Highlights of Interim Budget 2014-15: excise duty reduced on cars and mobiles, FM focuses on passing of GST and DTC

Key Features of Interim Budget 2014-2015

1)  GST and DTC: All political parties must resolve to pass the GST Laws and the DTC in 2014-15;

2)  Research funding organization: Proposal to set-up research Funding Orgnaisation that will fund Research. Contribution to that organisation will be eligible for tax benefits;

3) Change in rate of taxes:

a)  Excise duty on small Cars, Motorcycle, Scooters and Commercial Vehicles reduced from 12% to 8%.

b)  Excise duty on SUVs reduced from 30% to 24%.

c)  Excise duty on large and mid-segment cars reduced from 27/20% to 24/20%.

d)  Excise duty on chassis and trailors reduced.

e)  The excise duties on all mobile handsets have been restructured. The rates will be 6% with CENVAT credit or 1 percent without CENVAT credit.

f)  To encourage domestic production of specified road construction machinery, the exemption from CVD on similar imported machinery is withdrawn.

g)  A concessional custom duty of 5 percent on capital goods imported by the ‘Bank Note Paper Mill India Private Limited’ is provided for to encourage domestic production of security paper for printing of currency notes.

4) Service tax exemptions:

a)  The loading and un-loading, packing, storage and warehousing of rice have been exempted from service tax;

b)  The services provided by cord blood banks are exempted from service tax.