Highlights of interim Union Budget 2014-2015 Tax proposal

The Union Finance Minister Mr. P Chidambaram presented an Interim Budget for 2014-15. For the period up to June 30, 2014, Mr. Chidambaram reduced excise duty on:

  • (a)   Capital goods and consumer non-durables (falling under Chapter 84 and 85 of the Schedule to the Central Excise Tariff Act): from 12 to 10 %.
  • (b)   Small cars, motors cycles, scooters and commercial vehicles:  from12% to 8%.
  • (c)    Sports Utility Vehicles, SUVs:  from 12% to 8%
  • (d)   Large & Mid-segment Cars: from 27/24% to 24/20%.

Other Key highlights of Budget 2014-2015 Tax proposal

  • No change in income tax rates.
  • Proposed to make appropriate reductions in the excise duty on chassis and trailers.
  • Excise duty on mobile hand set to be 6% on CENVAT credit to encourage domestic production.
  • The custom duty structure on non-edible grade industrial oils and its fractions, fatty acids and fatty alcohols is reduce to 7.5% to encourage domestic production of soaps and oleo chemicals.
  • To encourage domestic production of specified road construction machinery, the exemption from Counter Vailing Duty (CVD) on similar imported machinery is withdrawn.
  • A concessional custom duty 5 % on capital goods imported by the Bank Note Paper Mill India Private Limited is provided to encourage domestic production of security paper for printing currency notes.
  • The loading and un-loading, packing, storage and warehousing of rice are exempted from Service Tax.

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