The Union Budget 2010-11 presented by the Finance Minister Shri Pranab Mukherjee in the Lok Sabha today, provides relief measures to promote clean environment. Clean energy cess on coal produced in India as well as on the imported, will be levied at a rate of Rs. 50 per tonne. The measure is aimed at building the corpus of the National Clean Energy Fund. A concessional custom duty of 5 per cent to machinery instruments, equipments and appliances etc. required for the initial setting up of photo voltaic and solar thermal power generating units have been proposed. They will also be exempted from the central excise duty. Ground source heat pumps used to tap geo-thermal energy have been exempted from basic customs duty and special additional duty.

Central excise duty on LED lights which are highly energy efficient source of energy has been reduced from 8 per cent to 4 per cent at par with compact fluorescent lamps.

To remedy the difficulty faced by manufacturers of electric cars and vehicle in neutralizing the duty paid on their inputs and components, a nominal duty of 4 per cent on such vehicles has been imposed. Some critical parts of sub-assemblies of such vehicles exempted from basic customs duties and special additional duty subject to actual user condition. These parts would also enjoy a concessional CVD of 4 per cent.

A concessional excise duty of 4 per cent has been provided to ‘Soleckshaw, a product developed by CSIR to replace manually operated rickshaws. Its key parts and components will be exempted from custom duty.

To encourage the use of bio-degradable materials, the import of compostable polymer has been exempted from basic customs duty.

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0 responses to “Special duty concessions to promote clean environment, Clean Energy Cess @ Rs. 50 per Tonne on Coal: Budget 2010-11”

  1. Binny says:

    we are an indian company. wanted to know that we want to buy coal from indonesia and sell the same to a co. in indonesia. all the billings will be done in the name of our indian co. but there will be no physical movement of goods from indonesia-india-indonesia. will these transactions attract any customs, excise duty or sales tax for my company?

  2. santosh says:

    Please advise we manufactur Led Torches and LED Lanterns.
    Excise reduction from 8% to 4% is applicable for these products or not.

    However someone has advised me that
    “declaration of “LED TORCH & LED LANTERN” are under Chapter heading 8513 of CENTRAL EXCISE TARIFF1985, which is seperate and differ @ 10%.”

    I am confused please advise

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