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Key updates from the Union Budget 2013
  • GAAR to override DTAA contrary to Shome committee recommendations
  • Exemption of excise duty on readymade garments; positive textile sector 
  • Excise duty on marble slabs increased: negative for real estate
  • Excise duty exemption on ships and vessels: positive for shipping
  • No cascading effect of DDT on dividend received from foreign companies
  • Reduced custom duty on dehulled oat grains: positive for FMCG companies
  • For SUVs, other than those registered as taxis, basic excise duty increased from 27% to 30%
  • Concessions for environment friendly vehicles extended up to 31 March 2015
  • For imported motor cycles with 800 cc engine capacity and up, basic duty increased from 60% to 75%.
  • Promotion of IDFs and tax free bonds will provide low cost funds to infrastructure sector
  • Debt segment on stock exchange will boost funding to infrastructure sector
  • 17% hike in allocation for Education sector
  • Tax holidays to provide a big boost to investment
  • Foreign trade policy changes to benefit exporters
  • Additional interest deduction on housing loan positive for real estate
  • Housing loan interest to save INR30,900 for tax payer in the 30% bracket
  • Zero customs duty on Plant & Machinery positive for semiconductor industry
  • Additional housing loan deduction of INR0.1million interest on new housing loans positive for Real Estate
  • Investment allowance of 15% for investment in plant and machinery between 13 April to 15 March a good move.
  • Customs duty exemption for semiconductor projects a good move for tech sector
  • Basic customs duty on imported luxury cars increased from 75% to 100%.
  • CBDT circular on DTAA appears diluted.
  • Buyback by an unlisted entity will be more expensive for shareholder.
  • Foreign technology to cost more with rise in TDS rates.
  • Increase in effective tax rate by 2.3% for foreign companies.
  • 33.99% effective tax rate for domestic companies with income over INR100mn.
  • 21% Effective MAT rate for domestic companies.
  • SIDBI's re-financing facility to benefit Micro Small and Medium Enterprises