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Central Excise
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Excise duty on cigarette hiked by 5 %
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Cess on domestic crude hiked to Rs.22.50.
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Credit for excise duty on computer to be allowed.
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CFL lamps to attract only 8 % excise duty.
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Footwear with MRP of Rs.250-700 to attract only 8 % excise duty.
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Condensed milk and icecreams exempted from excise duty.
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8 % excise duty levied on packaged software & DVD drive.
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Excise duty reduced from 24 % to 16 % on small cars & aerated drinks.
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Excise duty on manmade and filament yarn reduced from 16 % to 8 % and customs duty
down to 10 %.
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CVD of 4 % in lieu of VAT imposed on all inports except a few; Credit to be allowed.
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Cancer and anti-AIDS drugs to attract only 5 % customs duty; No excise & CVD.
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Definition of captive consumption to be amended fro power generation.
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Excise duty on instant food cut to 8 %.
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Duty on packaging machines down to 5 % from 15 %.
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Excise duty abolition on branded foods.
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Excise duty on CFC reduced to 16 %.
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Increase in excise duty on computers.
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Duty for DTA clearance by EOU's.
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Customs
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Customs duty on refractories to be 7.5 %.
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Chemical catalysts to be 5 %; PVC + LDPE to attract only 5 %.
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Naphtha for plastic to attract nil rate. Duty on mineral products reduced to 5 %.
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Peak Customs duty for non-agri products to be 12.5 %; Duty on alloy steel to be
7.5 %; Duty on ore to be 2 %.
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Customs duty down to 10 % on manmade and filament yarn.
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Customs duty on major bulk plastics reduced from 10 % to 5 %.
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Customs duty cut on zinc.
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Duty cut on iron ore.
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Duty cut on vital drugs. Cancer & anti-AIDS drugs to attract only 5 % customs
duty; No excise & CVD.
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Cut in peak customs duty.
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Duty on inorganic chemicals cut to 10 %.
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Service Tax
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Service tax rate hiked to 12 %.
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Service tax scope for existing services widened;
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Service tax levied on ATM services; international air travel; business support service;
recovery agents and PR management services.
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Other
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Now new direct tax imposed. No change in rates of personal or corporate income tax.
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FBT exemption given to group insurance scheme upto Rs.one lakh; Tour & travel
FBT rate down to 5 %; Shipping & air travel down to 5 %.
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Cash withdrawal tax to continue till AIR system becomes reliable and robust.
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More transactions to be brought under PAN ambit.
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Anonymous donation to charitable institutions to be taxed.
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Section 80-l deadline extended to 2009 fro power projects.
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MAT rate increased from 7.5 % to 10 %. MAT credit period extended to 7 years.
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One-by-six scheme abolished.
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No FBT on free samples to doctor No FBT on payment to brand ambassadors.
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To remove 10 % cap on overseas investment by Mutual Funds.
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Inclusion of Fixed Deposits under Section 80C.
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Extension of tax breaks under Section 80IA
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Short Term Transaction tax hiked by 25 %.
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