Notes-13 - Notes on clauses-Miscellaneous - Finance Bill, 2016

Miscellaneous Clause 221 of the Bill seeks to amend section 3 of the Central Sales Tax Act, 1956 so as to insert an Explanation 3 therein to provide that where the gas sold or purchased and transported through a common carrier pipeline or any other common transport or distribution system becomes co-mingled and fungible with other gas in the pipeline or system and such gas is introduced into the pipeline or system in one State and is taken out from the pipeline in another State, such sale or purchase of gas shall be deemed to be a movement of goods from one State to another. Clause 222 seeks to amend the Schedule to the Oil Industry (Development) Act, 1974 so as to levy cess at the rate of twenty per cent. ad valorem instead of the present rate of ₹ 4500 per tonne, on domestically produced crude oil. Clause 223 of the Bill seeks to amend sections 2A, 3 and 12 of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976. The aforesaid sections, inter alia, provides for establishment of Appellate Tribunal for hearing appeals against the orders made under the aforesaid Act. Clause 224 of the Bill seeks to amend sections 68B, 68N and section 76 of the Narcotic Drugs and Psychotropic Substances Act, 1985. The aforesaid sections, inter alia, provides for establishment of Appellate Tribunal for hearing appeals against the orders made under the aforesaid Act. It is proposed to amend the aforesaid sections so as to provide that the Appellate Tribunal established under the Smugglers and Foreign Exchanged Manipulators (Forfeiture of Property) Act, 1976 shall be the Appellate Tribunal for hearing the appeals against the orders made under the Narcotic Drugs and Psychotropic Substances Act, 1985. Clauses 225 and 226 of the Bill seeks to amend the Foreign Exchange Management Act, 1999 so as to insert a new section 14A relating to power to recover arrears of penalty. Clause 227 of the Bill seeks to amend section 10 of the Central Road Fund Act relating to functions of the Central Government. The aforesaid section, inter alia, provides for distribution of cess collected under the said Act, among various projects. It is proposed to substitute clause (viii) of sub-section (1) of the aforesaid section so as to provide for redistribution of the cess for different purposes. It is further proposed to provide that no repair, maintenance or renovation work shall be carried out from the allocation of cess under sub-clause (c) of the said clause. It is also proposed to omit sub-section (2) of the aforesaid section.This amendment will take effect from 1st June, 2016. Clause 228 of the Bill seeks to amend the Seventh Schedule to the Finance Act, 2001, so as to amend the said Schedule, (a) in the manner specified in the Twelfth Schedule to align the same with the entries relating to levy of National Calamity Contingency Duty with that in the First Schedule to the Central Excise Tariff Act, 1985; (b) in the manner specified in the Thirteenth Schedule to harmonise it with the proposed amendments in the First Schedule to the Central Excise Tariff Act, 1985. The amendment shall come into force on the 1st day of January, 2017. Clause 229 seeks to amend the prevention of Money- Laundering Act, 2002. It is proposed to amend the aforesaid Act so as to confer powers upon the Appellate Tribunal established under the said Act to hear appeals against orders made under the Narcotic Drugs and Psychotropic Substances Act, 1985 and the Prevention of Money-laundering Act, 2002 and certain consequential amendments. Clause 230 of the Bill seeks to amend section 98 of the Finance (No.2) Act, 2004 relating to charge of securities transaction tax. The aforesaid section provides that the securities transaction tax on sale of an option in securities where option is not exercised is 0.017 per cent. of the option premium. It is proposed to increase the said rate of securities transaction tax from 0.017 per cent. to 0.05 per cent. It is also proposed to amend the section 113A so as to provide that the provisions of Chapter VII shall also not apply to taxable securities transactions entered into by any person for on a recognised stock exchange located in an International Financial Services Centre referred to in clause (q) of section 2 of the Special Economic Zones Act, 2005. This amendment will take effect from 1st June, 2016. Clause 231 of the Bill seeks to amend the Seventh Schedule to the Finance Act, 2005 to revise the rate of excise duty on certain tariff items in the manner specified in the Fourteenth Schedule. Clause 232 of the Bill seeks to substitute the words Clean Energy Cess with Clean Environment Cess occurring in Chapter VII of the Finance Act, 2010 or in any other law. It further seeks to amend the Tenth Schedule to the Finance Act, 2010, so as to increase the rate of Clean Energy Cess on coal, lignite and peat from ₹ 300 per tonne to ₹ 400 per tonne. Clause 233 of the Bill seek to amend the Foreign Contribution (Regulation) Act, 2010 so as to insert a proviso in sub-clause (vi) of clause (j) of sub-section (1) of section 2 of the said Act providing therein that notwithstanding the nominal value of share capital of a company exceeding one-half per cent. at the time of making contributions such company shall not be deemed to be a foreign source, if the foreign investment is within the limit specified under the Foreign Exchange Management Act, 1999 or the rules or regulations made thereunder. Clause 234 of the Bill seeks to amend the Finance Act, 2013 relating to commodities transaction tax. The provisions of the said Chapter, inter alia, provides for chargeability of tax on taxable commodities transactions. It is proposed to amend the said Chapter so as to provide that the provisions of chapter VIII shall not apply to taxable commodities transactions entered into by any person on a recognised association in an International Financial Services referred to in clause (q) of section 2 of the Special Economic Zones Act, 2005. This amendment will take effect from 1st June, 2016. Clause 235 of the Bill inter alia, provides for establishment, utilisation and notifying the eligible rate of interest money lying in the Senior Citizens Welfare Fund. This clause further seeks to omit clause (ii) of section 4 of the Finance Act, 2015 with effect from 1st April, 2016. This clause also seeks to amend section 122 relating to establishment of Fund, section 124 relating to payment of claims and section 128 relating to power of the Central Government to make rules. It is also proposed to amend sub-section (2) of the said section so as to provide overriding effect for the provisions of Chapter VII of the said Act over other laws for the time being in force in respect of Senior Citizens Welfare Fund. Further, section 124, inter alia, provides for payment of claims to any person claiming to be entitled to the unclaimed amount transferred to the Senior Citizens Welfare Fund. It is proposed to omit sub-section (5) of the said section. Also, section 128, inter alia, provides for rule making provisions in respect of various provisions of Chapter VII of the said Act relating to Senior Citizens Welfare Fund. It is proposed to omit clause (c) of sub-section (2) of the said section. These amendments will take effect from 1st June, 2016. Clause 236 to 238 of the Bill seek to repeal certain enactments specified in the Fifteenth Schedule and amend certain enactments specified in the Fifteenth Schedule. It is proposed to repeal the provisions relating to imposition of cess in the Acts specified in the Fifteenth Schedule to the extent mentioned in column (4) which are yielding minimal cess and amend the enactments specified in the Fifteenth Schedule to the extent mentioned in column (4).