Monday, 4 March 2013

Major amendments for INDIRECT TAXES from BUDGET 2013


Major amendments for Indirect Tax from BUDGET 2013


Proposals under Indirect Tax - 

SERVICE TAX : - 
1.  No change in the normal rates of 12 percent for excise duty and service tax.
2.  Vocational courses offered by institutes affiliated to the State Council of Vocational Training and testing activities in relation to agricultural produce also included in the negative list for service tax.
3.  Exemption of Service Tax on copyright on cinematography limited to films exhibited in cinema halls.
4. Proposals to levy Service Tax on all air conditioned restaurant.
5.  For homes and flats with a carpet area of 2,000 sq.ft. or more or of a value of Rs. 1 crore or more, which are high-end constructions, where the component of services is
greater, rate of abatement reduced from from 75 to 70 percent.
6. onetime scheme called ‘Voluntary Compliance Encouragement Scheme’ proposed to be introduced. Defaulter may avail of the scheme on condition that he files truthful declaration of Service Tax dues since 1st October 2007.

EXCISE DUTY : - 
1.  Relief to readymade garment industry. In case of cotton, zero excise duty at fibre stage also. In case of spun yarn made of man made fibre, duty of 12 percent at the fibre stage.
2.  Handmade carpets and textile floor coverings of coir and jute totally exempted
from excise duty.
3.  To provide relief to ship building industry, ships and vessels exempted from excise duty. No CVD on imported ships and vessels.
4.  Specific excise duty on cigarettes increased by about 18 %. Similar increase on cigars, cheroots and cigarillos.
5.  Excise duty on SUVs increased from 27 to 30 %. Not applicable for SUVs registered as taxies.
6.   Excise duty on marble increased from Rs. 30 per square meter to Rs. 60 per square meter.
7.   Proposals to levy 4 % excise duty on silver manufactured from smelting zinc or lead.
8.  Duty on mobile phones priced at more than Rs. 2000 raised to 6 %
9.   MRP based assessment in respect of branded medicaments of Ayurveda, Unani, Siddha, Homeopathy and bio-chemic systems of medicine to reduce valuation disputes.

CUSTOM DUTY : -
1.  No change in the peak rate of basic customs duty of 10 perent for non-agricultural products.
2. Period of concession available for specified part of electric and hybrid vehicles extended upto 31 March 2015.
3. Duty on specified machinery for manufacture of leather and leather goods including footwear reduced from 7.5 to 5 %
4.  Duty on pre-forms precious and semi-precious stones reduced from 10 to 2 perent.
5.  Export duty on de-oiled rice bran oil cake withdrawn.
6.  Duty of 10 percent on export of unprocessed ilmenite and 5 percent on export on ungraded ilmenite.
7.  Concessions to air craft maintenaince, repair and overhaul (MRO) industry.
8.  Duty on Set Top Boxes increased from 5 to10 percent.
9.  Duty on raw silk increased from 5 to 15 percent.
10.  Duties on Steam Coal and Bituminous Coal equalised and 2 percent custom duty and 2 % CVD levied on both kinds coal.
11.  Duty on imported luxury goods such as high end motor vehicles, motor cycles, yachts and similar vessels increased.
12.  Duty free gold limit increased to Rs. 50,000 in case of male passenger and Rs.1,00,000
in case of a female passenger subject to conditions.

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