Customs duty on ipad is 14.71%

No change in Customs duty for ipad. It is still 14.71%. This is also same for laptop ,netbook, notebook ,tablet PC, and  personal computer (PC).

Customs duty on Flash memory is 9.52%

Now  import duty on flash memory  as media are : Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 3%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on  flash memory  is 9.52%.

Customs duty on Flash memory is 9.52%

Now  import duty on flash memory  as media are : Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 3%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on  flash memory  is 9.52%.

Customs duty on Combo drive is now 9.36%

Now  import duty on Combo drive are  Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 0%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on  Combo drive   is 9.36%.

Customs duty increased on dvd writer to 9.36%

Now  import duty on DVD  writer , Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 0%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on DVD  writer  is 9.36%.

Customs duty increased on hard disc drive to 9.36%

Now  import duty on  Hard  Disc Drive  are  : Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 0%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on Hard disc drive  is 9.36%.

Customs duty increased on CD ROM drive to 9.36%

Now  import duty on  CD drive , Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 0%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on CD drive  is 9.36%.

Customs duty increased on dvd drive to 9.36%

 Now  import duty on DVD drive , Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 0%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on DVD  is 9.36%.

Customs duty decreased on personal use goods imported through Post

 Now import duty on  personal use goods  have been reduced to 14.71%. The CTH is  9804. But goods should not be restricted under import policy.

Increase in Customs duty of Wireless data modem card and duty varies as per CENVAT availment

There are two  category  of duty on  wireless modem , one  for who claimed CENVAT credit and another who do not claim. If somebody is availing CENVAT credit on Wireless modem , then duty is  9.52 % of value, otherwise, it is 5.1 % of assessable value. The new changes in duty is on account of central excise duty ,which is  5 %  (if  CENVAT   claimed) and is 1 % (If  CENVAT not claimed as input).Relevant portion of
notification  is re -produced for easy  reference:
 [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
                                       New Delhi, the 1
st
March, 2011
NOTIFICATION
No.    1/2011-Central Excise
G.S.R.   (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the
Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby  exempts the  excisable  goods of the
description specified in column (3) of the Table below and falling under Chapter, heading,
sub-heading or tariff item of the First Schedule to the Central Excise Tariff Act, 1985 ( 5 of
1986), specified in the corresponding entry in column (2) of the said Table, from so much of
the duty of excise leviable thereon under the said Central Excise Act,  as is in excess of the 
amount calculated at the rate of 1% ad valorem:

Provided that nothing contained in this notification shall apply to the goods in respect
of which credit of duty on inputs or tax on input services has been taken under the provisions
of the CENVAT Credit Rules, 2004.........................................................


" SN 101 , 8517    ,  Wireless  data modem cards with PCMCIA or 
USB or PCI express ports"




Other notifications  , which is without exclusion of CENVAT  conditions is reproduced here:


Notification                                                                               New Delhi, the 1
st
March, 2011
No. 2/2011-Central Excise
G.S.R.      (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the
Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby exempts the excisable goods of the
description specified in column (3) of the Table below and falling under Chapter, heading,
sub-heading or tariff item of the First Schedule to the Central Excise Tariff Act, 1985 ( 5 of
1986), specified in corresponding entry in column (2) of the said Table, from so much of the
duty of excise leviable thereon under the said Central Excise Act,  as is in excess of the 
amount calculated at the rate of 5% ad valorem:

."  SN 61   ,     8517    ,Wireless data modem cards with PCMCIA or 

USB or PCI express ports "

 Excise duty  is base on MRP price  in India ,after appropriate abatement.

Customs duty on Mobile phone is increased after budget 2011

There are two  category  of duty on mobile phones ,iphone ,smartphone , one  for who claimed CENVAT credit and another who do not claim. If somebody is availing CENVAT credit on Mobile Phones , then duty is  6.37 % of value, otherwise, it is 2.12 % of assessable value. The new changes in duty is on account of central excise duty ,which is  5 %  (if  CENVAT   claimed) and is 1 % (If  CENVAT not claimed as input).Relevant portion of
notification  is re -produced for easy  reference:
 [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
                                       New Delhi, the 1
st
March, 2011
NOTIFICATION
No.    1/2011-Central Excise 
G.S.R.   (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the
Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby  exempts the  excisable  goods of the
description specified in column (3) of the Table below and falling under Chapter, heading,
sub-heading or tariff item of the First Schedule to the Central Excise Tariff Act, 1985 ( 5 of
1986), specified in the corresponding entry in column (2) of the said Table, from so much of
the duty of excise leviable thereon under the said Central Excise Act,  as is in excess of the 
amount calculated at the rate of 1% ad valorem:

Provided that nothing contained in this notification shall apply to the goods in respect
of which credit of duty on inputs or tax on input services has been taken under the provisions
of the CENVAT Credit Rules, 2004.


" SN 100 ,  8517 or 8525 60   , Mobile handsets including Cellular Phones and 
Radio trunking terminals.



Other notifications  , which is without exclusion of CENVAT  conditions is reproduced here:


Notification                                                                               New Delhi, the 1
st
March, 2011
No. 2/2011-Central Excise
G.S.R.      (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the
Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby exempts the excisable goods of the
description specified in column (3) of the Table below and falling under Chapter, heading,
sub-heading or tariff item of the First Schedule to the Central Excise Tariff Act, 1985 ( 5 of
1986), specified in corresponding entry in column (2) of the said Table, from so much of the
duty of excise leviable thereon under the said Central Excise Act,  as is in excess of the 
amount calculated at the rate of 5% ad valorem:




"  SN 60    ,    8517 or 8525 60 , Mobile handsets including Cellular Phones and Radio trunking terminals ".






 Excise duty  is base on MRP price  in India ,after appropriate abatement.

Duty reduced on LED TV

 Today's budget has reduced duty on LED  TV. Waiting for notification for exact  duty.

Income tax exemption for citizen in this Budget

 Direct Tax Code (DTC) will be effective from 1.4.2012.
Exemption limit  raised to Rs 1,80,000/= for general Tax payer.
Senior citizen age  reduced  form 65 Years to 60 Years and exemption limit is Rs 2,50 ,000/=
One more category of senior Citizen ,who are above 80 years, exemption limit is Rs 5,00,000/-.

No need to file IT return by Salaried people

 If  employer  has deducted TDS  from Salary ,then, Salaried employee need not to file  IT return.

Relief from litigation for small revenue locked

As per Govt litigation policy , Govt Department will not  appeal in higher  judicial forum ,if revenue involved is less than  prescribed by Govt. It will concentrate more on higher revenue realisation ,where  revenue involved is high.

Self Assessment of import duty is introduced for importer and exporter

Self assessment by importer  and exporter   is a  great step. It will reduce time of transaction and cost  of compliance with Customs formalities. Thus will lead more competitive  price of  Indian Goods  and improve
efficiency of Global Supply Chain. There will be random checks by Customs to prevent mis use of  self assessment practice. This scheme is operative in various form for past many years. But  ,now it is has been widen.   Detail procedure will be known only after  Notification or circular is issued by CBEC.

As per Task force of Ministry of Commerce, It is said that  reducing of transaction cost will yield saving of
  Rs 2100  Crore.

CBEC has EDI systems at  91 locations. Electronic filing and    CBEC web portal are great tool for reducing transaction cost.  Even  State Govts  have started accepting  Electronic Tax Returns.

Goods and Service tax ( GST) in this budget 2011-2012

Honourable FM has proposed that  he will introduce Constitutional   amendment for GST. Establishment of  national IT   network  will be back bone of effective GST regime. In June 2011 ,Pilot portal on GST, with collaboration  with 11 States ,will be launched. Lower rate of Central Excise duty is increased form  4 % to 5 %. Around 130 items of consumer nature , Central  Excise duty is reduced to 1%  ,in order to align with GST.

Lower limit of central excise duty is increased form 4 % to 5 % to align GST.

 Many States have increased  rate of VAT from  4 % to 5 %.  Therefore , FM has also increased  lower rate of Central Excise Duty from 4 % to 5 %.  Peak Basic rate of central Excise is 10 % only.
Net gain by Indirect tax  in this budget  is Rs 7,300 crore.

Less Excise duty on consumer goods to align with proposed GST

 Duty on Sanitary napkin  is reduced from 10 % to 1%.
 Around 130 items , mostly consumer goods, duty is reduced to 1 %. No cenvat credit is allowed on these items.

Reduce customs duty on work of art , exhibitions and Film Rolls

Exemption form duty on  Work of    Art for exhibitions ,
colour unexposed jubo reel, 10,000 and 4000 feets are exempted  form excise duty.