CENTRE GOES FORWARD

Jul 11 2014 : The Economic Times (Bangalore)

CENTRE GOES FORWARD





The budget contained a number of steps aimed at giving a boost to manufacturing, which will play a critical role in the government's bid to generate jobs and revive growth

BUDGET AT A GLANCE : INDIRECT TAX PREDICTABILITY Measure Advance ruling extended to resident private companies for indirect taxes Impact Private companies will now be able to ascertain their tax liability of customs and excise duties and service tax beforehand. This will bring predictability in taxation and help them plan their businesses better ONLINE ADS Measure Service tax exemption on online/mobile ads withdrawn Impact Companies advertising their products online will now have to pay service tax. This will hurt e-commerce business INVERTED DUTY Measure Reduction in import duty on many inputs than on final good Impact Higher duty on inputs than finished goods discouraged local manufacturing. Correction of inverted duty will reverse that FOREIGN COS Measure Service tax imposed on marketing of products for foreign companies Impact Will hurt domestic cos providing marketing support to foreign cos. MNCs carrying market research, sourcing services for foreign parent will also bear the brunt MADE IN INDIA Measure Customs duty on computer & TV components lowered, imposed on telecom equipment Impact The removal of customs duty on picture tubes and LCD panels and imposition of education cess on imported electronic products will encourage local manufacture that has been hit by imports BRANDED PETROL Measure Excise on branded petrol cut from `7.50/litre to `2.35/litre Impact Will cut price differential between cleaner branded petrol and unbranded petrol. Will promote use of eco-friendly petrol