Power Proposed Expected Sunset clause for IT exemption Extension of sunset clause for power extended by another one year projects Rationalization of Indirect taxes i.e Additional depreciation of 20% merger of Electricity duty to power Cos Refund of ED for setting up of Import of Coal exempt from Mega/Ultra Mega projects customs for power projects and CVD at 1% Effect: On the whole, the removal of customs duty on coal importsand the availability of ECB for part financing the rupee debt make the Budgeta positive one for the power sector.
InfrastructureExpected ProposedIncrease in infrastructure Increased allocation ofspending through higher funds marginallyallocation to various Withholding Taxschemes reduction from 20% to 5%Tax Concessions on Interest on ECBEffect: Positive For the infrastructure sector.Steel demand from Infrastructure sector may
Agriculture Expected ProposedReduction in custom duties for Reduction in customsagricultural machinery duties for specifiedReduction in CD for fertilsers agricultural machinery Reduction in CD for fertilizers Effect: Positive For Fertilizer Industry and agro based indust
Automobiles Expected Proposed Increase in ED Increase in ED Full exemption from Customs Concession to fuel for parts of hybrid Vehicles efficient vehicles Increase of 60% to 75% in CD on large carsEffect: With the hike in budget on excise duty by 2% . The Car dealers have started charging higher price starting todayfrom customers quoting hike in excise duty. Even, Car partswhich are been imported has attracted duty of 75% from earlier 60%, thiswill force car makers to increase price of cars further going forward
Pharma & Healthcare Expected Proposed Infrastructure status to Healthcare Reduction in customs for Exemption of ED on physician samples specified raw materials for Reduction in duties for imports manufacture of medical Kits Service tax on Health care widened Effect: Overall, the budget did not have anything encouraging for the pharmaceutical sector.
India Income tax slabs 2012-2013 for General taxpayersIncome tax
GDP %10 9 8 7 6 5 4 3 2 1 0 2007-08 2008-09 2009-10 2010-11 2011-12 GDP Growth Rate In 2012-13 GDP expectation is
Fiscal Deficit 7.00% 6.00% 5.00% 4.00% 3.00% Fiscal Deficit 2.00% 1.00% 0.00% 2007-08 2008-09 2009-10 2010-11 2011-12Fiscal deficit as a % of GDPFiscal deficit at 5.1 per cent of GDP in BE 2012-13.
SERVICE TAXService Tax is a formof indirect tax imposedon specified servicescalled "taxableservices".
HOW A COMMON CAN BE AFFECTEDWITH HIKE IN SERVICE TAX(10% TO12%)
Things that increase in Service Tax will affect Telephone Bill Eating Out – Restaurants Gyms Car and Maintenance/Service/Rentals Cable TV Healthcare Life Insurance Premium Jewelry Holidays & Vacations
Impact of change in Service Tax & Excise Duty on various Sectors Healthcare Life Insurance Automobiles – Cars Jewelry Holidays & Travel Transportation
Ad that implies common man feelsburden to take health checkups Due to the hike in service tax CT SCAN now gets more costly and a common man feels difficult to go for health checkups because the scan machine cost the buyer more
Ad that implies Common man disappointing withhike in bills Man feels difficult Common man to maintain Man can survive could be maintain mobile with the by managing more mobiles hikes in mobile time to talk bills
Ad that implies family feels burden to purchase gold Family is Family facing willing to problem to buy gold buy gold due to hike in gold ratesBefore hike in gold After hike in gold rates
Ad that implies family struggling to get insurance A happy family Family struggling after paying to pay insurance insurance low since money is amount of money increasedBefore hike ininsurance After hike in
Ad that implies people feel uncomfortable due to increase in service tax People often People now give their washing their cars for cars washing themselvesBefore hike in service tax After hike in service tax
conclusionIt is not at all correct way to thinkthat a common man can notsurvive with the new unionbudget, because with the hikes inservice tax we can live byreducing our unnecessaryexpenses and can survive. a common man can leadhis life confidently even thoughthe prices reached sky, byminimizing his costs andexpenses