Union Budget 2013-14 Manufacturing Industry Presented By Pratik Raghani Hardik Nathavani Hardik Joshi Dinesh Kothiya Marwadi Education Foundation Hiren Bavisa Rajkot Yogendrasinh Jadeja
UNION BUDGET 2013-14• Union Finance Minister P Chidambaram on 28 February 2013 tabled the Union budget in the Lok Sabha of Parliament for the financial year 2013-14.• In the Union Budget 2013-14, the prices of various commodities and products dwindled. While some of the products witnessed a rise in the price because of an increase in the customs duty, others saw a decline. Prices of some other products, on the other hand remained unaltered because of no change in the customs duty.
Micro, Small and Medium Enterprises1. Benefits or preferences enjoyed by MSME to continue upto three years after they grow out of this category.2. Refinancing capacity of SIDBI raised to ` 10,000 crore.3. Another sum of ` 100 crore provided to India Microfinance Equity Fund.4. ‰A corpus of ` 500 crore to SIDBI to set up a Credit Guarantee Fund for factoring.‰
Micro, Small and Medium Enterprises5. A sum of ` 2,200 crore during the 12th Plan period to set up 15 additional Tool Rooms and Technology Development Centres with World Bank assistance.6. ‰ Ministry of Corporate Affairs to notify that funds provided to technology incubators located within academic Institutions and approved by the Ministry of Science and Technology or Ministry of MSME will qualify as CSR expenditure.
Textiles1. Technology Upgradation Fund Scheme (TUFS) to continue in 12th Plan with an investment target of ` 1,51,000 crore.2. ‰Allocation of ` 50 crore to Ministry of Textile to incentivise setting up Apparel Parks within the SITPs to house apparel manufacturing units.‰
Textiles3. A new scheme called the Integrated Processing Development Scheme will be implemented in the 12th Plan to address the environmental concerns of the textile industry.4. ‰ Working capital and term loans at a concessional interest of 6 per cent to handloom sector.5. ‰Scheme of Fund for Regeneration of Traditional Industries (SFURTI) extended to 800 clusters during the 12th Plan.
Custom1. Duty on specified machinery for manufacture of leather and leather goods including footwear reduced from 7.5 to 5 percent.2. Duty on raw silk increased from 5 to 15 percent.3. Duty on Set Top Boxes increased from 5 to10 percent.4. Duty on imported luxury goods such as high end motor vehicles, motor cycles, yachts and similar vessels increased
Excise Duty1. Relief to readymade garment industry. In case of cotton, zero excise duty at fibre stage also. In case of spun yarn made of man made fibre, duty of 12 percent at the fibre stage.2. ‰Handmade carpets and textile floor coverings of coir and jute totally exempted from excise duty.3. ‰To provide relief to ship building industry, ships and vessels exempted from excise duty. No CVD on imported ships and vessels.
Excise Duty5. ‰Specific excise duty on cigarettes increased by about 18 percent. Similar increase on cigars, cheroots and cigarillos.6. Excise duty on SUVs increased from 27 to 30 percent. Not applicable for SUVs registered as taxies.7. ‰Excise duty on marble increased from Rs.30 per square meter to Rs.60 per square meter.8. Duty on mobile phones priced at more than `2000 raised to 6 percent.
Excise Duty8. Proposals to levy 4 percent excise duty on silver manufactured from smelting zinc or lead.9. ‰Duty on mobile phones priced at more than `2000 raised to 6 percent.10. ‰MRP based assessment in respect of branded medicaments of Ayurveda, Unani, Siddha, Homeopathy and bio-chemic systems of medicine to reduce valuation disputes.‰
Taxation1. Increase surcharge from 5 to 10 percent on domestic companies whose taxable income exceed ` 10 crore.2. Investment allowance at the rate of 15 percent to manufacturing companies that invest more than ` 100 crore in plant and machinery during the period 1.4.2013 to 31.3.2015.
• Chandrajit Banerjee, Director General, Confederation of Indian Industry (CII): "CII welcomes the Budget 2013-14, which is growth and investment oriented. While addressing fiscal consolidation, it focuses on inclusive and sustained human development. Commendable initiatives have been taken in critical sectors such as agriculture, investment in manufacturing and infrastructure, MSME growth and capital market development among others."