Hi All,
SAP has released the oss notes 2132309, 2136624 for the changes in tax structure in the union budget 2015-16.
The below mentioned the highlights of the notes.
For frequently asked questions in MM & SD look into the oss notes 2136624.
Excise duty - Changes effective from 1st march(Refer SAP note 2136624 for adopting changes)
1. Excise duty rates increased from 12% to 12.5%.
2. Education cess(ECS) & Secondary & Higher education cess(SECess) on excise duty are exempted. ECS & SECS fields will be removed in future from excise transactions.
3. Cenvat credit avail period increased from 6 months to one year.
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Customs - Changes effective from 1st march(Refer SAP note 2136624 for adopting changes)
1. CVD - Education cess(ECS) & Secondary & Higher education cess(SECess) on CVD are exempted.
2. SAD is exempted for all goods except the specified ones, as mentioned in notification 11/2015.
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Service Tax - Changes effective at a future date to be communicated after passing of the finance bill.
1. Service tax rate will be increased from 12% to 14%.
2. Education cess(ECS) & Secondary & Higher education cess(SECess) on service tax are exempted.
3. Cenvat credit avail period increased from 6 months to one year.
4. Swatch Bharat cess on service tax - if need arises on a future notification(It will be 2% might be in future)
Kindly go thorugh the above mentioned OSS for more details.
Regards,
S.Himavanth.
