--------- Forwarded message ----------
From:
AMIT VARAIYA <amitvaraiya@yahoo.com>Date: Wed, Mar 2, 2011 at 1:37 PM
| dear sir,
I tried to summarised the proposals as below and sending to u so that
it may be easy for u to understand it.
I DIRECT TAX
* MAT raised to 18.5%
* Special Economic Zones to come under MAT
* Cut surcharge on domestic cos to 5% from 7.5%
* 80 yrs and above individuals tax exempt upto 500,000 rupee
* I-T exemption for senior citizens 250,000 rupees
* Senior citizen tax limit now for 60 year olds
* Up tax exemption to 180,000 rupees FY12
* To introduce simpler returns form for presumptive tax
* No Tax returns for some salaried people soon
* Two more Central processing centres for income tax FY12
* Invest-linked deduction for affordable housing projects
* Tax sop for 20,000 rupee invest in infra bond stays
* Low withholding tax of 5% for notified infra funds
* I-T deduction for infra bond invest extended by 1 year
* Foreign dividend tax rate cut to 15% for Indian cos
TAX REFORMS
* Direct Taxes Code to be effective Apr 1, 2012
* Rollout of Direct Tax Code to be effective Apr 1, 2012
* Taking steps to simplify tax, tariff procedures
* Rollout of Direct Tax Code, GST to mark a watershed
* Will introduce GST Bill in current session
* Preparations for GST rollout in final stages
* GST rollout to be key factor in econ development
* NSDL chosen tech partner for GST Implementation
* GST dialogue with states has made considerable progress
* Scheme proposed for quicker refund of service Tax
* To introduce self-assessment in customs for fast clearance
* PSUs to issue tax-free bonds worth 300 bln rupee FY12
* Proposals of natl resources pricing panel likely in 3 mos
* Not to audit individuals with up to 6 mln rupee turnover
FARM, FOOD
* National Food Security Bill to be tabled this year
* Farm credit flow target 4.75 trln rupees FY12
* Propose to promote organic farming methods
* Have to sustain farm productivity in long term
* To give 3 bln rupee to up output of nutri-cereals
* 3 bln rupees for animal-based protein production
* 3 bln rupee to bring 60,000 ha under palm oil plantation
* To launch natl protein mission with 3 bln rupee corpus
* 3 bln rupees for higher production of millets
* To provide 3 bln rupees to raise vegetable production
* 4 bln rupees to eastern states for green revolution
* See 16.5 mln tn pulses output this year
* To give 3 bln rupees to promote pulses production, mkting
* To give 3 bln rupee to 6,000 villages for pulses farming
* To set up 5 bln rupee women self help development fund
* Farm development plan allocation hiked to 78.6 bln rupee
* Removing bottlenecks in fruits, vegetables, poultry supply
* Mulling nutrient-based subsidy policy for urea
* Farm goods storage capacity needs augmentation
* Approval to set up 15 more mega food parks in FY12
* To create 4 mln tn more food grain storage by Mar 2012
INDIRECT TAX
* Peak rate for customs duty unchanged in FY12
* Long-term commitment to cut customs duty to ASEAN levels
* Base rate on excise duty raised to 5% from 4%
* Central excise duty rate unchanged at 10% FY12
* To levy central excise duty of 10% on branded garments
* Basic food, fuel to be exempted from Central excise duty
* 1% central excise duty on 130 new items
* Service tax raised on international air travel by 250 rupees
* Service tax raised on local air travel by 50 rupees
* FY12 service tax standard rate unchanged at 10%
* No tax on services by individuals to other individuals
* Service tax to be levied on investment services by insurance cos
* FY12 service Tax levied on diagnostic services
* Air-conditioned restaurants serving liquor to be brought under service tax net
* Excise duty exemption for equipment used in warehouses
* To levy service tax on hotel stay costing over 1,000 rupees/day
* To levy services tax on some air-conditioned hospitals
* 1% excise duty on diapers, sanitary napkins
* Customs duty on raw pistachio cut to 10%
* Some imported film colour rolls exempted from excise duty
* No excise duty on select film rolls
* Ship owners allowed duty-free spare parts import
* Crude palm oil used in soap fully exempt from customs duty
* Pre-tanning chemicals for leather industry to be exempt from customs duty
* Enzyme-based chemicals in tanning to be custom duty exempt
* Bio-waste road making machines to be exempt from custom duty
* No excise duty on equipment for ultra mega power plants
* 5% excise duty on LED, no specified duty
* Some hybrid vehicles parts to get custom duty exemption
* Fuel cells to get concessional excise duty FY12
* Cut customs duty on petcoke, gypsum to 2.5%
* To replace excise with ad valorem duties for cement FY12
* Cash dispensers exempted from basic customs duty
* Withdraws export duty on iron ore pellets
* Cut basic customs duty on farm machinery to 2.5% from 5%
* Levies 20% ad valorem export duty on iron ore
* To cut import duty on inkjet printer parts to 5%
* Cut customs duty on yarn to 5% from 7.5%
* Aim to encourage domestic value addition in manufacturing
* Stainless steel scrap exempt from basic customs duty
* Cut customs duty on micro irrigation equipment to 5%
* Reduce basic customs duty on raw silk to 5%
* Customs duty micro-irrigation equipment cut to 5% FY12 from 7.4%
* Full excise exemption for refrigeration equipment for cold chain companies
* Net revenue gain from indirect tax proposals 73 bln rupees in FY12
* Customs on tunnel-boring machines for highways scrapped
* Bio-asphalt for roads to be exempt from customs duty
* Excise on local power equipment to be in line with customs
* 2.5% customs duty on planes for non-scheduled ops
* Customs duty on mineral gypsum cut to 2.5% from 5%
* Crude palm stearin for soaps exempt from customs duty
* Excise duty on kits to convert to hybrid vehicle cut to 5%
* Customs duty on petroleum coke cut to 2.5% from 5%
* De-oiled rice bran cake exempted from import duty
* 5% import duty on parts for DVD writer combo drive
* Customs duty on carbon black feedstock cut to 2.5% vs 5%
* Import duty of 5% on ink-jet and laser jet printers
* Custom duty on lactose for homeopathic drug cut to 10%
* Customs duty on solar lamps, lanterns cut to 5% from 10%
* Endo-vascular stents fully exempted from customs duty
* Custom duty on specified gems, jewellery machine cut to 5%
* Customs duty on rayon grade wood pulp cut to 2.5% from 5%
* Custom duty on nylon chips, fibre, yarn cut to 7.5% vs 10%
* 300 rupee/10 gm excise on gold bar from copper smelters
* Customs duty on caprolactum cut to 7.5% from 10%
* Custom duty on poly tetra methylene ether glycol cut to 5%
* 1,500 rupee/kg excise on silver made during gold refining
* Customs duty on acrylonitrile cut to 2.5% from 5%
* Exempts cinematographic films from excise duty
* Levies 1% excise duty on branded jewellery
* Cotton waste exempted from customs duty
* Cuts excise duty on grease-proof paper to 5%
* Some parts of sewing machines fully exempt from excise
* Extends 1% excise concession to water filters
* Pre-assembled engine, gear box excluded from CKD ambit
* Sugar, textile item exempt from Additional excise schedule
* Concessional 10% excise duty on factory-built ambulances
* Extends 10% excise duty on ambulances
* 10% duty plus 200 rupee/tn on cement bags from clinkers
* 10% duty plus 160 rupee/tn on over 190-rupee cement bags
* Concessional 10% excide duty on factory built ambulances
* 10% duty plus 80 rupee/tn on up to 190-rupee cement bags
* New Tax rates applicable to mini cement plants
* 10% duty plus 30 rupee/tn on over 190-rupee cement bag
* Levies 10% duty on cement bags not over 190 rupee/50 kg
* Excise duty on specified textile machinery halved to 5%
* 150 rupee/10 gm CVD on gold dore bars of upto 80% purity
* Customs duty on ferro nickel cut to 2.5% from 5%
* 10% export duty imposed on de-oil rice bran oil cake
INFRASTRUCTURE
* Infra sector FII cap for bonds with 5 yr residual maturity
* FII cap in infra corp bonds hiked to $25 bln; total corp bond limit $40 bln
* Fertiliser sector investment to be given infra status
* 50 bln rupees for takeout financing scheme
* Takeout financing plan implemented in 7 infra projects
* To give comprehensive pvt-public partner policy for infra
* IIFCL FY12 disbursement aim 250 bln rupee vs 200 bln FY11
* PPP model for creating public infrastructure successful
* Allocation of 2.14 trln rupees for infra sector FY12
* Farm sector cos to get invest deduction for capex
* Invest-linked deductions for fertiliser cos
MISCELLANEOUS
* To introduce public debt management Bill in FY11
* To bring bill to enable RBI to grant more banking licenses
* 1% interest subvention on home loan up to 1.5 mln rupee
* Upped priority home loan limit to 2.5 mln rupee vs 2 mln
* Aligarh Muslim University Murshidabad centre to get 500 mln rupees
* Aligarh Muslim University Kerala centre to get 500 mln rupees
* 2 bln rupee one time grant to IIT Kharagpur FY12
* Allocated 100 mln rupees to Delhi School of Economics
* National Knowledge Network to link 1,500 institutes by Mar 2012
* 50 bln rupees to SIDBI for refinancing small firms FY12
* Need to revisit exact definition for financial budget concepts
* Central electronic registry to prevent loan scams
* New series of coins with Indian rupee symbol soon
* To amend the Indian Stamp Act
thanks
Best Regards
A. V. Consultancy
Bhavnagar | |
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