The Finance Bill 2014, as introduced in the Lok Sabha today, 17.02.2014, is available for download. The highlights of the Budget are as follows:
Excise Duty
The Excise Duty on all goods falling under Chapter 84 & 85 of the Schedule to the Central Excise Tariff Act is reduced from 12 percent to 10 percent for the period upto 30.06.20 14. The rates can be reviewed at the time of regular Budget.
To give relief to the Automobile Industry, which is registering unprecended negative growth, the excise duty is reduced for the period up to30.06.2014 as follows:
· Small Cars, Motorcycle, Scooters and Commercial Vehicles – from 12 % to 8%
· 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 chassis and 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 CENVAT credit or 1 percent without CENVAT credit.
Service Tax
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.
Custom Duty
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 fatty alcohols 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domestic production of specified road construction machinery, the exemption from CVD on similar imported machinery is withdrawn.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 domestic production of security paper for printing currency notes.
Income Tax
No changes in Direct tax laws in interim budget
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