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specified road construction machinery, the exemption from Counter Vailing Duty (CVD) on similar imported machinery is withdrawn.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.