and central excise duty on specified goods used in the manufacture of electrically operated vehicles and hybrid vehicles which was slated to expire in march 2016 has been extended for an indefinite period with a view to reduce litigation backlog and promote a tax friendly administration the budget looks to incorporate various beneficial provisions under the income tax law for tax payers focussed on rationalization of penalty provisions introduction of new dispute resolution scheme expansion of the scope of electronic processing of information procedures for paperless assessment and timely processing of tax refunds similarly on the indirect tax front the interest rate for delayed payment has been reduced from 18 per annum to 15 per annum barring specified scenarios however the increase in limitation period for raising of demands in cases not involving fraud collusion etc under excise and customs from 12 months to 24 months and under service tax from 18 months to 30 months is likely to result in increased litigation even as the government seeks to expedite dispute resolution vide the indirect tax dispute resolution scheme 2016 overall the budget proposals seek to establish a balanced tax system coupled with tax friendly administration and certainty in tax laws the industry only wished that the fm would have included a few more robust measures focused on providing an impetus to the automotive sector et bureau published on feb 29 2016 at 1109 pm ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of 2m industry professionals subscribe to our newsletter to get latest insights analysis download etauto app get realtime updates save your favourite articles scan to download app taxation hybrid vehicles excise duty budget 2016 union budget 2016 homenewsindustryopinion budget 2016 is disappointing for revival of indian automotive industry