Many Exemption Notifications done away.

Tax GDP ratio to go up by 11.2 % from 10.5 %

Central Excise

1. 1.  Excise duty on cigarette hiked by 5 %

2. 2.  Cess on domestic crude hiked to Rs.22.50.

3. 3.  Credit for excise duty on computer to be allowed.

4. 4.  CFL lamps to attract only 8 % excise duty.

5. 5.  Footwear with MRP of Rs.250-700 to attract only 8 % excise duty.

6. 6.  Condensed milk and icecreams exempted from excise duty.

7. 7.  8 % excise duty levied on packaged software & DVD drive.

8. 8.  Excise duty reduced from 24 % to 16 % on small cars & aerated drinks.

9. 9.  Excise duty on manmade and filament yarn reduced from 16 % to 8 % and customs duty down to 10 %.

10. 10. CVD of 4 % in lieu of VAT imposed on all inports except a few; Credit to be allowed.

11. 11. Cancer and anti-AIDS drugs to attract only 5 % customs duty; No excise & CVD.

12. 12. Definition of captive consumption to be amended fro power generation.

13. 13. Excise duty on instant food cut to 8 %.

14. 14. Duty on packaging machines down to 5 % from 15 %.

15. 15. Excise duty abolition on branded foods.

16. 16. Excise duty on CFC reduced to 16 %.

17. 17. Increase in excise duty on computers.

18. 18. Duty for DTA clearance by EOU's.

Customs

1. 1.  Customs duty on refractories to be 7.5 %.

2. 2.  Chemical catalysts to be 5 %; PVC + LDPE to attract only 5 %.

3. 3.  Naphtha for plastic to attract nil rate. Duty on mineral products reduced to 5 %.

4. 4.  Peak Customs duty for non-agri products to be 12.5 %; Duty on alloy steel to be 7.5 %; Duty on ore to be 2 %.

5. 5.  Customs duty down to 10 % on manmade and filament yarn.

6. 6.  Customs duty on major bulk plastics reduced from 10 % to 5 %.

7. 7.  Customs duty cut on zinc.

8. 8.  Duty cut on iron ore.

9. 9.  Duty cut on vital drugs. Cancer & anti-AIDS drugs to attract only 5 % customs duty; No excise & CVD.

10. 10. Cut in peak customs duty.

11. 11. Duty on inorganic chemicals cut to 10 %.

Service Tax

1. 1. Service tax rate hiked to 12 %.

2. 2. Service tax scope for existing services widened;

3. 3. Service tax levied on ATM services; international air travel; business support service; recovery agents and PR management services.

4.  

Other

• 1.  Now new direct tax imposed. No change in rates of personal or corporate income tax.

• 2.  FBT exemption given to group insurance scheme upto Rs.one lakh; Tour & travel FBT rate down to 5 %; Shipping & air travel down to 5 %.

• 3.  Cash withdrawal tax to continue till AIR system becomes reliable and robust.

• 4.  More transactions to be brought under PAN ambit.

• 5.  Anonymous donation to charitable institutions to be taxed.

• 6.  Section 80-l deadline extended to 2009 fro power projects.

• 7.  MAT rate increased from 7.5 % to 10 %. MAT credit period extended to 7 years.

• 8.  One-by-six scheme abolished.

• 9.  No FBT on free samples to doctor No FBT on payment to brand ambassadors.

• 10. To remove 10 % cap on overseas investment by Mutual Funds.

• 11. Inclusion of Fixed Deposits under Section 80C.

• 12. Extension of tax breaks under Section 80IA

• 13. Short Term Transaction tax hiked by 25 %.

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