , the entry " 15 % " shallbe substituted;

(xi) for the entry in column (4) occurring against all the tariff items of sub-heading 8523 90, the entry "Free" shall be substituted;

(xii) for the entry in column (4) occurring against all the tariff items of sub-heading 8524 10, the entry "15%" shall be substituted;

(xiii) for the entry in column (4) occurring against all the tariff items ofsub-heading 8524 31 , the entry "Free" shall be substituted;

(xstv) for the entry in column (4) occurring against all the tariff items of sub-headings 8524 32 and 852439, the entry " 15%" shall be substituted;

(xv) for the entry in column (4) occurring against all the tariff items of sub-heading 852440, the entry "Free" shall be substituted;

(xvi) for the entry in column (4) occurring against all the tariff items of sub-headings 8524 51; 852452and 852453, the entry " 15% " shall be substituted;

(rvil) in tariff item 8524 60 00, for the entry in column (4), the entry " 15 %" shall be substituted;

( viii) for the entry in column (4) occurring against all the tariff items of sub-beading 8524 91 , the entry "Free" shall be substiturted;

(xix) for the entry in column (4) occurring against all the tariff items of sub-heading 8524 99, the entry " 15%" shall be substituted;

(xx) for the entry in column (4) occurring against all the tariff items of sub-heading 8525 10, the entry "15%" shall be substituted;

(xx) for the entry in column (4) occurring against all the tariff items of sub-heading 8525 20, the entry "Free" shall be substituted;

(xxii) in tariff items 8525 3000 and 8525 4000 , for the entry in column (4) occurring against each ofthem, the entry " 15 %" shall be substituted;

(xxiff) for the entry in column (4) occurring against all the tariff items ofheadings 8526, 8527, 8528,8529 and8530, the entry " 15%" shall be substituted;

(xxtv) for the entryin column (4) occurring against all the tariff items ofsub-heading 8531 10, the entry "15%" shall be substituted;

(xv) in tariff item 8531 20 00, for the entry in column (4), the entry "Free " shall be substituted;

(xxvi) in tariff items 8531 8000 and 85319000, for the entry in column (4) occurring against each ofthem, the entry" 15%" shall be substituted;

[PART II- THE GAZETTE OF INDIA EXTRAORDINARY

(xxvii) in tariff items 8532 1000, 8532 22 00, 8532 23 00 and 8532 25 00, for the entry in column (4) occurring against each of them , the entry " Free " shall be substituted;

(xxviii) for the entry in column (4) occurring against all the tariff items of sub -heading 8532 29 , the entry "Free" shall be substituted;

(xxix) in tariff items 8532 30 00, for the entry in column ( 4) , the entry " Free " shall be substituted ;

(xxx) intariff item 8533 10 00, for the entry in column (4) , the entry " Free " shall be substituted;

(xxxi) for the entry in column (4) occurring against all the tariff items of sub- headings 8533 21 , 8533 29 , 8533 31,853339 and 8533 40 , the entry " Free" shall be substituted;

(xxxii) in tariff item 8534 00 00 , for the entry in column (4) , the entry " Free" shall be substituted;

(xxxiii) for the entry in column (4) occurring against all the tariff items ofheadings 8535 , 8536,8537,8538 and 8539 , the entry " 15 % " shall be substituted;

(xxxiv) for the entry in column (4) occurring against all the tariff items of sub - heading 8540 11 , the entry " 15 %" shall be substituted;

(xxxv) in tariff items 8540 1200,8540 20 00, 8540 50 00, 8540 60 00, 8540 71 00, 8540 72 00, 8540 7900, 8540 81 00, 8540 89 00, 854091 00 and 8540 9900, for the entry in column (4) occurring against each ofthem , the entry " 15%" shall be substituted;

(xxxvi) in tariff items 8541 1000, 8541 21 00 and 8541 29 00 , for the entry in column (4) occurring against each of them, the entry "Free " shall be substituted;

(xxxvii) for the entry in column (4) occurring against all the tariff items of sub-headings 8541 30 and 8541 40, the entry" Free " shall be substituted;

(xxxviii) in tariff items 8541 50 00 and 8541 60 00 , for the entry in column (4) occurring against each of them, the entry " Free " shall be substituted;

(xxxix) for the entry in column (4) occurring against all the tariff items of sub - headings 8543 19 and 8543 20, the entry" 15 % " shall be substituted;

(x1) in tariff items 8543 30 00 and 8543 40 00, for the entry in column (4) occurring against each ofthem, the entry " 15% " shall be substituted;

(xli) in tariff item 8543 81 00 , for the entry in column (4) , the entry "Free " shall be substituted;

(xlii) for the entry in column (4) occurring against all the tariff items of sub- heading 8543 89 , the entry " 15%" shall be substituted ;

(xliii) in tariff item 8543 9000 , for the entry in column (4) , the entry " 15 % " shall be substituted;

(xliv) for the entry in column(4) occurring against all the tariff items of sub- headings 8544 11 , 8544 19 and 8544 20, the entry " 15 %" shall be substituted;

(xlv) in tariff item 8544 3000 , for the entry in column (4) , the entry " 15 % " shall be substituted ;

(xlvi) for the entry in column (4) occurring against all the tariff items of sub-headings 854441, 854449, 8544 51 , 8544 59 and 8544 60 , the entry " 15 % " shall be substituted;

(xlvii) for the entry in column (4) occurring against all the tariff items of sub -heading 8544 70, the entry "Free" shall be substituted;

(xlviii) for the entry in column(4) occurring against all the tariff items of headings 8545, 8546, 8,547 and 8548, the entry " 15 % " shall be substituted;

(59) in Chapter 86 , for the entry in column (4) occurring against all the tariff items , the entry " 15 % " shall be substituted;

(60) in Chapter 87 ,-

(i) for the entry in column ( 4) occurring against all the tariff items of headings 8701 and 8702, the entry " 15%" shall be substituted;

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

83 (i) for the entryin column (4) occurring against all the tariff items ofheading 8703 , the entry " 100% " shall be substituted;

(iii) for the entry in column (4) occurring against all the tariff items of headings 8704, 8705, 8706, 8707, 8708 and 8709 , the entry " 15 % " shall be substituted;

(iv) for the entry in column (4) occurring against all the tariff items ofheading 8711 , the entry " 100%" shall be substituted;

(v) for the entry in column (4) occurring against all the tariff items ofheadings 8712, 8713 , 8714, 8715 and 8716, the entry " 15 %" shall be substituted;

(61) in Chapter 88 , for the entry in column (4) occurring against all the tariff items (except tariff items 8802 2000, 8802 30 00, 880240 00, 8803 10 00, 8803 20 00 and 8803 3000), the entry " 15% " shall be substituted;

(62) in Chapter 89, for the entry in column ( 4 ) occurring against all the tariff items(except tariff item 89080000), the entry " 15% " shallbe substituted;

(63) in Chapter 90,-

(1) for theentry in column (4) occurring against all the tariff items ofheadings 9001 , 9002, 9003, 9004,9005, 9006, 9007 and 9008 , the entry " 15 % " shall be substituted;

(it) in tariff item 9009 11 00, for the entry in column (4) , the entry " Free " shallbe substituted;

( iii) in tariff item 9009 12 00 , for the entry in column (4) , the entry " 15 %" shall be substituted;

(iv) in tariff item 9009 2100 , for the entry in column (4), the entry " Free " shall be substituted;

(v) intariff iterns 9009 22 00 and 9009 3000, for the entry in column (4) occurring against each ofthem, the entry " 15 % " shall be substituted;

(vi) in tariff items 90099100, 9009 92 00, 9009 93 00 and 9009 9900, for the entry in column(4) occurring against each of them, the entry " Free" shall be substituted;

(vir) in tariff iterns 9010 1000, 9010 50 00 , 9010 6000 and 90109000, for the entry in column(4) occurring against each of them , the entry " 15 % " shall be substituted;

(viii) for the entry in column (4) occurring against all the tariff items ofheadings 9011 and 9012, the entry " 15%" shall be substituted;

(ix) for the entry in column (4) occurring against all the tariff items of sub-heading 9013 10 , the entry "15%" shall be substituted;

(x) in tariff item 9013 20 00 , for the entry in column (4), the entry " 15 % " shall be substituted;

(xi) in tariff item 9013 80 10, for the entry in column (4 ) , the entry " Free" shall be substituted;

(xii) intariff item 9013 80 90 , for tt entry in column (4), the entry " 15 % " shall be substituted;

(xiii) in tariff item 9013 90 10 , for the entry in column (4 ), the entry " Free " shall be substituted;

(xiv) intariff item9013 90 90 , for the entry in column (4) , the entry " 15 % " shall be substituted;

(xv) for theentry in column (4) occurring against all the tariff items of headings 9014, 9015, 9016, 9017, 9018 and 9019, the entry " 15 % " shall be substituted;

(xvi) in tariff itern 9020 00 00 , for the entry in column (4), the entry " 15 %" shall be substituted;

(xvii) for the entry in column (4 ) occurring against all the tariff items of headings 9021 , 9022, 9023, 9024 and 9025, the entry " 15% " shall be substituted;

(xviii) for the entry in column (4) occurring against all the tariff items of heading 9026, the entry " Free" shall be substituted;

(xix) in tariff item 9027 10 00 , for the entry in column (4) , the entry " 15 % " shall be substituted;

(xx) in tariff item 9027 20 00, for the entry in column(4), the entry " Free" shall be substituted;

(xx) for the entry in column ( 4) occurring against all the tariff items of sub-heading 9027 30, the entry "Free" shall be substituted;

(xxii) in tariff item 9027 40 00, for the entry in column (4), the entry " 15 % " shall be substituted;

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II- ( xii ) for the entry in column ( 4) occurring against all the tariff items of sub- headings 9027 50 and 9027 80, the entry "Free" shall be substituted;

(xxiv) for the entry in column (4) occurring against all the tariff iterns of sub-heading 9027 90, the entry " 15%" shall be substituted;

(xxv) for the entry in column (4) occurring against all the tariff items ofheadings 9028 and 9029, the entry " 15%" shall be substituted;

(xxvi) in tariff items 9030 1000 , 9030 20 00 and 90303100, for the entry in column (4) occurring against each of them, the entry " 15% " shall be substituted;

(zxvii) for the entry in column (4) occurring against all the tariff items of sub - heading 9030 39, the entry " 15%" shall be substituted;

(xxviii) in tariff item 903040 00 , for the entry in column (4), the entry " Free" shall be substituted ;

(xxix) in tariff item 9030 83 00, for the entry in column (4) , the entry " 15 % " shall be substituted;

(xxx) for the entry in column (4) occurring against all the tariff items of sub-headings 9030 89 and 9030 90, the entry " 15 % " shall be substituted;

(xxx) in tariff items 90311000, 9031 2000, 9031 3000, 9031 49 00, 9031 8000 and 90319000, for the entry in column (4) occurring against each of them, the entry " 15 % " shall be substituted;

(xxx ) for the entry in column ( 4) occurring against all the tariff items ofheading 9032 , the entry " 15% " shall be substituted;

(xxxiii) in tariff item 90330000 , for the entry in colunin (4) , the entry " 15 %" shall be substituted;

(64) in Chapter 91 , for the entry in column (4) occurring against all the tariff items , the entry " 15 %" shall be substituted;

(65) in Chapter 92, for the entry in column ( 4) occurring against all the tariff items , the entry " 15 % " shall be substituted;

(66) in Chapter 93 , for the entry in column (4) occurring against all the tariff items, the entry " 15 % " shall be substituted;

(67) in Chapter 94, for the entry in column (4) occurring against all the tariff items, the entry " 15 % " shall be substituted;

(68) in Chapter 95, for the entry in column (4) occurring against all the tariff items , the entry " 15 % " shall be substituted,

(69) in Chapter 96, for the entry in column (4) occurring against all the tariff items, the entry " 15 %" shall be substituted;

(70) in Chapter 97 , ----

(1) for the entry in column (4) occurring against all the tariff items of heading 9701 , the entry " 15% " shall be substituted;

(i) in tariff item 9702 00 00, for the entry in column (4) , the entry " 15 %" shall be substituted ;

(iii) for the entry in column (4) occurring against all the tariff items ofheadings 9703 and 9705, the entry " 15%" shall be substituted;

(iv) in tariff item 97060000, for the entry in column (4) , the entry " 15 % " shall be substituted;

(71) in Chapter 98,-

(1) for the entry in column (4) occurring against all the tariff items ofheading 9801 , the entry " 15 % " shall be substituted;

(11) in tariff item 9802 0000 , for the entry in column (4) , the entry " 15 %" shall be substituted;

(iii) in tariff item 9803 00 00 , for the entry in column (4) , the entry " 100 % " shall be substituted;

(iv) for the entry in column (4) occurring against all the tariff items ofheadings 9804 and 9805, the entry " 15%" shall be substituted .

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

PART II Inthe First Schedule to the Customs TariffAct,-

85 1. In Chapter 22, for heading 2208 and the entries relating thereto, the following sub-headings, tariff items and entries shall be substituted, namely:-

TariffItem

Description of goods

(1)

2208

Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol .; spirit, liqueurs and other spirituous beverages 2208 20

Spirits obtained by distilling grape wine or grape marc:

In containers holding 2 1 or less :

2208 2011

Brandy

220820 12

Liquors

2208 20 19

Other

2208 2091

Brandy

2208 20 92

Liquors

2208 2099

Other

220830

Whiskies:

In containers holding 2 1 or less :

2208 30 11

Bourbon whiskey

2208 30 12

Scotch

2208 30 13

Blended

2208 30 19

Other

2208 30 91

Bourbon whiskey

2208 30 92

Scotch

2208 30 93

Blended

2208 30 99

Other

220840

Rum and tafia :

In containers holding 2 1 or less :

220840 11

Rum

2208 40 12

Tafia

Other

22084091

Rum

22084092

Tafia

220850

Ginand Geneva:

In containers holding 21 or less :

2208 50 11

Gin

2208 50 12

Geneva

2208 50 13

Vodka

Other:

2208 50 91

Gin

2208 50 92

Geneva

2208 50 93

Vodka

220870

Liqueurs and cordials:

In containersholding 21 or less :

220870 11

Liqueurs

220870 12

Cordials

Other

Unit Rateofduty

Stan- dard

Perential Areas (3) (4) (5)

182%

1.82%

182%

182% THE GAZETTE OF INDIA EXTRAORDINARY

TariffItem

Description of goods (1) (2)

2208 7091

Liqueurs

Cordials

2208 70 92

Other:

220890

In containers holding 21 or less :

2208 90 11

Tequila

2208 90 12

Indenatured ethyl alcohol

Other

2208 90 19

Other

2208 90 91

Tequila

2208 90 92

Indenatured ethyl alcohol 2208 90 99

Other

(z) in Chapter 28 ,-

(i) in heading 2812 ,

[PART II- Unit

Rate ofduty Stan- Preferential dard Areas

(4) (5)

(3)

182%

(a) for tariff item 2812 10 10 and the entries relating thereto , the following shall be substituted, namely:-

"2812 10 10

Phosgene (carbonyl chloride , carbonyl dichloride, carbonoxy-chloride , chloroformyl chloride) kg. 15% -";

(b) for tariff item 2812 10 20 and entries relating thereto , the following shall be substituted , namely:-

" Phosphorus trichloride and Phosphorus pentachloride:

2812 1021

Phosphorus trichloride 2812 1022

Phosphorus pentachloride kg . 15%

kg. 15% -" ;

" Sulphur oxychloride, Sulphur monochloride, Sulphur dichloride and Thionyl chloride:

2812 10 41

Sulphur oxychloride 2812 10 42

Sulphur monochloride 281210 43

Sulphur dichloride 28121047

Thionyl chloride

kg. 15%

15%

kg.

15%

kg.

kg. 15% -" ;

(d) after tariff item 2812 10 50 and the entries relating thereto, the following shall be inserted, namely:-

Arsenous trichloride "2812 10 60

kg. 15% -" ;

(ii) in heading 2851 , for tariff item 2851 00 90 and the entries relating thereto , the following shall be substituted , namely:-

Other:

2851 00 91

Cyanogen chloride [ (CN) Cl ]

Other

285100 99

(2) in Chapter 29,-

kg. 15%

15% -";

kg.

(i) in heading 2903 , for tariff item 2903 30 10 and the entries relating thereto, the following shall be substituted , namely:-

Fluorinated derivatives :

2903 30 11

1 -Propene , 1 , 1,3,3,3 , -

Pentafluoro - 2- (trifluoromethyl ) (PFIB )

Other

2903 30 19

kg. 15%

kg. 15% " SBC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

TariffItem

Description ofgoods (1)

87 Unit Rateofduty

Stan- Preferential dard Areas (3) (4) (5)

(ii) in heading 2904 , after tariff item 2904 90 70 and the entries relating thereto, the following shall be inserted , namely:-

"290490 80 Chloropicrin (Trichloronitro - Methane) kg. 15% -";

(iii) in heading 2905 , for tariff item 2905 19 00 and the entries relating thereto , the following shall be substituted, namely:-

"2905 19

Other:

2905 19 10

2-Butanol , 3 , 3 -dimethyl- 2905 19 90 Other

15%

kg.

kg. 15% -";

(iv) in heading 2918, for tariff item 2918 19 00 and the entries relating thereto , the following shall be substituted , namely:--

"291819

Other:

2918 19 10

Benzeneacetic acid , alpha - hydroxy - alpha -phenyl- 291819 90

Other

(v) inheading 2920,-

kg. 15%

kg. 15% -";

(a) for tariff item 2920 10 00 and the entries relating thereto , the following shall be substituted, namely:-

Phosphorothioic acid, S [2-(diethylamind) ethyl] 0,0- diethyl ester; and Thiophosphoric esters (phosphorothioates) and their salts; their halogenated, sulphonated, nitrated or nitrosated derivatives :

2920 1010

Phosphorothioic acid , S [2-(diethylamino) ethyl ] O, O-diethyl ester 292010 20

Thiophosphoric esters (phosphorothioates) and their salts ; their halogenated , sulphonated , nitrated or nitrosated derivatives 15%

kg.

kg. 15% -";

(b) for tariff item 2920 90 90 and the entries relating thereto , the following shall be substituted, namely:---

" Other:

29209041

Trimethyl Phosphite 29209042

Triethyl Phosphite

2920 9043

Dimethyl Phosphite 29209044

Diethyl Phosphite

29209045

O, O, Dimethyl Methyl Phosphonate 2920 9047

Phosphonic Acid , Methyl- compound with (aminoimino methyl) urea ( 1: 1)

29209048

1-Propanaminium N, N, N -trimethyl -3-[ 1 -oxo-9 -octadecenyl) amino] -, (2)- methyl methylphosphonate kg. 15%

15%

kg.

kg. 15%

15%

kg.

15%

kg.

THE GAZETTE OF INDIA EXTRAORDINARY

TariffItem

Description ofgoods

(1)

(2)

2920 90 51

Phosphonic acid , [ methyl- bis (5-ethyl- 2-methyl -2- oxido- 1 , 3,2-dioxaphosphorinan-5 -yl)

methyl ] ester

29209052

Phosphonic acid, [methyl- (5 -ethyl -2-methyl 2 -oxido- 1,3,2 -dioxaphosphorinan -5 -yl ) methyl ) ester 2920 90 53

Phosphonic acid , propyl - dimethyl ester 29209054

Phosphonous acid , methyl -diethyl ester 292090 55

Phosphonic acid, ethyl- 292090 56

Phosphonic acid , propyl- 29209057

Phosphinic acid , methyl- 292090 58

Phosphonochloridic acid , methyl- , methyl ester

2920 90 61

Phosphonothioic dichloride , ethyl- 2920 9062

Phosphonic acid , methyl- 292090 63

Phosphonic acid, methyl- , dimethyl ester 292090 64

Phosphonic dichloride , methyl- 2920 90 65

Phosphonous dichloride , methyl- 292090 66

Phosphonic acid, ethyl- , diethyl ester 292090 99

Other

[PART II- Unit Rateofduty

Stan- Preferential dard Areas

(4) (5) (3)

15%

kg.

15%

kg.

15%

kg.

15%

kg.

15%

kg.

15%

kg.

15%

kg.

15%

kg.

15%

kg.

15%

kg.

15%

kg.

15%

kg.

15%

kg.

15%

kg.

15% -"; kg.

(vi) in heading 2921 , for tariff item 2921 19 00 and the entries relating thereto, the following shall be substituted, namely:-

Other:

"2921 19

2-Chloro N,N-Di- isopropyl ethylamine and Ethanamine, 2- Chloro-N, N-dimethyl :

2921 19 11

2-Chloro N , N-Di- isopropylethylamine 2921 19 14

Ethanamine, 2-Chloro- N , N -dimethyl

Other

2921 19 90

(vii) in heading 2922 ,-

15%

kg.

15%

kg.

15% -" ;

kg.

(a) for tariff items 2922 11.00 and 2922 12 00 and the entries relating thereto, the following shall be substituted , namely:-

2922 11

Monoethanolamine and its salts:

2-Hydroxy N,N-Diisopropyl

Ethylamine, N,N- Disthyl Amino ethyl Chloride Hydrochloride,

Di-ethyl Amino ethanethiol

Hydrochloride, Di-Methyl Amino ethyl

chloride Hydrochloride, Di-Methyl

Amino ethanethiol, Di-Methyl Amino

ethanethiol Hydrochloride:

2922 11 11

2-Hydroxy N, N -Diisopropyl Ethylamine 2922 11 12

N,N - Diethyl Amino ethyl

Chloride Hydrochloride 2922.11 13

Di -ethyl Amino ethanethiol Hydrochloride kg. 15%

15%

kg.

15%

kg.

THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

Tariff Item

Description of goods

(2)

(1)

2922 11 14

Di-Methyl Amino ethyl chloride Hydrochloride

2922 11 15

Di -Methyl Aminoethanethiol 2922 11 16

Di -Methyl Amino ethanethiol Hydrochloride

Other

2922 11 90

Diethanolamine and its salts :

2922 12

Ethyldiethanolamine and Methyldiethanolamine :

2922 12 11

Ethyldiethanolamine

2922 12 12

Methyldiethanolamine

Other

2922 12 90

Unit Rateofduty Stan- Preferential dard Areas

(4) (5)

(3)

15%

kg.

15%

kg.

15%

kg.

15%

kg.

15%

kg.

15%

kg.

15%

kg.

(b) for tariff item 2922 19 00 and the entries relating thereto , the following shall be substituted, namely:-

Other:

"2922 19

2922 19 10

Diethyl aminoethanethiol 2922 19 20

Ethanol , 2- [bis ( 1 - methylethyl ) amino ] - 2922 19 30

Ethanethiol , 2-(diethylamino ) -

Other

2922 19 90

15%

kg.

15%

kg.

15%

kg.

kg. 15% -";

(viii) in heading 2930, for tariff item 2930 90 90 and the entries relating thereto , the following shall be substituted , namely: --

"--- Other:

2930 90 91

Ethanol , 2,2 ' - thiobis-

Other

2930 90 99

15%

kg.

15% -";

kg.

(ix) in heading 2933 , after tariff item 2933 39 20 and the entries relating thereto , the following shall be inserted, namely:-

"2933 39 30

1 -Azabicyclo (2.2.2 .) octan- 3 - ol kg. 15% -" ;

(x) in heading 2939 , for tariff item 2939 29 00 and the entries relating thereto , the following shall be substituted, namely:-

Other:

"293929

2939 2910

Benzeneacetic acid , alpha

-hydroxy- alpha -phenyl , 1-

azabicyclo [2.2.2.Joct- 3 -yl ester

Other

29392990

15%

kg.

15%

kg.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II

THE THIRD SCHEDULE

(See section 81 )

'THE THIRD SCHEDULE

[See section 2 (f) ( iii) ]

NOTES

1. In this Schedule , " heading" , " sub-heading " and "tariff item " mean respectively a heading, sub - heading and tariff item in the First Schedule to the Central Excise TariffAct, 1985 (5 of 1986) .

2. The rules for the interpretation ofthe First Schedule to the Central Excise TariffAct, 1985 (5 of 1986) , the Section and Chapter Notes and the General Explanatory Notes of the said First Schedule shall , apply to the interpretation of this Schedule .

S.No.

Description of goods

Heading, sub-heading or tariff item

(3)

(2)

(1)

040291 10 or 04029920

Concentrated(condensed) milk, whether sweetened or not put up in unit containers and ordinarily intended for sale

1702

Preparation ofother sugar

1702

Sugar syrups not containing added flavouring or colouring matter, artificial honey whether or not mixed with natural honey; caramel 4.

1704

Gums, whether or not sugar coated ( including chewing gum , bubble gum and the like)

170490 5.

Allgoods

1805 00 00 or 1806 1000

Cocoa powder, whether or not containing added sugar or other sweetening matter

1806

Other food preparations containing cocba .

180690 10

Chocolates in any form , whether or not containing nuts , fruit kernels or fruits , including drinking chocolates

All goods

1901 2000 or 190190

1902

10.

All goods other than seviyan (Vermicelli )

1904

11 .

Allgoods

19053100 or

12.

19059020

Biscuits, in or in relation to the manufacture of which any process is ordinarily carried on with the aid ofpower

13.

Waffles and wafers, coated with chocolate or containing chocolate 1905 32 11 or 19053290

14.

All goods

1905 32 19 or 19053290

15.

2101 1100 от

2101 1200

Extracts, essences and concentrates , of coffee, and preparations with a basis of these extracts , essences or concentrates or with a basis of coffee

2102

16.

All goods

17.

21050000

Ice cream and other edible ice , whether or not containing cocoa 18.

2106 90 20

Pan masala, only in retail packs containing ten grams or more per pack, other than the goods containing not more than 15% betel nut byweight and not containing tobacco in any proportion 21069030

19.

Betel nut powder known as " Supari "

Sharbat

21069011

20.

21.

21061000,

Edible preparations (excluding "Prasad or prasadam ") , not elsewhere

specified or included , bearing a brand name

210690 19, 91 THE GAZETTE OF INDIA EXTRAORDINARY

SEC.2]

S.No. Heading, sub -heading or tariff item

Description ofgoods

(1)

(2)

(3)

21069040,

21069050,

21069060,

21069070,

21069080,

21069091,

21069099

22.

2201

Waters, including natural or artificial mineral waters (excluding

Aeratedwaters), bearing a brand name

23.

2201 1020

Aerated waters

24.

2202 10 10

Aeratedwaters

25.

2202 1090

Waters, including mineral waters, bearing a brand name

26.

2209

Vinegar and substitutes for vinegar obtained from acetic acid 27.

24039910,

Chewing tobacco and preparations containing chewing tabacco 24039920,

24039930

28..

24039990

Panmasala containing tobacco

29.

25232100

White cement, whether or not artificially coloured and whether or not with rapid hardening properties

2710

30.

Lubricating oils and lubricating preparations

320420 or

31.

Synthetic organic products of a kind used as florescent brightening 32049000

agents or as a luminophores

3206

All goods other than pigments and inorganic products of a kind used as luminophores

33.

3208 or3209 or 3210

Allgoods

321290

34.

Dyes and other colouring matter put up in forms or small packing of kind used for domestic or laboratory purposes

35.

(1)3213

Allgoods

(ii)3214

All goods excluding primers (heading 3208 ), varnishes (heading3209)

36.

(1)3303or3304

Perfumes and toilet waters, not containing the substances specified inNote I (d) to this Chapter.

(ii)3305

Allgoods

3306

37.

Toothpaste

38.

3307

Allgoods, not containing the substances specified in Note 1 (d) to this.

Chapter

39.

3401

Soaps in any form other than the following:

(1) soap, other than for toilet use, whether or not containingmedi- cament or disinfectant;

(ii) soap, in or in relation to the manufacture ofwhich no process has been carried on with the aid of power or of steam; and

(ii) laundry soaps produced by a factory owned by the Khadi and Village Industries Commission or any organisation approved by the said Commission for the purpose of manufacture of such soaps

40.

(13401

Organic surface-active products and preparations for use as soap in the form ofbars, cakes, moulded pieces or shapes

(ii)3402

41.

3403

All goods other than sulphonated castor oil, fish oil or sperm oil Lubricating preparations ( including cutting -oil preparations, bolt or mut release preparations, anti -rust or anti -corrosion preparations and mould release preparations based on lubricants)

3405

Polishes and creams, for footwear, furniture , floors, coachwork, glass or metal, scouring pastes and powders and similar preparations (whether or not in the form of paper, wadding, felt, non-wovens, cellular plastics or cellular rubber, impregnated, coated or covered with such preparations ), excluding waxes ofheading 3404 [PART II- THE GAZETTE OF INDIA EXTRAORDINARY

Description of goods

S.No. Heading, sub -heading or tariff item

(3)

(2)

(1)

3506

43.

Prepared glues and other prepared adhesives not elsewhere specified or included

3702

All goods other than for X- ray and cinematograph films , unexposed 44.

3808

Insecticides , fungicides , herbicides , weedicides and pesticides 45.

Disinfectants and similar products

3808

46.

Thinners

3814:00 10

47.

3819

48.

Hydraulic brake fluids and other prepared liquids for hydraulic

transmission , not containing or containing less than 70% by weight ofpetroleum oils obtained from bituminous minerals

3820 2000

Anti-freezing preparations and prepared de - icing fluids

49.

Stencil correctors and other correcting fluids , ink removers put up in 3824 or 3825

50.

packings for retail sale

Self- adhesive tapes ofplastics

3919

51.

Insulated ware

3923 or

52.

3924

4816

Carbon paper, self- copy paper, duplicator stencils , of paper 53.

Cleansing or facial tissues , handkerchiefs and towels of paper pulp , 4818

54.

paper , cellulose wadding or webs of cellulose fibres

Footwear

6401 to 6405

55.

Safety headgear

6506 10

56.

Vitrified tiles, whether polished or not

6907

57.

Glazedtiles

6908

58.

7321

Cooking appliances and plate warmers

59.

Pressure cookers

7323

60.

Sanitary ware of iron or steel

7324

61.

Sanitary ware of copper

7418

62.

Pressure cookers

7615 19 10

63.

Razor and razor blades ( including razor blade blanks in strips) 8212

64.

8305

Staples in strips , paper clips of base metal

65.

Electric fans

8414

66.

Window room air-conditioners and split air- conditioners of capacity 8415

67.

up to 3 tonnes Refrigerators

8418

68.

Water filters and water purifiers , ofa kind used for domestic purposes 8421

69.

Dish washing machines

8422

70.

Household or laundry type washing machines , including machines 8450

71.

which both wash and dry

Typewriters , other than braille typewriters

8469

72.

Calculating machines and pocket- size data recording , reproducing 8470

73.

and displaying machines with calculating functions

8472

Stapling machines (staplers)

74.

8506

Primary cells and primary batteries

75.

Electro-mechanical domestic appliances with self-contained electric motor 8509

76.

8510

Shavers , hair clippers and hair- removing appliances , with self- 77.

contained electric motor

8513

78.

Portable electric lamps designed to function by their own source of energy ( for example , dry batteries , accumulators , magnetos ), other

than lighting equipment of heading 8512

8516

79.

Electric instantaneous or storage water heaters and immersion heaters , electric space heating apparatus and soil heating apparatus, electro- thermic hair-dressing apparatus (for example , hair dryers , hair curlers, curling tong heaters ) and hand dryers ; electric smoothing iron ; other electro-thermic appliances of a kind used for domestic purposes 8517

Telephone sets including telephones with cordless handsets ; video 80.

phones; facsimile machines

All goods

8519 or 8520

81.

93 THE GAZETTE OF INDIA EXTRAORDINARY

SEC.2]

S. No.

Description of goods

Heading, sub -heading or tariff item

(3)

(2)

(1)

8521

82.

Allgoods

Unrecorded audio cassettes

8523

83.

Video cassettes

8523

84.

8523

Magnetic discs

85.

Video cassettes

8524

86.

8524

87.

Magnetic discs

8525

88.

Pagers, cellular or mobile phones

8527

89.

Radio sets including transistor sets , having the facility of receiving radio signals and converting the same into audio output with no other additional facility like sound recording or reproducing or clock in the same housing or attached to it

8527

90.

Reception apparatus for radio - broadcasting , whether or not combined, in the same housing with sound recording or reproducing apparatus or a clock

91.

8528

Television receivers (including video monitors and video projectors), whether or not incorporating radio broadcast receivers or sound or video recording or reproducing apparatus

8536

Allgoods

92.

8539

Electric filament or discharge lamps , including sealed beam lamp 93.

units and ultra - violet or infra - red lamps; arc lamps

9006

Photographic ( other than cinematographic) cameras

94.

Watches other than braille watches

9101 or

95.

9102

Clocks

9103 or 9105

96.

9612

97.

All goods

Vacuum flasks . ' .

98.

9617 [PART II THE GAZETTE OF INDIA EXTRAORDINARY

THE FOURTH SCHEDULE

(See section82)

Amendment

S.No.

Date ofeffect of amendment Provisions of the Central Excise Rules, 1944 tobe amended

(4)

(3)

(2)

(1)

1st day of August, 1996 to 28th day of February, 1997 (both days inclusive)

In the Central Excise Rules , 1944 , in rule 57CC, the Explanation shall be numbered as Explanation 1 thereof; and after Explanation 1 as so numbered, the following Explanation shall be inserted, namely:-

1. Rule 57CC of the Central Excise Rules , 1944 as inserted by notification No. G.S.R. 324(E), dated the 23rd July, 1996 [14/96-Central Excise (N.T. ), dated the 23rdJuly, 1996]

"Explanation 2.-Ifthe manufacturer fails to pay the said amount, it shall be recovered along with interest in the same manner , as provided in rule 57- I, for recovery ofcredit wronglytaken." .

IntheCentral Excise Rules , 1944, in rule 57CC, after sub-rule (9), the following Explanation shail be inserted, namely:--

1st day of March, 1997 to 31st day of March, 2000 (both days inclusive) 2 Rule 57CC ofthe Central Excise Rules, 1944 as substituted by notificationNo. G.S.R. 122(E), dated the 1st March, 1997 [6/97 -Central Excise (N.T. ) , dated the 1stMarch, 1997]

"Explanation- If the manufacturer fails to pay the said amount, it shall be recovered along with interest in the same manner , as provided in rule 57-1 , for recovery of credit wrongly taken.".

Ist day ofApril, 2000 to 30th day of June, 2001 (botb days inclusive )

IntheCentral Excise Rules, 1944, in rule 57AD , after sub -rule (2) , the Explanation shall be numbered as Explanation 1 thereof; and after Explanation 1 as so numbered, the following Explanation shall be inserted , namely:-

3. Rule 57D ofthe Central Excise Rules, 1944 as substituted by notification No. G.S.R. 203 (E) , dated the 1st March. 2000 [ 11 /2000-Central Excise (N.T. ), dated the 1st March, 2000 ] and as substituted by rule 57AD by notification No. 298(E) , dated the 31st March, 2000 [27/2000- Central Excise (N.T.), dated the 31st March, 2000 ]

"Explanation 2. If the manufacturer fails topay the said amount, it shallbe recovered along with interest in the same manner, as provided in rule 57AH, for recovery of CENVAT credit wrongly taken." .

THE GAZETTE OF INDIA EXTRAORDINARY

95 SEC. 2]

THE FIFTH SCHEDULE

(See section83)

Amendment

Provisions ofthe CENVAT Credit Rules , 2001 to be amended

Date ofeffect of amendment

(3) (1)

(2)

Rule 6 ofthe CENVAT Credit Rules, 2001 as published by notification No. G.S.R. 445(E), dated the 21st June , 2001 [31 /2001- Central Excise(N.T. ), dated the 21st June, 2001]

ist day ofJuly, 2001 to the 28th day of February, 2002 (both days inclusive).

In the CENVAT Credit Rules, 2001 , in rule 6, after sub- rule (3), the Explanation shall be numbered as Explanation 1 thereof; and after Explanation 1 as so numbered , the following Explanation shall be inserted, namely:-

"Explananon 2.If the manufacturer fails to paythe said amount, it shall be recovered along with interest in the same manner , as provided in rule 12, for recovery of CENVAT credit wronglytaken." .

[PART II- THE GAZETTE OF INDIA EXTRAORDINARY

THE SIXTH SCHEDULE

(See section 84)

Notification No. and date

Date of effect of amendment

Text ofAmendment

2001 to be amended

In the said notification , in the Explanation, for clause ( a) , the following clause shallbe substituted, namely:-

G.S.R.277 (E), dated the 1st March, 1988 [88/88 - Central Excise, dated the Ist March , 1988 ]

21st day of February, 2000 to 28th day of February, 2003 (both days inclusive)

'(a) the expression "rural area " shall have the meaning assigned to it in clause (f) of section 2 ofthe Khadi and Village Industries Commission Act, 1956 (61 of 1956 ) . ' .

SBC.2]

THE GAZETTE OF INDIA EXTRAORDINARY

THE SEVENTH SCHEDULE

(Sessection85)

NOTES 1. In this Schedule, "heading" , "sub-heading" , "tariff item" and "Chapter " mean respectively a heading, heading, tariff item and Chapter in the First Schedule to the Central Excise TariffAct.

2. The rules for the interpretation of the First Schedule to the Central Excise Tariff Act, the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall apply to the interpretation of this Schedule.

Tariffitem

Unit

Description ofgoods

(1)

(2) 21069020

Pan masala

2401

Rateofduty

(4)

(3)

10%

kg.

UNMANUFACTURED TOBACCO; TOBACCO REFUSE

240110

Tobacco, not stemmed or stripped:

2401 1010

Flue cured Virginia tobacco 2401 1020

Sun cured country ( natu) tobacco 2401 1030

Sun cured Virginia tobacco 2401 1040

Burleytobacco

2401 1050

10%

kg.

10%

kg.

10%

kg.

10%

kg.

10%

kg.

Tobacco for manufacture ofbiris , not stemmed

2401 1060

10%

Tobacco for manufacture of chewing tobacco

2401 1070

kg.

10%

Tobacco for manufacture of cigar and cheroot

2401 1080

kg.

10%

Tobacco for manufacture of hookah tobacco

2401 1090

Other

Tobacco partly or wholly stemmed or stripped.

2401 20 10

Flue cured virginia tobacco 2401 2020

Sun cured country ( natu) tobacco 2401 20 30

Sun cured virginia tobacco 2401 2040

Burleytobacco

2401 20 50

kg.

10%

kg.

10%

kg.

10%

kg.

10%

kg.

10%

kg.

10%

Tobacco for manufacture of biris , not stemmed

2401 20 60

kg.

10%

Tobacco for manufacture of chewing tobacco

2401 20 70

kg.

10%

Tobacco for manufacture of cigar and cheroot

2401 2080.

kg.

Tobacco for manufacture of hookah tobacco

2401 2090

Other

2401 3000

Tobacco refuse

2402

CIGARS, CHEROOTS , CIGARILLOS AND CIGARETTES, OF TOBACCO OR OF TOBACCO SUBSTITUTES 240210

Cigars, cheroots and cigarillos, containing tobacco:

2402 10 10

Cigars and cheroots 2402 1020

Cigarillos

240220

Cigarettes containing tobacco:

240220 10

10%

kg.

10%

kg.

10%:

kg.

Tu 10%

Other than filter cigarettes , of length not exceeding

60 millimetres

24022020

Ra.15 per

thousand Tu

Other than filter cigarettes, of length exceeding 60 millimetres

but not exceeding 70 millimetres 2402 2030

Filter cigarettes of length ( including the length of the filter, the length of filter being 11. millimetres or its actual length,

Rs.45 per

thousand Tu Rs.70per

thousand

whichever is more) not exceeding 70 millimetres

24022040

Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 70 millimetres but not exceeding 75millimetres

Tu Ra.110per

thousand 98

[PART II-

THE GAZETTE OF INDIA EXTRAORDINARY

Tariff item

Unit Rateofduty

Description ofgoods

(2) (1)

2402 20 50

Filter cigarettes of length (including the length of the filter , the length of filter being 11 millimetres or its actual length , whichever is more ) exceeding 75 millimetres but not exceeding

85millimetres

Other

24022090

Other:

240290

OTHER MANUFACTURED TOBACCO AND MANUFACTURED

2403

(3)

(4)

Tu Rs.145 per thousand Tu Rs.180per thousand

TOBACCO SUBSTITUTES ; "HOMOGENISED" OR "RECONSTITUTED"

TOBACCO, TOBACCO EXTRACTS AND ESSENCES 2403 10

Smoking tobacco, whether or not containing tobacco substitutes in

anyproportion:

2403 10 10

Hookah or gudaku tobacco bearing a brand name

2403 1020

Smoking mixtures for pipes and cigarettes

Other

2403 1090

Other:

2403 91 00

"Homogenised" or "reconstituted " tobacco

Other:

240399

2403 99 10

Chewing tobacco

240399 20

Preparations containing chewing tobacco

Jarda scented tobacco 2403 99 30

Snuff

2403 9940

2403 9950

Preparations containing snuff

Tobacco extracts and essence 24039960

Cuttobacco

2403 99 70

Other

2403 99 90

10%

kg.

10%

kg.

10%

kg.

10%

kg.

10%

kg.

10%

kg.

10%

kg.

10%

kg.

10%

kg.

10%

kg.

kg. Rs.5 perkg.

10%

kg.

SBC.2]

99 THE GAZETTE OF INDIA EXTRAORDINARY

THE EIGHTH SCHEDULE

[See section 86(a)]

Inthe First Schedule to the Central Excise TariffAct,-

(1) inChapter 15, after NOTE 5, the following NOTE shall be inserted, namely:-

"6. In relation to refined edible vegetable oils falling under headings 1507 to 1515 , the process ofrefining, that is to say, any one or more of the processes , namely, treatment of crude oil with an alkali, bleaching and deodorisation, shall amount to ' manufacture .";

(2) in Chapter 17, for the entry in column (4) occurring against all the tariff items of heading 1703, the entry "Rs . 1,000 per tonne" shall be substituted;

(3) in Chapter 22, in tariff item 2201 9090, for the entry in column (4), the entry " 16% " shall be substituted;

(4) in Chapter 25, in tariff item 2523 10 00, for the entry in column (4) , the entry "Rs . 350 per tonne" shall be substituted;

(5) in Chapter27,-

(1) for the entryin column (4) occurring against all tariff items ofsub- heading 271011 , the entry " 16% plus Rs . 15.00 per litre " shall be substituted;

(if) in tariff item 2710 19 30, for the entry in column (4) , the entry " 16 % plus Rs . 5.00 per litre " shall be substituted;

(iii) in tariff item 2710 19 40, for the entry in column (4), the entry " 16% plus Rs . 5.00 per litre " shall be substituted;

(6) inChapter57, in tariff items 5701 1000, 5701 90 10 and 5701 90 90, for the entry in column (4) occurring against each of them , the entry " 16%" shall be substituted;

(7) in Chapter 71 , after NOTE 11 , the following NOTES shallbe inserted, namely:-

'12. In this Chapter , " brand name " or "trade name " means a brand name or trade name , whether registered or not, that is to say, a name or a mark, such as symbol, monogram , label , signature or invented words or any writingwhich is used in relation to a product, for the purpose of indicating, or so as to indicate , a connection inthe course oftrade between the product and some person using such name or mark with or without any indication of the identity of that person.

13. For the purposes ofheading 7113 , the processes of affixing or embossing trade name or brand name on articles ofjewellery shall amount to "manufacture"." .

[PART 100

THE GAZETTE OF INDIA EXTRAORDINARY

THE NINTH SCHEDULE

[See section 86(b)]

Unit

Tariff item

Rateofduty Description ofgoods

(4)

(3)

(1)

Inthe Second Schedule to the Central Excise TariffAct,-

(a) after tariff item 2401 30 00 and the entries relating thereto , the following tariff items and entries shall be inserted, namely:-

16%

'2403 10 10

kg.

Hookah or gudaku tobacco

2403 91 00

16%' ;

kg.

"Homogenised" or " reconstituted" tobacco

entries shall be inserted, namely:- (b) after tariff item 2403 99 20 and the entries relating thereto , the following tariff item and "2403 99 30

Jarda scented tobacco

kg. 16%";

(c) after tariff item 2403 99 50 and the entries relating thereto, the following tariff item and entries shall be inserted, namely:-

16%" .

"2403 99 60

kg.

Tobacco, extracts and essence 101-

THE GAZETTE OF INDIA EXTRAORDINARY

Sec. 2]

THE TENTH SCHEDULE

(Seesection116)

"THE FIRST SCHEDULE

[Seesection 3( 1) ]

NOTES 1. In this Schedule, "tariff item", "heading " , " sub-heading" and "Chapter " mean respectively a tariff item, heading, sub-heading and Chapter in the First Schedule to the Central Excise TariffAct, 1985 ( 5 of 1986) .

2. The rules for the interpretation ofthe First Schedule to the Central Excise TariffAct, 1985 (5 of 1986) , the Section and Chapter NOTES and the General Explanatory NOTES of the First Schedule shall, so far as maybe , apply to the interpretation of this Schedule.

TariffItem

Description of goods

(2)

(1)

CANE OR BEET SUGAR AND CHEMICALLY PURE 1701

SUCROSE, IN SOLID PORM Unit RateofAdditional Duty

(3)

(4)

Raw sugar not containing added flavouring or

colouring matter :

1701 11

Canesugar:

1701 11 10

Canejaggery

Other

17011190

1701 1200

Beet sugar

Other:

170191 00

kg. Rs.37 per quintal kg. Rs.37 per quintal kg. Rs . 37 per quintal kg. Rs.37per quintal

Refined sugar containing added flavouring or

colouring matter

Other:

170199

1701 99 10

Sugar cubes

Other

17019990

17029010

Palmyra sugar

2401

kg. Rs. 37 per quintal kg. Rs.37 per quintal

Nil

kg.

UNMANUFACTURED TOBACCO ; TOBACCO REFUSE

240110

Tobacco, not stemmed or stripped:

2401 10 10

Flue cured virginia tobacco 2401 1020

Sun cured country (natu) tobacco 2401 1030

Sun cured virginia tobacco 2401 1040

Burleytobacco

2401 10 50

Tobacco for manufacture of biris , not

stemmed

2401 1060

Tobacco for inanufacture of chewing tobacco

Tobacco for manufacture of 2401 1070

cigar and cheroot

Tobacco for manufacture of 24011080

hookah tobacco

Other

2401 1090

2401 20

Tobacco, partly or wholly stemmed

orstripped:

2401 20 10

Flue cured virginia tobacco 2401 2020

Sun cured country ( natu ) tobacco 2401 2030

Sun cured virginia tobacco 2401 2040

Burleytobacco

Tobacco for manufacture of biris 2401 20 50

10%

kg.

10%

kg.

10%

kg.

10%

kg.

10%

kg.

10%

kg.

10%

kg.

10%

kg.

10%

kg.

10%

kg.

10%

kg.

10%

kg.

10%

kg.

10%

kg.

102

THE GAZETTE OF INDIA EXTRAORDINARY

Tariff Item

Description of goods (1)

(2)

2401 2060

Tobacco for manufacture of

chewing tobacco

2401 20 70

Tobacco for manufacture of cigar and cheroot

2401 20 80

Tobacco for manufacture of hookah tobacco

Other

2401 20 90

2401 3000

Tobacco refuse

2402

CIGARS , CHEROOTS , CIGARILLOS AND CIGARETTES , OF TOBACCO OR OF TOBACCO SUBSTITUTES 240210

Cigars, cheroots and cigarillos, containing

tobacco :

2402 10 10

Cigar and cheroots 2402 10 20

Cigarillos

240220

Cigarettes, containing tobacco. :

2402 20 10

Other than filter cigarettes , of length not exceeding 60 millimetres 240220 20

Other than filter cigarettes , of length exceeding 60 millimetres but not exceeding 70 millimetres 2402 2030

Filter cigarettes of length ( including the length of the filter, the length of filter being 11 millimetres or its actual length , whichever is more) not exceeding

70millimetres

2402 20 40

Filter cigarettes of length (including the length of the filter , the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 70 millimetres but not exceeding 75 millimetres

240220 50

Filter cigarettes of length

(including the length ofthe filter, the length of filter being 11 millimetres or its actual length , whichever is more) exceeding 75 millimetres but not exceeding

85millimetres

2402 20 90

Other

240290

Other:

2402 90 90

Other

2403

OTHER MANUFACTURED TOBACCO 2403 1010

Hookah or gudaku tobacco 2403 10 20

Smoking mixtures for pipes and cigarettes

Biris:

2403 1031

Other than paper rolled biris , manufactured without the aid of machine 2403 10 39

Other

2403 1090

Other

2403 99

Other:

2403 99 10

Chewing tobacco

2403 99 20

Preparations containing chewing tobacco

[PART- Unit

Rate ofAdditional Duty

(3)

(4)

10%

kg.

10%

kg.

10%

kg.

10%

kg.

10%

kg.

Nil

Rs .37 per thousand

thousand Rs. 125 per

Rs. 185 per thousand

Rs.300 per thousand

Rs.400 per thousand

Rs.495 per thousand

Nil

18%

kg.

75%

kg.

Rs. 1.40 per thousand

Rs . 3.50 per thousand

18%

kg.

18%

kg.

18%

kg.

103

THE GAZETTE OF INDIA EXTRAORDINARY

SBC .2]

Tariffhem

Description of goods

(2) (1)

2403 9930

Jarda scented tobacco 24039940

Snuff

2403 9950

Preparations containing snuff

Cut-tobacco

24039970

Other

24039990

5007

WOVEN FABRICS OF SILK OR OF SILK WASTE 50071000

Fabrics of noil silk

500720

Otherfabrics, containing 85% or more by weight of silk or of silk waste other than noil silk :

5007 20 10

Sarees

Other

50072090

50079000

Other fabrics

5111

WOVEN FABRICS OF CARDED WOOL EXCLUDING HAIR BELTING

Containing 85% or more by weight ofwool :

Ofa weight not exceeding 300 g/m² :

Unbleached

5111 11 10

Bleached

5111 11 20

5111 11 30

Dyed

Printed

5111 11 40

Other

5111 1190

Other:

65111 19

5111 19 10

Unbleached

Bleached

5111 1920

5111 1930

Dyed

Printed

5111 1940

5111 1990

Other

511120

Other, mixedmainly or solely with man- made filaments:

5111 20 10

Unbleached

51112020

Bleached

51112030

Dyed

Printed

5111 2040

Other

51112090

511130

Unit RateofAdditional Duty

(3)

(4)

18%

kg.

18%

kg.

18%

kg.

18%

kg.

Nil

m²

Nil

m²

Nil

m²

Nil

m²

Other, mixed mainly or solely with man-made

staplefibres :

Unbleached

5111 30 10

5111 3020

Bleached

5111 30 30

Dyed

Printed

5111 3040

Other

51113090

Other:

511190

5111 9010

Unbleached

Bleached

51119020

5111 9030

Dyed

Printed

5111 9040

Other

51119090

5112

WOVEN FABRICS OF COMBED WOOL EXCLUDING

HAIR BELTING

5112 11

Containing 85% or more by weight ofwool: Ofa weight not exceeding 200 g/m² :

5112 11 10

Unbleached

Bleached

5112 1120

5112 11:30

Dyed

Printed

5112 11 40

Other

511211 90

Other:

511219

m²

8% 104

THE GAZETTE OF INDIA EXTRAORDINARY

Tariff Item

Description of goods (1)

(2) 5112 19 10

Unbleached

5112 19 20

Bleached

5112 19 30

Dyed

5112 19 40

Printed

Other

5112 19 90

511220

Other, mixed mainly or solely with man- made filaments:

5112 20 10

Unbleached

5112 20 20

Bleached

5112 20 30

Dyed

51122040

Printed

511220 90

Other

511230

[PART II- Unit Rate ofAdditional Duty

(4)

(3)

m²

لتاج

Other, mixed mainly or solely with man- made staple

fibres:

511230 10

Unbleached

5112 30 20

Bleached

5112 30 30

Dyed

Printed

5112 30 40

Other

51123090

Other:

511290

51129010

Unbleached

51129020

Bleached

51129030

Dyed

511290 40

Printed

Other

51129090

5208

WOVEN FABRICS OF COTTON, CONTAINING 85% OR MORE BY WEIGHT OF COTTON , WEIGHING NOT MORE THAN 200 g/m²

Unbleached:

5208 11

Plainweave, weighing not more than 100 g/m² :

5208 11 10

Dhoti .

Saree

5208 11 20

5208 11 30

Shirting fabrics 5208 11 40

Casement

Other

5208 11 90

5208 12

Plainweave, weighing more than 100 g/m²:

Dhoti

5208 12 10

5208 12 20

Saree

5208 1230

Shirting fabrics 5208 12 40

Casement

5208 12 50

m²

لتاج

m²

لتاج

m²

Sheeting ( takia, leopard fabrics , other than furnishing m²

fabrics)

Voils

5208 1260

Other

5208 12 90

5208 13

3-thread or 4- thread twill, including cross twill :

5208 13 10

Shirting fabrics 5208 13 20

Dobby fabrics Other

5208 13 90

5208 19

Otherfabrics :

5208 19 10

Dedsuti , dosuti fabrics 5208 1990

Other

Bleached :

520821

Plainweave, weighing not more than 100 g/m² :

520821 10

Dhoti

5208 21 20

Saree

Casement

520821 30

082140

Shirting fabrics

m²

8% 105

THE GAZETTE OF INDIA EXTRAORDINARY

SEC.2]

Tariff Item

Description of goods (1)

(2)

520821 50

Cambrics ( including madapollam and jaconet)

52082160

Mulls (including limbric and willaya) 52082170

Muslin ( including lawn , mulmul and organdi )

52082180

Voils (excluding leno fabrics) 5208 21 90

Other

5208 22

Plainweave, weighing more than 100 g/m² :

5208 22 10

Dhoti

5208 2220

Saree

5208 22 30

Shirting fabrics

5208 2240

Casement

5208 22 50

Cambrics ( including madapollam and jaconet)

5208 2260

Long cloth ( including calico) 5208 22 70

Sheeting (takia and the like) 520822 80

Voils(excluding leno fabrics) 520822 90

Other

5208 23

3-thread or4- thread twill, including cross twill :

520823 10

Shirting fabrics

5208 23 20

Unit Rate ofAdditional Duty

(4)

(3)

m²

سر

لاح

سر

m²

Parmatta fabrics ( including ilesia, pocketing , Italian twill) m²

5208 23 30

Shirting fabrics

520823 90

Other

520829

Otherfabrics:

520829 10

Dhoti and saree , zari bordered 5208 29 20

m²

Dedsuti , dosuti fabrics , ceretonnes and osamburge

5208 29 90

Other

Dyed:

520831

Plain weave, weighing not more than 100 g/m² :

5208 31 10

Lungi

Saree

52083120

5208 31 30

Shirting fabrics

Casement

5208 31 40

5208 31 50

Cambrics ( including madapollam and jaconet)

5208 31 60

Mull( including limbric and willaya) 5208 31 70

m²

Muslin ( including lawn mulmul and organdi ) of

carded or combed yarn $208 31 80

Voils(excluding leno fabrics) 5208 31 90

Other

520832

Plainweave, weighing more than 100 g/m² :

5208 32 10

Lungi

5208 32 20

Saree

5208 32 30

Shirting fabrics

5208 3240

Casement

5208 32 50

Bed ticking, domestic 5208 3260

Cambrics ( including madapollam and jaconet) ,

longcloth (including calico) and voils

(excluding leno fabrics) 5208 32 70

Coating (including suiting) 5208 32 80

m²

لاج

Furnishing fabrics ( excluding pile and chenille fabrics) m²

5208 32 90

Other

520833

3-thread or 4-thread twill, including cross twill :

5208 33 10

Shirting fabrics

52083320

Coating (including suiting) 5208 33 30

Shirting (including mazri)

Other

5208 33 90

520839

Otherfabrics:

5208 39 10

Zari bordered sarees

Other

5208 39 90

الله

8% [PART II-

THE GAZETTE OF INDIA EXTRAORDINARY

106

Description of goods Tariff Item

(2)

(1)

Ofyarn ofdifferent colours :

Plainweave, weighing not more than 100 g/m² :

520841

Bleeding Madras 520841 10

Saree

5208 41 20

Shirting fabrics

5208 41 30

5208 41 40

Bed ticking , domestic Unit Rate ofAdditional Duty

(4)

(3)

m²

Furnishing fabrics (excluding pile and chenille fabrics ) m²

5208 41 50

Other

520841 90

520842

Plainweave, weighing more than 100 g/m² :

Bleeding Madras 5208 42 10

Saree

5208 42 20

5208 42 30

Shirting fabrics

Casement

520842 40

Bed ticking , domestic 5208 42 50

5208 42 60

لاح

m²

تلاح

m²

Furnishing fabrics , other than pile and chenille fabric

Other

5208 42 90

3-thread or 4 -thread twill, including cross twill :

520843

Bleading Madras 5208 43 10

Shirting fabrics 5208 43 20

Bedticking, damask 5208 43 30

Flannelette

5208 43 40

Other

5208 43 90

Otherfabrics:

520849

Zari bordered sarees 5208 49 10

Real Madras handkerchiefs 5208 49 20

Other

5208 49 90

Printed:

Plainweave, weighing not more than 100 g/ m² :

520851

Lungi

5208 51 10

Saree

5208 51 20

Shirting fabrics 5208 51 30

Casement

5208 51 40

5208 51 50

m²

8% m²

m²

8% m²

Cambrics (including madapollam and jaconet)

5208 51 60

Mull ( including limbric and willaya) 5208 51 70

8% m²

Muslin (including lawn mulmul and organdi )

ofcarded or combed yarn 5208 51 80

Voils(excluding leno fabrics)

Other

5208 51 90

5208 52

Plain weave , weighing more than 100 g/ m² :

5208 52 10

Lungi

Saree

5208 52 20

Shirting fabrics 5208 52 30

Casement

5208 52 40

5208 52 50

8% m²

Cambrics ( including madapollam and jaconet)

5208 52 60

Mull ( including limbric and willaya) 5208 52 70

8% m²

Muslin (including lawn mulmul and organdi)

of carded or combed yarn

Voils (excluding teno fabrics) 5208 52 80

Other

5208 52 90

3-thread or 4- thread twill, including crasatwill :

5208 53

Shirting fabrics 5208 53 10

Bedticking

5208 53 20

Other

5208 53 90

Other fabrics:

5208 59

Zari bordered sarees 5208 59 10

Other

520859 90

8% m²

8% m² 107

THE GAZETTE OF INDIA EXTRAORDINARY

SEC.2 ]

Tariff Item

Description of goods

(2)

(1)

5209

WOVEN FABRICS OF COTTON , CONTAINING 85% OR MORE BY WEIGHT OF COTTON , WEIGHING MORE THAN 200 g/m²

Unbleached :

Plain weave :

5209 11

Handloom :

Dhoti

5209 11 11

Saree

5209 11 12

5209 11 13

5209 11 14

Casement Sheeting ( takia, leopard cloth and other than furnishing) ㎡

Other

5209 11 19

Other

5209 11 90

5209 12

3-thread or4-thread twill, including cross twill:

Saree

5209 12 10

5209 12 20

Shirting fabrics

Unit Rate ofAdditional Duty

(4)

(3)

Furnishing fabrics ( excluding pile and chenille fabrics) m²

$209 12 30

Seersucker

5209 12 40

5209 12 50

Canvas , including duck-carded or combed yarn

Flannelette

5209 1260

5209 12 70

Sheeting (takia, leopard cloth)

Other

5209 12 90

Otherfabrics

5209 19 00

Bleached:

Plain weave :

520921

Saree

520921 10

520921 20

Shirting fabries

5209 21 30

8% m²

Furnishing fabrics ( excluding pile and chenille fabrics) m²

Seersucker

52092140

520921 50

Canvas (including duck ) of carded or combed yarn

Dhoti

52092160

Flannelette

5209 21 70

520921 80

Sheeting (takia, leopard cloth)

Other

52092190

3-thread or 4-thread twill, including cross twill :

520922

5209 22 10

Shirting fabrics

520922 20

m²

8% لاح

Furnishing fabrics ( excluding pile and chenille fabrics ) m²

Drill

5209 22 30

Other

5209 22 90

Otherfabrics:

520929

520929 10

Dhoti and saree , zari bordered لاح

لاح

Dedsuti , dosuti fabrics , ceretonnes and osamburge

5209 29 20

Other

$20929 90

Dyed:

520931

Plainweave :

520931 10

Lungi

Saree

5209 31 20

5209 31 30

Shirting fabrics

5209 3140

Furnishing fabrics (excluding pile and chenille fabrics) m²

Seersucker

520931 50

52093160

㎡

Bedticking ,domestic ( other than hand dyed)

5209 31 70

لاح

Canvas (including duck) , of carded or combed yarn

Flannelette

5209 31 80

Other

5209 31 90

520932

3-thread or4- thread twill, including cross twill :

5209 32 10

Shirting fabrics

5209 3220

m²

***

Furnishing fabrics ( excluding pile and chenille fabrics ) m²

[PART I

THE GAZETTE OF INDIA EXTRAORDINARY

108

Tariff Item

Description of goods

(2)

(1)

Drill

5209 32 30

Other

5209 32 90

520939

Otherfabrics:

Zari bordered sarees 5209 39 10

5209 39 90

Other

Ofyarns ofdifferent colours :

Plain weave :

520941

520941 10

Bleeding Madras

Saree

5209 41 20

5209 41 30

Shirting fabrics

5209 41 40

Unit RateofAdditional Duty

(3)

(4)

m²

Furnishing fabrics ( excluding pile and chenille fabrics) m²

5209 41 50

5209 4160

m²

Seersucker

Bedticking, domestic ( other than hand dyed )

Flannelette

520941 70

Other

5209 41 90

Denim

5209 42 00

520943

m²

التاج

Other fabrics of 3- thread or 4 -thread twill, including

cross twill :

5209 43 10

Bleeding Madras

520943 20

Shirting fabrics

5209 43 30

m²

Furnishing fabrics (excluding pile and chenille fabrics )

520943 40

Coating ( including suiting )

Other

5209 43 90

520949

Otherfabrics:

Zari bordered saree 5209 49 10

Other

5209.49 90

Printed:

520951

Plain weave :

5209 51 10

Lungi

Saree

5209 51 20

5209 51 30

Shirting fabrics

5209 51 40

m²

Furnishing fabrics ( excluding pile and chenille fabrics ) m²

Seersucker

520951 50

5209 51 60

Bedticking ,domestic

Flannelette

5209 51 70

Other

5209 51 90

3-thread or4- thread twill, including cross twill :

520952

5209 52 10

Shirting fabrics

5209 52 20

m²

التاج

m²

Furnishing fabrics ( excluding pile and chenille fabrics ) m²

Other

5209 52 90

520959

Other fabrics:

5209 59 10

Zari bordered saree

Other

5209 59 90

5210

WOVEN FABRICS OF COTTON , CONTAINING LESS THAN 85 % BY WEIGHT OF COTTON , MIXED MAINLY OR SOLELY WITH MAN -MADE FIBRES , WEIGHING NOT MORE THAN 200 g/ m².

Unbleached :

Plain weave :

521011

521011 10

Shirting fabrics

Saree

5210 11 20

Other

5210 11 90

5210 12

3-thread or 4-thread twill, including cross twill :

5210 12 10

Shirting fabrics

Other

5210 12 90

Other fabrics

5210 19 00

Bleached

نتاج

m²

m 109

THE GAZETTE OF INDIA EXTRAORDINARY

SEC.2]

Tariff Itern

Description of goods

(2)

(1)

Plain weave :

521021

Shirting fabrics

521021 10

521021 20

Poplin and broad fabrics

Saree

521021 30

52102140

Shirting ( including mazri )

Voile

521021 50

Other

52102190

521022

3-thread or 4-thread twill, including cross twill :

Handloom:

52102211

Crepe fabrics including crepe checks 5210 22 12

Shirting fabrics

Other fabrics

5210 22 19

Other:

52102221

Shirting ( including mazri )

Other

5210 22 29

Otherfabrics:

521029

521029 10

Dhoti and saree , zari bordered 521029 20

Unit Rate ofAdditional Duty

(4)

(3)

علاج

m²

Dedsuti , Dosuti , ceretonnes and osamburge

Other

521029 90

Dyed:

Plainweave :

521031

521031 10

Shirting fabrics

521031 20

Coating ( including suitings ) 5210 31 30

m²

Furnishing fabrics ( excluding pile and chenille fabrics) mm²

521031 40

Poplin and broad fabrics

Saree

521031 50

Voils

52103160

52103190

Other 3- thread or 4- thread twill, including cross twill :

521032

521032 10

Crepe fabrics including crepe checks 521032 20

Shirting fabrics

52103230

Bedticking, damask

Other

5210 32 39

521039

Otherfabrics:

Zari bordered saree 5210 39 10

Other

5210 39 90

Ofyarns ofdifferent colours :

Plain weave :

521041

521041 10

Bleeding Madras 52104120

Crepe fabrics ( excluding crepe checks ) 5210 41 30

Shirting fabrics

521041 40

Suitings

521041 50

Poplin and broad fabrics

Saree

521041 60

Voils

5210 41 70

Other

5210 41 90

521042

3-thread or 4- thread twill, including cross twill :

5210 42 10

Bleeding Madras 5210 42 20

Crepe fabrics including crepe checks 52104230

Shirting fabrics

52104240

Suitings

5210 4250

Bedticking, damask 52104260

Shirtings ( including mazri)

Other

521042 90

521049

Otherfabrics:

m²

للاج 110

[PART II-

THE GAZETTE OF INDIA EXTRAORDINARY

Tariff Item

Description of goods

(2)

(1)

Zari bordered saree 521049 10

Other

5210 49 90

Printed :

Plain weave :

521051

521051 10

Shirting fabrics

Casement

5210 51 20

Saree

5210 51 30

5210 51 40

Poplin and broad fabrics

Voils

5210 51 50

Other

5210 51 90

5210 52

3-thread or 4-thread twill, including cross twill :

5210 52 10

Crepe fabrics including crepe checks 5210 52 20

Shirting fabrics

Other

5210 52 90

Other fabrics :

5210 59

Zari bordered saree 5210 59 10

Other

521059 90

5211

WOVEN FABRICS OF COTTON , CONTAINING LESS THAN 85 % BY WEIGHT OF COTTON , MIXED MAINLY OR SOLELY WITH MAN - MADE

FIBRES, WEIGHING MORE THAN 200 G /M²

Unbleached :

Plain weave :

5211 11

5211 11 10

Shirting fabrics

Saree

5211 11 20

Other

5211-1190

5211 12

3-thread or 4- thread twill, including cross twill :

5211 12 10

Shirting fabrics

5211 1220

Twill , not elsewhere specified (including gaberdine)

Damask

5211 1230

Other

5211 12.90

Other fabrics

5211 1900

Bleached :

Plain weave :

521121.

Shirting fabrics

5211 2110

521121 20

Unit

Rate ofAdditional Duty

(4)

(3)

m²

التاج

السلام

التاج

m²

سلام

m²

سلام m²

سلام m² m²

سلام

Canvas (including duck ) of carded or combed yarn m²

Flannelette

5211 21 30

Saree

5211 2140

52112150

Shirting fabrics

Other

52112190

3- thread or4- thread twill, including cross twill :

521122

5211 22 10

Crepe fabrics including crepe checks 5211 22 20

Shirting fabrics

Twill fabrics

5211 22 30

Other

521122 90

Otherfabrics:

521129

Zari bordered saree 5211 29 10

Dedsuti , dosuti, ceretonnes and osamburge

521129 20

Other

52112990

Dyed:

Plain weave:

521131

5211 31 10

Shirting fabrics

521131 20

سلام

السلام

سلام

m²

السلام

اللاج

m²

التاج

m²

Canvas (including duck) of carded or combed yarn

5211 31 30

Coating (including suitings )

Flannelette

52113140

الله

m²

8% 111

THE GAZETTE OF INDIA EXTRAORDINARY

SEC .2 ]

Description of goods Tariff Item

(2)

(1)

Saree

5211 31 50

Other

521131 90

3-thread or 4 - thread twill, including cross twill :

5211 32

Crepe fabrics including crepe checks 5211 32 10

Shirting fabrics

5211 32 20

5211 32 30

Twill , not elsewhere.specified (including gaberdine) 5211 32 40

Trousers or pant fabrics (excluding jeans and crepe)

Other

52113290

Otherfabrics:

521139

Zari bordered sarees 5211 3910

Other

5211 39 90

Ofyarns ofdifferent colours :

Plain weave :

521141

Bleeding Madras 5211 41 10

Unit Rate ofAdditional Duty

(4)

(3)

m²

تلت

m²

Check shirting (excluding crepe checks )

5211 41 20

5211 41 30

Shirting

Suitings

5211 41 40

Flannelette

5211 41 50

Saree

5211 41 60

Parachute fabrics 5211 41 70

Other

521141 90

Denim

52114200

521143

Otherfabrics of 3 - thread or 4- thread twill, including cross twill :

Bleeding Madras 5211 43 10

Crepe fabrics

5211 43 20

Shirting fabrics 5211 43 30

5211 43 40

Suitings

Other

5211 43 90

Otherfabrics:

521149

Zari bordered sarees 5211 49 10

Other

52114990

Printed:

Plain weave :

5211 51

Shirting fabrics 5211 51 10

Furnishing fabrics 5211 51 20

(excluding pile and chenille fabrics )

Flannelette

5211 51 30

Long cloth (chintz ) 5211 51 40

Saree

5211 51 50

Other

52115190

3-thread or 4- thread twill, including cross twill :

521152

5211 52 10

m²

8% m²

Crepe fabrics including crepe checks

Shirting fabrics 5211 52 20

5211 52 30

Twill, not elsewhere specified (including gaberdine )

Other

5211 52 90

Otherfabrics:

521159

Zari bordered saree 5211 59 10

Other

52115990

OTHER WOVEN FABRICS OF COTTON 5212

Weighing not more than 200 g/m² :

Unbleached

52121100

m²

8% m²

8% m² 112

THE GAZETTE OF INDIA EXTRAORDINARY

Tariff Item

Description of goods (1)

(2)

52121200

Bleached

5212 13 00

Dyed

5212 14 00

Ofyarns ofdifferent colours 5212 1500

Printed

Weighing more than 200 g/m² :

52122100

Unbleached

5212 22.00

Bleached

521223 00

Dyed

521224 00

Ofyarns ofdifferent colours 521225 00

Printed

5407

WOVEN FABRICS OF SYNTHETIC FILAMENT YARN , INCLUDING WOVEN FABRICS OBTAINED FROM MATERIALS OF HEADING 5404

5407 10

[PART II- Unit RateofAdditional Duty

(3)

(4)

كلام

الناتج

m²

Woven fabrics obtainedfrom high tenacity yarn of

nylon or other polyamides or ofpolyesters :

Unbleached :

5407 10 11

Parachute fabrics

5407 10 12

Tent fabrics

5407 10 13

Nylon furnishing fabrics 5407 10 14

Umbrella cloth panel fabrics 5407 10 15

Other nylon and polyamide fabrics (filament)

5407 10 16

Polyester suitings 5407 10 19

Other polyester fabrics

Bleached :

5407 1021

Parachute fabrics

5407 1022

Tent fabrics

5407 1023

Nylon furnishing fabrics 5407 10 24

Umbrella cloth panel fabrics 5407 10 25

Other nylon and polyamide fabrics of

filament yarn

5407 10 26

Polyester suitings 5407 10 29

Other

Dyed:

54071031

Parachute fabrics

5407 10 32

Tent fabrics

5407 10 33

Nylon furnishing fabrics 5407 1034

Umbrella cloth panel fabrics 5407 10 35

Other nylon and polyamide fabrics ( filament)

5407 1036

Polyester suitings 5407 10 39

Other

Printed :

5407 10 41

Parachute fabrics

5407 1042

Tent fabrics

5407 10 43

Nylonfurnishing fabrics 5407 10 44

Umbrella cloth panel fabrics 5407 10 45

Other nylon and polyamide fabrics (filament)

5407 10 46

Polyester suitings 5407 10 49

Other

Other:

5407 1091

Parachute fabrics

5407 10 92

Tent fabrics

5407 1093

Nylon furnishing fabrics 5407 1094

Umbrella cloth panel fabrics 5407 1095

m²

التاج

m²

m² 쿠쿠

التاج

m²

التاج

m²

التاج

m²

التاج

Other nylon and polyamide fabrics of filament yarn

5407 1096

Polyester suitings

Other

5407 1099

m²

8% SEC. 2]

113 THE GAZETTE OF INDIA EXTRAORDINARY

Tariff liem

Unit

Description of goods

Rate ofAdditional Duty (1)

(2)

(3)

(4) 540720

Wovenfabrics obtained from strip or the like :

5407 2010

Unbleached

8% 5407 20 20

Bleached

m²

8% 54072030

m²

Dyed

5407 2040

Printed

ناتاج

54072090

Other

²²

540730

Fabrics specified in Note 9 to Section XI:

5407 30 10

Unbleached

5407 30 20

Bleached

5407 30 30

m²

Dyed

54073040

Printed

m²

54073090

Other

Other wovenfabrics, containing 85% or more byweight offilaments of nylon or other polyamides :

540741

Unbleached or bleached :

Unbleached :

5407 41 11

Nylon brasso

5407 41 12

Nylon georgette

5407 41 13

Nylon tafetta

5407 41 14

Nylon sarees

540741 19

Other

Bleached:

54074121.

Nylon brasso

54074122

Nylon georgette

54074123

Nylon tafetta

54074124

Nylon sarees

Other

54074129

540742

Dyed:

540742 10

Nylon brasso

540742 20

Nylon georgette

540742 30

Nylon tafetta

m²

54074240

m²

Nylon sarees

54074290

Other

54074300

Ofyarn of different colours

540744

Printed :

54074410

m²

Nylon brasso

54074420

m²

Nylon georgette

54074430

m²

Nylon tafetta

54074440

Nylon sarees

54074490

Other

m²

Otherwovenfabrics, containing 85% or more by weight of textured polyesterfilaments:

540751

Unbleached or bleached :

Unbleached :

5407 51 11

Polyester shirtings

5407 51 19

Other

Bleached:

5407 51 21

Polyester shirtings

5407 51 29

Other

540752

Dyed:

5407 52 10

Polyester shirtings

5407 52 20

Polyester suitings

5407 52 30

Terylene and dacron sarees

54075240

m²

Polyester sarees

5407 52 90

Other 114

[PARTII

THE GAZETTE OF INDIA EXTRAORDINARY

TariffItem

Description of goods

(2)

(1)

5407 53 00

Ofyarns ofdifferent colours

Printed:

5407 54

5407 54 10

Terylene and dacron sarees 5407 54 20

Polyester shirtings 5407 54 30

Polyester sarees

Other

5407 54 90

Otherwovenfabrics, containing 85% or more by weight ofpolyester filaments :

5407 61

Containing 85% or more by weight ofnon-

textured polyester filaments :

540761 10

Polyester shirtings 5407 61 20

Polyester suitings

Other

5407 61 90

Other

5407 6900

Other wovenfabrics, containing 85% or more by weight of syntheticfilaments :

Unbleached or bleached :

540771

Unbleached

5407 71 10

Bleached

5407 71 20

5407 7200

Dyed

Ofyarns ofdifferent colours 5407 73 00

Printed

5407 7400

Other woven fabrics, containing less than 85% by weight ofsyntheticfilaments, mixed mainly or solely with cotton :

Unbleached or bleached :

5407 81

Unbleached :

5407 81 11

Nylon georgette

5407 81 12

Nylon sarees

5407 81 13

Polyester shirtings 540781 14

Polyester suitings 5407 81 15

Terylene and dacron sarees 5407 81 16

Polyester dhoti

Other

5407 81 19

Bleached:

5407 81 21

Nylon georgette

540781-22

Nylon sarees

5407 81 23

Polyester shirtings 5407 81 24

Polyester suitings 5407 81 25

Terylene and dacron sarees 5407 81 26

Polyester dhoti

Other

54078129

Dyed:

540782

Nylon georgette .

5407 82 10

Nylon sarees

5407 82 20

5407 82 30

Polyester shirtings 5407 8240

Polyester suitings

Terylene and dacron sarees 5407 82 50

5407 8260

Lungies

Other

5407 82 90

5407 83 00

Ofyarns of different colours

Printed :

540784

5407 84 10

Nylon georgette

540784 20

Nylon sarees

5407 84 30

Polyester shirtings Unit RateofAdditional Duty

(4)

(3)

m²

m² m² ३३

m²

וח

m²

m² THE GAZETTE OF INDIA EXTRAORDINARY

SBC. 2]

TariffItem

Description of goods (1)

(2)

54078440

Polyester suitings 54078450

Terylene and dacron sarees 54078460

Lungies

54078470

Polyester sarees

54078490

Other

Otherwovenfabrics :

540791

Unbleached or bleached:

540791 10

Unbleached

5407 91 20

Bleached

54079200

Dyed

54079300

Ofyarns ofdifferent colours 5407 9400

Printed

5408

WOVEN FABRICS OF ARTIFICIAL FILAMENT YARN,

INCLUDING WOVEN FABRICS OBTAINED FROM MATERIALS

OF HEADING 5405

5408 1000

Woven fabrics obtained from high tenacity

yarn of viscose rayon

Other wovenfabrics, containing 85% or more by weight ofartificial filament or strip or the like :

540821

Unbleached or bleached :

5408 21 10

Unbleached

5408 21 20

Bleached

540822

Dyed:

Fabrics of rayon :

5408 22 11

Rayon crepe fabrics 5408 22 12

Rayonjacquards

5408 22 13

Rayon brocades

5408 22 14

Rayon georgette

5408 22 15

Rayon tafetta

5408 22 16

Rayon suitings

5408 22 17

5408 22 18

Rayon shirtings Rayon sarees

Other

5408 22 19

5408 22 20

115 Unit Rate ofAdditional Duty

(3)

(4)

8% 8% 8% 8%

8% 8% 89

m²

تلام

Fabrics of continuous filament, other than rayon

5408 22 90

Other

5408 23 00

Of yarns of different colours 540824

Printed:

Ofrayon:

5408.24 11

Rayon crepe fabrics 5408 24 12

Rayon jacquards

5408 24 13

Rayon brocades

5408 24 14

Rayon georgette

5408 24 15

Rayon tafetta

5408 24 16

5408 24 17

Rayon suitings Rayon shirtings

5408:24 18

Rayon sarees

5408 24 19

Other

5408 2490

Other

Other wovenfabrics :

5408 31

Unbleached or bleached :

5408 31 10

Unbleached

5408 31 20

Bleached

5408 32

Dyed:

m²

علاج

m²

علاج 116

THE GAZETTE OF INDIA EXTRAORDINARY

Tariff Item

Description of goods (1)

(2)

Fabrics of rayon :

5408 32 11

Rayonbrocades

5408 32 12

Rayon georgette

5408 32 13

Rayon tafetta

5408 32 14

Rayon suitings

5408 32 15

Rayon shirtings

5408 3219

Other

5408 32 90

540833 00

Ofyarns of different colours

Printed:

5408 34

Fabric of rayon :

5408 34 11

Rayon crepe fabrics 5408 34 12

Rayonjacquards

5408 34 13

Rayonbrocades

5408 34 14

Rayon georgette

5408 34 15

Rayon tafetta

5408 3416

Rayon suitings

5408 34 17

Rayon shirtings

5408 34 18

Rayon sarees

Other

5408 34 19

5408 34 20

[PART I Unit Rate ofAdditional Duty

(3)

(4)

m²

Fabrics of continuous filament, other than rayon

Other

5408 34 90

5512

WOVEN FABRICS OF SYNTHETIC STAPLE FIBRES , CONTAINING 85 % OR MORE BY WEIGHT OF SYNTHETIC

STAPLE FIBRES

Containing 85% or more by weight ofpolyester staple fibres :

Unbleached or bleached :

5512 11

Unbleached

5512 11 10

Bleached

5512 1.1 20

Other:

5312 19

5512 19 10

Dyed

Printed

5512 19 20

Other

5512 19 90

Containing 85% or more by weight of acrylic or modacrylic staplefibres :

Unbleached or bleached :

551221

Unbleached

551221 10

Bleached

5512 21 20

Other:

551229

551229 10

Dyed

Printed

551229 20

Other

551229 90

Other:

551291

Unbleached or bleached :

Unbleached

551291 10

551291 20

Bleached Other:

551299

551299 10

Dyed

Printed

551299 20

Other

551299 90

5513

WOVEN FABRICS OF SYNTHETIC STAPLE FIBRES , CONTAINING LESS THAN 85% BY WEIGHT OF SUCH FIBRES , MIXED MAINLY OR SOLELY WITH COTTON, OF AWEIGHT NOT EXCEEDING 170 g/m²

Unbleached or bleached :

m²

8% m²

8% m² 117

THE GAZETTE OF INDIA EXTRAORDINARY

SBC. 2]

Tariff Item

Description ofgoods (1)

(2)

5513 11

Ofpolyester staple fibres , plain weave :

5513 11 10

Unbleached

5513 11 20

Bleached

5513 12

Unit RateofAdditional Duty

(3)

(4)

3-thread or 4- thread twill, including cross twill, of

polyester staple fibres :

5513 12 10

Unbleached

Bleached

5513 12 20

5513 13

Otherwovenfabrics ofpolyester staple fibres :

5513 13 10

Unbleached

5513 13 20

Bleached

5513 19

Otherwovenfabrics :

5513 1910

Unbleached

Bleached

5513 19 20

Dyed:

5513 21 00

Ofpolyester staple fibres , plain weave 5513 2200

3 -thread or 4- thread twill, including cross twill,

ofpolyester staple fibres 5513 23 00

m²

تلاج تلج

m² m²

m²

Other woven fabrics of polyester staple fibres

Other woven fabrics 5513 29 00

Ofyarns ofdifferent colours:

5513 3100

Ofpolyester staple fibres , plain weave 5513 3200

3-thread or 4-thread twill , including cross twill,

ofpolyester staple fibres 551333 00

تلج m²

m²

Other woven fabrics of polyester staple fibres

Other woven fabrics 5513 3900

Printed:

5513 4100

Ofpolyester staple fibres , plain weave 5513 42 00

3-thread or 4 -thread twill , including cross twill, of polyester staple fibres 5513 4300

تلج

m²

Other woven fabrics of polyester staple fibres

Other woven fabrics 5513 49 00

5514

WOVEN FABRICS OF SYNTHETIC STAPLE FIBRES , CONTAINING LESS THAN 85% BY WEIGHT OF SUCH FIBRES, MIXED MAINLY OR SOLELY WITH COTTON, OF

AWEIGHT EXCEEDINO 170 g/ m

Unbleached or bleached :

551411

Ofpolyester staple fibres, plain weave :

Unbleached

5514 11 10

Bleached

5514 11 20

5514 12

3-thread or 4- thread twill, including cross twill, of

polyester staple fibres :

Unbleached

5514 1210

Bleached

5514 1220

5514 13

Other woven fabrics ofpolyester staple fibres :

551413 10

Unbleached

Bleached

5514 13 20

Other:

5514 19

Unbleached

5514 19 10

Bleached

5514 19 20

Dyed:

5514 21 00

Ofpolyester staple fibres , plain weave 5514 2200

3-thread or 4 -thread twill , including cross

twill , ofpolyester staple fibres 5514 23 00

الله

8% 8%

m²

Otherwoven fabrics of polyester staple fibres

118

THE GAZETTE OF INDIA EXTRAORDINARY

Tariff Item

Description of goods

(2)

(1)

5514 29 00

Other woven fabrics

Ofyarns ofdifferent colours :

55143100

Ofpolyester staple fibres , plain weave 5514 32 00

3-thread or 4 -thread twill , including cross twill, ofpolyester staple fibres 551433 00

Other woven fabrics of polyester staple fibres

5514 39 00

Other woven fabrics

Printed:

5514 41 00

Ofpolyester staple fibres , plain weave 551442 00

3-thread or 4 - thread twill, including cross twill , ofpolyester staple fibres 551443 00

Other woven fabrics of polyester staple fibres

Other woven fabrics 55144900

5515

[PART I Unit Rate ofAdditional Duty

(4)

m²

OTHER WOVEN FABRICS OF SYNTHETIC STAPLE FIBRES

Ofpolyester staplefibres :

551511

Mixed mainly or solely with viscose rayon staple fibres :

5515 11 10

Unbleached

5515 11 20

Bleached

5515 11 30

Dyed

Printed

5515 11 40

Other

55151190

5515 12

Mixed mainly or solely with man- made filaments :

Unbleached

5515 1210

5515 12 20

Bleached

5515 12 30

Dyed

Printed

5515 12 40

Other

5515 12 90

5515 13

Mixed mainly or solely with wool or fine animal hair :

5515 13 10

Unbleached

Bleached

5515 13 20

5515 13 30

Dyed

Printed

5515 13 40

Other

5515 13 90

Other:

5515 19

5515 19 10

Unbleached

Bleached

5515 1920

5515 19 30

Dyed

Printed

5515 19 40

Other

5515 1990

Ofacrylic or modacrylic staple fibres :

551521

Mixed mainly or solely with man- made filaments :

Unbleached

551521 10

551521 20

Bleached

551521 30

Dyed

551521 40

Printed

Other

55152190

551522

Mixedmainly or solely with wool or fine animal hair :

5515 22 10

Unbleached

5515 22 20

Bleached

5515 22 30

Dyed

5515 22 40

Printed

Other

5515 22 90

Other:

551529

551529 10

Unbleached

m²

8% 119

THE GAZETTE OF INDIA EXTRAORDINARY

SBC.2]

Tariff Item

Description of goods (1)

(2)

Bleached

5515 2920

5515 29 30

Dyed

Printed

55152940

Other

55152990

Otherwovenfabrics :

551591

Mixed mainly or solely with man-madefilaments :

Unbleached

5515 91 10

Bleached

5515 91 20

551591 30

Dyed

Printed

55159140

Other

55159190

551592

Mixed mainly or solely with wool or fine animal hair :

Unbleached

5515 92 10

Bleached

5515 92 20

5515 92 30

Dyed

Printed

55159240

Other

55159290

Other:

551599

Unbleached

5515 99 10

5515 9920

Bleached

55159930

Dyed

Printed

55159940

Other

55159990

WOVEN FABRICS OF ARTIFICIAL STAPLE FIBRES 5516

Containing 85% or mare by weight ofartificial staple fibres :

Unbleached or bleached :

5516 11

Unbleached

5516 11 10

Bleached

5516 11:20

5516 1200

Dyed

551613 00

Ofyarns ofdifferent colours

Printed:

5516 14

5516 14 10

Spun rayon printed shantung 5516 1420

Spun rayon printed linen

Other

55161490

Containing less than 85% by weight of artificial staple fibres, mixed mainly or solely with man- madefilaments :

Unbleached or bleached :

551621

Unbleached

55162110

Bleached

55162120

55162200

Dyed

551623 00

Ofyarns ofdifferent colours

Printed

55162400

Containing less than 85% by weight of artificial staple fibres, mixedmainly or solely with wool or fine animal hair :

Unbleached or bleached :

551631

Unbleached

551631 10

Bleached

55163120

55163200

55163300

Dyed Ofyarns ofdifferent colours

Printed

55163400

Containing less than 85% by weight ofartificial staple fibres, mixed mainly or solely with cotton:

Unbleached or bleached :.

551641

Unbleached

551641 10

Unit Rate ofAdditional Duty

(4)

(3)

-8%

m²

8% 8% 8%

8% 8% 8% 8%

日月見

8% 8%

m²

8% 120

THE GAZETTE OF INDIA EXTRAORDINARY

Tariff Itern

Description of goods (1)

5516 41 20

Bleached

55164200

Dyed

5516 43 00

Ofyarns ofdifferent colours 551644 00

Printed

Other:

551691

Unbleached or bleached :

Unbleached

551691 10

55169120

Bleached

551692 00

Dyed

551693 00

Ofyarns ofdifferent colours

Printed

551694 00

5801

WOVEN PILE FABRICS AND CHENILLE FABRICS , OTHER THAN FABRICS OF HEADING 5802 OR 5806

5801 1000

Ofwool

Ofcotton:

5801 21 00

Uncut weft pile fabrics 5801 22

Cutcorduroy:

5801 22 10

Solely of cotton

Other

5801 22 90

5801 23 00

Other weft pile fabrics 5801 24 00

Warp pile fabrics , ' epingle ' ( uncut) 5801 25 00

Warp pile fabrics , cut 5801 26 00

Chenille fabrics

Ofman-madefibres:

5801 31 00

Uncut weft pile fabrics 5801 32 00

Cutcorduroy

5801 33 00

Other weft pile fabrics 5801 34

Warp pile fabrics , ' epingle ' ( uncut) :

5801 34 10

Velvet

Other

5801 34 90

5801 3500

Warp pile fabrics , cut 5801 36

Chenille fabrics:

5801 36 10

Carduroys

Other

5801 36 90

[PART II- Unit Rate ofAdditional Duty

(3)

(4)

m²

ست

m²

TERRY TOWELLING AND SIMILAR WOVEN TERRY

5802

FABRICS , OTHER THAN NARROW FABRICS OF HEADING 5806; TUFTED TEXTILE FABRICS , OTHER THAN PRODUCTS OF HEADING 5703

Terry towelling and similar woven terry

fabrics, of cotton:

5802 11 00

Unbleached

Other:

5802 19

Bleached

5802 19 10

5802 1920

Piecedyed

5802 19 30

Yarndyed

Printed

5802 19 40

Other

5802 19 90

5802 30 00

Tufted textile fabrics 5803

m²

GAUZE, OTHER THAN NARROW FABRICS OF HEADING 5806

5803 10

Ofcotton:

5803 10 10

Unbleached

5803 10 20

Bleached

5803 10 30

Piecedyed

m²

8% SEC .2]

THE GAZETTE OF INDIA EXTRAORDINARY

Tariff Item

Description of goods (1)

(2)

5803 1040

Yarndyed

5803 10 50

Printed

5803 10 90

Other

5803 90

Ofothertextile materials:

5803 90 10

Ofsilk or silk waste 5803 9020

Of synthetic fibre 5803 90 30

Ofartificial fibre

5803 90 90

Other

5804

LACE IN THE PIECE, IN STRIPS OR IN MOTIFS , OTHER THAN FABRICS OF HEADINGS 6002 Tο 6006

Mechanically made lace:

580421 00

Ofman-made fibres 580429

Of other textile materials:

580429 10

Ofcotton

5806

NARROW WOVEN FABRICS (OTHER THAN TULLES , OTHER NET FABRICS AND GOODS OF HEADINOS 5807, 5808, 5809 AND 5811) 5806 1000

Woven pile fabrics ( including terry towelling and similar terry fabrics) and chenille fabrics

58062000

Other woven fabrics , containing by weight 5% or more of elastomeric yarn or rubber thread

Otherwovenfabrics:

5806 31

Ofcotton:

5806 31 10

Typewriter ribbon cloth 580631 20

Newar cotton

58063190

Other

5806 32.00

Ofman-made fibres 5806 39

Ofother textile materials:

580639 10

Goathair puttis tape 5806 39 20

Jutewebbing

5806 39 30

Other narrowfabrics ofjute

Other

5806 39 90

5810

EMBROIDERY IN THE PIECE, IN STRIPS OR IN MOTIFS (MANUFACTURED WITH THE AID OF VERTICAL TYPE AUTOMATIC SHUTTLE EMBROIDERY MACHINES OPERATED WITH POWER):

5810 1000

Embroidery without visible ground

Other embroidery:

58109100

Of cotton

581092

Ofman-madefibres :

581092 10

Embroidered badges , motifs and the like 58109290

Other

58109900

Ofother textile materials 5901

TEXTILE FABRICS COATED WITH GUM OR AMYLACEOUS SUBSTANCES , OF A KIND USED FOR THE OUTER COVERS OF BOOKS OR THE LIKE; TRACING CLOTH; PREPARED PAINTING CANVAS; BUCKRAM AND SIMILAR STIFFENED TEXTILE FABRICS

5901 10

Textilefabrics coated with gum or amylaceous substances, ofa kind usedfor the outer covers of books or the like:

121 Unit

Rate ofAdditional Duty

(3)

(4)

التاج

m²

kg.

Nil

kg.

Nil

kg.

Nil

kg.

Nil

kg.

Nil

kg.

Nil

kg.

Nil

kg.

Nil.

kg.

Nil

kg.

Nil

kg.

Nil

kg.

122

THE GAZETTE OF INDIA EXTRAORDINARY

Tariff Item

Description of goods (1)

(2)

5901 10 10

Ofcotton

5901 10 20

Prepared painting canvas 5901 1090

Other

5901 90

Other:

5901 90 10

Tracing cloth of cotton 5901 90 20

[PART II- Unit Rate ofAdditional Duty

(4)

(3)

ساح

m²

Varnished cambric fabrics (Empire fabrics) tapes

5901 90 90

Other

5902

TYRE CORD FABRIC OF HIGH TENACITY YARN OF NYLON OR OTHER POLYAMIDES , POLYESTERS OR VISCOSE RAYON

5902 10

Of nylon or other polyamides:

5902 10 10

Impregnated with rubber 5902 1090

Other

590220

Ofpolyesters:

5902 20 10

Impregnated with rubber

Other

5902 20 90

Other:

590290

5902 30 10

Impregnated with rubber

Other

5902 30 90

5903

TEXTILE FABRICS , IMPREGNATED , COATED , COVERED OR LAMINATED WITH PLASTICS , OTHER THAN THOSE OF HEADING 5902

5903 10

With polyvinyl chloride :

Imitation leather fabrics of cotton 5903 10 10

Other

5903 10 90

5903 20

With polyurethane:

5903 20 10

Imitation leather fabrics , of cotton 5903 20 90

Other

Other:

5903 90

5903 90 10

Ofcotton

5903 9020

Polyethylene laminated jute fabrics

Other

5903 90 90

5907

FABRICS COVERED PARTIALLY OR FULLY WITH TEXTILE FLOCKS , OR WITH PREPARATION

CONTAINING TEXTILE FLOCKS :

Fabrics covered partially or fully with textile flocks , or with preparation

containing textile flocks:

5907 00 11

On the base fabrics of cotton 5907 00 12

On the base fabrics of man - made textile 6001

m²

Rs.10 per Kg.

m²

Rs.10 per Kg.

m²

Rs.10 per Kg .

m²

Rs.10 per Kg .

m²

Rs.10 per Kg .

m²

Rs.10 per Kg .

m²

PILE FABRICS , INCLUDING " LONG PILE" FABRICS AND

TERRY FABRICS , KNITTED OR CROCHETED 6001 10

"Long pile" fabrics:

6001 10 10

Ofcotton

6001 10 20

Ofman -made fibres

Looped pile fabrics:

60012100

Ofcotton

6001 22 00

Ofman-made fibres

Other:

Ofcotton

60019100

6001 92 00

Ofman-made fibres

kg.

SEC.2]

THE GAZETTE OF INDIA EXTRAORDINARY

TariffItem

Description of goods (1)

(2)

6002

KNITTED OR CROCHETED FABRICS OF A WIDTH NOT EXCEEDING 30 CM , CONTAINING BY WEIGHT 5 % OR MORE OF ELASTOMERIC YARN OR RUBBER THREAD,

OTHER THAN THOSE OF HEADING 6001 60024000

Containing by weight 5 % or more of

123 Unit

Rate ofAdditional Duty

(3)

(4)

kg.

elastomeric yarn but not containing rubber thread

6002 90 00

Other

6003

KNITTED OR CROCHETED FABRICS OF A WIDTH NOT EXCEEDING 30 CM , OTHER THAN THOSE OF HEADING

6001 OR 6002

6003 1000

Ofwool ar fine animal hair 6003 20 00

Of cotton

6003 30 00

Of synthetic fibres 6003 40 00

Ofartificial fibres 6003 90 00

Other

6004

KNITTED OR CROCHETED FABRICS OF A WIDTH EXCEEDING 30 CM , CONTAINING BY WEIGHT 5 % OR MORE OF ELASTOMERIC YARN OR RUBBER THREAD , OTHER THAN THOSE OF HEADING 6001 6004 10 00

Containingby weight 5% or more of

kg.

elastomeric yarn but not containing rubber thread

6004 90 00

Other

6005

WARP KNIT FABRICS ( INCLUDING THOSE MADE ON GALLOON KNITTING MACHINES ) , OTHER THAN THOSE OF HEADINGS 6001 το 6004

Ofcotton:

6005 21 00

Unbleached or bleached 6005 22 00

Dyed

6005 23 00

Of yarns of different colours 6005 2400

Printed

Ofsynthetic fibres :

6005 31 00

Unbleached or bleached 6005 32 00

Dyed

6005 33 00

Ofyarns ofdiffe : ent colours 6005 34 00

Printed

Of artificial fibres :

6005 41 00

Unbleached or bleached 6005 42 00

Dyed

6005 43 00

Ofyarns ofdifferent colours 6005 4400

Printed

6006

OTHER KNITTED OR CROCHETED FABRICS

Ofcotton:

6006 21 00

Unbleached or bleached 6006 22 00

Dyed

6006 23 00

Ofyarns ofdifferent colours 60062400

Printed

Ofsynthetic fibres:

6006 31 00

Unbleached or bleached 600632 00

Dyed

6006 33 00

Ofyarns ofdifferent colours 6006 3400

Printed

Ofartificial fibres :

kg.

124

[PART II- THE GAZETTE OF INDIA EXTRAORDINARY

Unit

Tariff Item

Description of goods

Rate ofAdditional Duty

(2)

(3)

(4)

(1)

8%.

60064100

Unbleached or bleached

kg.

600642 00

kg.

Dyed

600643 00

kg.

Ofyarns of different colours

60064400

Printed

kg. 8% 125 THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

THE ELEVENTH SCHEDULE

(See section 118)

'THE SCHEDULE

(See section 3)

NOTES

1. In this Schedule , " heading", " sub- heading " , "tariff item " and "Chapter " mean respectively a heading, sub- heading, tariff item and Chapter in the First Schedule to the Central Excise TariffAct, 1985 (5 of 1986).

2. The rules for the interpretation of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986 ) and the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall apply for the purposes of classification of goods specified in this Schedule .

S. No.

Description ofgoods

(1)

1. Silk, that is to say, all goods falling within Chapter50 .

2 Wool, that is to say, all goods falling within Chapter 51 , other than fabrics of headings 5111 , 5112 and 5113 .

3. Cotton, that is to say, all goods falling within Chapter 52 .

4. Man-made filaments , that is to say, all goods falling within Chapter 54.

5. Man -made staple fibres , that is to say, all goods falling within Chapter 55.

6. Terrytowelling and similar woven terry fabrics , falling within heading 5802.

7. Tulles and other net fabrics , not including woven, knitted or crocheted fabrics lace in the piece, in strips or in motifs , other than fabrics of headings 6002, 6003 , 6004, 6005 and6006.

8. Knitted or crocheted fabrics , that is to say, all goods falling within Chapter 60.

9. Metallised yarn, falling within heading 5605 .

10. Embroidery in the piece , in strips or in motifs , falling within heading 5810. ' .

126

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II-

THE TWELFTH SCHEDULE

(See section 122)

'THE SEVENTH SCHEDULE

(See section 136)

NOTES 1. In this Schedule, "tariff item ", " heading ", " sub- heading " and " Chapter " mean respectively a tariff item, heading, sub-heading and Chapter in the First Schedule to the Central Excise TariffAct, 1985 (5 of 1986) .

2.The rules for the interpretation ofthe First Schedule to the Central Excise Tariff Act , 1985 (5 of 1986) , the section and Chapter Notes and the General Explanatory Notes of the First Schedule shall apply to the interpretation of this Schedule.

Tariff item

Description of goods

(1)

(2) 2106 90 20

PanMasala

2402 20 10 Other than filter- cigarettes , of length not exceeding 60 millimetres

2402 20 20

Unit Rate of duty (3)

(4)

kg. 23%

Tu Rs . 20 per thousand

Other than filter cigarettes , of length exceeding 60 millimetres but not exceeding 70 millimetres 2402 20 30

Tu Rs . 60 per thousand Tu Rs.90 per thousand

Filter cigarettes of length ( including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) not exceeding 70 millimetres 2402 20 40

Tu Rs. 145 per thousand

Filter cigarettes of length ( including the length of the filter , the length of filter being 11 millimetres or its actual length , whichever is more) exceeding 70 millimetres but not exceeding 75 millimetres

2402 20 50

Tu Rs. 190 per thousand Filter cigarettes of length ( including the length of the filter, the length offilter being 11 millimetres or its actual length , whichever is more) exceeding 75 millimetres but not exceeding 85 millimetres

240220 90

Other

2402 90 10

Cigarettes of tobacco substitutes 2403 10 10 Hookah or gudaku tobacco 2403 10 20

Smoking mixtures for pipes and cigarettes 2403 1031

Tu Rs. 235 per thousand

Tu Rs. 150 per thousand

10%

kg.

kg . 45%

Other than paper rolled biris , manufactured without the aid of machine Tu

2403 1039

Other

2403 1090

Other

2403 91 00

"Homogenised" or " reconstituted" tobacco 2403 9910

Chewing tobacco

2403 99 20 Preparations containing chewing tobacco 2403 99 30

Jarda scented tobacco

2403 9940

Snuff

2403 99 50 Preparations containing snuff 2403 9960

Tobacco extracts and essence 2403 9990

Other

2709 00 00

Re. 1.00 per thousand

Tu Rs.2.00 per thousand

10%

kg.

kg. 10%

10%

kg.

kg. 10%

10%

kg.

kg. 10%

10%

kg.

PETROLEUM OILS AND OILS OBTAINED FROM BITUMINOUS MINERALS , CRUDE

kg. Rs . 50 per tonne 127

THE GAZETTE OF INDIA EXTRAORDINARY

SBC. 2]

Tariffitem

Description of goods

(2) (1)

540220

High tenacity yarn ofpolyesters:

540220 10 Of terylene dacron

54022090

Other

5402 3300 Ofpolyesters

54024200 Of polyesters , partially oriented 540243 00 Of polyesters , other

54025200 Ofpolyesters

54026200 Ofpolyesters

8702 10

With compression-ignition internal combustion piston engine (diesel or semi-diesel) :

Unit Rate of duty (3)

(4)

kg.

Vehiclesfor transport ofnot more than 13 persons, including the driver :

8702 10 11

Integrated monocoque vehicle 8702 10 12 Air-conditioned vehicle

Other

8702 1019

870290

Other:

Vehicles for transport ofnot more than 13 persons, including the driver:

8702.90 11

Integrated monocoque vehicle 870290 12

Air- conditioned vehicle

870290 13 Electrically operated

Other

87029019

87029020

Electrically operated vehicles not elsewhere included or specified

8703 10

Vehicles specially designed for travelling on snow; golf cars and similar vehicles :

8703 10 10 Electrically operated

Other

8703 1090

Other vehicles, with spark- ignition internal combustion reciprocating

piston engine:

8703 21

Ofa cylinder capacity not exceeding 1,000 cc :

8703 21 10

Vehicles principally designed for the transport of more than seven persons, including the driver

Three -wheeled vehicles

8703 21 20

Other:

Motor cars

8703 21 91

8703 21 92

Specialised transport vehicles such as ambulances , prison vans and the like u

8703 21 99

Other

8703 22

Ofa cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc:

8703 2210

Vehicles principally designed for the transport of more than seven persons, including the driver

8703 22 20

Specialised transport vehicles such as ambulances , prison vans and the like u

Three-wheeled vehicles 8703 22 30

Other:

8703 2291

Motor cars

8703 2299

Other

8703 23

Ofa cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc :

128

THE GAZETTE OF INDIA EXTRAORDINARY

Tariff item

[PART II-

Description ofgoods

(1)

(2) 8703 23 10

Unit Rate of duty (3)

(4)

Vehicles principally designed for the transport of more than seven persons , u including the driver

8703 23 20

Three-wheeled vehicles

Other:

8703 23 91

Motor cars

8703 23 92

Specialised transport vehicles such as ambulances , prison vans and the like u

8703 23 99

Other

8703 24

Ofa cylinder capacity exceeding 3,000 cc :

8703 24 10

Vehicles principally designed for the transport of more than seven persons , u including the driver

8703 2420

Three-wheeled vehicles

Other:

8703 2491

Motor cars

8703 2492

Specialisedtransport vehicles such as ambulances , prison vans and the like u

8703 2499

Other

Other vehicles, with compression- ignition internal combustion piston

engine (diesel or semi-diesel) :

870331

Of a cylinder capacity not exceeding 1,500 cc:

8703 31 10

Vehicles principally designed for the transport of more than seven persons , including the driver

8703 31 20

Three-wheeled vehicles

Other:

8703 31 91

Motor cars

8703 31 92

Specialised transport vehicles such as ambulances , prison vans and the like u

8703 31 99

Other

8703 32

Ofa cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc :

8703 32 10

Vehicles principally designed for the transport of more than seven persons, u including the driver

8703 32 20

Three -wheeled vehicles Other:

8703 32 91

Motor cars

8703 32 92

Specialised transport vehicles such as ambulances , prison vans and the like u

8703 3299

Other

8703 33

Ofa cylinder capacity exceeding 2,500 cc :

8703 33 10

Vehicles principally designed for the transport of more than seven persons , including the driver

8703 33 20

Three -wheeled vehicles Other:

Motor cars

8703 33 91

8703 33 92

Specialisedtransport vehicles such as ambulances , prison vans and the like u

8703 33 99

Other

870390

Other:

8703 90 10 Electrically operated

8703 90 90

Other

น 129

THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

Tariff item

Description ofgoods

(1)

(2) 8704

MOTOR VEHICLES FOR THE TRANSPORT OF GOODS Other, with spark-ignition internal combustion piston engine :

870431

g.v.w. not exceeding 5 tonnes :

8704 31 10

Refrigerated

87043190

Other

870432

g.v.w. exceeding 5 tonnes :

Lorries and trucks:

8704 32 11

Refrigerated

8704 3219

Other

8704 32 90

Other

870490

Other:

Lorries and trucks :

870490 11

Refrigerated

8704 90 12

Electrically operated

870490 19

Other

8704 90 90

For the vehicles ofheading 8702 :

87060021

Unit Rate of duty (3)

(4)

น

For transport of not more than thirteen persons , including the driver

For the motor vehicles ofheading 8703 :

87060031

For three-wheeled vehicles 87060039

Other

For the vehicles ofheading 8704:

87060043 Fordumpers covered in the heading 8704 87060049

Other

8711 10

With reciprocating internal combustion piston engine of a cylinder capacity not exceeding 50 cc:

8711 10 10 Mopeds

8711 10 20

Motorised cycles

8711 1090

Other

871120

Withreciprocating internal combustion piston engine of a cylinder capacity exceeding 50 cc but not exceeding 250 cc:

Scooters :

871120 11 Ofcylinder capacity not exceeding 75 cc Other

8711 20 19

Motor cycles:

87112021 Of cylinder capacity not exceeding 75 cc 87112029

Other

Mopeds:

87112031 Ofcylinder capacity not exceeding 75 cc 87112039

Other

Other:

87112091

Ofcylinder capacity not exceeding 75 cc

1% 130

THE GAZETTE OF INDIA EXTRAORDINARY

[PART I

Unit Rate of duty

(3)

(4)

Description ofgoods (2)

Tariffitem (1)

1% Other

8711 20 99

871130

With reciprocating internal combustion piston engine of cylinder capacity exceeding 250 cc but not exceeding 500 cc :

1% 8711 30 10

Scooters

1% 8711 30 20

Motor-cycles

1% Other

871130 90

871140

With reciprocating internal combustion piston engine of a cylinder capacity exceeding 500 cc but not exceeding 800 cc :

น

1% 8711 40 10

Motor- cycles

ப

1% Other

871140 90

1%.' .

8711 50.00 With reciprocating internal combustion piston engine of a cylinder capacity u exceeding 800 cc SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

131 STATEMENT OF OBJECTS AND REASONS

The object of the Bill is to give effect to the financial proposals of the Central Government for the financial year 2005-2006. The notes on clauses explain the various provisions contained in theBill.

NEWDELHI;

P. CHIDAMBARAM.

The28th February, 2005.

PRESIDENT'S RECOMMENDATION UNDER ARTICLES 117 AND 274 OF THE CONSTITUTION OF INDIA

[Copyof letter No. F. 2(5 )-B(D )/2005, dated the 28th February, 2005 from Shri P. Chidambaram, Minister ofFinance, tothe Secretary-General, Lok Sabha. ]

The President, having been informed of the subject matter of the proposed Bill , recommends under clause (1) of article 117, read with clause (1 ) of article 274 , ofthe Constitution of India, the introduction of the Finance Bill, 2005 to the Lok Sabha and also recommends to the Lok Sabha the consideration of the Bill .

2. The Bill will be introduced in the Lok Sabha immediately after the presentation of the Budget on the 28th February, 2005.

[PART I- THE GAZETTE OF INDIA EXTRAORDINARY

132

Notes on clauses

Income-tax

(ii) in the case of every firm , artificial juridical person referredto in sub-clause (vii) ofclause ( 31 ) of section 2 of the Income - tax Act , and domestic company, at the rate of ten per cent . of such tax; or

(iii) in the case of every company other than domestic company, at the rate oftwo and one -halfper cent. ofsuch tax.

Clause 2, readwith the First Schedule to the Bill, seeks tospecify the rates at which income- tax is to be levied on income chargeable to tax for the assessment year 2005- 2006. Further, it lays down the rates at which tax is to be deducted at source during the financial year 2005-2006 from income subject to such deduction under the Income- taxAct; and the rates at which " advance tax" is to be paid, tax is to be deducted at source from or paid on income chargeable under the head " Salaries" and tax is to be calculated and charged in special cases for the financial year 2005-2006.

Rates for deduction of tax at source from "Salaries ", computation of " advance tax " and charging of income-tax in special cases during thefinancialyear 2005-2006

Rates of income-tax for the assessment year 2005-2006

Part III of the First Schedule to the Bill specifies the rates at which income- tax is to be deducted at source from, or paid on, income under the head "Salaries " and also the rates at which " advance tax" is to be paid and income- tax is to be calculated or charged in special cases for the financial year 2005-2006.

Part I of the First Schedule to the Bill specifies the rates at which income is liable to tax for the assessment year 2005-2006. These rates are the same as those specified in Part III of the First Schedule to the Finance (No. 2)Act, 2004, for the purposes of deduction of tax at source from "Salaries " , computation of " advance tax " and charging of income- tax in special cases during the financial year 2004-2005.

Rates for deduction of tax at source during financial year 2005-2006from income other than "Salaries"

ParagraphA ofthis Part specifies the rates of income- tax in the case of every individual or Hindu undivided family or every association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii ) of clause (31) ofsection 2 of the Income- tax Act, not being a case to which any other Paragraph of Part III applies . In such cases income-tax exemption limit has been raised to Rs.1,00,000. The new rates of income-tax on total income above Rs.1,00,000 will be as under:--

10per cent.

Rs.1,00,001 to Rs . 1,50,000

20per cent.

30 per cent .

Rs.1,50,001 to Rs . 2,50,000 Above Rs . 2,50,000

Inthe case of every woman who is resident in India and is below the age of 65 years during the previous year, the exemption limit shall be raised to Rs . 1,25,000 . The new rates of income-tax on total income above Rs . 1,25,000 in such cases willbe as under:-

10 per cent.

Part II of the First Schedule to the Bill specifies the rates at which income- tax is to be deducted at source during the financial year 2005-2006 from incomes other then " Salaries" . In the case of a company other than a domestic company, the rate of deduction of tax at source during the financial year 2005-2006 from income by way ofroyalties and fees for technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or an Indian concernafter the 1st day of June, 2005 , shall be reduced from twenty per cent. to ten per cent . In all other cases , the rates are the same as those specified in Part II ofthe First Scheduleto the Finance (No.2) Act, 2004, for the purposes of deduction of income- tax at source during the financial year 2004-2005.

Rs. 1,25,001 to Rs . 1,50,000

20per cent.

Rs.1,50,001 to Rs . 2,50,000

The amount of tax so deducted shall be increasedby surcharge-

30percent.

Above Rs . 2,50,000

Inthe case ofevery individual who is resident in India and is of the age of 65 years or more at any time during the previous year, the exemption limit shall be raised to Rs.1,50,000 . The new rates of income-tax on total income above Rs . 1,50,000 in such cases will be as under :-- (i) in the case of every individual , Hindu undivided family, association of persons and body of individuals , whether incorporated or not, at the rate often per cent . of such tax where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ten lakh rupees ;

SEC.2]

THE GAZETTE OF INDIA EXTRAORDINARY

133 Rs.1,50,001 to Rs . 2,50,000

20 per cent.

Above Rs . 2,50,000

30per cent.

It isalso proposed that the additional surcharge , called the "Education Cess on income - tax" for the purposes of the Union shall continue to be levied at the rate of two per cent. of income- tax and surcharge.

Clause 3 seeks to amend section 2 of the Income-tax Act relating to definitions .

Clause ( 7) of the said section defines the term "assessee" to include , inter alia , every person in respect ofwhom any proceeding under the Act has been taken for the assessment of his income or of the income ofany other person in respect of which he is assessable.

Paragraph A further provides that the amount of income-tax computed shall in the case of every individual or Hindu undivided family or association of persons or body of individuals , whether incorporated or not, having atotal income exceeding ten lakh rupees be reduced by the amount of rebate of income tax calculated under chapter VIIIA , and the income-tax as so reduced, be increased by a surcharge for purposes of the Union calculated at the rate of ten per cent . of such income-tax . However, the total amount payable as income - tax and surcharge on total income exceeding ten lakh rupees shall not exceed the total amount payable as income- tax on a total income of ten lakh rupees by more than the income that exceeds ten lakh rupees .

Itisproposed to amend the said clause (7) so as to provide that the term " assessee " shall also include every person, being an employer in respect of whom any proceeding under the Act has been taken for the assessment ofthe fringe benefits in respect of which he is assessable .

It isfurther proposed to insert a new clause (23B) in the aforesaid section so as to provide that " fringe benefits" means the benefits as referred to in section 115WB.

Paragraph A further provides that the amount of income-tax computed shall in the case of every artificial juridical person referred to in sub - clause ( vii) of clause (31) ofsection 2 of the Incoine - taxAct, be reduced by the amount ofrebate of income-tax calculated under Chapter VIII A, and the income- tax as so reduced , be increased by a surcharge for purposes of the Union calculated at the rate of ten per cent .

Paragraph B of this Part specifies the rates of income- tax in the case of every co - operative society. In such cases, the rates of tax will continue to be the same as those specified for assessment year 2005-2006 . However , no surcharge willbe levied .

The existing provisions contained in the proviso to clause (42A) of the said section provides that if a share in a company or any other securities listed in a recognised stock exchange in India or unit ofthe Unit Trust of India or unit of a Mutual Fund specified under clause (23D) of section 10 , is held for not more than twelve months, it shall be in the nature of short- term capital asset. It is proposed to amend the said proviso so as to treat zero couponbond held not for more than twelve months as a short -term capital asset.

Paragraph C of this Part specifies the rate of income- tax in thecase ofevery firm . In such cases, the rate oftax will be reduced from 35 per cent. to 30 per cent. The rate of surcharge for the purposes of the Union shall be increased to ten per cent .

Clause(43) of section 2 defines the term "tax" . It is also proposed to amend the said clause so as to provide that the term "tax" shall include the fringe benefit tax chargeable under the proposed new section 115WA.

Paragraph D of this Part specifies the rate of income- tax in thecase of every local authority. In such cases , the rate of tax will continue to be the same as that specified for the assessinent year 2005-2006 . However, no surcharge will be levied.

The existing provisions ofclause (47) ofsaid section defines the expression " transfer" . It is proposed to insert. a new sub -clause ( iva) in the said clause (47) so as to provide that the maturity or redemption of a zero coupon bond shall also be treated as transfer.

Paragraph E ofthis Part specifies the rates of income- tax in the case of companies . In the case ofdomestic companies the rate of tax will be reduced from 35 per cent. to30 per cent. In the case of companies other than domestic companies , the rate of tax will continue to be the same as that specified for the assessment year 2005- 2006. The amount of income- tax as so computed shall in the case of every domestic company be increased by a surcharge for the purposes of the Union calculated at the rate of ten per cent. of such income- tax and in the case of every company other than a domestic company shall be increased by a surcharge at the rate of two and. one-half per cent of such tax.

Itisalso proposed to insert a new clause (48) and an Explanation thereto in the said section so as to define theexpression ' zero coupon bond' . A zero coupon bond means a bond issued by any infrastructure capital company or infrastructure capital fund or public sector company on or after 1st day of June, 2005, in respect of which no payment and benefit is received or receivable beforematurity or redemption from such company or fund or public sector company and which the Central Government may, by notification in the Official Gazette, specify in this behalf. It is also proposed to provide by way ofExplanation that the expressions " infrastructure [PART II- THE GAZETTE OF INDIA EXTRAORDINARY

134

provides that the actual capital sum assured is to be calculated in the manner provided in the Explanation to sub- section (2A ) of section 88.

capital company " or " infrastructure capital fund " shall have the meanings respectively assigned to them in clauses ( a) and (b ) of Explanation I to clause (23G ) of section 10.

It is proposed to amend the said second proviso so as to provide that for the purpose of this sub - clause, the actual capital sum assured is to be calculated in the manner provided in the Explanation to sub- section (3) ofsection 80C also .

Clause 37 of the Bill seeks to insert a new Chapter XII -H relating to income- tax on fringe benefits . The amendments proposed in clauses (7), (23B) and (43 ) of the aforesaid section are consequential in nature .

These amendments will take effect from 1st April, 2006 and will , accordingly , apply in relation to the assessment year 2006-2007 and subsequent years .

Clause 4 seeks to amend section 10 of the Income- taxAct relating to incomes not included in total income .

Clause 21 ofthe Bill proposes to insert a new section 80C relating to deduction in respect of life insurance premium, deferred annuity, contribution to the provident fund, subscription to certain equity shares or debentures , etc. The proposed amendment to clause (10D) is therefore consequential in nature .

Under the existing provisions of item (fa) of sub- clause (iv) ofclause (15 ) of section 10, the interest payable by a scheduled bank before 1st April , 2005 to a non- resident or to a person who is not ordinarily resident within the meaning of sub - section (6) of section 6 on deposits in foreign currency where the acceptance of such deposits by the bank is approved by the Reserve Bank of India shall not be included in computing his total incoine.

Under the existing provisions contained in sub- clause (ii ) of clause (4) of section 10, in the case of an individual , any income by way of interest on moneys standing to his credit in a Non -Resident (External ) Account in any bank in India referred to in that sub- clause, shall not be included in computing his total income . However , the second proviso to the said sub- clause (ii ) provides that such income by way of interest paid or credited on or after 1st April, 2005 to his Non- Resident (External)Account shall be included in the total income ofthe individual .

It is proposed to omit the said proviso .

It isproposed to amend the said item(fa) to provide that such income payable by way of interest to a non- resident or to a person who is not ordinarily resident under the said item shall continue to be exempt on or after ist April , 2005 .

Under the existing provisions contained in clause ( 15A), exemption is provided on any payment made, by an Indian company engaged in the business ofoperation of aircraft, to acquire an aircraft or an aircraft engine (other than a payment for providing spares, facilities or services in connection with the operation of leased aircraft) on lease from the Government ofa foreign State ora foreign enterprise under an agreement , not being an agreement entered into between 1st April , 1997 and 31st March, 1999, and approvedby the Central Government inthisbehalf.

Under the existing provisions contained in clause (6BB) ofthe said section, income-tax exemption is provided in respect of tax paid by an Indian company engaged in the business of operation of aircraft on income derived by the government of a foreign State or a foreign enterprise as consideration of acquiring an aircraft or an aircraft engine (other than payment for providing spares , facilities or services in connection with the operation of leased aircraft) on lease under an agreement entered into after 31st March, 1997 but before 1st April , 1999 or entered intoafter 31st March , 2005 and approved by the Central Government in this behalf and the tax on such income is payable by such Indian company under the terms of that agreement to the Central Government.

It isproposed to amend the said clause ( 15A) so as to withdraw the said exemption in respect of all such agreements entered into on or after 1st October, 2005.

It isproposed to amend the said clause (6BB) so as to allow the said exemption in respect of all such agreements entered on or after 1st October, 2005 .

These amendments will take effect from 1st April, 2006 , and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

Clause 5 seeks to amend section 10A ofthe Income- taxAct relating to special provision in respect of newly established undertakings in free trade zones , etc.

Under the existing provisions contained in sub- section ( 1A) of the said section, an undertaking which begins to manufacture or produce articles or things or Under the existing provisions of clause ( 10D ), any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy other than any sum received under sub- section (3 ) of section 80DD or sub - section (3 ) of section 80DDA or any sum received wider a Keyman insurance policy or under an insurance policy issued on or after 1st April, 2003 in respect of which the premium payable during any year exceeds twenty per cent . of the actual capital sum assured, shall be exempt . The second proviso to the said clause THE GAZETTE OF INDIA EXTRAORDINARY

135 SEC.2]

computer software during the previous year relevant to any assessment year commencing on or after 1st April , 2003 in any special economic zone , is eligible for hundred percent.deduction for a period of five years and fifty per cent. for the next two years, followed by fifty per cent . of profits credited to a reserve account to be utilised for the purpose of the business , for the next three years .

( iia) of sub -section ( 1 ) of the said section , a further sum equal to fifteen per cent. of the actual cost of any new machinery or plant ( other than ships and aircraft) acquired and installed after the 31st day of March , 2002 by an assessee engaged in the business of manufacture or production ofany article or thing, is allowed as deduction as further depreciation .

It isproposed to insert a proviso in the said sub- section so as to provide that no deduction under section 10A shall be allowed to any undertaking, which begins to manufacture or produce articles or things or computer software after 31st March, 2009 , in any special economic zone .

It is proposed to increase the said sum of further depreciation mentioned in the said clause ( iia) from fifteen per cent. to twenty per cent . It is further proposed to omit the conditions relating to industrial undertaking being new or substantial expansiori mentioned in the first proviso to the aforesaid clause ( iia) and also to omit the requirements of furnishing details of machinery or plant and report ofan accountant mentioned in the third proviso ofthat clause ( iia) ..

Thisamendment will take effect from 1stApril, 2006, and will , accordingly , apply in relation to the assessment year 2006-2007 and subsequent years .

Clause 6 seeks to amend section 16 of the Income- taxAct relating to deductions from salaries .

Thisamendment will take effect from 1st April , 2006 andwill , accordingly, apply in relation to assessment year 2006-07 and subsequent years .

The existing clause ( i ) of the said section provides for a deduction of forty per cent. of the salary or thirty thousand rupees , whichever is less , in the case of an assessee whose income from salary does not exceed five lakh rupees . In the case of an assessee whose income from salary exceeds five lakh rupees , a deduction of twenty thousand rupees is allowed .

The existing provisions ofclause (2) ofExplanation below clause ( iii ) of sub section ( 1 ) of said section 32 provide that the expression " sold " includes a transferby way of exchange or a compulsory acquisition under any law for the time being in force but does not include a transfer, in a scheme of amalgamation, of any asset by the amalgamating company to the amalgamated comраnу where the amalgamated company is an Indian compaлу.

It is proposed to omit the said clause (i) so as to disallow the said deduction .

Thisamendment will take effect from 1st April , 2006 and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

Clause 7 seeks to amend section 17 of the Income- taxAct relating to the definition of" salary ", " perquisite " and " profits in lieu of salary" .

It is proposed to amend the said clause so as to provide that transfer of any asset in a scheme of amalgamation ofa banking company referred to in clause (c) ofsection 5 ofthe Banking Regulation Act, 1949 with a banking institution referred to in sub-section ( 15) of section 45 of the Banking Regulation Act, 1949 , sanctioned and brought into force by the Central Government under sub -section (7) of section 45 of the Banking Regulation Act, 1949 would not come within the scope ofexpressions "sold" for purposes of said clause.

Under the existing provisions contained in sub- clause (vi ) of clause (2) of the said section , " perquisite " includes the value of any other fringe benefit or amenity as may be prescribed.

This amendment will take effect retrospectively from 1stApril , 2005, and will, accordingly, apply in relation to the assessment year 2005-2006 and subsequent years .

Clause 9 seeks to amend section 33AC of the Income-taxAct relating to reserves for shipping business .

It is proposed to amend the said sub - clause ( vi) to provide that the value of any other fringe benefit or amenity which may be prescribed , shall exclude those fringe benefits which are chargeable to tax under Chapter XII -H proposed to be inserted vide clause 37 ofthe Bill . The proposed amendment is therefore consequential in nature.

This amendment will take effect from 1st April , 2006 andwill , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

Clause 8 seeks to amend section 32 ofthe Income- taxAct relating to depreciation .

The existing sub- section (4) of the said section contains provisions dealing with the sale or transfer ofa ship after the expiry ofthree years ' lock- in period . Where a company sells or transfers the ship after three years ' lock- in period and the sale proceeds are not utilised for the purpose of acquiring a new ship within a period of one year from the end of the previous year in which such sale or transfer took place , the sale proceeds shall be deemed to be the profits of the assessment year immediately following the previous year in which the ship wassold or transferred .

Under the existing provisions contained in clause [PART II- 136

THE GAZETTE OF INDIA EXTRAORDINARY

This amendment will take effect retrospectively from 1stApril , 2004 and will , accordingly, apply in relation to the assessment year 2004-2005 and subsequent years .

It is proposed to amend the said sub - section (4) so as to provide that only so much amount of the sale proceeds which represent the amount credited to the reserve account and utilised for acquisition of the ship would be deemed to be the profits .

Clause 12 seeks to amend section 36 of the Income- tax Act relating to other deductions .

This amendment will take retrospective effect from 1st April , 2004 , and will , accordingly, apply in relation to the assessment year 2004-2005 and subsequent years .

Clause 10 seeks to amend section 35 of the Income- taxAct relating to expenditure on scientific research .

The existing provisions of sub - section ( 1 ) ofthe said section provides for allowing certain deductions in the manner provided in its various clauses . It is proposed to insert a new clause ( iiia) in the said sub - section so as to provide deduction for the discount on a zero coupon bond onpro rata basis to be calculated in the manner as may be prescribed. The Explanation to the proposed clause provides the meaning of the expression "discount" as a difference of the amount received or receivable on issue of the bond and the amount payable on maturity or redemption of the bond issued by an infrastructural company or infrastructure capital fund or public sector company. It is also proposed to define the terms "period of life of the bond" " infrastructure capital company " and " infrastructure capital fund" by way of an Explanation.

Under the existing provisions contained in sub- section (2AB ) of the said section , a company engaged in the business of bio- technology or in the business of manufacture or production ofany drugs , pharmaceuticals, electronic equipments , computers , chemicals , etc. incurs any expenditure on scientific research (not being in the nature of cost of any land or building) on in- house research and development facility, as approved by the prescribed authority, is allowed a deduction of a sum equal to one and one - half times of the expenditure so incurred . However , no deduction with regard to such expenditure incurred after 31st March , 2005. shall be allowed.

It isproposed to amend the said sub - section (2AB) so as to provide that deduction under the said sub- section shall be allowed with regard to such expenditure incurred upto 31st March, 2007 .

This amendment will take effect from 1stApril , 2006, and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

It is further proposed to insert a new clause in the said sub - section so as to provide for allowing deduction in respect of banking cash transaction tax paid by the assessee during the year on the taxable banking transactions entered into by him . Explanation to this clause provides that for purposes of this clause the expressions " banking cash transaction tax" and the "taxable banking transaction " shall have the same meanings respectively assigned to them under Chapter VII ofthe Finance Act, 2005 .

Clause 11 seeks to "ainend section 35DDA of the Income-tax Act relating to amortisation of expenditure incurred under voluntary retirement scheme .

These amendments will take effect from 1st April , 2006 , and shall accordingly apply for assessment year 2006-07 and subsequent years .

Clause 13 seeks to amend section 40 of the Income- tax Act relating to amounts not deductible .

Clause 37 ofthe Bill seeks to insert a new Chapter XII -H relating to income- tax on fringe benefits . The proposed amendment is consequential in nature .

Under the existing provisions contained in sub- section ( 1 ) of the said section , where an assessee incurs anyexpenditure in any previous year by way ofpayment of any sum to an employee at the time of his voluntary retirement, under any scheme of voluntary retirement framed in accordance with the guidelines prescribed under clause ( 10C) ofsection 10 , one - fifth of the amount so paid shall be deducted in computing the profits and gains of the business for that previous year, and the balance shall be deducted in equal instalments for each ofthe four immediately succeeding previous years .

It isproposed to insert a new sub-clause (ic) in clause (a), of the said section 40 so as to provide that any sum paid on account of fringe benefit tax under the proposed new Chapter XII - H shall not be deducted in computing the income chargeable under the head " Profits and gains of business or profession" .

This amendment will take effect from 1st April, 2006 and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

Clause 14 seeks to amend section 43 of the Income- taxAct relating to definitions of certain terms relevant to income from profits and gains of business or profession.

It is proposed to amend the aforesaid sub - section (1 ) so as to allow the whole expenditure incurred by the asse see in making payment to the employee in connection with his voluntary retirement either in the year of retirement or in any subsequent year , each part payment being entitled to deduction in five equal annual instalments beginning from the year in which such part payment is made to the employee .

137 THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

This amendment will take effect retrospectively from 1st April, 2005 and will accordingly apply in relation to assessment year 2005-2006 and subsequent years .

Under the existing provisions contained in the proviso to clause (5 ) of the said section , certain transactions are not deemed to be speculative transactions.

Clause 17 seeks to amend section 54EC ofthe Income tax Act relating to capital gain not to be charged on investment in certain bonds .

The proposed amendment seeks to provide that an eligible transaction in respect of trading in derivatives carried out in a recognised stock exchange shall also not be deemed to be a speculative transaction .

The proposed amendment also seeks to define certain expressions and prescribed conditions to be fulfilled by the recognised stock exchanges .

This amendment will take effect from 1st April , 2006 , and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

Clause 15 seeks to amend section 47 of the Income- taxAct relating to transactions not regarded as transfer.

The existing provisions contained in the said section, inter alia , provide for the transactions which are not regarded as transfer for purpose of section 45 relating to capital gains .

The existing provisions of the said section provide that the capital gain arising from transfer of a long term capital asset shall be exempt from tax ifsuch capital gain isinvested, within a period of six months after the date of transfer, in a long term specified asset, being any bond redeemable after three years , issued by the National Bank forAgriculture and Rural Development or the National Highways Authority of India, the Rural Electrification Corporation Limited, the National Housing Bank or the Small Industries Development Bank of India. If part of the capital gain is so invested in acquiring the long term specified asset, proportionate exemption will be available. The exemption is available subject to the condition that the said long term specified assets are held for a minimum period ofthree years , failing which the exemption allowed on the basis of such investment will be disallowed and the amount so disallowed will be deemed to be the income chargeable to tax under the head "Capital gains " ofthe previous year in which such long term assets are sold or otherwise transferred.

Sub-section (3 ) of the said section provides that where the cost of the long term specified asset has been taken into account for the purposes of exemption under the said section 54EC , a deduction from the amount of income-tax with reference to such cost shall not be allowed under section 88 .

It isproposed to insert a new clause (viaa) and an Explanation in said section so as to provide that the provisions of section 45 shall not be applicable in respect ofany transfer of a capital asset by a banking company to a banking institution in a scheme of amalgamation of such banking company with such banking institution sanctioned and brought into force by the Central Government under sub- section (7) of section 45 of the Banking Regulation Act, 1949. The Explanation to the said clause proposes to define the meaning of expressions "banking company" and " banking institution" used in the proposed clause (viaa).

This amendment will take effect retrospectively from 1stApril , 2005 and will accordingly apply in relation to assessment year 2005-2006 and subsequent years.

It is proposed to amend sub-section (3) so as to provide that where the cost of the long term specified. asset has been taken into account for the purposes of exemption under this section, a deduction from the income with reference to such cost shall not be allowed under theproposed section 80C.

Clause 16 seeks to amend section 49 of the Income- taxAct relating to cost with reference to certain modes of acquisition.

The existing provisions contained in the said section, inter alia , provide the cost of acquisition of certain capital assets which became the property of the assessee by way of modes specified therein .

Thisamendment will take effect from 1st April , 2006 andwill , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years.

Clause 18 seeks to amend section 54BD of the Income-tax Act relating to capital gain on transfer of certain listed securities or unit not to be charged in certain cases.

Clause 19 ofthe Bill proposes to insert a new clause inserting new section 72AA. It is proposed to amend sub - section ( 1 ) of the said section 49 so as to include therein the transfer of a capital asset by a banking company to a banking institution under a scheme sanctioned and brought into force by the Central Government under sub section (7) of section 45 of the Banking Regulation Act, 1949. This amendment is therefore consequential in nature.

138

THE GAZETTE OF INDIA EXTRAORDINARY

[PART -

the Income- tax Act relating to set-off and carry forward of loss and unabsorbed depreciation shall apply accordingly.

The Explanation to the proposed new section defines the expressions " accumulated loss " , " banking company " , " banking institution " and " unabsorbed depreciation " used in that section .

Thisamendment will take effect retrospectively from 1stApril , 2005 and shall accordingly apply for assessment year 2005-06 and subsequent years .

Clause 20 seeks to amend section 73 of the Income- taxAct relating to losses in speculation business .

The existing provisions of the said section provide thatthe capital gain arising from transfer of a long term capital asset, being listed securities or unit of a mutual fund or ofthe Unit Trust of India shall be exempt from tax if such capital gain is invested , within a period of six months after the date oftransfer, in equity shares forming part ofan eligible issue ofcapital, offered for subscription to the public. If part of the capital gain is so invested in acquiring the said equity shares , proportionate exemption will be available . The exemption is available subject to the condition that the said equity shares are held for a minimum period of one year, failing which the exemption allowed on the basis of such investment will be disallowed and the amount so disallowed will be deemed to be the income chargeable to tax under the head " Capital gains" ofthe previous year in which such equity shares are sold or otherwise transferred .

Under the existing provisions contained in sub- section (4) of the said section no loss is allowed to be carried forward for more than eight assessment years immediately succeeding the assessment year for which the loss was first computed.

It is proposed to amend the said sub - section (4) so as to reduce the period of loss to be carried forward from eight assessment years to four assessment years .

Sub-section (3 ) of the said section provides that where the cost of the specified equity shares has been taken into account for the purposes of exemption under the said section 54ED , a deduction from the amount of income-tax with reference to such cost shall not be allowed under section 88 .

This amendment will take effect from 1st April, 2006, and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

It is proposed to amend sub - section (3 ) so as to provide that where the cost of the specified equity shares asset has been taken into account for the purposes of exemption under the said section , a deduction from the income with reference to such cost shall not be allowed under section 80C .

Clause 21 seeks to insert a new section 80C in the Income-tax Act relating to deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures , etc.

Sub- section ( 1 ) of the proposed new section seeks to provide that in computing the total income of an individual or a Hindu undivided family, a deduction not exceeding one lakh rupees shall be allowed with respect to the amounts paid or deposited, in the previous year outof the income chargeable to tax, in the schemes or plans referred to in sub- section (2 ) of the said section .

Thisamendment will take effect from 1st April , 2006 and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent.years .

Clause 19 seeks to insert a new section 72AA in the Income -tax Act relating to carry forward and set off of accumulated loss and unabsorbed depreciation allowance in scheme of amalgamation of banking company in certain cases.

Sub- section ( 2 ) of the proposed new section provides that the amount paid or deposited in the previous year to effect or keep in force an insurance or a contract for a deferred annuity on the life of specified persons , as contribution to general provident fund, recognised provident fund , contribution for participation in the Unit- linked insurance plans of LIC Mutual Fund , subscription to any deposit scheme of National Housing Bank, subscription to equity shares or debentures forming part of any eligible issue of capital of a public company or a public financial institution, repayment of housing loan, payment of tuition fees , etc. , is eligible for deduction under the proposed new section .

Sub-section (3 ) of the proposed new section seeks to provide that the provisions of sub-section (2) shall apply only to so much of any premium or other payment The proposed new section seeks to provide that where a banking company has been amalgamated with a banking institution under a scheme sanctioned and brought into force by the Central Government under sub- section (7) of section 45 of the Banking Regulation Act, 1949, the accumulated loss and unabsorbed depreciation ofthe amalgamating banking company shall be deemed to be the loss or the allowance for depreciation of the banking institution with which the banking company has been amalgamated and all the provisions contained in SEC .2]

THE GAZETTE OF INDIA EXTRAORDINARY

139

It is proposed to amend sub-section (3) so as to provide that where any amount paid or deposited by the assessee, has been allowed as a deduction under the aforesaid section , a deduction with reference to such amount shall not be allowed under section 80C .

made on an insurance policy other than a contract for a deferred annuity as is not in excess of twenty per cent. of the actual capital sum assured . It is also proposed to clarifyby the Explanation to the proposed sub- section (3) that in calculating any such actual capital sum , nпо account shall be taken of the value of any premiums agreed to be returned, or of any benefit by way ofbonus or otherwise over and above the sum actually assured , which is to be or may be received under the policy by any person.

Sub-section (4) of the proposed new section seeks to specify the persons in whose name the investments canbemade.

This amendment will take effect from 1stApril, 2006 and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

Clause 23 seeks to amend section 80CCD of the Income- tax Act relating to deduction in respect of contributionto pension scheme of Central Government .

Sub-section (5) of the proposed new section seeks toprovide the consequences in the event of termination of contract of insurance before the expiry of two years or transfer of the house property referred to in clause(xviii) ofsub - section (2) before the expiry of five years .

Sub-section (6) of the proposed new section seeks to provide the consequences in the event of transfer of equity shares or debentures within a period of three years from the date of their acquisition .

Under the existing provisions contained in the said section, an assessee being an individual , employed by the Central Government on or after 1st January, 2004 is allowed a deduction in the computation of his total income, of the amount (as does not exceed ten per cent. of his salary) paid or deposited by him in his account under a pension scheme notified by the Central Government. A similar deduction is also allowed with respect to the amount contributed by the Central Government to the said account.

Sub-section (7) of the proposed new section seeks to provide that insurance , deferred annuity, provident fund, superannuation fund , unit - linked insurance plan, etc. of sub-section (2) of section 88 shall be eligible for deduction under the proposed new section 80C.

Sub-section (4) of the said section provides that where any amount paid or depositedby the assessee, has been allowed as a deduction under sub-section (1 ) , no rebate with reference to such amount shall be allowed under section 88.

Sub-section (8 ) of the proposed new section seeks to define certain terms such as contribution , insurance, security, transfer, etc. for the purposes of the said new section.

Thisamendment will take effect from 1st April , 2006 and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

It is proposed to amend sub- section (4) so as to provide that where any amount paid or deposited by the assessee, has been allowed as a deduction under sub- section ( 1 ) , no deduction with reference to such amount shall be allowed under section 80C .

Clause 22 seeks to amend section 80CCC of the Income-tax Act relating to deduction in respect of contribution to certain pension funds .

This amendment will take effect from 1stApril, 2006 and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

Under the existing provisions contained in the said section, an assessee being an individual, is allowed a deduction up to ten thousand rupees in the computation ofhis total income, of the amount paid or depositedby him to effect or keep in force a contract for any annuity plan of Life Insurance Corporation of India or any other insurer for receiving pension from the fund referred to in clause (23AAB) of section 10.

Clause24 seeks to insert a new section BOCCE in the Income-tax Act relating to limit on deductions under sections 80C, 80CCC and 80CCD.

Sub-section (3) of the said section provides that where any amount paid or deposited by the assessee, has been allowed as a deduction under this section, a rebate with reference to such amount shall not be allowed under section 88 .

Theproposed new section seeks to provide that the aggregate amount of deductions under section 80C, [PART II THE GAZETTE OF INDIA EXTRAORDINARY

140

section 80CCC and section 80CCD shall not, in any case, exceed one lakh rupees .

Clause 27 ofthe Bill seeks to amend section 80- IB of the Income-tax Act relating to deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings .

This amendment will take effect from 1stApril , 2006 andwill , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years.

Clause 25 seeks to substitute section 80E of the Income - tax Act relatingto deduction in respect of repayment of loan taken for higher education by a new section.

Sub - section (4) of the said section, inter alia, provides for hundred per cent . deduction from profits , for a period of five assessment years followed by twenty- five per cent. (thirty per cent. in the case ofa company) for the next five years , to the industrial undertakings engaged in manufacture or production ofarticles or things or operation of a cold storage plant and set up during the period beginning on 1st April, 1993 and ending on 31st March, 2005 in the State of Jammu and Kashmir.

Under the existing provisions contained in the said section, a deduction of rupees forty thousand is allowed to an individual on account of any amount paid by him in the previous year out of his income chargeable totax, by wayof repayment of loan or interest on such loan, taken from any financial institution or any approved charitable institution for the purpose of pursuing his higher education .

It is proposed to amend the fourth proviso to the said sub - section so as to extend the said period from 31st March , 2005 to 31st March , 2007 for setting up industrial undertakings in the State of Jammu and Kashmir and for commencement of manufacture or production of articles or things or operation of a cold storage plant.

Under the existing provisions contained in sub- section (8A) of the said section , any company carrying on scientific research and development is allowed a hundred per cent . deduction of the profits of such business for a period of ten consecutive assessment years , if such company has , inter alia, been approved bythe prescribed authority before 1st April , 2005 .

It is proposed to substitute the said section so as to, inter alia provide that deduction under the said section shall be available only with respect to the interest on the loantaken from any financial institution or any approved charitable institution for the purposes of pursuing his higher education. It is further proposed that there shall be no limit with regard to the payment of interest on such loan.

It isproposed to extend the said time limit for obtaining approval upto 31st March, 2007.

This amendment will take effect from 1stApril, 2006 andwill, accordingly, apply in relation to the assessment year 2006-2007 and subsequent years.

These amendments will take effect from 1st April, 2006 and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

Clause 26 seeks to amend section 80 - IA of the Income-taxAct, relating to deductions in respect ofprofits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc.

Clause 28 seeks to omit section 80L of the Income- taxAct relating to deductions in respect of interest on certain securities , dividends , etc.

This amendment will take effect from 1st April , 2006 andwill , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

Clause 29 seeks to amend section 88 ofthe Income- tax Act relating to tax rebate on life insurance premia, contribution to provident fund, etc.-

Clause 21 ofthe Bill proposes to insert a new section 80C relating to deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc. Under the existing provisions contained in clause ( i) of sub -section (4) of the said section , any enterprise carrying on the business of developing or operating and maintaining or developing , operating and maintaining any infrastructure facility and which starts operating and maintaining such infrastructure facility on or after ist April , 1995 , is eligible for a hundred per cent. deduction ofprofits for a period often years . Sub- clause (a) ofthe said clause provides that the enterprise shall be owned by a company registered in India or by a consortium of such companies .

Itistherefore proposed to insert a new sub- section (9) in section 88 so as to provide that no deduction froin the amount of income - tax under the said section shall be allowed to any assessee for the assessment year beginning on 1st April, 2006 and subsequent years .

The proposed amendment seeks to amend the said sub-clause so as to provide that the enterprise shall be owned by a company registered in India or by a consortium of such companies or by an authority or a board or a corporation or any other body established or constituted under any Central or State Act .

This amendment will take effect from 1st April, 2006 and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

This amendment will take effect froin 1st April , 2006, and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

141 THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

force, of the Government of India, the agreement is in accordance with that policy.

Clause30 seeks to omit section 88B ofthe Income- taxAct relatingto rebate of income-tax in case of individuals of the age of sixty- five years or above.

This amendmentwill take effect from 1st April, 2006 andwill , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years.

Clause 31 seeks to omit section 88C ofthe Income- taxAct relatingto rebate of income tax in case ofwomen below sixty-five years .

This amendment will take effect from 1st April, 2006 and will, accordingly, apply in relation to the assessment year 2006-2007 and subsequent years.

Under the existing provisions contained in the said clause (b) , the royalty received in pursuance of an agreement made on or before 31st May, 1997 is taxable at . the rate ofthirty per cent. under the Income- tax Act and where such royalty is received in pursuance of an agreement made after 31st May, 1997, the same is taxable attwenty per cent. under that Ace The fees for technical services received in pursuance of an agreement made ge orbefore 31st May, 1997 is taxable at the rate ofthirty per cent, under the Income- tax Act and where such fees for technical services is received in pursuance of an agreement made after 31st May, 1997 , the same is taxable at twenty per cent . under that Act.

Clause32 seeks to omit section 88D ofthe Income- taxAct relating to rebate of income-tax in case ofcertain -individuals .

This amendment will take effect from 1stApril , 2006 and will, accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

Clause33 seeks to amend section 112 ofthe Income- taxAct relating to tax on long- term capital gains.

It is proposed to amend the said clause (b) of sub- section ( 1 ) so as to reduce the said tax rate from twenty per cent.to ten per cent on royalty received in pursuance of an agreement made on or after lat June, 2005. It is further proposed to reduce the tax rate from twenty per cent. to ten per cent. on fees for technical services received in pursuance of an agreement made on or after 1st Jurie, 2005.

These amendments will take effect from 1st April, 2006, and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

Clause 35 seeks to amend section 115JAA of the Income- tax Act relating to tax credit in respect oftax paid on deemed income relating to certain companies.

The proviso occurring below clause (d ) of sub- section ( 1 ) of the said section provides that where the tax payable in respect of any income arising from transfer of listed securities or units exceeds ten per cent . of the amount of capital gains before giving effect to the provisions of the second proviso to section 48, then, such excess shall be ignored for the purpose ofcomputing the tax payable by the assessee.

It is proposed to amend the said proviso so as to provide that it shall also be applicable in respect oflong- term capital gain arising from zero coupon bonds.

This amendment will take effect from 1st April , 2006, andwill, accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

The existing provisions of the said section , inter alia, provide that where any amount of tax is paid under sub- section ( 1 ) of section 115JAby an assessee, being a company, credit in respect ofthe tax so paid is allowed. The tax credit is allowed on the difference ofthe tax paid for any assessment year under sub-section ( 1) of section 115JA and the amount of tax payable by the assessee on his total income computed in accordance with the other provisions oftheAct.

Clause 34 seeks to amend section 115A ofthe Income- taxAct relating to tax on dividends , royalty and technical service fees in the case of foreign companies .

It is proposed to amend the provisions ofthe said section so as to provide that where any amount oftax is paid under sub-section (1 ) of section 115JB by a company for any assessment year beginning on or after 1stApril, 2006, credit in respect of tax so paid shall be allowed to him in accordance with the provisions of section 115JAA

It isfurther proposed to give a reference of section 115JB in sub- section (2) of the section 115JAA.

These amendments will take effect from 1st April, 2006 , and will, accordingly, apply in relation to the assessment year 2006-2007 and subsequent years.

Clause 36 seeks to amend section 115VD of the Income-taxAst- relating to qualifying ship .

Theexistingprovisions of clause (b) of sub- section (1) of the said section provide for the rates at which income-tax shallbe payable where the total income of a non-resident (not being a company) or a foreign company includes any income by way of royalty or fees for technical services other than income referred to in sub- section (1) ofsection 44DA received from Government or an Indian concern in pursuance of an agreement made by the foreign company with Government or the Indian concern after 31st March, 1976, andwhere such agreement is with an Indian concern, the agreement is approvedby the Central Government or where it relates to a matter included in the industrial policy, for the time being in 142

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II- The existing provisions of the said section contains meaning of the qualifying ship which inter alia does not include " dredgers" .

assessee specifying the sum so payable which shall be deemed to be a notice of demand issued under section 156. The provisions contained in the said new section 115WE relating to assessment of fringe benefits are broadly on the lines of section 143 of the Income-taxAct.

It isproposed to omit clause ( vii) of the aforesaid section relating to dredgers so as to bring " dredgers " within the meaning of the qualifying ship .

This amendment will take effect from 1st April , 2006 , andwill , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years.

Clause 37 seeks to insert a new Chapter XII-H in the Income- tax Act relating to income tax on fringe benefits . This Chapter contains 13 sections from section 115W to section 115WL.

The proposed new section 115Wdefines certain expressions used in the said Chapter.

The proposed new section 115WF relates to best judgment assessment . It, inter alia, provides that if an employer fails to furnish a return of fringe benefits under section 115WD or having made a return , fails to comply with all the terms of a notice issued under sub - section (2) ofsection 115WE, the Assessing Officer, shall after taking into account all relevant material and after giving the assessee an opportunity of being heard , make the assessment of the fringe benefits to the best of his judgment and determine the sum payable by the assessee or refundable to the assessee on the basis of such assessment . The provisions contained in the said new section 115WF relating to best judgment assessment of fringebenefits are broadly on the lines ofsection 144 of the Income-taxAct .

Theproposed new section 115 WA relating to charge offringe benefit tax provides that in addition to the income taxcharged under the Income- tax Act, an income tax called fringe benefit tax shall be charged for every assessment year commencing from 1st April , 2006 in respect of fringe benefits provided or deemed to have been provided by an employer to his employees during the previous year . The fringe benefit tax shall be levied at the rate of thirty per cent. on the value of fringe benefits . It has also been provided that fringe benefit tax shall be payable by an employer irrespective of the fact that such employer is not liable to pay income tax under the other provisions of the Income- taxAct .

The proposed new section 115WB seeks , inter alia, to define the term fringe benefits.

The proposed new section 115WG relates to fringe benefits escaping assessment . It, inter alia , provides that where the Assessing Officer has reason to believe that any fringe benefits chargeable to tax has escaped assessment for any assessment year , he may assess or reassess such fringe benefits and also any other fringe benefits chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section . The provisions contained in the said new section 115WG relating to fringe benefits escaping assessment are broadly on the lines of section 147 of the Income- tax Act.

The proposed new section 115WC relates to value offringe benefits . It lays down the value of fringe benefits [in terms of percentage of certain expenses specified in the proposed section 115WB ] which shall be taken as fringe benefits for the purpose of levy of fringe benefit tax.

The proposed new section 115WD relates to return offringe benefits . It, inter alia, provides that every person being an employer who has paid or made provision for payment of fringe benefits to his employees during the previous year, is required to furnish on or before the due date a return of fringe benefits to the Assessing Officer . The provisions contained in the said new section 115WD relating to return of fringe benefits are broadly on the lines of section 139 of the Income-taxAct .

The proposed new section 115WH relates to the issue of notice where fringe benefits have escaped assessment . It, inter alia , provides that where fringe benefits have escaped assessment, before making the assessment or reassessment under section 115WG, the Assessing Officer shall serve a notice on the assessee requiring him to furnish a return of fringe benefits within the prescribed period and in the prescribed form and manner, setting forth such particulars as may be prescribed. However , no such notice shall be issued for the relevant assessment year after the expiry of six years from the end of the relevant assessment year. It has also been provided that where an assessment under sub- section (3 ) ofsection 115WE or section 115WG has been made for the relevant assessment year , no notice shall be issued under this section , after the expiry of four years from the end of the relevant assessment year, unless the Chief Commissioner or Commissioner is satisfied, on the reasons recorded by the Assessing Officer, that it is a fit case for the issue of such notice .

The proposed new section 115WE relates to assessment. It, inter alia , provides that if any tax or interest is found due on the basis of the return of fringe benefits made under section 115 WD , after adjustment of any advance tax paid and any amount paid otherwise by way of tax or interest, an intimation shall be sent to the 143 THE GAZETTE OF INDIA EXTRAORDINARY

SEC.2]

Theproposed new section 115 WI relates topayment offringe benefits . It, inter alia , provides that irrespective ofthe fact that the regular assessment in respect of fringe benefits is tobe made in a later assessment year, the tax on such fringe benefits shall be payable in advance during any financial year , in accordance with the provisions of section 115WJ .

Under the existing provisions contained in clause (a) ofsub-section (2) ofthe said section, the Board may, if it considers it necessary or expedient so to do, for the purpose ofproper and efficient management ofthe work ofassessment and collection of revenue , issue, from time to time, whether by way of relaxation of any of the provisions ofthe sections specified therein or otherwise, general or special orders in respect of any class of incomes or class of cases, setting forth directions or instructions not being prejudicial to the assessee and for thispurpose issue guidelines , principles or procedures tobe followedby other income- tax authorities in thework relating to assessment or collection of revenue or the initiation of proceedings for the imposition of penalties .

It isproposed to amend the said clause (a) so as to provide that such general or special orders maybe issued by the Board by way of relaxation of the provisions of sections 115WD , 115WE , 115WF, 115WG, 115WH, 115WJ and 115WK also .

Theproposednew section 115WJ relates to advance tax inrespect offringe benefits . It, inter alia , provides that every employer shall pay advance tax on his current fringe benefits . The amount of advance tax payable in the financial year shall be thirty per cent . of the value of the fringe benefits paid or payable in each quarter. The advance tax shall be payable on or before 15th day ofthe month following such quarter. It has also been provided that the advance tax payable in relation to the quarter ending on 31st March of the financial year shall be paid by the assessee on or before 15th March of the said financial year. It has also been provided that where an assessee, fails to pay the edvance tax for any quarter or where the advance tax paid by him is less than thirty per cent ofthe value of fringe benefits paid or payable in that quarter, he shall be liable to pay simple interest at the rate ofone per cent, on the shortfall, for every month or part of a month for which the shortfall continues .

Itisfurther proposed to amend the said sub-section (2) so as to substitute the words " any class of incomes" by the words " any class of incomes or fringe benefits" as a consequential amendment to the insertion ofa new Chapter XII-H in the Income-tax Act vide clause 37 ofthe Bill

These amendments will take effect from 1st April, 2006 and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years.

Clause39 ofthe Bill seeks to amend section 124 of the Income- tax Act relating to jurisdiction of the Assessing Officer.

The existing provisions of clause (a) of sub-section (3) of the said section provides that no person shallbe entitled to call in question the jurisdiction of an Assessing Officer where such person has made a return under sub- section ( 1 ) of section 139 after the expiry of one month from the date on which he was served with a notice under sub-section (1 ) ofsection 142 or sub-section (2) ofsection 143 or after the completion of the assessment, whichever isearlier.

Theproposed new section 115WK relates to interest for default in furnishing return of income . It, inter alia, provides that where the return of fringe benefits for any assessment year under section 115WD is furnished after the due date , or is not furnished , the employer shall be liable to pay simple interest at the rate ofone per cent. for everymonth or part of a month , comprised in the period commencing on the date immediately following the due date and ending on the date of furnishing ofthe return or where no return is furnished ending on the date of completion of the assessment under section 115WF. The interest shall be charged on the amount of fringe benefit tax determined under sub - section (1 ) of section 115WE or on regular assessment as reduced hy the advance tax paid under section 115WJ . The provisions contained in the said new section 115WK relating to interest for default in furnishing return of fringe benefits are broadly on the lines ofsection 234A of the Income-taxAct .

It isproposedto amend clause (a) ofsub-section (3) to include a reference to a return of fringe benefits made under sub -section ( 1 ) of the proposed new section 115WD.

The proposed new section 115WL relates to application ofother provisions ofthe Income -taxAct . It, inter alia, provides that save as otherwise provided in Chapter XII-H, all other provisions of the Income- tax Act shall apply in relation to fringe benefits also .

Thisamendment will take effect from 1st April , 2006 and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

The existing provisions of clause (b) of sub-section (3)ofthe said section provide that thejurisdiction of the Assessing Officer shall not be called in questionwhere no return has been made, after the expiry of the time allowed by the notice under sub-section (1 ) of section 142 or under section 148 for the making of the return or by the notice under the first proviso to section 144, whichever is earlier.

Clause 38 of theBill seeks to amend section 119 of the Income-taxAct relating to instructions to subordinate authorities .

[PART II- THE GAZETTE OF INDIA EXTRAORDINARY

144

to furnish on or before the due date the return in respect of its income or loss in every previous year.

It is further proposed to amend clause (b ) of the said sub -section so as to include a reference to a notice issued under sub - section (2) ofsection 115WD or under section 115WH for the making of the return or a notice under the first proviso to section 115WF.

It is proposed to amend the said proviso so as to provide that every firm in addition to the company shall also furnish on or before the due date the return in respect of its income or loss in every previous year.

Clause 37 of the Bill seeks to insert a new Chapter XII - H relating to income-tax on fringe benefits . The proposed amendments are therefore consequential in nature .

These amendments will take effect from 1st April, 2006 and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

Clause40 seeks to amend section 139 ofthe Income- taxAct relatingto return of income.

Under the existing provisions of clause (a) ofsub- section ( 1 ) of said section 139, every person being a company is required to furnish his return of income in prescribed form on or before the due date .

Itisproposed to amend this clause so as to provide that every firm in addition to the company shall also furnish a return of its income on or before the due date .

Under the existing provisions of clause (b ) of aforesaid sub - section ( 1 ) , a person other than a company is required to furnish the return of income if his total income or the total income of any other person in respect ofwhich he is assessable exceeds the maximum amount which is not chargeable to income -tax. It is proposed to insert a fourth proviso to sub- section ( 1 ) of section 139 so as to provide that every person being an individual or aHindu undivided family or an association of persons or a body of individuals , whether incorporated or not, or an artificial juridical person if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year, without giving effects to the provisions of section 10A, section 10B , section 10BA and Chapter VI - A exceeded the maximum amount which is not chargeable to income tax, shall , on or before the due date, furnish a return of his income or the income of such other person during the previous year , in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed .

These amendments will take effect from 1st April, 2006 and will , accordingly, apply in relation to assessment year 2006-2007 and onwards.

Under the existing provisions of clause (b) ofsub- section ( 1 ) of section 139 , every person, being a person other than a company, if his total income or the total income of any other person in respect of which he is assessable during the previous year exceeded the maximum amount which is not chargeable to income-tax shall on or before the due date furnish a return of his income or income of such other person during the previous year in the prescribed form .

Itisproposed to amend this clause so as to exclude a firm also from the ambit of this clause which is of consequential in nature .

Under the existing provisions contained in sub- clause ( i ) of clause ( c) of Explanation to sub- section (9) of the said section 139 where the return of income is not accompanied bythe proof of tax, if any, claimed to have been deducted at source after 1st April , 2005 , the return of income shall not be regarded as defective .

It isproposed to extend the said date to 1st April, 2006 so as to provide that the return of income if not accompanied by proof of tax, ifany, claimed to have been deducted at source after 1st April , 2006, shall not be regarded as defective.

This amendment will take effect from 1stApril, 2005.

Under the existing provisions of the first proviso to sub -section ( 1 ) ofthe said section 139 , a person referred to in clause (b) thereof who is not required to furnish a return under sub -section ( 1) of section 139, if fulfils any ofsix conditions specified therein has to furnish a return of its income . One such condition specified in clause ( iii) of the said proviso is that the person is a subscriber to a cellular telephone not being a wireless in local loop telephone.!

It isproposed to omit this condition for purposes of filing the return under the said proviso.

Clause 41 of the Bill seeks to amend section 139A of the Income - tax Act relating to permanent account number.

It is further proposed to include in the scope ofsub- section ( 1 ) of section 139 a person who has incurred an expenditure of fifty thousand rupees or more towards consumption ofelectricity during the previous year .

Theexisting provisions ofsub- section ( 1 ) ofthe said section , inter alia, provide that every person whose total income during any previous year exceeded the maximum amount which is not chargeable to income-tax and who has not been allotted a permanent account Under the existing provisions of the third proviso to aforesaid sub -section ( 1 ) , every company is required SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

145 number , shall , within the prescribed time , applyto the Assessing Officer for allotment of a permanent account number. Sub- section (7 ) of section 139A provides that no person who has already been allotted a permanent account number under the new series shall apply, obtain or possess another permanent account number.

account the amount of tax, if any, already paid under any provision ofthis Act, the assessee shall be liable to pay such tax together with interest payable for any delay in furnishing the return or any default or delay in payment ofadvance tax , before furnishing the return and the return shall be accompanied by proof of payment of such tax and interest . Sub-section ( 1A) of section 140A provides that for the purposes of sub- section ( 1 ) , interest payable under section 234A shall be computed on the amount of the tax on the total income as declared in the return as reduced by the advance tax, if any, paid and any tax deducted or collected at source .

It is proposed to insert a new clause ( iv) in sub- section ( 1 ) ofthe aforesaid section to provide that every person being an employer, who is required to furnish a return of fringe benefits under section 115WD and who has not been allotted a permanent account number, shall apply to the Assessing Officer for allotment of a permanent account number within the prescribed time . It is proposed to amend sub- section ( 1 ) of the aforesaid section to include a reference to a return of fringebenefits furnished under section 115WD.

It isfurther proposed to insert an Explanation in sub- section (7) to clarify that any person, who has been allotted a permanent account number under sub- section (1 ), shall not be required to obtain another permanent account number under the proposed clause (ia) of the said sub - section and the permanent account number already aliotted shall be deemed to be the permanent account number in relation to fringe benefit tax.

It isfurther proposed to substitute sub- section ( 1A) of the said section , inter alia, to provide that interest payable under section 115WK shallbe computed on the amount of tax on the value of the fringe benefits as declared in the return as reduced by the advance tax, paid, ifany.

Clause 37 of the Bill seeks to insert a new Chapter XII-H relating to income-tax on fringe benefits . The proposed amendments are therefore consequential in nature .

It isalso proposed to amend sub-section (2) ofthe said section so as to include a reference to the proposed new section 115WE or section 115WF in the aforesaid sub-section .

These amendments will take effect from 1st April, 2006 and will, accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

Clause 37 of the Bill seeks to insert a new Chapter XII -H relating to income- tax on fringe benefits . The proposed amendments are therefore consequential in nature.

Clause42 seeks to amend section 140 ofthe Income taxAct relating to return hy whom to be signed..

These amendments will take effect from 1stApril, 2006 and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

The existing provision of the said section specifies the persons who are authorised to sign and verify the return of income under section 139 of the Act .

Clause44 ofthe Bill seeks to amend section 142 of the Income- tax Act relating to inquiry before assessment .

It is proposed to include a reference in the said sectionto a return of fringe benefits made under section 115WD.

Clause37 ofthe Bill seeks to insert a new Chapter

XII -H relating to income-tax on fringe benefits . The proposed amendments are therefore consequential in nature.

Sub-section( 1 ) of the existing provision, inter alia, provides that for the purpose of making assessment under the Act, the Assessing Officer may serve a notice on anyperson who has made a return under section 139 to produce or cause to be produced such accounts or documents as the Assessing Officer may require .

It isproposed to include a reference in the said sub- section to a return of fringe benefits made under the proposed section 115WD of this Act .

This amendment will take effect from 1st April , 2006 and will, accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

Clause43 seeks to amend section 140A ofthe Income- taxAct relatingto self-assessment.

Clause37 ofthe Bill seeks to insert a new Chapter XII -H relating to income-tax on fringe benefits . The proposed amendments are therefore consequential in nature.

Under the existing provisions contained in sub- section ( 1 ) of the said section, it is provided that where any tax is payable on the basis of any return requiredto be furnishedunder section 139 or section 142 or section 148 or section 153A or section 158BC, after taking into

These amendments will take effect from 1st April, 2006 and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

146

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II- Clause45 seeks to amend section 153 of the Income- tax Act relating to the time limit for completion of assessments and reassessments .

It isproposed to insert sub - section ( 1A) in the said section so as to provide that no order of assessment shall be made under the proposed new section 115 WE or new section 115WF at any time after the expiry of two years from the end of the assessment year in which the fringe benefits was first assessable .

assessment or reassessment of total income of the assessment years referred to in clause (a) and clause (b) ofsaid sub- section , shall be the time limit of two years from the end of the financial year in which the last of authorisation for search under section 132 or for requisition under section 132A was executed or one year from the end of the financial year in which books of account or documents or assets seized or requisitioned are handed over under section 153C to the Assessing Officer having jurisdiction over such other person , whichever is later.

2 It isfurther proposed to insert sub- section ( 1B) in the said section so as to provide that no order of assessment or reassessment shall be made under the proposed new section 115WG after the expiry of one year fromthe end of the financial year in which the notice under the new section 115WH was served.

Thisamendment will take effect retrospectively from 1st June, 2003 and will , accordingly, apply in relation to a search initiated under section 132 or in relation to books ofaccount, other documents or any assets requisitioned under section 132A after 31st May, 2003.

Clause47 seeks to amend section 153C ofthe Income- tax Act relating to assessment of income of any other person.

It isalso proposed to amend sub - section (2A ) and sub- section ( 3 ) of the said section so as to give the reference of newly inserted sub -sections ( 1A ) and ( 1B) therein.

Clause 37 of the Bill seeks to insert a new Chapter XII -H relating to income- tax on fringe benefits . The proposed amendments are therefore consequential in nature.

These amendments will take effect from 1st April, 2006 and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years.

Clause46 seeksto amend section 153B of the Income- taxActrelatingto time- limit for completion of assessment under section 153A .

Under the existing provisions of section 153A , where theAssessing Officer is satisfied that books of account or documents or assets seized under section 132 or requisitioned under section 132A belong to a person other than a person in whose case search under section 132 or requisition under section 132A was made , he shall handover the same to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against such other person under section 153A . Second proviso to section 153A provides that assessment or reassessment, if any, relating to any assessment year falling within the period ofsix assessment years referred to in the said section pending on the date of initiation of the search under section 132 or making of requisition under section 132A, as the case may be, shall abate.

It is proposed to amend the said section so as to provide that in case of such other person , the reference to the date of initiation ofthe search under section 132 or making of requisition under section 132A in the second proviso to section 153A shall be construed as reference to thedate ofreceiving the books ofaccount or documents or assets seized or requisitioned by the Assessing Officer having the jurisdiction over such other person.

Clause (a) ofsub-section ( 1 ) ofthe said section 153B confers power upon the Assessing Officer to make an order of assessment or reassessment of total income of six assessment years preceding the assessment year relevant to the previous year in which search is conducted or requisition is made , within a period oftwo years from the end of the financial year in which the last of the authorisations for search under section 132 or for requisition under section 132A was executed. Clause (b) of the said sub - section confers power upon the Assessing Officer to make an order of assessment or reassessment of total income of the assessment year relevant to the previous year in which search is conducted or requisition is made, within a period of two years from the end of the financial year in which the last of the authorisations for search under section 132 or for requisition under section 132A was executed.

Itisfurther proposed to insert a new sub-section (2) so as to provide that for assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A in case of other person, where (a) no return of income has been furnished by such person and no notice under sub- section ( 1 ) of section 142 has been issued to him, or (b) a return of income has been furnished by such person but no notice under sub-section (2) of section 143 has been served and limitation of serving the notice under The time- limit provided in the aforesaid clause ( a) and clause (b) is also applicable for making assessment or reassessment in case of other person referred to in section 153C. It is proposed to insert a proviso to sub- section ( 1) of the said section 153B so as to provide that in case of such other person , the time limit for making SEC.2]

THE GAZETTE OF INDIA EXTRAORDINARY

147

amounts of such sums credited or paid or likely to be credited or paid, during the financial year exceeds fifty thousand rupees , the person responsible for paying suchi sums referred to in sub - section ( 1 ) or, as the case may be, sub -section (2) shall be liable to deduct income-tax under this section.

sub- section ( 2 ) of section 143 has expired , or ( c) assessment or reassessment, ifany, has been made, before the date of receiving the books of account or documents orassets seized or requisitioned by theAssessingOfficer having jurisdiction over such other person , such Assessing Officer shall issue the notice and assess or reassess total income of such other person for such assessment year in the manner provided in section 153A. The provisions of proposed new sub - section (2) would apply where books of account or documents or assets seized or requisitioned referred to in sub-section ( 1 ) has been received by the Assessing Officer having jurisdiction over such other person after the due date for furnishing the return of income for the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A.

It isproposed to amend the said clause (i) so as to provide that deduction of tax at source shall not be made onthe amount of any sum credited or paid or likely to be credited or paid, during the course ofbusiness ofplying, hiring or leasing goods carriages , to a sub-contractor being an individual and not owning more than two goods carriages at any time during the previous year. Such sub-contractor is required , however , to furnish a declaration as may be prescribed to the person paying or crediting such sum . The person responsible for making payment to the sub-contractor shall also furnish to the prescribed income-tax authority or to the persons authorised by such authority, the prescribed particulars in the prescribed form and within the prescribed time.

Thisamendment will take effect from 1st June, 2005.

This amendment will take effect retrospectively from 1st June, 2003 and will , accordingly, apply in relation to a search initiated under section 132 or in relation to books ofaccount, other documents or any assets requisitioned under section 132A after the 31st May, 2003 .

Clause 50 seeks to amend section 199 relating to credit for tax deducted .

Clause48 seeks to amend section 194A ofthe Income- tax Act relating to interest other than " interest on securities".

Under the existing provisions contained in sub- section (3 ) of the said section, the amount of tax deducted on or after 1stApril , 2005 , and paid to the credit of the Central Government and specified in the statement referredto in section 203AA shall be treated as tax paid onbehalfof the persons from whose income the amount oftax has been deducted and credit is given to him in the assessment without the production of certificate.

The proposed amendment seeks to provide that the credit for the amount of tax deducted and paid to the Central Government shall also be allowed on the basis of a certificate of deduction of tax furnished in respect of tax deducted on or after 1st April , 2005 and before 1st April, 2006.

The existing provisions ofsub- section (3 ) ofthe said section provide that the provisions of sub- section ( 1 ) of said section shall not apply in respect of certain income or receipts . It is proposed to amend the said sub-section (3) so as to provide that provisions of sub-section ( 1 ) shall not be applicable in respect of income paid or payable on a zero coupon bond issued by an infrastructure capital company or infrastructure capital fund or public sector company on or after 1st June , 2005 . It is also proposed to amend the Explanation to sub- section ( 3 ) so as to provide that the expression "infrastructure capital company" and " infrastructure capital fund" shall have the same meanings respectively assigned to them in clause ( a) and clause ( b) of Explanation 1 to clause (23G) of section 10 .

This amendment will take effect from 1stApril, 2005 .

This amendment will take effect from 1st June, 2005 .

Clause 51 seeks to amend section 203 relating to certificate for tax.

Clause49 seeks to amend section 194C ofthe Income- tax relatingtodeduction of tax at source on payments to contractors and sub -contractors .

Under the existing provisions contained in sub- section (3) there is no requirement to furnish a certificate referred to in sub-section.(1 ) or sub-section (2) for the tax deducted or paid on or after 1st April, 2005 in accordance with the provisions ofChapter XVII.

Itisproposedtoextend the said date up to 1stApril, 2006to provide that in a case where tax has been deducted or paid on or after 1st April , 2006, there shall be no requirement to furnish the certificate ofdeduction oftax at source to the deductee.

The existing provisions contained in clause ( i) of sub- section ( 3 ) of the said section provides that no deduction of tax shall be made under sub -section ( 1 ) or sub-section (2) of the aforesaid section where the amount ofany sum credited or paid or likelyto be credited or paid to the account of, or to, the contractor or sub -contractor, if the sum so credited or paid does not exceed twenty thousand rupees . However, where the aggregate of 148

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II- This amendment will take effect from 1st April, 2005. of tax is not required to be produced along with the return ofincome for claiming credit for tax collected at source in the assessment for the taxes collected on or after Ist April, 2006 and there is no requirement of furnishing a certificate by the collector in respect of taxes collected on or after 1stApril , 2006.

Clause 52 seeks to insert a new section 206A in the Income-taxAct relating to furnishing of quarterly return in respect of payment of interest to residents without deduction of tax .

Thisamendment will take effect from 1st April, 2005.

Clause 54 seeks to amend section 238 ofthe Income- tax Act relatingto the person entitled to claim refund in certain special cases .

The existing provisions of the said section, inter alia, provide that where the income of one person is included under any provision of this Act in the total income of any other person , the latter alone shall be entitled to a refund in respect of such income.

The proposed new section 206A seeks to provide that any banking company or cooperative society or public company referred to in the proviso to clause ( i ) of sub-section (3 ) of section 194A responsible for paying to a resident any income not exceeding five thousand rupees by way of interest (other than interest on securities) , shall prepare quarterly returns for the period ending on the 30th June , the 30th September, the 31st December and the 31st March in each financial year and deliveror cause to be delivered to the prescribed income- tax authority or the person authorised by such authority the quarterly returns as aforesaid , verified in such manner and within such time as may be prescribed , on a floрру, diskette, magnetic cartridge tape , CD -ROM or any other computer readable media.

It isproposed to insert a new sub -section ( 1A) so as to provide that where the value of fringe benefits provided or deemed to have been provided by one employer is included in the value of fringe benefits provided or deemed to have been provided by any other employer, the latter alone shall be entitled to a refund in respect of such fringe benefits .

Clause 37 of the Bill seeks to insert a new Chapter XII -H relating to income-tax on fringe benefits. The proposed amendments are therefore consequential in nature .

These amendments will take effect from 1st April , 2006 and will, accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

It is further provided that the Central Government may, by notification in the Official Gazette , require any person other than a person mentioned in sub- section ( 1) responsible for paying to a resident any income liable for deduction of tax at source under Chapter XVII , to prepare and deliver or cause to be delivered quarterly returns in the prescribed form and verified in such manner and within such time as may be prescribed, to the prescribed income-tax authority or the person authorized by such authority on a floppy, diskette , magnetic cartridge tape, CD-ROM or any other computer readable media .

Clause 55 seeks to amend section 239 ofthe Income- tax Act relating to the form of claim for refund and limitation .

This amendment will take effect from 1st June , 2005.

Under the existing provisions contained in the said section , every claim for refund is to be made within one year from the last day of the assessment year.

Clause 53 seeks to amend section 206C relating to profits and gains from the business oftrading in alcoholic liquor , forest produce , scrap , etc.

It is proposed to insert a new clause (d) in sub-section (2) of the said section so as to provide that the claim for refund in respect of fringe benefits assessable for any assessment year commencing on or after the first day of April , 2006, shall be made within one year from the last day of such assessment year .

Clause 37 of the Bill seeks to insert a new Chapter XII -H relatingto income - tax on fringe benefits . The proposed amendments are therefore consequential in nature .

These amendments will take effect from 1st April , 2006 and will , accordingly, apply in relation to the assessment year 2006-2007 and subsequent years .

Under the existing provisions contained in the proviso to sub - section (4) of the said section the credit for the amount of tax collected is allowed to the person on whose behalf tax has been collected on or after 1stApril , 2005 on the basis ofthe amount specified in the annual statement referred to in the second proviso to sub-section (5) of the aforesaid section and a certificate ofcollection oftax is not required to be produced along with the return of income for claiming credit for tax collected at source . The first proviso to sub - section (5) ofsection 206Cdoes not require the tax collector to furnish a certificate to the collectee for taxes collected on or after IstApril, 2005.

Clause 56 seeks to amend section 244A ofthe Income- taxAct relating to interest on refunds .

The proposed amendment seeks to extend the date to 1stApril , 2006 to provide that a certificate of collection 149 SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

These amendments will take effect from 1st April, 2006 and will , accordingly, apply in relation to the assessment year 2006-07 and subsequent years .

Clause 58 seeks to amend section 271 ofthe Income- tax Act relating to the failure to furnish returns , comply withnotices, concealment of income, etc.

Under the existing provisions contained in sub- section ( 1 ) of the said section , where refund of any amount becomes due to the assessee under the Act, the assessee is entitled to receive, in addition to the said amount, simple interest thereon at the rate of one-half percent. for every month or part of a month comprised in the period of delay specified in the said section . Sub- section (4) provides that the provisions of this section shali apply in respect of assessments for the assessment year commencing on the 1st day of April , 1989 and subsequent assessment years .

Under the existing provisions contained in sub- section (1 ) ofthe said section, if the Assessing Officer or the Commissioner ( Appeals) , in the course of any proceedings under the Act, is satisfied that any person has failed to comply with a notice under sub- section (1 ) of section 142 or sub- section (2) ofsection 143 or fails to comply with a direction issued under sub-section (2A) of section 142 of the said Act, he may direct that such person shall pay byway of penalty, in addition to any tax payable by him, a sum which shall not be less than ten thousand rupees for each such failure.

It is proposed to amend the said section so as to include a reference to any tax paid under the proposed new section 115WJ and also to provide that in respect of assessment of fringe benefits, the provisions of section 244A shall apply in respect of assessments for the assessment year commencing on the 1st day of April, 2006 and subsequent assessment years .

It is also proposed to include a reference to an order under sub -section (3 ) ofsection 115WE or section 115WF or section 115WG in sub- section(3) of sub - section 244A.

It is proposed to amend the said section so as to include a reference to sub - section (2) of the proposed new section 115WD and sub-section (2) of new section 115WE and provide that any references in section 271 to income shall be construed as references to the income or fringe benefits , as far as may be , and the provisions of the said section shall apply in relation to any assessment inrespect of fringe benefits also.

Clause 37 of the Bill seeks to insert a new Chapter XII-H relating to income- tax on fringe benefits . The proposed amendments are therefore consequential in nature.

These amendments will take effect from 1st April, 2006 and will, accordingly, apply in relation to the assessment year 2006-07 and subsequent years .

Clause37 of the Bill seeks to insert a new Chapter XII -H relating to income- tax on fringe benefits . The proposed amendments are therefore consequential in nature .

Clause57 seeks to amend section 246A ofthe Income- taxAct relating toappealable orders before Commissioner (Appeals).

These amendments will take effect from 1st April , 2006 and will, accordingly, apply in relation to the assessment year 2006-07 and subsequent years .

Clause 59 of the Bill seeks to insert a new section 271FB ofthe Income- tax Act relating to penalty for failure to furnish a return of fringe benefits .

The existing provisions contained in the said section, inter alia, provide for appeal by an assessee to the Commissioner (Appeals) against an order under sections 143(3) , 147, 150 , etc. , oftheAct.

It isproposed to provide that where an employer who is required to furnish a return of fringe benefits under sub-section ( 1 ) of the proposed new section 115WD, fails to furnish such return within the prescribed time, he shall be liable to pay, by way of penalty, a sum of one hundred rupees for every day during which the failure continues .

It is proposed to insert two new clauses (aa) and (ab) in sub-section ( 1 ) of the said section so as to provide for appeal by the assessee , being an employer , against the value of fringe benefits assessed in an order of assessment under sub- section ( 3 ) of the proposed new section 115WE or section 115WF, or an order of assessment or reassessment under section 115WG

Clause 37 of the Bill seeks to insert a new Chapter XII -H relating to income- tax on fringe benefits. The proposed amendments are therefore consequential in nature.

Itisfurther proposed to amend sub-clause (B) of clause (j ) in sub- section ( 1 ) of the said section so as to include a reference to an order under the new section 271FB.

These amendments will take effect from 1stApril , 2006 and will , accordingly , apply in relation to the assessment year 2006-07 and subsequent years .

Clause 37 of the Bill seeks to insert a new Chapter XII -H relating to income- tax on fringe benefits . The proposed amendments are therefore consequential in nature .

Clause60 seeks to amend section 272A ofthe Income- taxAct relatingto penalty for failure to answer questions , 150

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II-

assessment year 2006-07 and subsequent years .

sign statements , furnish information , returns or statements, allow inspections, etc.

Clause 63 seeks to amend section 278 of the Income- taxAct relating to abetment of false return, etc.

The proposed amendment seeks to insert a new clause ( 1) in sub - section (2) in the said section to provide that where any person notified by the Central Government in this regard fails to deliver or cause to be delivered the quarterly return within the time prescribed in sub- section ( 1 ) of section 206A , be shall pay, by way of penalty, a sum of one hundred rupees for every day of such default.

This amendmentwill take effect from 1st June , 2005 .

The existing provisions contained in the said section, inter alia , provide that if a person abets or induces another person to make and deliver an account or statement or declaration relating to any income chargeable to taxwhich is false , he is liable for punishment with rigorous imprisonment for a term not less than six inonths but which may extend to seven years in a case where the amount of tax , penalty or interest evaded exceeds one hundred thousand rupees.

Clause 61 seeks to amend section 273B ofthe Income- taxAct relatingto penalty not to be imposed in certain cases .

It is proposed to amend the said section so as to substitute the words " any income chargeable to tax" by the words " any income or any fringe benefits chargeable to tax".

The existing provisions contained in the said section, inter alia, provide that no penalty under sections 271A, 271B , 271C , 271D, 271F, etc shall be imposed on any person ifhe proves that there was reasonable cause for the said failure .

Clause37 ofthe Bill seeks to insert a new Chapter XII -H relating to income- tax on fringe benefits . The proposed amendment is therefore consequential in nature.

The proposed amendment seeks to include a reference to the proposed new section 271FB in the said section.

This amendment will take effect from 1stApril, 2006 and will , accordingly, apply in relation to the assessment year 2006-07 and subsequent years .

Clause 64 seeks to amend section 295 ofthe Income- taxAct relating to rule making powers of the Board.

Clause 37 ofthe Bill seeks to insert a new Chapter XII -H relating to income- tax on fringe benefits. The proposed amendment is therefore consequential in nature.

It is proposed to omit clause (e) ofsub-section (2) of the said section relating to the percentage or the amount tobe prescribed under clause (i ) of sub- section (4) of section 80C as this clause is redundant .

Thisamendment will take effect from 1stApril, 2006. andwill, accordingly, apply in relation to the assessment year 2006-2007 and subsequent years.

Clause 62 ofthe Bill seeks to amend section 276CC ofthe Income-tax Act relatingto failure to furnish returns ofincome.

This amendment will take effect from 1stApril , 2006 and will , accordingly, apply in relation to the assessment year 2006-07 and subsequent years .

Customs

The existing provisions contained in the said section, inter alia, provide that if any person will fully fails to furnish the return of income under sub- section( 1) of section 139 or section 148 in due time , he shall be punishable with rigorous imprisonment for a term not less than six months but which may extendto seven years in a case where the amount of tax, penalty or interest evaded exceeds one hundred thousand rupees .

Clause 65 seeks to amend section 28E of the Customs Act , 1962, which deals with the Authority for Advance Rulings , so as to ,-

The proposed amendments seek to include references to sub- section ( 1) and sub-section (2) of the proposed new section 115WD and section 115WH in the said section.

(i) enable a joint venture in India to obtain an advance ruling, and

Clause37 ofthe Bill seeks to insert a new Chapter XII-H relating to income -tax on fringe benefits . The proposed amendments are therefore consequential in nature.

(ii) to empower the Central Government to notify any class or category of persons who can apply for an advance ruling under clause (c) .

These amendments will take effect from 1st April , 2006 and will , accordingly, apply in relation to the

Clause 66 seeks to amend sub -section ( 1 ) ofsection 28F to change the name of the Authority for Advance 151 THE GAZETTE OF INDIA EXTRAORDINARY

Sec.2]

Rulings as the Authority for Advance Rulings (Central Excise, Customs and Service Tax).

Clause 67 seeks to amend section 28H of Customs Act, to insert clause (e) in sub-section (2), to provide for anapplication to seek advance ruling on determination onRules of Origin , of goods that are exported from or imported into India, by the Authority for Advance Rulings (Central Excise, Customs and ServiceTax).

Clause 68 seeks to amend section 127MA of the Customs Act, so as to exclude the provisions of sub- section (1) of section 127-1 from the provisions of sub- section (6) and to insert sub-section (8 ) to provide for sending a case back to the Tribunal by the Settlement Commission in the event of non co-operation by an applicant.

Clause 69 seeks to amend sub- section (5) of section 128A ofthe Customs Act, so as to provide that an order passedby a Commissioner of Customs (Appeal) shall be communicated to the Chief Commissioner.

Clause 70 seeks to amend section 129A of the Customs Act, so as to empower the Board to constitute a Committee consisting of two Chief Commissioners by notification for the purposes of giving direction to the proper officer to appeal on its behalf.

Clause 71 seeks to amend section 129D of the Customs Act, to empower the Chief Commissioner of Customs to call for and examine the record of any proceedings in which a Commissioner of Customs has passed anydecision or order .

Clause 72 seeks to substitute section 3 of the CustomsTariffAct, 1975 to enable the Central Government also to levy an additional duty not exceeding 4 per cent. advalorem on imported articles, as would counter balance the sales tax, value added tax , local taxes and other charges, leviable on such articles or like articles on their sale or purchase or transportation in India.

Clause 73 seeks to omit section 3A of the Customs TariffAct, 1975.

Clause 74 seeks to amend the First Schedule to the Customs Tariff Act so as to

(a) reduce the basic customs duty in respect of goods falling under the Chapters , headings , sub- headings and tariff items, namely:---

tariff items 2901 1000, 29012100, 29012200,290123 00,29012400,2901 29 10, 29012920, 2901 29 90,2902 11 00, 2902 1900,29022000, 2902 30 00,2902 4100, 29024200,290243 00, 29024400, 2902 5000,290260 00,29027000,290290 10,2902 9020,290290 30, 2902 9040,29029050, 2902 90 90,2903 15 00,2903 2100, 290330 11,2903 30 19, 290490 80,2905 19 10, 290519 90,29054300,29054400 , 2918 1910, 2918 1990,2920 1010,2920 1020, 2920 9041, 2920 9042, 2920 9043, 29209044,29209045,29209047,29209048,292090 51,2920 90 52,2920 90 53,2920 90 54,29209055, 2920 9056,2920 90 57, 2920 90 58,2920 90 61,2920 9062, 29209063,2920 90 64, 2920 90 65,2920 90 66, 292090 99,2921 19 11,2921 19 14,2921 1990, 2922 11 11,2922 11 12, 2922 11 13,2922 11 14,2922 11 15,2922 11 16, 2922 1190,2922 12 11,2922 12 12, 2922 1290, 2922 19 10,2922 1920, 2922 19 30,2922 1990, 2926 1000, 2930 9091,29309099, 2933 3930, 29392910, 29392990),30 (except tariff items 3006 60 10,300660 20 and300660 30),31 (except tariff items 31022100, 3102 5000,3104 3000, 3105 2000, 3105 3000, 31054000, 3105 5100, 310559 00,3105 6000 , 310590 10 and 31059090), 32 (except heading 3201 ) , 33 (except heading 3301and sub-heading 3302 10) , 34, 35 (except headings 3501 , 3502, 3503 , 3504 and 3505), 36, 37 (except tariff items 3701 2000 and 3702 2000), 38 ( except tariffitems 3809 1000,381800 10,38180090, 3824 60 10, 382460 90 and heading 3823 ) , 39, 40 (except tariff items 4001 10 10, 40011020,4001 21 00, 40012200 and 40113000 and sub-heading 4001 29), 41 ( except headings 4101 ,4102 and4103), 42,43 (headings 4303 and4304), 44 (except headings 4401 ,4402 and 4403), 45, 46,48(except tariff items480100 10 and 48010090), 49(except tariffitems 4902 10 10,49021020 ,4902 90 10,4902 9020, 490400 00,4905 1000, 4905 91 00, 4905 99 10 and49059990), 50 (headings 5004, 5005, 5006 and 5007), 51 (except tariff item 5105 29 10 and headings 5101 , 5102, 5103 and 5104), 52 ( except headings 5201, 5202and5203), 53(except headings 5301 and 5302), 54,55,56,57,58, 59,60,61 ,62,63,64,65,66, 67,68,69,70,71 ,72, 73,74, 76(heading 7615), 78, 79, 81 , 82, 83, 84 (except sub- heading 8471 70 and tariff items 8407 21 00 and 845691 00),85(except tariff items 85322100, 85322400,8532 9000,85339000, 85404000, 8541 9000, 85431100 and heading 8542), 86, 87 (except tariff item 87100000),88 (except tariff items 8802 2000, 88023000, 88024000, 88031000,8803 2000 and 8803 3000),89 (except tariff item89080000), 90 (except tariff items 90104100,9010 4200,90104900, 9030 82 00 and 90314100), 91 ,92,93, 94,95, 96, 97 (except heading 9704) and 98;

(b) increase the basic customs duty in respect of articles falling under Chapter 6 (heading0603);

(c) reduce thebasic customs duty, for preferential areas , in respect of articles falling under the Chapters, Chapters 25(except heading 2510), 26(tariff items 26201100,2620 1900, 2620 30 10 and 2620 30 90), 27 (except tariff items 2701 1200, 2701 2010, 27012090, 2709 00 00 and 2716 00 00 and headings 2702, 2703 , 2704, 2711 and 2714), 28 (except tariff items 2801 2000, 2812 10 10,28121021,28121022,2812 1041,281210 42,2812 1043,2812 1047,2812 1060,2814 1000,2814 2000, 2845 1000, 28510091 and 28510099), 29 (except 152

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II- headings , sub -headings and tariff items , namely:-

Clause 82 seeks to amend rules 57CC and 57AD , of the Central Excise Rules , 1944 in the manner specified in the Fourth Schedule with retrospective effect so as to incorporate recovery provisions for the amount specified in the said rules .

Chapters 25 (heading 2504 ) , 29 (tariff items 2939 41 10,293941 20, 2939 41 90, 2939 42 00, 2939 43 00, 293949 00, 2939 51 00 and 2939 59 00 and headings 2936, 2937 and 2941 ), 30 (except headings 3005 and 3006), 34 (tariff items 3402 1110, 3402 11 90 , 3402 1200, 340213 00 and 3402 1900) and 38 ( tariff items 380110 00,3802 1000, 38121000) .

Clause 83 seeks to amend rule 6 of CENVAT Credit Rules, 2001 in the manner specified in the Fifth Schedule with retrospective effect so as to incorporate recovery provisions for the amount specified in the said rule.

د Clause 75 seeks to insert sub - section ( 1A) in section 5Aofthe Central Excise Act, 1944 to provide that in respect of goods exempted absolutely from excise duty, the manufacturer shall not pay duty on such goods .

Clause 76 seeks to amend section 23 A ofthe Central Excise Act, 1944 , so as to,

Clause 84 seeks to amend notification number 88 / 88-Central Excise , dated the 1st March 1988 , published in theGazette of India vide No. GS.R. 277 (E) , dated the 1st March, 2003 , with retrospective effect so as to make applicable the definition of ' rural area' as provided in clause (ff) ofsection 2 of the Khadi and Village Industries Commission Act , 1956 (61 of 1956) for the purposes of exemption under said notification, for the period on and from the 28th February, 2000 to the 28th February, 2003 .

(a) ( i ) include a joint venture in India as an " applicant " and ( ii ) to empower the Central Government to notify any class or category ofpersons as an " applicant" in clause (c) ;

Clause 85 seeks to levy additional duty of excise for the purposes of Union as a surcharge on the goods specified in Seventh Schedule at the rates specified therein.

(b) change the name of the nomenclature for the "Authority for Advance Ruling " as " Authority for Advance Ruling (Central Excise , Customs and Service Tax)" in clause (e).

Clause 86 seeks to amend the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 in the manner given in the Eighth and Ninth Schedules respectively.

Clause 77 seeks to amend section 32PA of the Central Excise Act , so as to exclude provisions of sub- section ( 1 ) of section 32L, from the provision of sub- section (6) and to insert new sub - section ( 8 ) to provide for sending a case back to the Tribunal by the Settlement Commission in the event of non co - operation by an applicant.

Clause 87 seeks to insert a Chapter NOTE in Chapter 15 of the First Schedule to the Central Excise TariffAct , 1985 , with retrospective effect from 1st day of March, 1986 up to 28th day of February, 2005 , so as to provide that in respect of refined edible oils the process ofrefining shall amount to manufacture.

Clause 78 seeks to amend sub - section (5) of section 35A of the Central Excise Act , so as to provide that an order passed by a Commissioner of Central Excise (Appeals ) shall be communicated to the Chief Commissioner of Central Excise.

Clause 88 seeks to amend Chapter V ofthe Finance Act, 1994 relating to service tax in the following manner, namely:---

Clause 79 seeks to amend section 35B , so as to,-

(i) sub- clauses ( a) and (b) seek to amend section 65 and section 66 of the Finance Act , 1994 so as to modify the scope of certain existing taxable services and to impose service tax on the following services provided or to be provided by-

(a) insert sub - section ( 1B ) to empower the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act , 1963 (54 of 1963 ) to constitute a Committee consisting of two Chief Commissioners of Central Excise for the purposes of giving direction to the proper officer to appeal in its behalf;

(a) any person in relation to transport of goods other than water , through pipeline or other conduit ;

(b) replace the word "Commissioner of Central Excise " appearing in sub -section (2) as " The Committee of Chief Commissioners of Central Excise" .

(b) any person in relation to site formation and clearance , excavation and earthmoving and demolition and such similar activities;

Clause 80 seeks to substitute the word " Board " appearing in section 35E as " Committee of Chief Commissioners ofCentral Excise " ..

(d) any person , other than by an agency under the control of, or authorised by, the Government in relation to survey and map-making;

(e) any person in relation to cleaning activity;

Clause 81 seeks to substitute the Third Schedule to the Central Excise Act consequent to enactment of the Central Excise Tariff (Amendment) Act, 2004 .

153

THE GAZETTE OF INDIA EXTRAORDINARY

SEC . 2]

(f) any club or association , in relation to provision of services , facilities or advantages for a subscription or any other amount ;

(g) any person, in relation to packaging activity, (h) any person in relation to mailing list compilation and mailing;

(i) any person , in relation to construction of complex.

Servicetax is sought to be levied on the above taxable services at the rate of ten per cent. of the gross amount charged for such services provided or to be provided by the service provider to any person;

(ii) sub -clause (c) seeks to amend section 67 so as to provide that gross amount charged shall include any amount received towards the taxable service before, during or after provision of such service;

(iii) sub-clause (d) seeks to amend section 69 so as to provide that the Central Government inay, by notification in the Official Gazette , specify such person or such class of persons , other than the person liable to pay service tax, who shall make an application for registration within such time and in such manner and in such form as maybe prescribed;

(iv) sub-clause ( e) seeks to amend section 70 so as to provide that notified person or class of person , other than the person liable to pay service tax, shall furnish to the Superintendent of the Central Excise, a return in such form and in such manner and at such frequency as maybe prescribed;

(v) sub-clause ( f) seeks to amend section 73 so as to empower the Central Excise Officer to serve notice and determine the amount of service tax due in caseanyservicetax has not been levied or paid or has been short -levied or short - paid or erroneously refunded;

(vi) sub-clause (g ) seeks to amend section 74 so as to empower the Central Excise Officer to amend the order passed by him with a view to rectify any inistake apparent from the record;

(vii) sub-clause (h ) seeks to amend section 78 so asto provide that where service tax determined under sub- section (2) of section 73 and interest payable under section 75, is paid within thirty days from the dateofcommunication of the order ofthe Central Excise Officer determining such service tax the amount of penalty liable to be paid would be twenty-five per cent. ofservice tax so determined ;

(viii) sub -clause ( i) seeks to amend section 83 so as to make applicable section 33A ofthe Central Excise Act, 1944 in relation to service tax;

(ix) sub-clause (j ) seeks to insert section 83A so as to provide power of adjudication in service tax cases;

(x) sub -clause (k) seeks to amerid section 84 so as to empower the Commissioner of Central Excise to call for the records of a proceeding of any decision or order passed by an adjudicating authority subordinate to him , and inake inquiries or cause such inquiries to bemade and pass such order thereon as he thinks fit ;

(xi) sub -clause ( 1) seeks to amend section 85 so as to provide that any person aggrieved by any decision or order passed by an adjudicating authority subordinate to the Commissioner of Central Excise may appeal to the Commissioner of Central Excise (Appeals);

(xii) sub-clause (m) seeks to amend section86 so as to provide that appeal against an order passedby theCommissioner of Central Excise under section 73 or section 83A or section 84 can be made to Appellate Tribunal and that the Commissioner ofCentral Excise may direct any Central Excise Officer, on his behalf,to appeal to Appellate Tribunal against any orders passedbyCommissioner ofCentral Excise (Appeals);

(xiii) sub-clause (n) seeks to amend section 94 so as to empower the Central Government to make rules in respect of time within which and the manner and the form in which application for registration shall be made under sub-sections ( 1) and (2) ofsection69 and the form in which and the manner in which and the frequency of the returns to be furnished under sub- sections ( 1 ) and (2) of section 70 .

Clause 89 seeks to amend section 2 of the Central Sales Tax Act, 1956 to provide for deductions to be made from total consideration in respect of works contractsto arrive at the sale price , to include VAT legislations ofthe States within the ambit of the definition of" sales tax law" and"general sales tax law" , and to define the term "works contract".

Clause 90 seeks to make submission of declaration in the prescribed form so as to enjoy the benefit under section 5(3 ) of the Central Sales Tax Act and seeks to treat the sale ofAviation Turbine Fuel to any designated Indian carrier for its international flight as deemed export.

Clause 91 seeks to substitute the existing section 6(3) of the Central Sales Tax Act , 1956 to provide for exemption from payment of Central Sales Tax on Inter- State sale ofgoods to diplomatic missions, United Nations and their diplomats for their official and personal use .

Clause 92 seeks to amend section 13 of the Central Sales TaxAct to empower the Government to make rules prescribing the deductions from the total consideration foraworks contract in order to determine the sale price.

[PART I- THE GAZETTE OF INDIA EXTRAORDINARY

154

Banking Cash Transaction Tax

Chapter VII (containing clauses 93 to 112 ) provides for levy of a tax on certain banking cash transactions entered into with any scheduled bank .

Clause 98 of the Bill provides for furnishing of prescribed return to the Assessing Officer. Sub- clause (1) lays down that the scheduled bank ( assessee) would be responsible for collection ofbanking cash transaction tax and for filing returns . Such returns in respect of all taxable banking transactions entered into during a financial year with that scheduled bank shall be in the form and manner and setting- forth such particulars as maybe specified in the rules made under the Chapter.

Clause 93 of the Bill deals with the extent , commencement and application of the Chapter. This proposed Chapter extends to the whole of India except the State of Jammu and Kashmir. It shall come into force on 1st June , 2005 ..

Sub-clause (2) confers power on the Assessing Officer to issue notice requiring any assessee who is responsible for collection of banking cash transaction tax, and has not furnished the return , to furnish such return within such time as may be specified in the notice .

Clause 94 of the Bill defines various terms and expressions like " Appellate Tribunal " , " Assessing Officer " , " Board" , " person " , " scheduled bank", "taxable banking transaction" , etc. , used in the Chapter.

Sub -clause (3 ) provides for furnishing a return or a revised return before the assessment is made, in case any assessee has not furnished any return within the time allowed or on discovery of any omission or wrong statement in the return earlier furnished .

Sub- clause (8 ) defines taxable banking transactions to mean ( i ) withdrawal of cash (by whatever mode) exceeding ten thousand rupees on any single day by a person from any scheduled bank, or (ii ) purchase of Bank draft , banker's cheque etc. of an aggregate amount exceeding ten thousand rupees on any single day by a person from a scheduled bank out of cash deposited with such bank, or ( iii ) receipt of cash exceeding ten thousand rupees on a single day by a person on encashment oftime deposits with a scheduled bank. The other definitions are self-explanatory.

Clause 99 of the Bill contains provisions relating to assessment of the taxable banking transactions and the banking. cash transaction tax payable or refundable on the basis of such assessment . It further provides that no assessment shall be made after the expiry of two years from the end ofthe relevant financial year . It also provides that the amount refunded to the assessee should be returned to the person from whom it was collected within the time laid down by rules .

Clause 95 of theBill seeks to make a provision for the charging of a tax called "banking cash transaction tax" at the rate of 0.1 per cent . ofthe value ofeach taxable banking transaction entered into with any scheduled bank and such tax shall be payable by the person who withdraws the cash from a scheduled bank or purchases bank draft , banker's cheque , etc. from a scheduled bank out of cash deposited with such bank or receives cash on encashment of term deposit with a scheduled bank or encashes a bearer cheque to whom the payment is made in cash by the scheduled bank. However, no such tax shall be payable if the amount of term deposit is credited to any account with bank.

Clause 100 of the Bill provides for rectification of mistakes apparent from record of any order passed by theAssessing Officer within one year from the end ofthe financial year in which the order sought to be amended was passed . The Assessing Officer may rectify mistakes either suo motu or at the instance ofthe assessee . Further, any amendment which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee shall be made only after giving the assessee a reasonable opportunity of being heard .

Clause 101 oftheBill provides for payment ofsimple interest at the rate of one per cent for every month or part of a month where the banking cash transaction tax collected is not credited to the account of the Central Government within the period specified in clause 97.

Clause 96 oftheBill provides for the value oftaxable banking transactions . The value of a taxable banking transaction shall be- ( i) the amount of cash withdrawn from a scheduled bank, or (ii) the amount of cash deposited with a scheduled bank for purchase of a bank draft or banker's cheque , etc. , or ( iii ) the amount of cash received on encashment of term deposit with a scheduled bank.

Clause 97 of the Bill provides for collection and recovery ofbanking cash transaction tax by a scheduled bank . The amount of banking cash transaction tax collected by the scheduled bank has to be paid to the credit of the Central Government by the fifteenth day of the month following the month in which the banking cash transaction tax is collected.

Clause 102 of the Bill provides for imposition of penalty on the scheduled bank responsible to collect banking cash transaction tax for its failure to collect the tax or for failure to credit the same to the account ofthe Central Government . The penalty would be a sum- equal to the amount of the banking cash transaction tax not collected in a case where the assessee fails to collect whole or any part ofthe banking cash transaction tax. In other cases , such penalty imposed will be one thousand 155 THE GAZETTE OF INDIA EXTRAORDINARY

SEC.2]

account or statement which is false . This clause also provides that an offence punishable under this clause shall be deemed to be non-cognisable within the meaning ofthe Code ofCriminal Procedure, 1973.

rupees for every day of failure to pay the banking cash transaction tax to the credit of the Central Government . However, the penalty imposable under this clause shall not exceed the amount of the banking cash transaction taxthat was to be paid .

Clause110 oftheBill provides that no prosecution shall be initiated for an offence under clause 109 except with the prior sanction of the Chief Commissioner of the Income-tax.

Clause 103 oftheBill provides for penalty for failure to furnish return under clause 98. The penalty in such cases will be one hundred rupees for every day during which the failure continues .

Clause 111 ofthe Bill confers powers on the Central Government to make rules for the purposes ofcarrying out the provisions of this Chapter . This clause also provides that every rule made under this clause shall be laidbeforeeach House of Parliament .

Clause104oftheBill relates to the penalty for failure to comply with notice . It provides that any assessee who fails to comply with notice issued under sub-clause (2) of clause 98, shall be liable to pay, by way ofpenalty, a surn of one hundred rupees for every dayduring which the failure continues .

Clause 105 ofthe Bill provides that no penaltywill be imposable under clause 102 , clause 103 or clause 104 if the assessee proves that there was reasonable cause forthe failure to comply with the provisions of the said clause.

Clause 112 ofthe Bill confers power on the Central Government to issue orders for removal ofany difficulty arising in giving effect to the provisions ofthis Chapter. This power is available to the Central Government for a period of two years from the date on which the provisions of this Chapter come into force i.e. from 1 " June, 2005. Every order made under this clause shallbe laidbefore each House of Parliament.

Miscellaneous

It is further proposed that no order imposing a penalty under this Chapter shall be made unless the assessee has been given a reasonable opportunity of being heard..

Clause 113 seeks to amend the Government Savings Banks Act, 1873 .

Clause 106 of the Bill provides that sections 120, 131 , 1334, 156 , 178, 220 to 227 , 229 , 232, 260A, 261 , 262, 265 to 269, 278B, 282 and 288 to 293 of the Income-tax Act, 1961 which, inter alia , relate to issue of notice of demand , recovery and collection of tax , appeals to High Courts and the Supreme Court, appearance of authorised representatives, etc. , will , so far as may be , apply in relation to banking cash transaction tax.

The said Act contains certain provisions relating to Government Savings Banks . Section 3 of the Act, inter alia, defines the expression " depositor". It is proposed to insert a proviso to the said definition so as to include individual investors only within the scope of definition of "depositor" on or after the date on which the Finance Bill , 2005 receives the assent ofthe President.

Thisarmendment will take effect from the date on which the Bill receives the assent of the President.

Clause 114 seeks to amend the Indian StampAct, 1899 by substituting a new section 8B to provide that the scheme of corporatisation and demutualisation of existing stock exchanges and instruments relating to such scheme would not be liable to stamp duty.

Clause 107 ofthe Bill provides for an appeal to the Commissioner of Income - tax (Appeals ) when the assessee denies its liability to be assessed under this Chapter or against any order passed under clause 99 or clause 100 by anAssessing Officer . This clause contains provisions relating to time- limit for filing appeal , etc. , and provides that the provisions of sections 249 to 251 of the Income-tax Act, 1961 will, as far as may be, apply insuch cases.

Clause 115 seeks to amend section 2 of the Contingency Fund of India Act, 1950 relating to Contingency Fund.

It is proposed to enhance the corpus of the Contingency Fund of India from fifty crores ofrupees to five hundred crores of rupees . The enhancement of the corpus of the Contingency Fund of India shall be effective from the date on which the Finance Bill, 2005 receives the assent of the President.

Clause 108 of the Bill provides for appeal to the Appellate Tribunal against an order passed by a Commissioner of Income-tax ( Appeals) under clause 107. Thisclause contains provisions relating to time- limit and procedure for filing appeal before theAppellate Tribunal. This clause also provides that where an appeal has been filed under this clause the provisions of sections 252to 255 of the Income- tax Act, 1961 shall, as far as may be , apply.

Clause 116 seeks to substitute the Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957 by the Tenth Schedule.

Clause 109 ofthe Bill provides for punishment, by way of imprisonment up to a period of three years and with fine, for submitting any statement in any verification, 156

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II- Clause 117 seeks to amend the Government Savings Certificates Act, 1959 .

also to abolish additional duty of customs and additional duty ofexcise on tea and tea waste.

Clause 124 seeks to amend the Finance (No. 2) Act, 2004,-

Sub -clause ( a) seeks to amend section 88 of the said Act so as to provide mechanism for the recovery of CENVAT credit of additional duty under the Additional Duties ofExcise (Goods of Special Importance) Act, 1957 paid prior to 1.4.2000 and utilized for payment of CENVAT credit and interest thereon;

The saidAct contains certain provisions relating to various savings certificates issued by the Central Government from time to time. Section 2 of the saidAct defines various expressions used therein. It is proposed to define the expression " holder" so as to bring only an individual within the scope of "holder" in relation to savings certificates on or after the date on which the Finance Bill, 2005 receives the assent of the President . However, the amendment does not restrict investments made by juridícal persons before the date on which the said Bill is enacted.

This amendment will take effect from the date on which the Bill receives the assent of the President .

Sub-clause ( b) seeks to amend section 94 of the Finance (No. 2) Act, 2004 so as to exclude the additional duty referred to in sub- section (5) of section 3 of the Customs TariffAct, 1975 from the calculation ofduties of customs in respect of Education Cess .

Sub-clause (c) seeks to amend section 98 of the Finance (No. 2) Act, 2004 relating to charge of securities transaction tax.

Clause 118 seeks to substitute the Schedule to the Additional Duties ofExcise (Textiles and Textile Articles) Act, 1978 by the Eleventh Schedule.

It is proposed to amend the Table below the said section which specifies the rates at which the securities transaction tax shall be charged .

Clause 119 seeks to increase the rates of additional duty ofcustoms and additional duty of excise on motor spiritcommonly known as petrol .

Clause 120 seeks to increase the rates of additional duty of customs and additional duty of excise on high speed diesel oil .

Clause 121 seeks to amend section 10 ofthe Central Road Fund Act, 2000 for allocation of fifty paise out of per litre of the additional duties of customs or additional duties of excise the increased rate on motor spirit commonlyknown as petrol and high speed diesel oil levied as amended by clauses 119 and 120 of the Bill exclusively forthe development and maintenance ofhighways . The additional duties of customs and additional duties of excise on petrol and diesel levied at the rates prior to the present amendment would continue to be allocated for different purposes as contained in sub - section ( 1 ) of section 10 .

Clause 122 seeks to substitute the Seventh Schedule to the Finance Act, 2001 .

Theproposed amendments seek to enhance the rates of securities transaction tax from 0.075 per cent. to0.1per cent. in respect of the taxable securities transactions of the equity shares or units of equity oriented fund of the nature referred to in column (2) of the said Table against serial numbers 1 and 2 thereof. It is further proposed to enhance the rate ofsecurities transaction tax from 0.015 per cent . to 0.02per cent. in respect ofthe taxable securities transactions of the equity shares or units of equity oriented fund ofthe nature referred to in column (2) against serial number 3. It is also proposed to enhance the rate of securities transaction tax from 0.01 per cent. to 0.0133 per cent. in respect oftaxable securities transactions of derivatives of the nature referred to in column (2) against serial number 4. It is also proposed to enhance the rate of securities transaction tax from 0.15 per cent. to 0.2 per cent. in respect of taxable securities transactions of the units of equity oriented fund ofthe nature referred to in column (2) against serial number 5 .

take effect from 1st June , 2005. The amendment proposed in sub-clause ( c) will Clause 123 seeks to amend the Finance Act, 2003 so as to extend the levy of National Calamity Contingent Duty on specified goods beyond 31st March, 2005, and 157 SEC.2]

THE GAZETTE OF INDIA EXTRAORDINARY

FINANCIAL MEMORANDUM

Clause 115 of the Bill seeks to amend section 2 of the Contingency Fund of India Act, 1950 so as to raise the corpus ofthe Contingency Fund of India from fifty crores of rupees to five hundred crores of rupees by transfer ofan additional amount of four hundred and fifty crores of rupees from the Consolidated Fund of India to the Contingency Fund of India . The Bill thus involves a withdrawal of four hundred and fifty crores of rupees from the Consolidated Fund of India but the actual expenditure will be incurred only when advances are drawn from the Contingency Fund for meeting unforeseen expenditure pending authorisation by law under article 115 or article 116 ofthe Constitution.

No recurring expenditure is involved.

[PART II- 158

THE GAZETTE OF INDIA EXTRAORDINARY

MEMORANDUM REGARDING DELEGATED LEGISLATION

Sub-clause (f) of clause 3 ofthe Bill seeks to insert a new clause (48 ) to section 2 ofthe Income-tax Act relating to definitions. The amendment proposed by the said sub-clause confers powers upon the Central Government to specify ' zero coupon bond' which is proposed to be defined under that clause .

income ifthe total income of such person before giving effect to provision of sections 10A , 10B and Chapter VIA exceeds the maximum amount not chargeable to tax . Clause 40 seeks to empower the Central Board of Direct Taxes to prescribe the format for furnishing the said return and the manner in which the same may be verified.

Clause 12 seeks to insert a new sub -clause (iiia) to sub-section ( 1 ) of section 36 empowering the Central Board of Direct Taxes to make rules in respect of the manner ofcalculation ofthe pro rata amount of discount on a zero coupon bond to be allowed in computation of the income of an infrastructure capital company or infrastructure capital fund or a public sector company issuing such bond. The expression "Zero coupon bond" is proposed to be defined in the new clause (48 ) of section 2.

Clause 49 seeks to empower the Central Board of Direct Taxes to prescribe the format ofdeclaration to be produced by a person being a sub -contractor owning not more than two goods carriages at any time during the previous year to the person responsible for paying any sum to him during the course of business ofplying , hiring or leasing of goods carriages and also the format to be furnished to the income tax authority by the person responsible for paying any sum to the sub- contractor and the manner and the particulars as may be contained in such format .

Clause 52 seeks to empower the Central Board of Direct Taxes to prescribe the format of furnishing of quarterly return by any banking company or co -operative society or public company in respect of payment of interest not exceeding five thousand rupees and no deduction oftax at source was made , to a resident and to prescribe the income -tax authority and the manner and particulars as may be contained in such format . The said clause further seeks to give power to the Central Government to notify any resident responsible for paying any income liable for deduction of tax at source to deliver quarterly return in the manner and the particulars as may be contained in such format .

Clause 14 seeks to insert a new clause ( d) after clause (c) ofthe proviso to clause (5) ofsection 43 which, inter alia, defines the expression " eligible transaction" to mean any transaction which is carried out electronically on screen - based system through a stock broker or sub- broker or such other registered intermediary in accordance with the provisions of the Securities Contracts (Regulation) Act , 1956, the Securities and Exchange Board of IndiaAct, 1992 or the Depositories Act, 1996 and the rules , regulations or bye - laws or directions issued under those Acts. It is also proposed in clause ( ii ) to the Explanation below the said clause ( d ) to lay down conditions with which a stock exchange is to be notified as a recognised stock exchange under the provisions of the Securities Contracts (Regulation) Act, 1956, by the Central Government .

)

Clause 88 of the Bill seeks to amend the FinanceAct, 1994. Sub-clause (d ) seeks to amend sub - section (2) of section 69 ofthe said Finance Act so as to empower the Central Government to make rules to prescribe the time, manner for and form of, registration under sub -section (2) of that section. Sub- clause (e ) seeks to amend sub- section (2 ) of section 70 to which empowers the Central Government to make rules to prescribe the form , manner and frequency in which the person or class of persons notified under by sub- section of that section .

Clause 37 seeks to insert a new Chapter XII - H in the Act. The provisions of the said Chapter deal with charge of fringe benefit tax, fringe benefits , value of fringe benefits , etc. Sub -section ( 1 ) of section 115WD of the said new Chapter seeks to empower the Central Board of DirectTaxes to prescribe a format of furnishing a return of fringe benefits and the manner of verification and the particulars with which such return is to be furnished. Sub-section ( 1 ) of the proposed section 115WH seeks to empower the Central Board ofDirect Taxes to prescribe the return of fringe benefits for the purposes of reassessment and the manner of verification and the particulars with which such return is to be furnished .

Clause 89 of the Bill seeks to amend clause (h) of section 2 of the Central Sales Tax Act, 1956. Proviso to said section empowers the Central Government to make rulesto prescribe the manner of determination ofthe sale price andthe deduction from the total consideration for a works contact under that proviso .

Clause 40 seeks to amend section 139 of the Act which deals with return of income . It has been provided that everyperson being an individual or a Hindu undivided family or an association of persons or a body of individual or an artificial juridical person shall furnish a return of

Chapter VII of the Bill provides for levy oftax on the taxable banking transactions, entered with a scheduled bank. Such tax shall be collected by the scheduled bank and paid to the credit of the Central Government .

159 THE GAZETTE OF INDIA EXTRAORDINARY

SBC.2]

It is proposed to empower the Central Board ofDirect Taxes to specify by rules the form and manner in which appeal to the Commissioner of Income-tax (Appeals) shall be made and verified.

Clause 98 ofthe Bill provides for filing ofreturn by the scheduled bank in respect of the Banking Cash Transaction Tax , within the prescribed time, in the prescribed form and manner, setting forth such particulars as may be prescribed.

Clause 108 provides for filing of appeal to the Appellate Tribunal by the assessee or, as the case may be , by the assessing officer in the prescribed form and verified in the prescribed manner.

It is proposed to empower the Central Board ofDirect Taxes to specify by rules made by it (a) the time limit, within which the return shall be furnished, ( b) the form and manner in which the shall be furnished and verified , (c) the particulars to be furnished with the return.

It isproposed to empower the Central Board ofDirect Taxes to specify by rules the format in which such appeal shall be made and the manner in which the same may be verified.

Clause 99 provides that where any amount is refunded to the scheduled bank, the same shall be retunded to the concerned person from whom such amount was collected, within the prescribed time .

It isproposedtoconfer power upon the CentralBoard ofDirect Taxes to make rules for carrying out the provisions of the said Chapter VII .

It isproposed to empower the Central Board ofDirect rect Taxes to specify by rules the time limit within the scheduled bank shall refund any amount to the concerned person from whom the same was collected.

The matters in respect of which notification maybe issued or rules may be made in accordance with the aforesaid provisions of the Bill are matters ofprocedure and detail and it is not practicable to provide for them in theBill itself.

The delegation of legislative power is , therefore, ofa normal character.

Clause 107 of the Bill provides that an assessee if aggrieved by any order of the assessing officer, may file an appeal to the Commission of Income -tax (Appeals) in theprescribed form and verified in the prescribed manner .

GC . MALHOTRA, Secretary-General.

PRINTED BY THE MANAGER , GOVERNMENT OF INDIA PRESS , MINTO ROAD , NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI , 2005 .

MGIPMRND-4606GI-10-07-2005.