Zee Media Bureau
New Delhi: Though Finance Minister Arun Jaitley most indirect taxation proposal untouched, he did roll out a few changes along with allocations for a few key projects.
Jaitley said that in order to rationalize the MAT provisions for FIIs, profits corresponding to their income from capital gains on transactions in securities which are liable to tax at a lower rate, these shall not be subject to MAT.
He also proposed that education cess and the secondary and higher education cess to be subsumed in central excise duty.
The general rate of central excise duty of 12.36 per cent including the cesses will be rounded off to 12.5 per cent. The Ad-valorem rates of excise duty lower than 12 per cent and those higher than 12 per cent with a few exceptions are not proposed to be increased.
Excise duty on foot-wears with leather uppers and having retail price of more than Rs.1,000 per pair is proposed to be reduced to 6 per cent.
The Finance Minister said on-line central excise and service tax registration will be done in two working days. As a measure of business facilitation time limit for CENVAT credit on inputs and input services to be increased from 6 months to one year. Service tax plus education cess is proposed to be increased from 12.36 per cent to 14 per cent to facilitate transaction to GST.
He further said that excise duty of sacks and bags of polymers of ethylene other than for industrial use is proposed to be increased from 12 per cent to 15 per cent. He also mentioned an enabling provision to levy Swachh Bharat Cess at the rate of 2 per cent or less on all or certain services if need arises.
Jaitley said that services by common affluent treatment plant will be exempt from service tax. He also proposed concessions on customs and excise duty available to electrically operated vehicle and hybrid vehicle extended up to 31-03-2016.
Saying that cleanliness of households and clean environment are very important social causes, Jaitley proposed 100 per cent reduction for contribution, other than by way of CSR contributions, to the Swachh Bharat Kosh. A similar tax treatment is also proposed for the Clean Ganga Fund, he said.
The FM proposed an increase in clean energy cess from Rs 100 to Rs 200 per metric tonne of coal, etc. to finance clean environment initiatives.
