Budget 2012-13 - Notes on clauses

Notes on clauses

Customs

Clause 114 of the Bill seeks to amend clause (10) of section 2 of the Customs Act so as to modify the definition of “customs airport”.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 115 of the Bill seeks to amend clause (aa) of sub-section (1) of section 7 of the Customs Act so as to substitute the words “container depots” with the words “container depots or air freight stations”.

This amendment will take effect from the date of which this Bill receives the assent of the President.

Clause 116 of the Bill seeks to insert a new section 28AAA in the Customs Act to provide for recovery of duties in certain cases relatable to utilisation of instruments, such as duty credit scrips issued under the Foreign Trade (Development and Regulation) Act, 1992 where the instrument was obtained by means of collusion or wilful misstatement or suppression of facts made by the person to whom it was issued or his agent or employee, and was utilised by another person who acquired it from the original holder, then the duties, relatable to the utilisation, shall be recovered from the person to whom the instrument had been issued.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 117 of the Bill seeks to amend section 28BA of the Customs Act relating to provisional attachment of property to protect revenue in certain cases so as to make it applicable also to the proposed clause 28AAA.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 118 of the Bill seeks to amend sub-section (2) of section 47 of the Customs Act so as to insert a new proviso therein to provide that the Central Government may, by notification in the Official Gazette, specify the class or classes of importers who shall pay the duty electronically.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 119 of the Bill seeks to amend sub-section (2) of section 75A of the Customs Act so as to substitute the reference to “section 28AB” with “section 28AA”, with retrospective effect from the 8^thday of April, 2011.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 120 of the Bill seeks to substitute sub-sections (3) and (4) of section 104 of the Customs Act with new sub-sections (3) to (6).

Sub-section (3) of the aforesaid section provides that where an officer of customs has arrested any person under sub-section (1), for any offence (other than an offence punishable for a term of imprisonment of three years or more under section 135), he shall, for the purpose of releasing such person on bail or otherwise, have the same powers and be subject to the same provisions as the officer-in-charge of a police station has, and is subject to, under the Code of Criminal Procedure, 1973.

Sub-section (4) thereof seeks to provide that notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences under this Act (except an offence punishable for a term of imprisonment of three years or more under section 135) shall be bailable.

Sub-section (5) thereof seeks to provide that notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences under this Act except an offence punishable for a term of imprisonment of three years or more under section 135 shall be non-cognizable.

Sub-section (6) thereof seeks to provide that offence punishable for a term of imprisonment of three years or more under section 135 shall be cognizable.

These amendments will take effect from the date on which this Bill receives the assent of the President.

Clause 121 of the Bill seeks to insert a new section 104A in the Customs Act relating to bail for offence punishable for a term of imprisonment of three years or more under section 135 not to be granted without hearing Public Prosecutor.

Sub-section (1) of aforesaid section seeks to provide that notwithstanding anything contained in the Code of Criminal Procedure, 1973, no person accused of an offence punishable for a term of imprisonment of three years or more under section 135 shall be released on bail or on his own bond unless –

(i) the Public Prosecutor has been given an opportunity to oppose the application for such release; and

(ii) where the Public Prosecutor opposes the application, the Magistrate is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he is not likely to commit any offence while on bail.

It further seeks to insert a proviso so as to provide that a person who is under the age of eighteen years or is a woman or is sick or infirm may be released on bail if the Magistrate so directs.

Sub-section (2) thereof seeks to provide that notwithstanding anything contained in the Code of Criminal Procedure, 1973, no police officer shall, save as otherwise provided under this Act, investigate into an offence under this Act unless specifically authorised by the Central Government by a general or special order, and subject to such conditions as may be specified in the order.

These amendments will take effect from the date on which this Bill receives the assent of the President.

Clause 122 of the Bill seeks to amend clause (b) of section 122 of the Customs Act so as to substitute the words “two lakh” with the words “five lakh” and to amend clause (c) thereof to substitute the words “ten thousand” with the words “fifty thousand”.

These amendments will take effect from the date on which this Bill receives the assent of the President.

Clause 123 of the Bill seeks to substitute a new section for section 138 of the Customs Act to provide that notwithstanding anything contained in the Code of Criminal Procedure, 1973, an offence under this Chapter (other than the offence punishable for a term of imprisonment of three years or more under section 135) may be tried summarily by a Magistrate.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 124 of the Bill seeks to amend clause (a) of section 153 of the Customs Act so as to substitute the words “to the person for whom it is intended or to his agent” with the words “or by such courier services as may be approved by the Commissioner of Customs”.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 125 of the Bill seeks to exempt the item specified in column (1) of the Second Schedule from the whole of additional duty of customs with retrospective effect from the 1^st day of March, 2011 up to the 16^th day of March, 2012.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Customs Tariff

Clause 126 of the Bill seeks to amend section 8C of the Customs Tariff Act, so as to align the provisions of the section with the Transitional Product Specific Safeguard Mechanism under Chinese Accession Protocol.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 127 of the Bill seeks to amend the First Schedule to the Customs Tariff Act in the manner specified in the Third Schedule so as to,—

(a) align the classification of certain entries with that of revised ISRI code of classification;

(b) incorporate changes in description of certain tariff items;

(d) insert a Chapter Note relating to classification of certain tariff items.

Clause 128 of the Bill seeks to amend the Second Schedule to the Customs Tariff Act so as to increase the rate of export duty on chromium ore and concentrates of all sorts from the existing Rs.3000 per tonne to 30% ad valorem as specified in the Fourth Schedule.

Excise

Clause 129 of the Bill seeks to amend clause (i) of the Explanation to clause (b) of sub-section (3) of section 4 of the Central Excise Act, so as to incorporate the definition of the expression “inter-connected undertakings” on the lines of the Monopolies and Restrictive Trade Practices Act, 1969, in view of its repeal by section 66 of Act 12 of 2003.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 130 of the Bill seeks to amend section 9 of the Central Excise Act so as to substitute the words “one lakh” with the words “thirty lakh”.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 131 of the Bill seeks to amend section 9A of the Central Excise Act so as to substitute sub-section (1) thereof to provide that notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences under that Act except an offence punishable for a term of imprisonment of three years or more under section 9 shall be non-cognizable.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 132 of the Bill seeks to amend sub-section (5) of section 11A of the Central Excise Act, so as to substitute certain words therein. It further seeks to substitute sub-section (8) of said section 11A so as to provide for exclusion of the period of stay granted by court or tribunal in respect of service of notice in computing the period referred to in clause (a) of sub-section (1) or sub-section (4) or sub-section (5).

These amendments will take effect from the date on which this Bill receives the assent of the President.

Clause 133 of the Bill seeks to amend clauses (a) and (b) of sub-section (1) of section 11AC of the Central Excise Act so as to insert certain words therein. It further seeks to amend clause (c) of said sub-section (1) so as to provide that the benefit of reduced penalty shall be available only if such amount of penalty is paid within the said period of thirty days.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 134 of the Bill seeks to amend section 12F of the Central Excise Act so as to substitute sub-section (2) thereof to provide that the provisions of the Code of Criminal Procedure, 1973 relating to search and seizure shall, so far as may be, apply to search and seizure under this section subject to the modification that sub-section (5) of section 165 of the said Code shall have effect as if for the word “Magistrate”, wherever it occurs, the words “Commissioner of Central Excise” were substituted.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 135 of the Bill seeks to substitute new sections 13 and 13A for section 13 of the Central Excise Act.

The proposed section 13 seeks to provide for power to arrest.

Sub-section (1) of aforesaid section seeks to provide that if an officer of Central Excise empowered in this behalf by general or special order of the Commissioner of Central Excise has reason to believe that any person has committed an offence punishable under this Act, he may arrest such person and shall, as soon as may be, inform him of the grounds for such arrest.

Sub-section (2) of aforesaid section seeks to provide that every person arrested under sub-section (1) for an offence shall, without unnecessary delay, be taken to a Magistrate.

Sub-section (3) of aforesaid section sseeks to provide that where an officer of Central Excise has arrested any person under sub-section (1), for any offence (other than an offence punishable for a term of imprisonment of three years or more under section 9), he shall, for the purpose of releasing such person on bail or otherwise, have the same powers and be subject to the same provisions as the officer-in-charge of a police-station has, and is, subject to, under the Code of Criminal Procedure, 1973.

Sub-section (4) of aforesaid section seeks to provide that notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences under this Act, (except an offence punishable for a term of imprisonment of three years or more under section 9) shall be bailable.

Sub-section (5) of aforesaid section seeks to provide that offences punishable for a term of imprisonment of three years or more under section 9 shall be cognizable.

The proposed new section 13A seeks to provide that bail for offence punishable for a term of imprisonment of three years or more under section 9 shall not be granted without hearing Public Prosecutor.

Sub-section (1) of the proposed section seeks to provide that notwithstanding anything contained in the Code of Criminal Procedure, 1973, no person accused of an offence punishable for a term of imprisonment of three years or more under section 9 shall be released on bail or on his own bond unless –

(i) the public prosecutor has been given an opportunity to oppose the application for such release; and

(ii) where the public prosecutor opposes the application, the Magistrate is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he is not likely to commit any offence while on bail.

It further seeks to insert a proviso to provide that a person who is under the age of eighteen years or is a woman or is sick or infirm may be released on bail if the Magistrate so directs.

These amendments will take effect from the date on which this Bill receives the assent of the President.

Clause 136 of the Bill seeks to substitute a new section for section 18 of the Central Excise Act so as to provide that all searches under this Act or the rules made thereunder and all arrests under this Act shall, save as otherwise provided under this Act, be carried out in accordance with the provisions of the Code of Criminal Procedure, 1973, relating respectively to searches and arrests under that Code.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 137 of the Bill seeks to omit section 19 of the Central Excise Act relating to disposal of persons arrested.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 138 of the Bill seeks to amend section 20 of the Central Excise Act so as to omit the words and figures “under section 19”. It further seeks to insert the words “in accordance with the provisions of this Act” after the words “such Magistrate”.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 139 of the Bill seeks to amend the notification issued under sub-section (1) of section 5A of the Central Excise Act bearing number G.S.R.62 (E), dated the 6^th February, 2010 in the manner specified in the Fifth Schedule so as to provide that the period of exemption of ten years for units undertaking substantial expansion under the said notification shall be computed from the date of commencement of commercial production from the expanded capacity.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 140 of the Bill seeks to amend the Third Schedule to the Central Excise Act in the manner specified in the Sixth Schedule so as to insert S.No. 26A relating to tariff items 2402 20 10 to 2402 20 90 with a view to provide that these items shall be covered under sub-clause (iii) of clause (f) of section 2 relating to deemed manufacture.

Central Excise Tariff

Clause 141 of the Bill seeks to amend the First Schedule to the Central Excise Tariff Act in the manner specified in the Seventh Schedule so as to,—

(a) align the classification of certain entries with that of revised ISRI code of classification;

(b) incorporate changes in description of certain tariff items;

(d) insert Chapter Notes relating to classification of certain tariff items and to deem that certain processes shall amount to manufacture.

Clause 142 of the Bill seeks to insert a new Chapter Note 1A in Chapter 54 of the Central Excise Tariff Act so as to provide that notwithstanding anything contained in Note 1, man-made fibre such as polyester staple fibre and polyester filament yarn manufactured from plastic and plastic waste including waste polyethylene terephthalate bottles shall be classified as textile material under Chapter 54 or Chapter 55, as the case may be”, with retrospective effect from the 29^th June, 2010.

Sub-clause (2) of the said clause seeks to validate any action taken for the recovery of duty of excise during the period commencing from the 29^th June, 2010 and ending with the date on which the Finance Bill, 2012 receives the assent of the President. It further seeks to provide a time limit of one month to pay the duty of excise and in case of failure, interest at the rate of twenty-four per cent. per annum shall be payable along with the duty of excise.

It also seeks to provide that in computing the amount of duty which is recoverable as above, the assessee shall be entitled to take into account the benefit of CENVAT Credit under the CENVAT Credit Rules, 2004, if the same has not been availed by such assessee for reason of such goods being treated as non-excisable or exempted goods.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Service tax

Clause 143 of the Bill seeks to amend Chapter V of the Finance Act, 1994, relating to service tax, with a view to replace the existing system of taxation of services based on specified description of services with a new system of taxation of all services other than the services specified in the negative list, in the following manner—

Sub-clause (A) seeks to insert a proviso in section 65 so as to provide that the provisions of that section shall not apply with effect

from such date as the Central Government may, by notification, appoint.

Sub-clause (B) seeks to insert a new sub-section (3) in section 65A so as to provide that the provisions of that section shall not apply with effect from such date as the Central Government may, by notification, appoint.

Sub-clause (C) seeks to insert a new section 65B with effect from such date as the Central Government may, by notification, appoint so as to define the following expressions—

actionable claim, advertisement, agriculture, agricultural extension, agricultural produce, Agricultural Produce Marketing Committee or Board, aircraft, airport, amusement facility, Appellate Tribunal, approved vocational education course, assessee, associated enterprise, authorised dealer of foreign exchange, betting or gambling, Board, business entity, Central Electricity Authority, Central Transmission Utility, courier agency, customs station, declared service, electricity transmission or distribution utility, entertainment event, goods, goods transport agency, India, information technology software, inland waterway, interest, local authority, metered cab, money, negative list, non-taxable territory, notification, person, port, prescribed, process amounting to manufacture or production of goods, renting, Reserve Bank of India, securities, service, Special Economic Zone, stage carriage, State Electricity Board, State Transmission Utility, support services, tax, taxable service, taxable territory, vessel, works contract.

This amendment shall have effect from such date as the Central Government may, by notification in the Official Gazette, appoint.

Sub-clause (D) seeks to insert a proviso in section 66 so as to provide that the provisions of that section shall not apply with effect from such date as the Central Government may, by notification, appoint.

Sub-clause (E) seeks to insert a new sub-section (3) in section 66A so as to provide that the provisions of that section shall not apply with effect from such date as the Central Government may, by notification, appoint.

Sub-clause (F) seeks to insert new sections 66B, 66C, 66D, 66E and 66F with effect from such date as the Central Government may, by notification, appoint.

Proposed section 66B seeks to levy service tax at the rate of twelve per cent. on the value of services, other than services specified in the negative list, provided or agreed to be provided in the taxable territory by a person to another.

Proposed section 66C seeks to empower the Central Government to make rules to determine the place of provision of service having regard to the nature and description of various services.

Proposed section 66D seeks to specify the following list of services as the negative list:—

(a) services by Government or a local authority excluding the following services to the extent they are not covered elsewhere,—

(i) services by the Department of Posts by way of speed post, express parcel post, life insurance and agency services provided to a person other than Government;

(ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;

(iii) transport of goods or passengers; or

(iv) support services, other than services covered under clauses (i) to (iii) above, to business entities;

(b) services by the Reserve Bank of India;

(d) services relating to agriculture by way of:—

(i) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or seed testing;

(ii) supply of farm labour;

(iii) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter essential characteristics of agricultural produce but make it only marketable for the primary market;

(iv) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;

(v) loading, unloading, packing, storage or warehousing of agricultural produce;

(vi) agricultural extension services;

(vii) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce;

(e) trading of goods;

(f) any process amounting to manufacture or production of goods;

(g) selling of space or time slots for advertisements other than advertisements broadcast by radio or television;

(h) service by way of access to a road or a bridge on payment of toll charges;

(i) betting, gambling or lottery;

(j) admission to entertainment events or access to amusement facilities;

(k) transmission or distribution of electricity by an electricity transmission or distribution utility;

(l) services by way of—

(i) pre-school education and education up to higher secondary school or equivalent;

(ii) education as a part of a curriculum for obtaining a qualification recognised by law;

(iii) education as a part of an approved vocational education course;

(m)services by way of renting of residential dwelling for use as residence;

(n) services by way of:—

(i) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount;

(ii) inter se sale or purchase of foreign currency amongst banks or authorised dealers of foreign exchange to deal in foreign exchange or foreign securities or amongst banks and such dealers;

(o) service of transportation of passengers, with or without accompanied belongings, by

(i) a stage carriage;

(ii) railways in a class other than—

(A) first class; or

(B) an air-conditioned coach;

(iii) metro, monorail or tramway;

(iv) inland waterways;

(v) public transport, other than predominantly for tourism purpose, in a vessel of less than fifteen tonne net; and

(vi) metered cabs, radio taxis or auto rickshaws;

(p) services by way of transportation of goods—

(i) by road except the services of—

(A) a goods transportation agency; or

(B) a courier agency;

(ii) by an aircraft or a vessel from a place outside India to the first customs station of landing in India; or

(iii) by inland waterways;

(q) funeral, burial, crematorium or mortuary services including transportation of the deceased.

Proposed section 66E seeks to declare the following activities as declared services which shall constitute services for the purpose of Chapter V of the Finance Act, 1994:—

(a) renting of immovable property;

(b) construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration is received after issuance of certificate of completion by the competent authority and to define “competent authority” and “construction” by way of explanations.

(d) development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software;

(e) agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act;

(f) transfer of goods by way of hiring, leasing, licensing or in any such manner without transfer of right to use such goods;

(g)activities in relation to delivery of goods on hire purchase or any system of payment by instalments;

(h) service portion in the execution of a works contract;

(i) service portion in an activity wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of the activity;

Proposed section 66F seeks to provide for principles of interpretation of specified descriptions of services or bundled services.

Sub-clause (G) seeks to amend section 67, so as to omit clause (b) of the Explanation thereto.

The amendments made by sub-clauses (A), (B), (C), (D), (E), (F) and (G) will come into force from a date to be notified by the Central Government.

Sub-clause (H) proposes to insert new section 67A, with a view to provide for date of determination of rate of tax, value of taxable service and rate of exchange.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Sub-clause (I) seeks to amend section 68 with a view to insert a proviso in sub-section (2), for the purpose of empowering the Central Government to notify the services and the extent of service tax payable.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Sub-clause (J) seeks to insert new section 72A with a view to provide for a special audit to be carried out by a chartered accountant or cost accountant nominated by the Commissioner. The special audit shall be ordered where the service tax assessee has failed to declare or determine the value of taxable service or has availed and utilised credit of duty or tax beyond the normal limit or by means of, collusion or wilful mis-statement or he is having operations spread out in multiple locations. It is further proposed to provide that the chartered accountant or as the case may be, the cost accountant shall submit a report to the Commissioner on completion of the audit and such audit may be ordered even though such accounts had been audited under any other law for the time being in force. Before initiating proceedings on the basis of the report, a reasonable opportunity of being heard shall be given to the service tax assessee so audited.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Sub-clause (K) seeks to amend section 73, with a view to increase the period of issue of notice from one year to eighteen months. It is further proposed to insert sub-section (1A) with a view to provide that where a notice or notices have been served under sub-section (1), service of a statement of details of service tax not levied, or not paid or short levied or short paid or erroneously refunded, on the person chargeable with service tax, shall be deemed to be service of notice on such person if the grounds relied upon are the same.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Sub-clause (L) seeks to amend section 80 with a view to provide for penalty waiver on the service tax payable on service of renting of immovable property as on the 6^th day of March, 2012, subject to the condition that the service tax and interest are paid in full within a period of six months from the date on which the Finance Bill, 2012 receives the assent of the President.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Sub-clause (M) seeks to amend section 83 with a view to make certain provisions of the Central Excise Act applicable to the service tax.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Sub-clause (N) seeks to amend section 85 to provide for the period of limitation for filing appeal before the Commissioner (Appeals) as two months extendable by one month from the date of receipt of decision or order of the adjudicating authority. The period of limitation extended by this sub-clause shall be applicable for all decisions or orders passed by the adjudicating authority on or after the date on which the Finance Bill, 2012 receives the assent of the President.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Sub-clause (O) seeks to amend section 86 with a view to provide for the period of limitation for filing appeal before the Tribunal as four months from the date of receipt of order by the Committee of Chief Commissioners or Committee of Commissioners. The period of limitation extended by this sub-clause shall be applicable for all decisions or orders passed after the date on which the Finance Bill, 2012 receives the assent of the President.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Sub-clause (P) seeks to amend section 88 to substitute the word ‘duty’ with the word ‘tax’.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Sub-clause (Q) seeks to amend section 89, with a view to make evasion of payment of service tax knowingly committed, a punishable offence.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Sub-clause (R) seeks to amend section 93A, so as to provide for rebate of service tax on taxable services used for export of goods, after the stage of manufacture, processing or removal.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Sub-clause (S) seeks to insert a new section 93B in the Finance Act, 1994 with a view to provide that all the rules made under section 94 and applicable to taxable services shall also be applicable to services other than taxable services in so far as they are relevant to the determination of any tax liability, refund, credit of service tax or duties paid on inputs and input services or for carrying out the provisions of Chapter V of the Finance Act, 1994.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Sub-clause (T) seeks to amend sub-section (2) of section 94, to omit clause (ee), to amend clause (hhh) and to insert new clauses (i) and (j) relating to power to make rules.

These amendments will take effect from the date on which this Bill receives the assent of the President.

Sub-clause (U) seeks to amend section 95 of the said Act, so as to empower the Central Government to issue orders for removal of difficulty in case of certain provisions inserted by the proposed legislation in this Chapter, up to two years from the date of enactment of the Finance Bill, 2012.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Sub-clause (V) seeks to amend sub-section (2) of section 96C so as to substitute clause (e) thereof to provide for admissibility of credit of duty or tax in terms of rules made in this regard.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Sub-clause (W) seeks to insert section 97 and 98, with a view to extend service tax exemption retrospectively for repair of roads and non-commercial Government buildings for the period specified in the respective sections.

These amendments will take effect from the date on which this Bill receives the assent of the President.

Clause 144 of the Bill seeks to give retrospective effect to sub-rule (6A) of rule 6, inserted vide the notification of the Government of India number G.S.R. 134(E), dated the 1^st March, 2011, in the CENVAT Credit Rules, 2004, from the 10^th day of February, 2006 in the manner specified in the Eighth Schedule.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 145 of the Bill, seeks to give retrospective effect to the notification of the Government of India number G.S.R. 566(E), dated the 25^th July, 2011, from the 16^th day of June, 2005, so as to allow the service tax exemption to a club or association service provided by a club or association, including cooperative societies, in relation to the project, under the said notification. The notification explains the expression “project” to mean common facility set up for treatment of effluents and solid wastes, with the Central Government’s or State Government’s financial assistance.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Fiscal Responsibility and Budget Management

Chapter VI (containing clauses 146-150) provides for amendments in the Fiscal Responsibility and Budget Management Act, 2003. Clause 146 seeks to amend section 2 of the aforesaid Act so as to insert the new clauses (aa) and (bb) defining the expressions of “effective revenue deficit” and “grants for creation of capital assets”. Clause 147 seeks to amend section 3 of the aforesaid Act relating to fiscal policy statements to be laid before Parliament. It is proposed to amend sub-section (1) of the said section so as to insert a new clause (d) relating to the Medium-term Expenditure Framework Statement which is also a statement of fiscal policy in addition to the statements of the fiscal policy specified therein. It further seeks to insert new sub-sections (1A) and (1B) in the aforesaid section so as to provide that the statements referred to in clauses (a) to (c) of sub-section (1) shall be followed up with the Medium-term Expenditure Framework Statement with detailed analysis of underlying assumptions. The proposed new sub-section (1B) provides that the Central Government shall lay the Medium-term Expenditure Framework Statement referred to in clause (d) of sub-section (1) before both Houses of Parliament, immediately following the Session of Parliament in which the policy statements referred to in clauses (a) to (c) were laid under sub-section (1). It also seeks to insert a new sub-section (6A) in the aforesaid section so as to provide that (a) the Medium-term Expenditure Framework Statement shall set forth a three-year rolling target for prescribed expenditure indicators with specification of underlying assumptions and risk involved; (b) the Medium-term Expenditure Framework Statement shall, inter alia, contain the expenditure commitment of major policy changes involving new service, new instruments of service, new schemes and programmes; the explicit contingent liabilities, which are in the form of stipulated annuity payments over a multi-year time-frame; and the detailed breakup of grants for creation of capital assets. It also seeks to amend sub-section (7) of the aforesaid section so as to include the “Medium-term Expenditure Framework Statement” in the said sub-section for the purpose of prescribing the form with respect to the said Statement.

Clause 148 seeks to amend section 4 of the aforesaid Act relating to fiscal management principles. The existing provisions of sub-section (1) of the aforesaid section provide that the Central Government shall take appropriate measures to reduce the fiscal deficit and revenue deficit so as to eliminate revenue deficit by the 31st March, 2009 and thereafter build up adequate revenue surplus. Sub-section (2), inter alia, provides that the Central Government shall, by rules made by it, specify the annual targets for reduction of fiscal deficit and revenue deficit during the period beginning with the commencement of this Act and ending on 31st March, 2009.It is proposed to amend the aforesaid sub-section (1) so as to provide that the Central Government shall take appropriate measures to reduce the fiscal deficit, revenue deficit and effective revenue deficit to eliminate the effective revenue deficit by the 31st March, 2015 and thereafter build up adequate effective revenue surplus and also to reach revenue deficit of not more than two per cent. of Gross Domestic Product by the 31st March, 2015 and thereafter as may be prescribed by rules made by the Central Government. It further seeks to amend the aforesaid sub-section (2) so as to include therein the expression “effective revenue deficit” and enhance the existing time period from 31st March, 2009 to 31st March, 2015.

Clause 149 seeks to insert a new section 7A in the aforesaid Act relating to laying of review report before Parliament. It provides that the Central Government may entrust the Comptroller and Auditor-General of India to review periodically as required, the compliance of the provisions of this Act and such reviews shall be laid on the table of both Houses of Parliament.

Clause 150 seeks to amend sub-section (2) of section 8 of the aforesaid Act relating to power to make rules. It proposes to make certain amendments which are consequential in nature.

This clause will take effect from the date on which this Bill receives the assent of the President.

Miscellaneous

Clause 151 of the Bill seeks to amend the Schedule to the Oil Industry (Development) Act, 1974 so as to increase the rate of cess levied on crude oil.

Clause 152 of the Bill seeks to amend the Seventh Schedule to the Finance Act, 2001 so as to make certain amendments as specified in the Ninth Schedule.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 153 of the Bill seeks to amend section 98 of the Finance (No. 2) Act, 2004 relating to charge of securities transaction tax. It is proposed to amend the Table below the said section which specifies the rates at which the securities transaction tax shall be charged. It is proposed to reduce the rates of securities transaction tax from 0.125 per cent. to 0.1 per 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 there of. This amendment will take effect from 1st July, 2012.

Clause 154 of the Bill seeks to amend the Seventh Schedule to the Finance Act, 2005 so as to make certain amendments as specified in the Tenth Schedule.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 155 of the Bill seeks to amend section 73 of the Finance Act, 2010 with a view to substitute the word “inputs” with the words “inputs or input services” with retrospective effect from the 8^th day of May, 2010.

This amendment will take effect from the date on which this Bill receives the assent of the President.

Clause 156 of the Bill seeks to amend the Finance Act, 2011 so as to provide for a deeming clause that with effect from the date of coming into force of the Finance Act, 2011, clause (b) of section 73 under the heading “Central Excise Tariff” shall be deemed to have been inserted as section 70A under the heading “Excise”. It further seeks to amend the Twelfth Schedule to the said Finance Act so as to substitute brackets, words, figures and letter “[See section 73(b)]

In the Third Schedule to the Central Excise Tariff Act” with the words “[see section 70A],

In the Third Schedule to the Central Excise Act”.

This amendment will take effect from the date on which this Bill receives the assent of the President.