The Service tax rate has been raised from 10 per cent to 12 per cent. Presenting the Union Budget 2012-13 in Lok Sabha today, the Union Finance Minister ShriPranab Mukherjee said that to maintain a healthy fiscal situation, the Government has raised the service tax with consequential changes in rates from services that have individual tax rates.
Measures Introduced to Allow Corporates to Access Lower Cost Funds; Promote Higher Level of Investments in Several Sectors. Rate of Withholding Tax on Interest Payments on ECBs Proposed to be Reduced to 5 Per Cent From 20 Per Cent. Restriction on Venture Capital Funds to Invest in Specified Sectors Removed. Rate of Investment Linked Deduction of Capital Expenditure Proposed to be Enhanced to 150 Per Cent; New Sectors Added
The Union Finance Minister ShriPranab Mukherjee while presenting the Union Budget for 2012-13 has announced to reduce basic customs duties on plant and machinery imported for setting-up of iron ore pellet plants or iron ore beneficiation plants from 7.5 percent to 2.5 percent. In his Budget Speech in LokSabha today, the Finance Minister proposed to reduce basic customs duty on coating material for manufacturing of electrical steel from 7.5 percent to 5.0 percent. On nickel ore and concentrate and nickel oxide/ hydroxide, the duties have been reduced to NIL from 2.5 percent or 7.5 percent. In other proposals, export duty on chromium ore has been enhanced from Rs. 3,000/- per tonne to 30 percent ad valorem. Basic customs duty on non-alloy, flat rolled steel has been proposed to enhance from 5 percent to 7.5 percent.
Following is the text of the Prime Minister, Dr. Manmohan Singh’s interview after the Union Budget 2012-13: Question – There was a decline in our GDP growth. It is now 6.9% – that was a wake-up call. Hopefully we’re now awake. What do you see in the budget as a response to the wake-up call?
Budget, 2012 has brought a facility of transferring Cenvat Credit for the manufacturer having more than one registered premises. Notification No. 18/2012-Central Excise(Non-Tariff) dated 16.3.2012 has been issued in this regard which is effective from 1.4.2012. This notification says that Cenvat balance of special additional duty (SAD) lying with any of the premises can be transferred to any other premises of the same manufacturer who have obtained the common Permanent Account Number.
The Finance Bill 2012 was introduced today, 16.3.2012, in Parliament. Download the Bill dealing with Rates of Income Tax , Income Tax, Wealth Tax , Customs Duty, Excise Duty, Service Tax, Amendments to the FRBM Act, 2003 and others.
The Finance Minister in his budget speech proposed to raise basic exemption limit from Rs.1.8lacs to Rs.2lacs resulting in tax savings of Rs.2000. For the income above the basic exemption limits, new tax slabs have been announced too. Rs. 2 Lacs to Rs. 5 lacs – 10% , Rs. 5 lacs – Rs.10 Lacs – 20% and above Rs.10 lacs – 30%.
The Power Point Presentation (PPT) file highlights Key Features of Budget 2012-13. File Covers Direct and Indirect Tax Provisions in a very crisp manners.
1. Income tax exemption limit raised to Rs.2 lakh to provide relief of relief of Rs.2,000 for assessee in this category; 20 percent tax on income over Rs.10 lakh, up from Rs.8 lakh. 2. No change in corporate tax 3. Deduction of up to Rs.10,000 from interest from savings bank accounts
It is proposed to insert a new section 546B so as to provide rollover relief from long term capital gains tax to an individual or an HUF on sale of a residential property (house or plot of land) in case of re-investment of sale consideration in the equity of a new start-up SME company in the manufacturing sector which is utilized by the company for the purchase of new plant and machinery.
