Finance Minister, P Chidambaram's delivered interim budget in parliament today, he announced massive excise duty cuts in the auto sector making cars cheaper. Excise duty on SUVs have been cut to 24% from 30%. Excise duty on Small cars, motor cycles, scooters and commercial vehicles have been cut to 8% from 12%. Excise duty on Large and Mid-segment cars have been cut to 20% from 24%. All these reduced rates will be applicable only upto June 30, 2014.
Students too will benefit with the FM proposing a moratorium period for interest paid on all education loans taken from PSU banks. In a relief to Indian students that have taken an education loan from PSU Banks, the Finance Minster announced a moratorium period for interest on all education loans taken from March 2009 to December 2013, the move will benefit 9 lakh students.
To encourage the domestic production of mobile handsets and reduce the dependence on imports, it is proposed to restructure the excise duty for category of mobile handsets. The rates will be 6% with CENVAT credit or 1% without CENVAT
The FM also announced that excise duty for capital goods and consumer goods will be cut to 10% from 12%.
He also announced service tax exemption on loading, unloading, storage of rice.
CA Raj K Agrawal
Faculty: CAclubindia
CAclubindia
