The duty-free
allowance for eligible passengers of Indian origin from Rs 25,000 to Rs 35,000 and for
children of up to 10 years from Rs 12,000 to Rs 15,000
Friday, March 16, 2012
Budget Highlights 2012-2013 for INDIRECT TAX
Budget
Highlights 2012-2013
INDIRECT TAX
Service Tax
Sevice tax confronts challenges of
its share being below its potential, complexity
in tax law, and need to bring it closer
to Central Excise Law for eventual transition
to GST.
Overwhelming response to the new
concept of taxing services based on negative
list.
Proposal to tax all services except
those in the negative list comprising of 17
heads.
Exemption from service tax is
proposed for some sectors.
Service tax law to be shorter by
nearly 40 per cent.
Number of alignment made to
harmonise Central Excise and Service Tax. A
common simplified registration form and
a common return comprising of one
page are steps in this direction.
Revision Application Authority and
Settlement Commission being introduced in
Service Tax for dispute resolution.
Utilization of input tax credit
permitted in number of services to reduce cascading
of taxes.
Place of Supply Rules for
determining the location of service to be put in public
domain for stakeholders’ comments.
Study team to examine the
possibility of common tax code for Central Excise
and Service Tax.
New scheme announced for
simplification of refunds.
Rules pertaining to point of
taxation are being rationalised.
To maintain a healthy fiscal
situation proposal to raise service tax rate from 10
per cent to 12 per cent, with
corresponding changes in rates for individual services.
Proposals from service tax expected
to yield additional revenue of `18,660 crore.13
Other proposals for Indirect Taxes
Given the imperative for fiscal
correction, standard rate of excise duty to be
raised from 10 per cent to 12 per cent,
merit rate from 5 per cent to 6 per cent and
the lower merit rate from 1 per cent to
2 per cent with few exemptions.
Excise duty on large cars also
proposed to be enhanced.
No change proposed in the peak rate
of customs duty of 10 per cent on nonagricultural goods.
To stimulate investment relief
proposals for specific sectors - especially those
under stress.
Basic Customs duty on car has been increased from 60% to 75% in Budget.
Basic Customs duty on car has been increased from 60% to 75% in Budget.
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