: Brief highlights of this Budget concerning individual Income Tax, simplification of Customs clearance and change in Tax related to your Industry

Indirect tax

Basic Customs Duty    

Steel grade limestone and steel grade dolomite @2.5%.

Imported flat rolled products of stainless steel @7.5%.

Forged Steel Ring used in manufacture of bearings of wind operated electricity generated @5%.

Excise Duty

Exempt Central Excise Duty

Machinery and equipment required for setting up of a project for Solar Energy Production.

Forged Steel Rings

Forged Steel Ring used in manufacture of bearings of wind operated Generators.

Solar Power Project

Concessional Basic Customs Duty (BCD) of 5 percent is also being extended to machinery and equipment required for setting up of a project for solar energy production.

Exempting from Excise Duty:

        i.            EVA sheets and solar back sheets and specified inputs used in their manufacture;

      ii.            solar tempered glass used in the manufacture of solar photovoltaic cells and modules;

    iii.            flat copper wire for the manufacture of PV ribbons for use in solar cells and modules;

     iv.            machinery and equipment required for setting up of a project for solar energy production;

       v.            forged steel rings used in the manufacture of bearings of wind operated generators;

Wind Power Project

Reducing the Basic Customs Duty (BCD) from 10 percent to 5 percent on forged steel rings used in the manufacture of bearings of wind operated electricity generators.

Also exempted the SAD of 4 percent on parts and raw materials required for the manufacture of wind operated generators.

Clean Energy Cess

Increased the Clean Energy Cess from ` 50 per tonnes to `100 per tonnes.

Service Tax

No Change noticed related to your Industry.

                                            Easy made doing Business

Reduced interface with Governmental agencies, dwell time and the cost of doing business.

1. Extended existing 24x7 customs clearance facility to 13 more airports in respect of all export goods and to 14 more sea ports in respect of specified import and export goods.

 2. Under an 'Indian Customs Single Window Project' to facilitate trade, importers and exporters would lodge their clearance documents at a single point only. Required permissions, if any, from other regulatory agencies would be obtained online without the trader having to approach these agencies.

Scheme of Advance Ruling                                

The scheme of Advance Ruling in indirect taxes is being expanded to cover resident private limited companies. This will allow these companies to seek advance ruling in respect of new activities being proposed to be undertaken by them.

Scope of Settlement Commission

The scope of Settlement Commission is being enlarged to facilitate quick dispute resolution.

Disposal of Appeal

To expedite the process of disposal of appeals, amendments have been proposed in the Customs and Central Excise Acts with a view to freeing appellate authorities from hearing stay applications and to take up regular appeals for final disposal.

Change in Budget in Direct Tax and Transfer price

                                                 Direct Taxes

1.      Increase personal income tax exemption limit by `50,000

i)                    From ` 2 lakh to ` 2.5 lakh in the case of individual taxpayers who are below the age of 60 years.

ii)                  Raise the exemption limit from ` 2.5 lakh to ` 3 lakh in the case of senior citizens.

2.      No change in the rate of surcharge for the corporates and the individuals, HUFs, firms etc.

3.       The education cess for all taxpayers shall continue at 3 percent.

4.      Increased the investment limit under section 80C of the Income-tax Act from ` 1 lakh to ` 1.5 lakh.

5.      Increased the deduction limit on account of interest on loan in respect of self occupied house property from ` 1.5 lakh to ` 2 lakh.

Manufacturing Sector

Provided investment allowance at the rate of 15 percent to a manufacturing company that invests more than ` 25 crore in any year in new plant and machinery.

This benefit will be available for three years i.e. for investments upto 31.03.2017. The Scheme announced last year will continue to operate in parallel till 31.03.2015.

Extended the 10 year tax holiday to the undertakings which begin generation, distribution and transmission of power by 31.03.2017.

Treating capital gains the income arising to Foreign Portfolio Investors (FPIs)

 from transaction in securities.

Continued the concessional rate of tax at 15 percent on dividend received by Indian companies from their foreign subsidiaries without any sunset date.

Extended the eligible date of borrowing in foreign currency from 30.06.2016 to 30.06.2017 for a concessional tax rate of 5 percent on interest payments.

Also extended this tax incentive to all types of bonds instead of only infrastructure bonds.

                                  Transfer Pricing

Made certain changes in Transfer Pricing regulations.

(1)   To be strengthened the administrative set up of APA to expedite disposal of applications. Introduced a "Roll Back" provision in the APA scheme so that an APA entered into for future transactions may also be applied to international transactions undertaken in previous four years in specified circumstances.

(2)   In order to align Transfer Pricing regulations in India with the best available practices, Introduced range concept for determination of arm's length price. However, the arithmetic mean concept will continue to apply where number of comparable is inadequate. The relevant data is under analysis and appropriate rules will be prescribed.

(3)   As per existing provisions of Transfer Pricing Regulations, only one year data is allowed to be used for comparable analysis with some exception. Proposed to amend the regulations to allow use of multiple year data.

(4)   Necessary legislative amendments to give effect to the above proposals including those relating to the Authority for Advance Rulings and Income-tax Settlement Commission will be moved in the current session of the Parliament.

Duty Free Baggage Allowance has been increased by Rs. 10,000/- to make your foreign trip pleasurable.

Now  , the free baggage allowance is Rs 45,000.