In a relief to realty sector and home buyers, Finance Miniser Pranab Mukherjee on Thusday announced tax concessions to the construction sector, which was brought under the ambit of service tax in this year’s Budget.
Queries are being received from various quarters as to whether in today’s context, Accounting Standard(AS)-30, Accounting Standard(AS)-31 and Accounting Standard(AS)-32 are required to be studied thoroughly for the examinations of the Institute, as they are included in the respective syllabus.
Notification No. 35/2010 – Customs (N. T.), New Delhi, 30th April, 2010- In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Board, being satisfied that it is necessary and expedient so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Cus (N. T.), dated, the 3rd August 2001, namely: –
Direct Taxes (Income Tax) – Relaxation announced by the Finance Minister in the Lok Sabha while replying to the debate on Finance Bill, 2010 onApril 29, 2010. While introducing the Finance Bill, 2010 in respect of Direct Taxes, emphasis has been on relief to individual taxpayers, encouraging research and development in the country, providing some relief measures in view of the recessionary impact and rationalization of procedure and steps to mitigate compliance cost.
The construction sector has requested for a review of the changes in the service tax law proposed in this year’s Budget. Several suggestions have been made by the trade associations. Considering all the inputs, I propose to provide tax relief to this sector by enhancing their rate of abatement from 67% to 75% of the gross value where such value includes the value of the land constructed upon. Certain procedural bottlenecks relating to the completion certificate prescribed in the law would also be simplified.
Full exemption from excise duty has been provided to betel nut product commonly known as ‘supari’. This exemption is now being extended to scented supari. Central excise duty on corrugated boxes and cartons was reduced from 8% to 4% when they are manufactured starting from kraft paper. I propose to extend the exemption to cover units that manufacture such cartons from corrugated paper or paperboard also.
The Coffee growers in the country have been facing long standing financial problems ever since the coffee prices fell to very low levels during the period 2000-2004. Relief Packages in the form of Special Coffee Term Loan 2002 and Special Coffee Relief Package 2005 were sanctioned to revive coffee sector, besides other initiatives like PM’s Relief Package for Debt Stressed farmers and Debt Waiver and Debt Relief Scheme 2008. However, a large number of affected growers did not get the required relief.
Considering the pressing need for more hospitals all over the country, it is proposed to include the business of a new hospital anywhere in India, with at least one hundred beds for patients, as a ‘specific business’ for availing the benefit of investment linked deduction.
The income-tax department has served service tax notices on IPL sponsors DLF, Adidas and Religare. Sources said the tax demand on DLF, the title sponsor which is supposed to pay Rs 40 crore a year as sponsorship fee for five years, was Rs 4.8 crore for the league’s first edition in 2008. Adidas and Religare sponsored teams.
The Lok Sabha on Thursday passed the Finance Bill for 2010-11, with a special relief package for coffee growers, and tax concessions for healthcare, auto and realty sectors, but without any change in the levies on petroleum products. Finance Minister Pranab Mukherjee moved the bill after the fresh amendments after a 50-minute final reply to the debate on the subject in the lower house of parliament, which was then passed by voice vote.
