Budget 2010-2011
BUDGET 2010-11 COMPLETE DETAIL !!
CourseCart.in (Mentor at SHAYVIDZ Academy) (3756 Points)
26 February 2010
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CourseCart.in
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Budget 2010 Flashes
14:05 Clarity on SEZ deduction for earlier years to benefit IT cos: Ernst & Young
13:41 Cus duty levied on movie films except value of IPR therein: Ernst & Young
13:41 Proposal for clean energy cess on coal, lignite, peat: BMR
13:40 Trf of unlisted shares without adequate consideration taxable: Ernst & Young
13:39 Income scope of foreign cos expanded; reversing SC: BMR
13:38 Duty free import of samples now allowed upto Rs 3 lakhs: Ernst & Young
13:37 Nil customs duty for specified inputs & CG for Elec. Hardware: Ernst & Young
13:36 Set-up of digital head end eligible for project imports: Ernst & Young
13:34 No penalty on excise dues paid voluntarily before SCN issued: Ernst & Young
13:33 Anomaly in tax holiday for SEZ corrected retrospectively: Ernst & Young
13:33 CENVAT reversal on common inputs allowed retrospectively: Ernst & Young
13:28 Concessional 4% excise duty on inputs for electrical vehicles: Ernst & Young
13:28 Excise duty exempted for specific agroprocessing units: Ernst & Young
13:26 Clean Energy Cess introduced on coal, lignite & peat: Ernst & Young
13:25 Excise duty exemptions on specific IT products withdrawn: Ernst & Young
13:23 Excise duty on petrol & diesel increased by Re 1/ litre: Ernst & Young
13:22 Excise duty on cement & cement clinker increased: Ernst & Young
13:07 Customs duty on precious metals increased: Ernst & Young
13:07 Effective peak excise duty rate increased from 8.24% to 10.30%: Ernst & Young
13:06 Indirect tax proposals to yield 43500 Cr plus addl tax revenue: Ernst & Young
13:04 Service tax exempted on transportation of food grains: BMR
13:03 Concessional 5% customs duty on all medical appliances: Ernst & Young
13:03 Excise Duty on CFLs cut to 4%: Ernst & Young
13:02 Online News Agencies to attract service tax: Ernst & Young
13:02 No extension of STPI -ve for Infy, Wipro: Ernst & Young
13:01 25% tax savings for individual earning Rs 1 lac per month: BMR
13:01 Rs 20,500 cr net revenue gain
13:00 Service tax refund simplified +ve for It/ites: Ernst & Young
13:00 Indirect taxes gain Rs 46500 cr on account of proposals
12:59 Service tax proposals to lead to Rs 3000 crs gain for year: BMR
12:59 Refund for service tax exporters to be simplified: Ernst & Young
12:58 Service tax net to be widened to cover new services: Ernst & Young
12:58 New services under service tax preview
12:57 Service tax retained at 10% +ve for ALL under service gambit
12:56 Service tax rate remains unchanged at 10%: Ernst & Young
12:56 Outright SACD exemption for certain prepackaged products: Ernst & Young
12:55 Indexation of precious metals cutoms duty: +ve for Gitanjali,Titan
12:55 Service tax unchanged +ve for FMCG
12:55 Customs duty on rhodium reduced to 2%: BMR
12:54 Tax reliefs for charitable orgs earning trade receipts: BMR
12:54 Assistance for medical devices +ve for Opto Circuits
12:53 Cut excise duty windfarm input +ve for Suzlon: Ernst & Young
12:52 Duty exemption on hand set extended : +ve for Spice mobiles
12:52 New corporate tax rate 33.21% against 33.99%: Ernst & Young
12:52 Monorail projects notified for project import benefits: Ernst & Young
12:51 Redn in duty for photovoltaic units +ve for Moserbaer: Ernst & Young
12:51 Customs on crude restored for -ve RIL, all refiners
12:50 Solar power rickshaws to enjoy duty concessions: Ernst & Young
12:49 Indirect tax concessions for alternate energy projects: Ernst & Young
12:49 Excise duty cut on wind farm units +ve for Suzlon
12:48 Exempt inputs for making RotorBlades from excise: +ve for Suzlon
12:47 Clarification on tax neutral transition to LLP's welcome: BMR
12:47 Corp Tax outgo to reduce by 0.77%: BMR
12:46 Clen energy cess on imported & dom coal; -ve for Tata Power, Adani
12:46 MAT outgo to increase by 2.94%: BMR
12:45 Full CENVAT credit on Cap Goods in 1st Year itself: Ernst & Young
12:45 Testing of agricultural seeds exempt from service tax: BMR
12:44 Agriculture seeds exempt from service tax: +ve for Advanta
12:44 Peak rate of customs duty remains unchanged at 10%: Ernst & Young
12:43 Customs duty exempted on input for refrigerated van mnfrs: Ernst & Young
12:43 Setting up of cold storages exempted from service tax: Ernst & Young
12:42 Simplified corp taxation for cos upto 60 lacs t/o: BMR
12:41 Presumptive taxation increased on small cos: BMR
12:43 Setting up of cold storages exempted from service tax: Ernst & Young
12:42 Simplified corp taxation for cos upto 60 lacs t/o: BMR
12:41 Presumptive taxation increased on small cos: BMR
12:41 Hike in CET for refined pdts negative for OMCs
12:40 Ad-valorem excise duty on MUVs increased: Ernst & Young
12:39 Increase in excise duty on non-tobacco products: BMR
12:39 Redn in personal tax rate saving of Rs.50k upto 8l Incom: Ernst & Young
12:38 Excise duty on Cig increased; quantum will impact ITC
12:37 Excise duty on tobacco -ve for ITC: Ernst & Young
12:37 No CG tax on conversion to LLP'S: BMR
12:36 Basic customs duty on crude petroleum restored to 5%: Ernst & Young
12:36 Customs duty of 5% on crude negative for OMCs
12:35 Excise on SUVs up to 22% from 20% - ve for M&M, Tamo
12:34 Excise duty on large cars increase -ve for Tata Motors, Ashok Ley: Ernst & Young
12:34 Peak excise duty increased; -ve for Auto, Steel, Cement Co
12:33 Stimulus package partially rolled back: Ernst & Young
12:33 Reduction in Personal Tax rate saving of Rs50,000 upto Rs 8 lakh income
12:32 Excise duty hiked to 10% expected rise
12:32 Roll back in central excise from 8% to 10%: Factored in
12:32 Peak excise duty rate increased from 8% to 10%: Ernst & Young
12:31 Direct tax revenue proposals to lead to Rs 26000 cr loss: BMR
12:31 Red of Corp Tax Surcharge to Red Corp Tax Rate By 1%: Ernst & Young
12:30 Rs 26000 cr revenue loss on account direct tax proposals
12:29 Low tax, high purchasing power volume boost for FMCG cos
12:29 Conversion of partnership to Llp encouraged: Ernst & Young
12:28 Int on TDS not deposited increased to 18% pa: Ernst & Young
12:27 Weighted Ded on R&d +ve for Tata Motors, Ashok Ley: Ernst & Young
12:26 Tax audit limit increased to 60 lakhs for business: Ernst & Young
12:26 Pharma cos impact neutral Mat vs Weighted Deduction: Ernst & Young
12:25 MAT 18% on booked profits not assets should be positive
12:24 Tax holiday for Hotel ind; +ve for Indian Hotels, EIH: Ernst & Young
12:23 RIL, FMCG cos impacted by MAT increase
12:22 Weighted deduction on R&D +ve for Pharma and Auto: Ernst & Young
12:21 Surcharge cut; +ve for India Inc
12:21 MAT increased to harm IT and infrastructure companies: Ernst & Young
12:21 Surcharge reduced to 7.5% from 10%: BMR
12:19 MAT increased to 18%; -ve for RIL, HUL, Bharti, Rcom
12:19 Increase MAT from 15% to18% on book profits: BMR
12:19 Infra bond tax deduction +ve for IDFC, PFC
12:19 Corporate surcharge reduced to 7.5% but MAT increased: Ernst & Young
12:18 Surcharge reduced from 10% to 7.5%: Ernst & Young
12:18 10% tax on annual income from Rs 1.6 lakh to 5 lakh: BMR
12:18 AddTax deduction of Rs 20,000 on inv in infra bonds
12:17 Tax slabs increased will enhance spending: Ernst & Young
12:17 Increase in take home for individuals enhance consumption: Ernst & Young
12:16 No tax on annual income upto Rs 1.6 lacs: BMR
12:16 Tax slabs rationalised for individuals: Ernst & Young
12:16 Scope of Settlement Commission for excise & customs expanded: Ernst & Young
12:15 New version of Saral ready for salaried employees: BMR
12:15 Settlement Commission to cover raid cases: BMR
12:14 Return filing procedure to be simplified: Ernst & Young
12:14 Simplification of tax compliance: Ernst & Young
12:13 Saral 2 form to be introduced in a simplified version: Ernst & Young
12:13 Increased computerization of central and state tax administration: Ernst & Young
12:12 Pilot projects for tax grievances extended to four cities: BMR
12:11 Automation to reduce physical interface with department: Ernst & Young
12:10 Technology driven tax administrative reforms: Ernst & Young
12:10 FY11 borrowing lower than est +vs for PSU banks
12:09 Subsidy delivery in cash to oil & fertiliser companies
12:08 Extending govt fert subsidy in cash: + ve for fert cos
12:08 Extending govt fert subsidy in cash: + ve for fert cos
12:08 Revised fiscal deficit for 2009-2010 at 6.9%
12:08 All subsidy in cash
12:07 Gross non- tax receipts at Rs 1,48,118cr: BMR
12:07 Deficit 4.3% for FY12
12:05 Gross tax receipts at Rs 7,46, 651cr: BMR
12:04 New technology platforms for new legislations positive for IT sector: Ernst & Young
12:03 Rs 60000cr defense capex :BEL, M&M, L&T, Nelco
12:02 UID scheme Budget Rs 1900 crore IT companies, Bartronics in fosus
12:02 Higher defence allocation +ve for L&T: BMR
12:01 Smart card extension positive for Glodyne Tech: Ernst & Young
12:00 Banking license for NBFCs, private players positive for IFCI, Reliance Capital
12:00 UID commitment to be met in 2010: + ve for Bartronics, TCS
11:59 RBI licenses to private players +ve for Reliance Capital: BMR
11:54 Smart Card extended to NREGA; focus Bartronics
11:50 Slum Free India at the earliest: +ve for HDIL (SRA)
11:50 Extension of interest subvention to March: Parsvanath, Sobha
11:49 Focus on slum redevelopment positive for real estate: Ernst & Young
11:49 Interest subvention for low cost housing: HDIL, Parsvanath
11:48 Increase allocation for urban development by more than 75%
11:47 Higher outlay for educations; +ve for Educomp, Edserv, Core Proj
11:47 Rs 61, 000 crore rural programmes positive for Hero Honda, PNB
11:46 Rs 66,100cr for rural devpt this year: BMR
11:43 Education outlay increased by Rs 3236: Educomp, Everonn
11:43 3675 cr grant on education to states : +ve for Educomp, Everonn
11:41 Rs 200 cr for Tirupur, TN Textile facility: BMR
11:40 National clean energy fund; +ve for Suzlon, JP Hydro
11:40 20000 MW solar power +ve for Monnet Ispat
11:38 Setting up of Coal Regulatory Authority positive for cement, steel companies
11:38 Increased refinancing by IIFCL;+ve for infra companies
11:38 Increased refinancing by IIFCL;+ve for infra companies
11:37 Solar energy impetus Moser Baer in focus
11:37 Double allocation to power;+ve for NTPC, Rel Power, Adani Po
11:37 Competitive bidding process for captive mining blocks: BMR
11:37 Higher power allocation to benefit power & dist companies: Ernst & Young
11:36 13% higher road allocation;+ve for Punj, Gammon, Nagarjuna
11:35 Intro of new legislations administrative reforms is key: Ernst & Young
11:35 13% higher road allocation;+ve for IVRCL, HCC, L&T
11:34 Increased allocation for road Gammon, IRB, j kumar +ve
11:34 To raise allocation for road transport by 13%
11:33 Provided Rs 1,73,552 crore for infrastructure development
11:33 Easy access for funds to marine and cold storage facili: Ernst & Young
11:32 ECB's will be available for food processing sector
11:31 Addtional banking license IDFC and IFCI in consideration
11:31 Repayment Extension For FarmerTo June 2010: +ve Bob Pnb
11:30 SEZ's recorded 127% YoY export growth in last 3 qtrs: BMR
11:29 Rs 300cr for agriculture impetus Jain Irrigation, Advanta India
11:29 Recapitalisation of banks +ve Uco Bank, CBI
11:28 Interest subvention extended to March 11
11:28 Textiles, Gems and Jewellery benefit from Int Sub Extension
11:27 Recapitalization of banks positive for Syndicate Bank, Dena Bank
11:27 NBFC could be considered for banking licenses: IDFC
11:26 Banking sectors reforms to be introduced: Ernst & Young
11:24 RBI considering addl licenses to private players: BMR
11:23 FDI policies to be consolidated - positive step: Ernst & Young
11:23 Aims to make FDI policy userfriendly: BMR
11:21 Oil Ministry to take decision on Parikh Report
11:20 Deferment of GST negative for corporates in FY10-11: Ernst & Young
11:18 FM reaffirms commitment to GST; likely roll-out in April 2011: Ernst & Young
11:17 Direct tax code to be implemented from April 1, 2011: Ernst & Young
11:17 Direct tax code to be implemented from April 1, 2011: Ernst & Young
11:16 Budget has given indication that better targeting of subsidies will be the key objective
11:15 Focus on development of infrastructure in rural and urban areas likely
11:12 Budget realises the need to strengthen food security
11:11 State of the economy better
CourseCart.in
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Replied 26 February 2010
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> Union Budget 2010-2011 |
CA. Shwetank Vats
(Chartered Accountant)
(653 Points)
Replied 26 February 2010
Thanks for Budget 2010 Flashes
CourseCart.in
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(3756 Points)
Replied 26 February 2010
Previous Union Budget
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CourseCart.in
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Replied 26 February 2010
Can anyone provide us infor of sectorwise/industrywise +ve n -ve by this budget ??
CourseCart.in
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Replied 26 February 2010
Economic Survey 2009-2010
| > | State of the Economy and Prospects |
| > | Micro-Foundations of Inclusive Growth |
| > | Fiscal Developments and Public Finance |
| > | Prices and Monetary Management |
| > | Financial Intermediation and Markets |
| > | Balance of Payments |
| > | International Trade |
| > | Agriculture and Food Management |
| > | Industry |
| > | Energy, Infrastructure and Communications |
| > | Human Development, Poverty and Public Programmes |
| > | Statistical Tables |
| > | Economic Survey (All Chapters) [English] [Hindi] |
| > | Economic Survey (All Tables) [English] [Hindi] |
CourseCart.in
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Replied 26 February 2010
Previous Economic Survey
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CourseCart.in
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Replied 26 February 2010
The Small Business Confidence Index
Published on Thu, Feb 18, 2010 at 21:51 | Updated at Mon, Feb 22, 2010 at 13:26 |
India’s small businesses are beginning to make their mark in the global business landscape, despite being fraught with problems. Here is a quick look at the business scenario, based on a spot survey of over 200 small businesses undertaken by Entrepreneur.
1. Government policies
40% think it is average
55% think it is good
5% think it is excellent
2. Credit availability
20% think it is bad
45% think it is average
40% think it is good
5% think it is excellent
3. Business Environment
65% think it is average
35% think it is good
4. Competition from China
65% think it is average
35% think it is good
5. Loan rates and preferential
100% companies think that small businesses should get lower loan rates
6. Pain points
45% feel it is the high cost of financing
35% feel it is the rising cost of raw materials and demand
20% feel it is infrastructure
7. Demands from the government
Faster processing of loan applications
Support from government for technical upgradation
Skilled manpower for the sector
8. Growth path
30% feel that small businesses are struggling to find their footing, and that this will last for the next two years
45% expect the small industry to graduate to the medium industry within 5 years
25 respondents said they could not forecast on the growth of their company
9. Biggest hurdles to growth
Availability of Finance
Red Tapes
Infrastructure.
Duty Structure
10. Labor laws
65% see it as the major problem
35% think it is manageable
11. Lack of credit rating facility
50% see this as the biggest hurdle to easy credit
30% see this as an issue
20% see this as a manageable issue
12. SME Exchange
75% see this as an immediate requirement
10% don’t have an opinion
15% don’t have a clue about this
CourseCart.in
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Replied 26 February 2010
Sens*x up over 200 pts; ITC, Tata Power, TCS underperform
Published on Fri, Feb 26, 2010 at 14:46 | Updated at Fri, Feb 26, 2010 at 14:49
At 14:40 hours IST - the benchmark Sens*x continued to trade strong with nearly 250 points gains on the back of buying interest across all sectors barring technology. It was a positive reaction to Union Budget 2010 unveiled by Finance Minister Pranab Mukherjee. However, the markets erased some gains from day's high.
Some of the highlights of Budget 2010
-FY11 bank farm loan target raised to Rs 3.75 lakh crore
-Allocation for road transport raised by 13%
-To set up 20,000 mw of solar power by 2022
-FY11 education plan outlay at Rs 31,030 crore
-Allocation for slum redevelopment increased to Rs 1,270 crore
-FY11 net market borrowing pegged at Rs 3.45 lakh crore
-10% tax for income between Rs 1.6-5 lakh
-Surcharge for companies reduced to 7.5% from 10%
-RBI mulling banking license for pvt & NBFC players
-Interest rate subvention for farm loans hiked to 2%
-To extend 1% interest subsidy scheme for affordable housing to March 2011
-FY12 fiscal deficit pegged at 4.8% of GDP
-MAT increased to 18%
-Weighted deduction from 150% to 200% for in-house R&D
-Excise duty hiked to 10% vs 8%
-Excise on cigars, cigarettes to go up
-Increased excise duty on all non-smoking tobacco
Samir Arora of Helios Capital said the markets rallied due to low expectations from the budget. The markets will get back to global cues next week, he says. About 0.6-1% rise in Eurpoean markets was also helping the markets.
JPMorgan said roadmap for fiscal consolidation showed growth ahead. "Banking sector is largest beneficiary from budget and fiscal deficit target was above estimates."
The Sens*x was trading at 16530, up 276 points and the Nifty was at 4953, up 93 points. The Nifty March Future was trading with 10 points premium. The market breadth was positive; about 1065 shares advanced while 204 shares declined on the NSE.
Petroleum minister announced hike in petrol and diesel prices. Petrol prices will be hiked by Rs 2.67/litre and diesel prices by Rs 2.58/Litre from tonight.
BPCL said price hikes in petrol, diesel neutralised customs duties. Hike in excise, custom duty would cost company Rs 425 crore/month, the company says.
Realty and Auto indices shot up 5% each. Metal and Banking indices gained 3% each.
The real estate company HDIL says, interest subvention of 1% on low cost housing will spur demand and subvention will be applicable for loans upto Rs 20 lakh.
However, ITC erased some gains, plunged 6.5% post FM comments on cigarettes business. FM says, excise on cigars, cigarettes will go up and increased excise duty on all non-smoking tobacco.
Tata Power tumbled over 4%. TCS, Infosys, BHEL and ABB were the other losers.
The 30-share BSE Sens*x cheered Union Budget 2010 unveiled by Finance Minister Pranab Mukherjee. This is the second budget from the Pranab. Reduction in fiscal deficit, cut in surcharge, more increase in money for infrastructure development, increase in FY11 divestment target, increase in personal tax slab to Rs 8 lakh etc all these pushed the Nifty above 4950 level.
FM says, weighted deduction increased from 150% to 200% for in house R&D, which will be positive for auto and pharma companies.
Surcharge for companies reduced to 7.5% from 10%, which will be positive for India Inc.
On the Direct Tax front - the tax for upto Rs 1.6 lakh income will be nil while 10% tax for income between Rs 1.6-5 lakh; 20% tax on income between Rs 5-8 lakh and 30% tax on income above Rs 8 lakh. This will be huge saving for Aam Adami.
FY11 net market borrowing pegged at Rs 3.45 lakh crore, which is less-than-expected. This will be positive for PSU banks.
Fiscal deficit will be reduced slowly. He says FY10 fiscal deficit revised to 6.9% of gross domestic product (GDP) while FY13 fiscal deficit pegged at 4.1% of GDP.
He also declared Rs 1.73 lakh crore for infrastructure development. Road development allocation hiked to Rs 19,894 crore, which will be positive for IRB, HCC, Gammon, IVRCL, L&T, Punj Lloyd and Nagarjuna Construction.
The Central bank will consider banking licences for NBFCs, which will be positive for IFCI and Reliance Capital.
FM says, IIFCL will double refinancing to banks for infrastructure and will loan Rs 16,752 crore for rail development projects.
For the power sector, government doubled allocation for power sector to Rs 5,130 crore, which will be positive for NTPC, Reliance Power and Adani Power.
For agriculture, interest rate subvention for farm loans hiked to 2% and FM says, govt will extend farm loan payment by 6 months. FY11 bank farm loan target raised to Rs 3.75 lakh crore.
For the banking sector, FM says, the government will focus on recapitalization of banks, which will be positive for Syndicate Bank & Dena Bank and Uco Bank & Central Bank of India.
However, MAT (minimum alternate tax) increased to 18% from 15%, which will be negative for RIL, HUL, Bharti and Reliance Comm.
The 30-share Sens*x was trading at 16615, up 360 points and the Nifty was at 4973, up 113 points. The Nifty March Future was trading with 10 points premium.
Buying was seen across all sectors while Tata Power, Ranbaxy Labs, Infosys, HCL Tech and BPCL were the only losers.
The BSE Auto and Realty indices gained 4% each. Metal and Bank indices rallied 3% each. Oil & Gas Index rose 2%. The broader indices went up 1.6-2%.
At 12:41 hours IST - the Nifty was trading strong with nearly 100 points gains while unveiling Union Budget 2010 by Finance Minister Pranab Mukherjee. FM says, weighted deduction increased from 150% to 200% for in house R&D, which will be positive for auto and pharma companies.
However, government hiked in CET for refined products, which will be negative for oil marketing companies. He says, customs on crude restored, which will be negative for Reliance Industries and all refiners.
The govt put clean energy cess on imported, domestic coal, which will be negative for Tata Power.
He says, will raise central excise on petro products to 10%.
The govt exempted agriculture seeds from service tax; positive for Advanta India.
He says, businesses with Rs 60 lakh turnover have to audit accounts.
The Sens*x was trading at 16563, up 306 points and the Nifty was at 4654, up 95 points. The Nifty March future was trading with 6 points premium.
Sens*x up 300pts; surcharge for cos reduces to 7.5% vs 10%
At 12:30 hours IST - the Sens*x rallied further to nearly 300 points while unveiling Union Budget of 2010 by Finance Minister Pranab Mukherjee. FM says surcharge for companies reduced to 7.5% from 10%, which will be positive for India Inc.
However, in indirect tax, excise duty hiked to 10% from 8%. This will be negative for auto, steel and cement companies. He says, partial rollback of excise duty relief on large cars, cement and cement products.
On the Direct Tax front - the tax for upto Rs 1.6 lakh income will be nil while 10% tax for income between Rs 1.6-5 lakh; 20% tax on income between Rs 5-8 lakh and 30% tax on income above Rs 8 lakh.
MAT (minimum alternate tax) increased to 18% from 15%, which will be negative for RIL, HUL, Bharti and Reliance Comm.
The Sens*x was trading at 16575, up 321 points and the Nifty was at 4961, up 101 points. The Nifty March future was trading with 8 points premium.
Sens*x up 200 pts; FY11 mkt borrowing less than estimates
At 12:19 hours IST - lower borrowing from markets in FY11 by government pushed the Sens*x over 200 points higher. Finance Minister Pranab Mukherjee said FY11 net market borrowing pegged at Rs 3.45 lakh crore. This will be positive for PSU banks.
FM said fiscal deficit will be reduced slowly. He says FY10 fiscal deficit revised to 6.9% of gross domestic product (GDP) while FY13 fiscal deficit pegged at 4.1% of GDP.
The Central bank will consider banking licences for NBFCs, which will be positive for IFCI and Reliance Capital.
Defence allocation will be at Rs 1.4 lakh crore.
The Sens*x was trading at 16473, up 218 points and the Nifty was at 4930, up 71 points. The Nifty March Future was trading with 5 points premium.
Nifty firm; Pranab allocates Rs 31030 cr for education
At 11:54 hours IST - the 50-share NSE Nifty remained higher on the back of consistent positive announcement from Finance Minister Pranab Mukherjee in its Budget 2010 report.
FM says, IIFCL will double refinancing to banks for infrastructure and will loan Rs 16,752 crore for rail development projects.
For the power sector, government doubled allocation for power sector to Rs 5,130 crore, which will be positive for NTPC, Reliance Power and Adani Power.
The govt also increased allocation for renewable energy to Rs 1,000 crore and will also set up National Clean Energy fund, which will be positive for Suzlon, JP Hydro.
FM says, 25% of planned allocation will be for rural infrastructure and spending on social sector upped to Rs 1.37 lakh crore.
He also says, Draft Food Security bill will be in public domain soon.
For the education sector, he says, FY11 education plan outlay is at Rs 31,030 crore and Rs 3675 crore grant on education for states. This is positive for Educomp, Everonn and Core Projects.
The Sens*x was trading at 16337, up 83 points and the Nifty was at 4890, up 31 points. The Nifty March Future was trading in discount.
Reliance was up 2.3%. Infrastructure, metal, telecom, power, realty, select banking and auto stocks were gainers. However, TCS, Infosys, Tata Power, Ranbaxy, ITC, Cairn, Maruti, HCl Tech, Wipro and ICICI Bank were losers.
Sens*x up 100 pts; FM allocates Rs 1.73 lk cr for infra
At 11:40 hours IST - the Nifty was inching towards the 4900 mark on the back of unveiling of infrastructure & development programmes for boosting economy by Finance Minister Pranab Mukherjee.
For agriculture, interest rate subvention for farm loans hiked to 2% and FM says, govt will extend farm loan payment by 6 months. FY11 bank farm loan target raised to Rs 3.75 lakh crore.
He also declared Rs 1.73 lakh crore for infrastructure development. The government will set up 5 more megafood park projects and ECBs now will be available for food processing sector.
Road development allocation hiked to Rs 19,894 crore, which will be positive for IRB, HCC, Gammon, IVRCL, L&T, Punj Lloyd and Nagarjuna Construction.
The Sens*x was trading at 16354, up 100 points and the Nifty was at 4894, up 34.75 points.
Oil & gas, power (barring Tata Power), capital goods, realty, telecom, select banking and auto stocks were seeing buying interest.
TCS, Infosys, Tata Power, Ranbaxy, ITC, HCL Tech, Maruti and Cairn were losers.
Nifty inching towards 4900 on Budget 2010
At 11:28 hours IST - the Nifty was trading higher on the back of positive announcements from Finance Minister Pranab Mukherjee. He has announced 4-pronged strategy for agriculture sector while says government will reduce fertiliser subsidy.
He says, divestment proceeds budgeted higher in FY11 as against FY10 and final figure of FY10 GDP may be higher than 7.2%.
NBS (Nutrient based subsidy) for fertiliser sector has been approved w.e.f Aril 2010.
For the banking sector, FM says, the government will focus on recapitalization of banks, which will be positive for Syndicate Bank & Dena Bank and Uco Bank & Central Bank of India.
The Sens*x was trading at 16335, up 80 points and the Nifty was at 4890, up 31 points.
Nifty northbound on Budget 2010, shrugs off Q3 GDP data
At 11:07 hours IST - the Nifty continued to trade higher with marginal gains on the back of Union Budget 2010 while shrugged off less-than-expected third quarter gross domestic product (GDP) data.
The Q3 GDP came in at 6% as against 7.9% in the previous quarter while CNBC-TV18 was expecting at 6.8%. For the period of nine-month ended December 2009, GDP growth stood at 6.7% versus 7.1% on year-on-year basis.
Manufacturing output went up 14.3% versus 1.3%; construction growth at 8.7% versus 3% and mining growth at 9.6% versus 2.8% (YoY). However, agriculture growth came in negative 2.8% as against negative 1.4%.
The Sens*x was trading at 16347, up 93 poitns and the Nifty was at 4890, up 30 points.
Buying was seen in oil & gas, metal, telecom, infrastructure, select banking and auto stocks. However, TCS, Tata Power, Ranbaxy, Infosys, HCL Tech, ITC, Cairn, Maruti, Wipro and ICICI Bank were the only losers.
Sens*x trades marginally higher ahead of Budget 2010
At 10:11 hours IST, the Sens*x was trading marginally higher on the back of buying interest in infrastructure, oil & gas, metal, telecom, realty, FMCG and select banking stocks. These stocks were moving up ahead of Union Budget today.
However, selling in technology stocks capped the gains to some extent. Removal of STPI extension might be the reason. Chief Mentor of Infosys, Narayan Murthy says, IT industry needs to pay higher taxes and does not need STPI extension any more.
Ranbaxy Labs crashes 6.6% post its CY09 numbers. Tata Power was down nearly 4%; both were top losers on the Nifty. ICICI Bank, Maruti, Tata Steel and Jaiprakash Associates were other losers.
The Sens*x was trading at 16311, up 57 points and the Nifty was at 4879, up 19 points. The Nifty March future was trading with 2.2 points premium.
The market breadth was positive; about 1557 shares advanced while 1240 shares declined on the BSE. Nearly 379 shares were unchanged.
In the midcap space, Shriram Transport Finance, Max India, Exide Industries, Engineers India and Gammon Infra were up 3-4% while Asian Star, Indiabulls Real, KGN Industries, Texmaco and Dishman Pharma fell 1.7-4.8.
In the smallcap space, Ushdev International, Subhash Project, Oscar Inv, Thinksoft and Maharashtra Polybutenes gained 5-5.7% while Kalindee Rail, Kwality Dairy, IndiaNivesh, Kernex Micro and Gemini Comm tumbled 5% each.
Nifty choppy with positive bias; Ranbaxy crashes post nos
Benchmark Nifty started the Budget day on a flat-to-positive note. Asian markets also looked mixed in trade. Infrastructure and oil & gas companies' shares witnessed buying interest ahead of some announcement from the Union Budget.
At 9:02 hours IST, the Sens*x was trading at 16291, up 36 points and the Nifty was at 4871, up 11 points. The CNX Midcap rose 17 points to 7066, as about 440 shares advanced while 214 shares declined.
Among the frontliners, BPCL, Sterlite Industries, Reliance Power, Reliance Industries, HDFC, L&T, GAIL, IDFC and Reliance Infrastructure were gainers.
However, Ranbaxy Labs lost 3.6% post its full year earnings. Its consolidated debt stands at USD 500 million. In a conference call, the company said challenges in US market continued.
Maruti Suzuki and Idea lost ground on profit booking. Jaiprakash Associates was down nearly 1%.
Midcap & Smallcap space:
Hathway Cable bounced back with 1% gain post huge sell-off on listing day yesterday.
Emmbi Polyarns was up 2%.
United Breweries and Colgate were up over 1%.
However, Kalindee Rail and Kernex Micro lost 5% each.
Global cues:
Asian markets were mixed in trade. Hang Seng was up 1%. Nikkei, Kospi and Taiwan gained 0.2-0.4%. However, Jakarta fell 1%. Shanghai and Straits Times were marginally in red.
The US markets ended off day's low as dollar reverses gain during the middle of the day.
The Dow Jones Industrial Average ended down 53 points at 10321, after seeing recovery of 136 points from day's low of 10185.
The Nasdaq was down 2 points at 2234, after seeing recovery of 36 points from day's low of 2198.
The S&P 500 Index fell 2.3 points at 1103, after recovering 16 points from day's low of 1087.
Commodities
CRB Commodity Index was down 1.4%.
Crude Oil was down 2.3% at USD 78.17/bbl.
Gold closed up 1% at USD 1108.5/ounce.
CourseCart.in
(Mentor at SHAYVIDZ Academy)
(3756 Points)
Replied 26 February 2010
The Finance Minister, in the Budget today, announced a bumper for individual tax payers. He has changed the tax slabs for men, women and senior citizens. The highest tax slab has now been raised from Rs 5 lakh to Rs 8 lakh.
"The Finance Minister has been sensitive to the needs of the common man," tax expert HP Ranina said immediately after the Budget speech was concluded.
The FM has also increased the limit of deduction available under section 80C. He has allowed an additional investment of Rs 20,000 for infrastructure bonds taking the total of the limit under section 80C from the current Rs 1 lakh to Rs 1.2 lakh.
Male individual tax payers:
New tax slabs:
| Slabs (Rs) | Rate |
| 0 - 160000 | 0 |
| 160001 - 500000 | 10 |
| 500001 - 800000 | 20 |
| 800001 and above | 30 |
Old tax slabs:
| Slabs (Rs) | Rate |
| 0 - 160000 | 0 |
| 160001 - 300000 | 10 |
| 300001 - 500000 | 20 |
| 500001 and above | 30 |
Impact:
| Taxable income (Rs) | Tax -before budget | Tax after budget | Saving |
| (Rs) | (Rs) | (Rs) | |
| 200000 | 4120 | 4120 | 0 |
| 500000 | 55620 | 35019 | 20601 |
| 1000000 | 210120 | 158619 | 51501 |
| 1200000 | 271919 | 220419 | 51500 |
| 1500000 | 364619 | 313119 | 51500 |
| 2000000 | 519119 | 467619 | 51500 |
| 2500000 | 673619 | 622119 | 51500 |
| 4000000 | 1137119 | 1085619 | 51500 |
CourseCart.in
(Mentor at SHAYVIDZ Academy)
(3756 Points)
Replied 26 February 2010
Auto cos breathe easy on FM's pragmatic moves
Finance Minister Pranab Mukherjee’s Union Budget 2010 came as a positive for auto companies.
With the government keen on increasing its tax base, it decided to hike the excise duty by 2% — to 10% from 8% earlier. The industry, however, was expecting the duty hike and some quarters had expected a 4% hike.
The FM’s announcement thus came as a relief to the sector. At 12.30 pm, auto stocks like Maruti Suzuki, Tata Motors and Ashok Leyland were up between 2% and 5% on the BSE in a strong market that was up 2%.
The auto companies may pass on the hike to customers with a minor price hike, which may weigh down too much on sales.
Another minor positive for auto companies was the weighted increase in research and development (R&D) exemption — though the pharmaceutical industry is the main beneficiary of the move.
The FM also re-iterated his aim to implement the ambitious direct tax code (DTC) and the goods and service tax (GST). Both tools, which would overhaul the country’s tax system, are to be implemented by April 2011, he said. The GST aims to bring other taxes like excise, VAT, CST and other taxes under one umbrella and the GST rate may be lower than the combined total of the current taxes.
India’s auto sector has seen rapid growth in the past few years. This financial year, car and motorcycle sales grew at their fastest ever, and second only to China in the world.
The hyper growth in the sector was also aided in part by the stimulus packages (excise duty cut from 14% to 8% and slashing of interest rates) that the government had unveiled in late 2008 and early 2009 when sales slumped.
CourseCart.in
(Mentor at SHAYVIDZ Academy)
(3756 Points)
Replied 26 February 2010
Government increased Penalty for failure to get account audited in Budget 2010-11
Limit of turnover or gross receipts for the purpose of Tax audit and presumptive taxation increased: Budget 2010-11
Change in provisions related to disallowance of expenditure on account of non-compliance with TDS provisions : Budget 2010-11
New Income tax slabs for Individual, Senior Citizens, and females HUF, Firms, Companies and others as amended by budget 2010
Amendment in section 9 related to Income deemed to accrue or arise in India to a non-resident : Budget 2010
Budget 2010: Change in definition of “charitable purpose” under the Income Tax Act
Budget 2010-11: Major Amendment in Central Excise Duty
Budget 2010-11: Summary of Major Amendment in Custom duty Laws
CourseCart.in
(Mentor at SHAYVIDZ Academy)
(3756 Points)
Replied 26 February 2010
Major proposals about Central Excise duty are the following:
A. General CENVAT Rate for non-petroleum goods:
The standard rate of excise duty of 8% on non-petroleum products is being increased to 10% with a few exceptions where exemptions/concessions have been given.
B. CEMENT
Consequent to enhancement of the standard rate of duty from 8% to 10%, the specific rates of duty on cement and cement clinker is also being revised upwards as follows:
Mini cement plant:
| Cement | Present rate | Proposed rate |
| 1. Cleared in packaged form,- | ||
| (i). of retail sale price not exceeding Rs. 190 per 50 kg bag or of per tonne equivalent retail sale price not exceeding Rs. 3800; | Rs.145 per tonne | Rs.185 per tonne |
|
(ii). of retail sale price exceeding Rs. 190 per 50 kg bag or of per tonne equivalent retail sale price exceeding Rs. 3800; |
Rs. 250 per tonne | Rs.315 per tonne |
| 2. Cleared other than in packaged form | Rs. 170 per tonne | Rs.215 per tonne |
Other than mini cement plant:
| Cement | Present rate | Proposed rate |
| 1. Cleared in packaged form,- | ||
|
i) of retail sale price not exceeding Rs. 190 per 50 kg bag or of per tonne equivalent retail sale price not exceeding Rs. 3800;
|
Rs. 230 per tonne | Rs.290 per tonne |
|
(ii). of retail sale price exceeding Rs. 190 per 50 kg bag of per tonne equivalent retail sale price exceeding Rs. 3800 |
8% of retail sale price | 10% of retail sale price |
| 2. Cleared other than in packaged form | 8% or Rs. 230 per tonne, whichever is higher | 10% or Rs.290 per tonne, whichever is higher |
C. AUTOMOBILE SECTOR
Ad-valorem component of excise duty on large cars, Multi Utility Vehicles and Sports Utility Vehicles etc. and chassis thereof is being increased from 20% to 22%. There is no change in the specific component, which will continue to be levied as applicable.
D. PETROLEUM PRODUCTS
The rates of excise duty on Motor Spirit (petrol) and HSD (diesel) are being increased by Re.1 per litre. The revised rates of duty on these items are as under:
| Descripttion | Without Brand Name | With Brand Name |
| Motor Spirit | *Rs .14.35 per litre | *Rs.15.50 per litre |
| HSD | **Rs.4.60 per litre | **Rs.5.75 per litre |
Note: * Includes Rs.2 Additional Excise Duty and Rs.6 Special Additional Excise Duty. ** Includes Rs.2 Additional Excise Duty.
E. TOBACCO PRODUCTS
1) The existing slab of filter cigarettes of length not exceeding 70 mm is being broken up into two slabs: filter cigarettes of length not exceeding 60 mm; and filter cigarettes of length exceeding 60 mm but not exceeding 70 mm. Suitable rates are being prescribed for these slabs. The basic excise duty (BED) on other cigarettes is being revised. The revised rates of excise duty including basic excise, additional excise and NCCD on cigarettes are as under:
| S.No. | Descripttion | Present rate | Proposed rate |
| Rs. per 1000 | |||
| Non-filter length in mm | |||
| 1 | Not exceeding 60 | 819 | 669 (509 BED+70 AED+90 NCCD) |
| 2 | Exceeding 60 but not exceeding 70 | 1323 | 1473 (1218 BED+1 10 AED +145 NCCD) |
| Filter length in mm | |||
| 3 | Not exceeding 60 | 819 | 669 (509 BED+70 AED +90 NCCD) |
| 4 | Exceeding 60 but not exceeding 70 | 819 | 969 (809 BED+70 AED +90 NCCD) |
| 5 | Exceeding 70 but not exceeding 75 | 1323 | 1473 (1218 BED+1 10 HC+145 NCCD) |
| 6 | Exceeding 75 but not exceeding 85 | 1759 | 1959 (1624 BED+145 AED +190 NCCD) |
| 7 | Others | 2163 | 2363 (1948 BED+180 HC+235 NCCD) |
| 8 | Cigarettes of tobacco substitutes | 1208 | 1408 (1258 BED +150 NCCD) |
Note: BED, AED and NCCD stands for Basic Excise Duty, Additional Excise Duty and National Calamity Contingent Duty respectively.
2) At present, cigars, cheroots and cigarillos of tobacco attract ad valorem rate of basic excise duty (BED) of 8% plus Additional Excise Duty (Health Cess) of 1.6%. These rates are now being replaced with a composite rate of “10% or Rs.1227 per thousand, whichever is higher” (BED) and “1.6% or Rs.246 per thousand whichever is higher” (AED). Cigars, cheroots and cigarillos of tobacco substitutes will now attract BED of “10% or Rs.1473/1 000” whichever is higher.
3) Basic excise duty on branded unmanufactured tobacco and tobacco refuse is being increased from 42% to 50%.
4) Basic excise duty on branded ‘hookah’ or ‘gudaku’ tobacco is being increased from 8% to 10% while that on chewing tobacco, preparations containing chewing tobacco, jarda scented tobacco, snuff and its preparations, tobacco extracts and essences etc. has been increased from 50% to 60%.
5) Basic excise duty on branded homogenised or reconstituted tobacco is also being increased from 50% to 60%.
6) Basic excise duty on items of other smoking tobacco (branded) is being increased from 34% to 40% while the duty on such unbranded tobacco is being increased from 8% to 10%.
7) Basic excise duty on smoking mixtures of pipes and cigarettes is being increased from 300% to 360%.
8) Basic excise duty on cut tobacco is being increased from Rs.50 per kg. to Rs.60 per kg.
9) Excise Duty on Chewing Tobacco and branded unmanufactured Tobacco packed in pouches with the aid of packing machines will now be levied based on capacity of production under Section 3A of the Central Excise Act, 1944 (compounded levy). The levy will come into effect on 8th March, 2010.
F. CLEAN ENERGY CESS
Clean Energy Cess is being imposed on coal, lignite and peat produced in India. This cess would be levied and collected as a duty of excise with effect from a date to be notified after the enactment of the Finance Bill, 2010.
G. SECTOR SPECIFIC RELIEF MEASURES:
I. FOOD/AGRO PROCESSING AND AGRICULTURE SECTOR
1) Full exemption from excise duty presently available to 20 specified equipments for preservation, storage or transport of agricultural produce is being extended to apiary, horticultural, dairy, poultry, aquatic & marine produce and meat as well as processing thereof.
2) Full exemption from excise duty is being extended to self-loading/self-unloading trailers & semi trailers for Agricultural Purposes (tariff item 8716 20 00).
II. ENVIRONMENT FRIENDLY AND ENERGY SAVING GOODS
1) A uniform concessional rate of duty of 4% is being prescribed for parts, namely batteries including battery chargers, electric motors and AC or DC motor controllers required for manufacture of all categories of electrical vehicles including cars, two wheelers and three wheelers (like ‘Soleckshaw’) subject to actual user condition. This concession will be available till 31 .03.2013. Such vehicles will also be charged to excise duty @ 4%.
2) Excise duty is being reduced from 8% to 4% on LED lights/lighting fixtures.
3) Full exemption from excise duty is being provided to additional specified raw materials for the manufacture of rotor blades for wind operated electricity generators.
III. CAPITAL GOODS
Full exemption from central excise duty presently available to goods supplied against International Competitive Bidding is now being extended to goods supplied to mega power projects from which power supply has been tied up through tariff-based competitive bidding. The exemption would also be available where the mega power project has been awarded through tariff-based competitive bidding.
IV. MSME/ SMALL SCALE SECTOR
1) Changes are being made in the relevant provisions to provide certain facilities to Small Scale Industrial (SSI) units eligible for availing benefit under Notification No. 8/2003-CE as under:
a) full Cenvat credit on capital goods in one instalment in the year of receipt of such goods.
b) facility of payment of excise duty on quarterly basis.
The above changes come into effect from 1st April, 2010 and will be applicable even if an eligible unit opts not to avail of the SSI exemption.
2) While retaining the system of filing quarterly returns, the due date for filing of Central Excise returns by SSI units is being advanced to the 10th of the month following the quarter.
3) The relaxation from brand name restriction under the general SSI exemption scheme is being extended to plastic bottles and plastic containers used as packing material.
V. GOLD AND SILVER
1) Refined serially numbered gold bars made from the ore/concentrate stage will now attract excise duty of Rs.280 per 10 grams (instead of 8% ad valorem) with Cenvat credit facility on inputs and capital goods.
2) Excise duty on DTA clearances of plain gold and silver jewellery manufactured by a 100% EOU is being increased from:
(i) Rs.500 per 10 gram to Rs.750 per 10 gram for gold jewellery; and
(ii) Rs.1000 per kg to Rs.1500 per kg. for silver jewellery.
H. OTHER RELIEF MEASURES
1) Following items are being fully exempted from excise duty:
a) Articles of bedding wholly made of quilted textile materials;
b) Toy balloons made of natural rubber;
c) Betel nut product known as “Supari”;
d) Dementholised oil, Deterpenated Mentha oil, Spearmint/ Mentha Piperita oils and all intermediates and by-products of Menthol.
2) Excise duty is being reduced from 8% to 4% on:
a) Replaceable kits for all household type water filters (except those operating on RO technology)
b) Corrugated boxes/ cartons manufactured by stand- alone manufacturers
c) Latex rubber thread.
3) Excise duty on goods covered under the Medicinal and Toilet Preparations Act is being reduced from 16% to 10% to bring it at par with standard Cenvat rate.
I. RATIONALIZATION MEASURES
1) At present, maize starch and tapioca starch are exempt from excise duty while potato starch attracts 8% duty. Excise duty on all these starches is now being unified at 4%.
2) In the last budget, concessional rate of 4% excise duty applicable to the ceramic tiles manufactured in kilns not using electricity was enhanced to 8% without Cenvat credit facility. Since, ceramic tiles in general also attracted 8% excise duty (standard rate) with Cenvat credit, this entry had become redundant. The rate of duty on all ceramic tiles, regardless of the fuel used for firing the kiln, is now being unified at 10% with Cenvat credit facility.
3) Umbrellas currently attract 4% excise duty while umbrella parts attract 8% excise duty and umbrella cloth panels are fully exempt. The rate of excise duty on umbrellas and all umbrella parts is being unified at 4%.
4) Currently, two different rates of excise duty (NIL and 4%) for rough ophthalmic blanks have been prescribed under two different notifications. Redundant entry prescribing 4% is being omitted.
J. WITHDRAWAL OF EXEMPTIONS/CONCESSIONS
1) Full exemption from excise duty on following items is being withdrawn. They will now attract excise duty of 4%.
a) Mosquito nets impregnated with insecticides;
b) Av gas;
c) Microprocessor for computers (other than motherboard), Floppy disk drive, Hard disk drive, flaash drive, CD/DVD and Combo Drive meant for external use.
2) Full exemption from excise duty on baby & clinical diapers and sanitary napkins is being withdrawn. These items will now attract duty at 10%.
3) Concessional rate of excise duty on open tin sanitary (OTS) cans is being withdrawn. OTS cans will now attract duty at 10%.
4) Concessional rate of excise duty on goggles is being withdrawn except those used for correcting vision. These items will now attract duty at 10%.
K. AMENDMENTS IN CENTRAL EXCISE ACT, 1944
1) In section 11A (2B), an Explanation is being inserted to clarify that no penalty shall be imposed where duty along with interest has been paid before the issuance of a demand notice by the Department.
2) Section 32 dealing with Settlement Commission is being amended so as to restore certain provisions as they obtained prior to the enactment of the Finance Bill, 2007. Accordingly, the prohibition on filing of applications for the settlement of cases where an assessee admits short-levy for goods in respect of which he has not maintained proper records (i.e. cases of misdeclaration, clandestine removal etc.) is being removed. Similarly, the restriction that an assessee may seek only onetime settlement is also being relaxed. The Commission is being empowered to extend the time limit of nine months for disposal of applications by another three months, for reasons to be recorded in writing.
3) In Section 37, a new clause is being inserted to provide rule-making powers to the Central Government for withdrawal of facilities or imposition of restrictions including restrictions on utilization of Cenvat credit on a manufacturer or exporter or suspension of registration of a dealer for dealing with evasion of duty or misuse of Cenvat credit.
The above changes will come into effect on enactment of the Finance Bill.
L. AMENDMENTS IN THE FIRST SCHEDULE TO CENTRAL EXCISE TARIFF ACT, 1985
1) In heading 2402, a new tariff item covering filter cigarettes of length not exceeding 60 mm has been inserted. Consequential changes have been made to other tariff items in the said heading.
2) In Chapter 27, sub-heading 2712 20 and the tariff items 2712 20 10 and 2712 20 90 are being substituted by 2712 2000 covering ‘Paraffin Wax containing by weight less than 0.75% of oil’. Further, tariff item 2712 90 40 covering ‘Paraffin wax containing by weight 0.75% and more of oil’ is being inserted.
3) In chapter 68, Note 3 is being inserted to provide that in relation to goods of headings 6802 and 6810 the process of cutting or sawing or sizing or polishing or any other process for converting stone blocks into slabs or tiles shall amount to “manufacture”.
4) In Chapter 76, Note 2 is being inserted to declare the process of drawing or redrawing of aluminium tubes and pipes as amounting to “manufacture’”
M. AMENDMENTS IN CENTRAL EXCISE RULES AND CENVAT CREDIT RULES
1) Rule 11 (5) of the Central Excise Rules, 2002 is being deleted so as to dispense with the requirement of pre-authentication of the invoice.
2) The Central Excise Rules, 1944, the Cenvat Credit Rules, 2000, the Cenvat Credit Rules 2001, the Cenvat Credit Rules 2002 and the Cenvat Credit Rules, 2004 are being amended retrospectively w.e.f. 01.09.1996 to 31.03.2008 (for periods as applicable to respective rules) to provide that where a manufacturer avails Modvat/Cenvat credit in respect of any inputs, other than fuel, to manufacture both dutiable and exempted goods, he can opt to reverse credit or pay an amount equivalent to credit attributable to inputs used for manufacture of exempted goods. It is being further provided that such manufacturer shall pay interest @ 24% p.a. from the date of clearance till date of reversal of the said credit or payment of equivalent amount. Such option will, however, be available only in such cases where disputes in this regard are pending on the date of enactment. This change will come into effect on the enactment of Finance Bill, 2010.
3) Rule 3(5) of the Cenvat Credit Rules, 2004 is being amended to provide accelerated depreciation in the case of computers and computer peripherals cleared after use at the same rates as applicable for similar capital goods of EOU/EHTP/STP units under Notification No. 52/2003-Customs.
4) Rule 4(5) (b) of the Cenvat Credit Rules, 2004 is being amended to permit sending of jigs, fixtures, moulds and dies to a vendor for production of goods according to the specifications of the principal manufacturer without reversal of credit.
5) Rule 6 (6) (vii) of the Central Credit Rules, 2004 is being amended so as to allow Cenvat credit on inputs used in the manufacture of goods supplied to such mega power projects from which power has been tied up through tariff-based competitive bidding or the projects awarded through tariff-based competitive bidding. Similar facility available to goods supplied against International Competitive Bidding available at present is also being continued.
6) Rule 15 of the Cenvat Credit Rules, 2004 is being amended to harmonize the penal provisions for incorrect availment of Cenvat credit of duty paid on inputs or capital goods or input services.
N. AMENDMENTS IN MEDICINAL AND TOILET PREPARATIONS (EXCISE DUTIES) ACT, 1955
Section 3 of the M&TP Act is being amended to exclude goods manufactured or produced by units in SEZ from excise duty leviable under that Act. This change will come into effect on enactment of the Finance Bill.
O. AMENDMENTS IN CENTRAL SALES TAX ACT, 1956
The provisions of CST Act are being amended so as to provide for:
(i) reassessment by the assessing authority on the basis of new facts discovered or revision by a higher authority.
(ii) filing of appeals to the highest authority of every State against the orders made by assessing authorities on issues involving stock transfer or inter state sale including incidental issues relating to rate of tax, computation of assessable turnover, penalty and procedure.
(iii) filing of appeal against any order passed by the highest appellate authority of a State on disputes of interstate nature relating to stock transfer or consignments of goods to the CST Appellate Authority.
The above changes will come into effect on enactment of the Finance Bill.
CourseCart.in
(Mentor at SHAYVIDZ Academy)
(3756 Points)
Replied 26 February 2010
Major proposals about customs duties are the following:
A. PETROLEUM
1) Customs duty on crude petroleum is being increased from Nil to 5%.
2) Customs duty on Motor Spirit (petrol) and HSD (diesel) is being increased from 2.5% to 7.5%.
3) Customs duty on some other specified petroleum products is being increased from 5% to 10%.
B. PRECIOUS METALS
1) Customs duty on serially numbered gold bars (other than tola bars) and gold coins is being increased from Rs.200 per 10 gram to Rs.300 per 10 gram.
2) Customs duty on other forms of gold is being increased from Rs.500 per 10 gram to Rs.750 per 10 gram.
3) Customs duty on silver is being increased from Rs.1000 per kg to Rs.1500 per kg.
4) Customs duty on platinum is being increased from Rs.200 per 10 gram to Rs.300 per 10 gram.
The above change in rates would also be applicable when gold, silver and platinum (including ornaments) are imported as personal baggage.
C. ADDITIONAL DUTY OF CUSTOMS OF 4 % (SPECIAL CVD)
Goods imported in pre-packaged form and intended for retail sale and certain specified goods namely, ready-made garments, mobile phones and watches are being provided an outright exemption fromadditional duty of customs of 4%. In addition, outright exemption from this duty is also being provided to Carbon Black Feedstock, waste paper and paper scrap.
The existing exemption by way of refund would continue on other items.
D. FOOD/AGRO PROCESSING
1) Project imports status is being granted to the initial setting up or substantial expansion of, a cold storage, cold room (including farm pre-coolers) for preservation or storage or an industrial unit for processing of agricultural, apiary, horticultural, dairy, poultry, aquatic & marine produce and meat. These projects would attract concessional rate of basic customs duty of 5%.
2) Project imports status is being granted to installation of Mechanized Handling Systems & Pallet Racking Systems, in mandis or warehouses for food grains and sugar, with concessional rate of basic customs duty of 5%. Such systems are also being exempted fromadditional duty of customs (CVD) and special additional duty of customs.
3) Truck Refrigeration units for the manufacture of refrigerated vans/trucks are being fully exempted from basic customs duty. Such units are already exempt from excise duty.
4) Basic customs duty is being reduced from 7.5% to 5% on specified agricultural machinery such as paddy transplanter, laser land leveler, cotton picker, reaper-cum-binder, straw or fodder balers, sugarcane harvesters, track used for manufacture of track-type combine harvester etc.
E. AGRICULTURE/HORTICULTURE
1) Basic customs duty on long pepper is being reduced from 70% to 30%.
2) Basic customs duty on ‘asafoetida’ (heeng) is being reduced from 30% to 20%.
3) Full exemption from basic customs duty is being provided to bio-polymer/bio-plastics (HS Code 39139090) used for
manufacture of bio-degradable agro mulching films, nursery plantation & flower pots.
F. CAPITAL GOODS
1) Mono Rail Projects for urban transport are being granted project imports status under Heading No. 98 01 and would accordingly attract concessional rate of 5% basic customs duty.
2) Tunnel Boring machine for hydro-electric power projects is being fully exempted from basic customs duty with Nil CVD.
3) Concessional rate of customs duty of 5% presently available upto 06.07.2010 on specified machinery for tea, coffee and rubber plantation is being extended upto 31.03.2011. Excise duty exemption is also being re-introduced on these items upto 31 .03.2011.
4) Specified road construction machinery items are presently fully exempt from customs duty subject to specified conditions. Sale or disposal of such machinery items at depreciated value is being allowed on payment of customs duties on depreciated value at the rates applicable at the time of import subject to specified conditions.
G. CONCESSIONS TO ENVIRONMENT-FRIENDLY ITEMS
1) Full exemption from basic customs duty and special additional duty of customs is being extended to specified parts namely, batteries including battery chargers, electric motors and AC or DC motor controllers imported for manufacturing all categories of electrical vehicles including cars, two wheelers and three wheelers (like Soleckshaw). These parts will attract CVD of 4%. The concession is subject to actual user condition. This concession will be available till 31 .03.2013.
2) A concessional rate of basic customs duty of 5% is being provided to machinery items, instruments, appliances required for initial setting up of solar power generation projects or facilities. These items have been exempted from CVD also by way of excise duty exemption provided to them.
3) Ground source heat pump (for geo-thermal energy applications) is being fully exempted from basic customs duty and special additional duty of customs.
H. HEALTH SECTOR
1) At present, medical equipments attract varying rates of customs duty and are spread over many lists. This multiplicity of rates is being done away with and now all medical equipments (with some exceptions) will attract 5% basic customs duty, 4% CVD/excise duty and Nil specialadditional duty of customs [i.e. effective duty of 9.2%].
2) Parts required for the manufacture and accessories of medical equipment will also attract 5% concessional basic customs duty with Nil special CVD.
3) Concessional customs duty available to spares for the maintenance of medical equipment is being withdrawn except in specified cases.
4) Full exemption from basic customs duty and CVD/excise duty is being retained for specified medical devices (exempt by descripttion) as well as for assistive devices, rehabilitation aids and other goods for disabled (List 41).
5) Cobalt-chrome alloys, special grade stainless steel etc. for the manufacture of orthopaedic implants are being exempted from basic customs duty subject to actual user condition.
I. ELECTRONICS HARDWARE
1) Battery chargers and hands-free headphones are the basic accessories of mobile phones. Full exemption from basic customs duty and CVD presently available for parts, components, accessories for manufacturing of mobile handsets including cellular phones and parts thereof is being extended to parts for the manufacture ofbattery chargers and hands-free headphones also.
2) Full exemption from 4% special additional duty of customs presently available upto 06.07.2010 on parts, components and accessories for manufacture of mobile handsets including cellular phones, parts thereof (except accessories) is being extended to parts of two specified accessories also upto 31.03.2011.
3) Basic customs duty is being reduced from 10% to 5% on magnetrons of upto 1,000 kw for the manufacture of microwave ovens.
4) Full exemption from customs duty is being extended to additional specified capital goods and raw materials for the manufacture of electronic hardware.
J. ENTERTAINMENT/MEDIA
1) Films for exhibition are imported on cinematographic films or digital media. Digital masters/Stampers of films are also imported for duplication and distribution of CD/DVDs. It is being provided that customs duty would now be charged only on the value of the carrier medium and the customs duty on the balance value will be exempt.
2) Similar tax treatment, as provided to films above, is being extended to music and gaming software (other than pre-packaged form) for retail sale imported on digital media for duplication. Pre-packaged Movies, Music and Games (meant for use with gaming consoles) will continue to be charged to import duties on value determined in terms of the provisions of the Customs Act.
3) Promotional material like trailors, making of films etc. imported free of cost in the form of electronic promotion kits (EPK)/ Betacams are being fully exempted from basic customs duty and CVD.
4) Project imports status is being accorded to ‘Setting up of Digital Head End’ with 5% concessional basic customs duty and Nil special additional duty of customs.
K. GOLD REFINING
Gold ore and concentrate are being fully exempted from basic customs duty and special additional duty of customs. They will, however, be chargeable to CVD @ Rs.140 per 10 gram of gold content. This duty structure is subject to actual user condition.
L. EXPORT PROMOTION
1) Basic customs duty on Rhodium is being reduced from 10% to 2%.
2) The current limit of Rs. 1 lakh per annum for duty free import of samples is being enhanced to Rs. 3 lakh per annum
3) At present specified components, raw materials and accessories for the manufacture of sports goods are exempt from basic customs duty. Some additional items are being added to the list of exemption.
M. ELECTRICAL ENERGY
At present, Electrical energy is fully exempt from customs duty. Electrical energy supplied from a Special Economic Zone to the Domestic Tariff Area and non – processing areas of SEZ would now attract duty of 16% ad valorem + Nil Special CVD. This change is being made retrospectively w.e.f. 26th June, 2009. Exemption on supplies or imports of electrical energy, other than the above, would continue.
N. AMENDMENTS IN CUSTOMS ACT, 1962
Section 127 dealing with Settlement Commission is being amended so as to restore certain provisions as they obtained prior to the enactment of the Finance Bill, 2007. Accordingly, the prohibition on filing of applications for the settlement of cases where an assessee admits short-levy in respect of goods not included in the entry made under the said Act. (i.e. cases of misdeclaration, suppression etc.) is being removed. Similarly, the restriction that an assessee may seek only one-time settlement is also being relaxed. The Commission is being empowered to extend the time limit of nine months for disposal of applications by another three months, for reasons to be recorded in writing.
O. AMENDMENTS IN CUSTOMS TARIFF ACT, 1975
1) Section 3 of the Customs Tariff Act is being amended to provide that the value of the imported goods for the purpose of charging CVD in respect of goods chargeable to excise duty on the basis of Maximum Retail Sale Price under Medicinal and Toilet Preparations (Excise Duties) Act, 1955 shall be the retail sale price declared on such imported goods less the amount of abatement, if any. This change will come into effect on enactment of the Finance Bill.
2) Consequent upon insertion of a new tariff item covering filter cigarettes of length not exceeding 60 mm and other changes in the schedule to the Central Excise Tariff Act, similar change is being carried out in heading 2402 with the new tariff item attracting customs duty of 30% ad valorem.
3) In Chapter 27, sub-heading 2712 20 and the tariff items 2712 20 10 and 2712 20 90 are being substituted by 2712 2000 covering ‘Paraffin Wax containing by weight less than 0.75% of oil’. Further, tariff item 2712 90 40 covering ‘Paraffin wax containing by weight 0.75% and more of oil’ is being inserted.
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