Government in Election Mood, Cuts Service Tax and Excise Duty
February 24th, 2009
4% across-the-board excise duty cut to be continued beyond 31 March, 2009.
To cut service tax to 10%.
To cut excise duty by additional 2%.
Excise duty on bulk cement to be 8% or Rs 230 per metric tonne, whichever is higher.
- Naptha exempted from customs duty to provide relief to the power sector; extends customs duty in Naptha beyond March 31, 2009.
“The general relaxation in the excise duty rates by 4% was made with effect from 7/12/08 and it is now being extended beyond March 31, 2009. In addition, it has now been decided to reduce the general rate of central excise duty from 10% to 8%,” Mukherjee said, while addressing the Lok Sabha.
Can you clear the revised service tax (@10.3%) is applicable with effect from 1st March, 2009 or 24th February, 2009.
If we prepared the bill on 23th February, 2009 the service charge applicable is @10.3% or 12.36%,
If we prepared the bill on 26th February, 2009 for the month of February, 2009 then what is applicable (12.36%) or 10.3%)
Hope my query is understand and justified?