TAXATION * Aims to approve goods and services tax by end of this year * Will not change rules on retrospective tax. All pending cases of retrospective tax for indirect transfers to be examined by a high-level committee before action is taken * Proposes changes in transfer pricing mechanism * Extends 5 percent withholding tax on corporate bonds until June 30 2017 * Will provide the necessary tax changes to introduce real estate investment trusts and infrastructure investment trusts FM proposes cut in basic customs duty on some petrochemical units Announces increased excise duty on tobacco products, and aerated water products with added sugar Announces reduction in excise duty for specified food package industry from 10% to 6%. New tax slabs: Upto 2.5 lakh - NIL; Above 2.5-5 lakh - 10%; Rs 5-10 lakh - 20%; Above Rs 10 lakh - 30% ; SrCitizen: Above 60(Upto 3lakh)/Above 80(Upto Rs 5 lakh)-NIL Basic customs duty on colour picture tubes scrapped To hike tax rates to 20% for transfer of MF units Impact: Duty reduced in petrochemcial products, likely to impact Reliance's margins from this business Impact: Fatty acid and glycerine duty reduced -- to benefit soap manufacturers Propose to introduce range concept in transfer pricing Impact: Capital goods sector can benefit from investment allowance of 15% for 3 yrs to manufacturing company which invest more than Rs 25 crore in plant and machinery Tax announcements by FM
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Budget India 2014 > India Budget July 2014 >