Contents
EY and Economic Times - Budget Poll
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