Indirect Taxes in Union Budget 2013-14

Suresh Nain 4112033021 SOURCE : Economictimes.com, Moneycontrol.com Date:- 05-03-13

Indirect Taxes
Paid by consumers when they buy goods and services. Customs duty is the charge levied when goods are imported into the country, and is paid by the importer or exporter. Excise duty is a levy paid by the manufacturer on items manufactured within the country. Usually, these charges are passed on to the consumer.
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ESTIMATION OF TAX Finance Minister tax proposals on the direct taxes side are estimated to yield Rs.13,300 crore and on the indirect taxes side Rs.4,700 crore.

BUDGET 2013-14
1. To raise excise duty on non-taxi SUVs to 30% Vs 27% Impact :1.The biggest hit will be on M&M, which has a lion's share of almost 48% in the segment. 2.This will also impact on Toyota.
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2. SED on cigarettes hiked by 18%. Similar increases are proposed on cigars, cheroots and cigarillos. Impact :1.This will decrease the sale and consumption. 2.This will increase in the sale of substitute of the cigarettes.

3. Import duty on luxury cars hiked to 100% from 50%. 4. Import duty on luxury bikes hiked to 75% from 60%. Motorcycles with engine capacity of 800cc Impact :Increase in import duty will make it easier for companies to look at locally assembly.

5. To up import duty on set-up boxes to 10% from 5%. In the last month, the price already hiked so this is the additional burden. 6. No change in standard rate of excise duty. same as 12%

7. There will be no change in the peak rate of basic customs duty of 10 % for nonagricultural products. 8. There will also be no change in the normal rate of excise duty of 12 %. 9. Normal rate of service tax is same 12%.

10. Reduce the duty on specified machinery for manufacture of leather and leather goods, including footwear, from 7.5% to 5%.

leather goods will become cheaper.

11. Reduce the duty on pre-forms of precious and semi-precious stones from 10% to 2%.

12. The government to impose a duty of 10 per cent on export of unprocessed ilmenite. 13. 5 per cent on export of upgraded ilmenite.

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14. The baggage rules permitting eligible passengers to bring jewellery The duty-free limit Rs 50,000 for male passenger and Rs 100,000 for female passenger, subject to the usual conditions.

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15. To levy 4 per cent excise duty on silver manufactured from smelting zinc or lead. 16. Mobile phones priced at more than Rs 2,000, to raise the duty to 6%. Mobile phones will become costly.

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