Changes in Tax Rates
Following changes in some indirect tax rates are proposed:
• States to partner in development so as to enable the Centre to focus on Defence,Railways, National Highways and Tele communication.
• The Excise Duty on all goods falling under Chapter 84 & 85 of the Schedule tothe Central Excise Tariff Act is reduced from 12 percent to 10 percent for theperiod upto 30.06.2014. The rates can be reviewed at the time of regular Budget.
• To give relief to the Automobile Industry, which is registering unprecended negativegrowth, the excise duty is reduced for the period up to 30.06.2014 as follows:
Small Cars, Motorcycle, Scooters – from 12 % to 8%
and Commercial Vehicles
SUVs – from 30% to 24%
Large and Mid-segment Cars – from 27/24% to 24/20%
• It is also proposed to make appropriate reductions in the excise duties on chassisand trailors – The rates can be reviewed at the time of regular Budget
• To encourage domestic production of mobile handsets, the excise duties for all categories of mobile handsets is restructured. The rates will be 6% with CENVATcredit or 1 percent without CENVAT credit.
• To encourage domestic production of soaps and oleo chemicals, the custom duty structure on non-edible grade industrial oils and its fractions, fatty acids and fattyalcohols is rationalized at 7.5 percent.
• To encourage domestic production of specified road construction machinery, the exemption from CVD on similar imported machinery is withdrawn.
• A concessional custom duty 5 percent on capital goods imported by the Bank Note Paper Mill India Private Limited is provided to encourage domesticproduction of security paper for printing currency notes.
The loading and un-loading, packing, storage and warehousing of rice is exempted from Service Tax.
The services provided by cord blood banks is exempted from Service Tax.