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| Explanation |
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Pl note following changes in Central Excise & Service Tax. These changes are effective from 07.12.2008.
1. The rate of duty on medicines has been reduced from 8.24% [8 + 2 + 1} to
4.12% [4 + 2 + 1]. - amending Noti. No. 58/2008 - C.E. dated 07.12.2008.
There is no change in rate of abatement from MRP. Existing exempted medicines continues to remain exempted.
2. Bulk Drugs & Intermediates : The rate of duty has been reduced from
14.42% [ 14 + 2 + 1] to 10.3% [ 10 + 2 +1 ] - amending Noti. No. 58/2008-C.E. dated 07.12.2008. Existing exempted medicines continues to remain exempted.
3. There is cut of 4% in excise duty rate across the board.[except petroleum products] Three major rates of excise duty i.e. 14%, 12% & 8% applicable to non-petroleum products have been reduced to 10%, 8% & 4% from the midnight ending 6th & starting 7th of December, 2008 - Noti. No. 58/2008-C.E & No. 59/2008-C.E both dated 07.12.2008.
4. Noti. No. 41/2007 - Service Tax dated 06.10.2007 provides for refund of service tax paid by exporter on 18 taxable services attributable to export of goods. The benefit of such refund has now been extended to services provided by a clearing and forwarding agent to exporter also. In addition, the threshold limit of refund of service tax paid by exporters on foreign commission agent services has been enhanced from 2% of FOB value to 10% of FOB value of export goods. Further, draw back benefit can now be availed of simultaneously with refund of service tax paid in respect of exports. Noti. No. 33/2008-Service Tax dated 07.12.2008, amending the aforesaid
notification No. 41/2007- Service Tax was issued in this regard. - Effective from 07.12.2008.
Pl note that above changes in Central Excise are not applicable to medicines & cosmetic products covered under M&TP Act & Rules i.e. what we call as State Excise products.
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