Budget-2011-12

KEY FEATURES OF BUDGET-2011-12

PART-A SOCIAL

Þ Funds get leaked during implementing any social schemes meant for public development

Þ Focus on e-projects to eliminate corruption and bureaucratic hurdles

Þ Task force on direct transfer of subsidy on kerosene, LPG and fertilizers to needy

Þ More liberalization in FDI Policy expected

Þ To prevent multiple lending of same properties, Central Electronic Registry under SARFAESI Act be created by 31.03.2011

Þ Justice B.N.Krishna Committee reviewing all financial sector laws, rules and regulations

Þ State Governments to review Agricultural Produce Marketing Acts

Þ Comprehensive Manufacturing policy

Þ To deal with issue of black money, proposing to introduce new law

Þ To introduce National Food Security Bill

Þ Broadband connectivity be available in 2,50,000 Panchayat in three years

Þ Remuneration of Anganwadi Workers increased from Rs.1500 to Rs.3000

Þ Remuneration of Anganwadi Helpers increased from Rs.750 to Rs.1500

Þ Relaxed exit norms of subscriber of “Swavalamban”

Þ Eligibility under Indira Gandhi National Old Age Pension Scheme for BPL beneficiaries reduced from 65 to 60 years

Þ Allocated Rs.1000 Crore to enhance judicial infrastructure and e-courts

Þ Indian Stamp Act, 1899 be reviewed

Þ All district Stamp and Registration administration be modernized in next 9 years

Þ Introduced constitutional amendment bill to roll out GST

Þ Model GST for Central and State be made available to all

Þ IT Infrastructure for roll out of GST is in final stage

Þ NSDL will setup a Pilot Portal for GST in collaboration will 11 states by June 2011

PART-B PERSONAL TAXATION

Þ Exemption limit of Individual Tax payers enhanced from Rs.1.60 Lacs to Rs.1.80 Lacs

Þ Lowered qualifying age of senior citizen to 60 years and enhanced exemption limit from Rs.2.40 Lacs to Rs.2.50 Lacs

Þ Exemption limit for very Senior Citizen above the age of 80 years is Rs.5.0 Lacs

Þ Reduced surcharge on domestic company from 7.5 % to 5%

Þ Increased MAT on companies from 18% to 18.5% on book profits

Þ levied MAT on developers of SEZ and Units operating in SEZs

Þ Direct Tax Code will be implemented by 1.04.2012

PART-C CUSTOMS

DUTY IMPACT

Þ Basic Customs Duty maintained @10%

Þ All items attracting BCD @ 2% or 3%, would now be chargeable to BCD @ 2.5%

Þ Imposed Export Duty @10% on De-oiled rice bran oil cake

Þ SAD exempted on goods cleared from SEZ to DTA subject to such goods are not exempted from VAT

Þ BCD reduced from 10% to 5% on solar lantern or lamps

Þ Edovascular stents fully exempted from BCD of 5%

Þ Concessional import duty regime of 5% of BCD, CVD and Nil SAD is being prescribed for raw materials used in manufacture of syringes, needles, catheters, cannulae on actual user basis

Þ Reduced BCD from 25% to 10% on Lactose used in Homoeopathic medicines

LEGISLATIVE CHANGES

Þ Self-assessment in introduced in Customs Clearance

Þ Enhanced limitation to claim refund from 6 months to 1 year (Section 27)

Þ Section 110A amended allowing adjudicating authority to allow release of seized goods as earlier by Commissioner of Customs

Þ First charge on property of the defaulter for recovery of customs dues

Þ Balance sale proceeds of unclaimed cargo to be paid to Government, if not claimed by owner within 6 months

PART-D EXCISE

DUTY IMPACT

Þ General rate of duty maintained @ 10%

Þ Goods attracting 4% of duty, hitherto attract 5%

Þ Imposed a duty of 1% on 130 specified items without CENVAT facility

Þ Imposed a duty of 10% on branded ready-made garments and made-ups

Þ Imposed a duty of 5% on automatic looms and projectile looms

Þ Imposed a duty of 5% on CPU

Þ AC Equipments used in cold-storage exempted from duty

Þ Conveyor belt systems used in cold-storage exempted from duty

Þ Duty reduced from 10% to 1% on sanitary napkins, baby and clinical & adult diapers

Þ Taxi Refund Scheme extended to vehicles carrying 13 person

Þ Cotton Stalk Particle Boards exempted from duty

Þ Duty reduced from 10% to 5% on greaseproof and glassine papers

Þ 1% Duty imposed on branded jewellery & articles of precious metals

LEGISLATIVE CHANGES

Þ Section 4A of CEA aligned with new Legal Metrology Act

Þ Section 11A, 11AA, 11AB and 11AC are redrafted.

Þ Proceeding will be concluded if duty along with interest and specified penalty is paid before issuance of SCN

Þ Inserted new Section 11E, which creates first charge on property of defaulter for recovery of excise dues

Þ Joint Commissioner/Add.Comm. or Officers authorized by such JC/AC to carry out search and seize of documents secreted in any place

Þ Beverages, sprits and vinegar products brought under deemed manufacturing

Þ Process of converting into concentrates shall amount to manufacture in Chapter-26

Þ Process of refining door bar shall amount to manufacture in Chapter-71 (Precious Metals)

Þ Process of galvanization shall amount to manufacture in Chapter-72

PART-E SERVICE TAX

Þ Introduced Two new services

Þ “Services by AC Restaurants having license to serve liquor”

Þ “Short term accommodation in hotels/inns/clubs/guest houses”

Expansion of scope of existing services

Þ Authorized Service Station’s services

Þ Life Insurance Service

Þ Commercial Training & Coaching Service

Þ Club or Association Service

Þ Business Support Service

Þ Service by Legal Professionals

Þ Service provided by clinical establishments

LEGISLATIVE CHANGES

Þ Maximum penalty for delay in filing return increased from `2000 to `20,000

Þ Interest rate for delayed payment of Tax is being increased to 18% P.A.

Þ Maximum penalty under Section 77 for contravention of various provisions is proposed to be increased from Rs.5000 to Rs.10,000

Þ Power to issue Search Warrant

Þ Prosecution proposed to be introduced

Þ Individual and Sole Proprietor assessees with turnover upto Rs.60 Lacs not subject to audit

Þ Tax levied on lawyers representing a business entity before any Court

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