#IndiaBudget2017Aureus

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Union Budget 2017-18
Prudent Exuberance

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PRELUDE
The Union Budget of India for the year 2017-18 kicked off with a first of its kind Economic Survey. The prose was
Shakespearean, complemented with twists in the tale. What can one expect from an Economic Survey, the Prelude of
which starts with caustic wit in chiding Amazon for having hosted the previous Surveys on sale, while at the same time,
discovering piracy to be a ‘higher form of flattery than imitation’?
With this, the expectations were raised from the get go. These were not belied by the Finance Minister, who we were
informed by the CEA was one of the authors of the Survey as well. As a citizen, the electoral reforms, of which we will
inform you further in the following pages, brought relief from a deep sense of dread that demonetisation could just as
easily be another failed experience without follow up measures. It has often been said that black money cannot be
‘tackled’ till the political landscape of the country is designed such that black money does not find an easy sink for its
disposal, nor a temporary parking lot with the promise of a quid pro quo by other means. This socio-econo-political
move apart, as taxation law professionals, we welcomed certain measures announced – however, there remains much
to be done.
The market responded – as markets are wont to do – with immediate cheer. Though one must acknowledge that the
markets are more prone to shooting first, and asking questions later, as it were, the wealth creation that the Budget
initiated could very well portend the arrival of better times. In the following pages, therefore, ladies and gentlemen, we
have tried to ask some questions, after having provided you with a tax technical view of what is now the Union Budget
2017-18. We hope you enjoy reading it, as much as we enjoyed preparing it. We welcome your views, and if you need
any clarifications, do feel free to get in touch with us.
Abhishek Dutta
Chief Executive Partner

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CONTENTS
1. Prelude
2. The Macro Economic Context
3. Budget Proposals – Policy
4. Legislative Interventions Proposed
5. Direct Tax Proposals
6. Indirect Tax Proposals
7. Way Ahead
8. Team Aureus
9. Glossary
10. Appendix

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THE MACRO-ECONOMIC CONTEXT (1/3)
0
500000
1000000
1500000
2000000
2500000
2014-15
(Actuals)
2015-16
(Actuals)
2016-17 (RE) 2017-18 (BE)
Revenue Trend
Revenue Receipts Tax Revenue
Total Receipts
0%
5%
10%
15%
20%
25%
2015-16 2016-17 (RE) 2017-18 (BE)
Year on Year Percentage Changes
Revenue Receipts Tax Revenue Total Receipts
Tax Revenue has been growing steadily on a year on year basis. In 2016-17 a sharp increase in tax revenue could
have been on account of reduced oil prices, which were not passed on to the consumers but instead maintained at
the earlier pricing levels via increased excise duties. On a percentage basis therefore, a drop of 8 percent is
perceived per the BE for 2017-18. Also, the likelihood of headwinds due to potential rise in oil prices as well as geo-
political developments (Brexit etc.) laid the ground for a cautious Budget.

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1.5
2
2.5
3
3.5
4
4.5
2014-15 (Actuals) 2015-16 (Actuals) 2016-17 (RE) 2017-18 (BE)
Deficit Trend
Revenue Deficit (percentage of GDP) Fiscal Deficit (percentage of GDP)
The FRBM principles laid down by the NK
Singh Committee (the report of which is still
not in the public domain) was cited by the
Finance Minister to set a target of 3.2
percent fiscal deficit for 2017-18. While, in
keeping with the mandate of the FRBM Act,
the revenue deficit is being sought to be
kept within the 2 percent limit (actual BE at
1.9 percent per the Budget).

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• IMF’s world growth estimate for 2017 pegged at 3.1 percent, with advanced economies at 1.9 percent and
emerging economies at 4.5 percent
• 3 major challenges for export potential of emerging economies:
- Current monetary policy stance of the US Federal Reserve to raise interest rates twice in 2017 leading to
lower capital inflows and higher outflows
- Uncertainty around commodity prices, especially crude oil
- Increasing retreat of globalisation of goods, services and people
• Overall approach in preparation of the Budget identified to be to spend more in rural areas, Infrastructure and
poverty alleviation while maintaining fiscal prudence

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BUDGET PROPOSALS - POLICY
Education
• Innovation fund for Secondary Education to be created to encourage local innovation for ensuring universal access,
gender parity and quality improvement
• To include ICT enabled learning transformation with focus on 3479 educationally backward blocks
• Reforms in the UGC mooted in respect of higher education
• Colleges may be given autonomous status based on accreditation and ranking
• SWAYAM platform to be launched with 350 online courses
• National testing agency to be established to conduct entrance examination for higher education institutions
Infrastructure
• Synergisation of investment in roads, railways, waterways and civil aviation
• Improvement measures for railways included within the infrastructure proposal, including passenger safety, capital
and development plan, cleanliness, finance & accounting reforms. Railways to also implement end-to-end
integrated transport solutions for select commodities
• New Metro Rail Policy to be announced. New Metro Rail Act to be introduced to facilitate greater private
participation and investment in construction and operation
• Road sector budget allocation has been stepped up to INR 64900 crores / INR 649 billion
• Development of multimodal logistics park, along with multimodal transport facilities to be drawn up and
implemented

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BUDGET PROPOSALS – POLICY (1/2)
Infrastructure (cont’d…)
• Airports in tier 2 cities to be developed under PPP model
• Strategic crude oil reserves to be set up in 2 more locations
• Second phase of solar park development for additional 20,000 MW capacity to begin
• Trade Infrastructure for Export Scheme to be launched in 2017-18
Financial Sector
• FIPB to be abolished in 2017-18
• Further liberalisation of FDI Policy is under consideration
• Spot and derivative markets for commodities trading to be undertaken with a view to promote creation of
operational and legal framework
• Disputes in the infrastructure related construction contracts, PPP and public utilities to be instituted under the
Arbitration & Conciliation Act, 1996
• Shares of Railway PSEs such as IRCTC, IRCON, IRFC to be listed
• Integrated public sector oil major to be created
• INR 10,000 crores / INR 100 billion provided for recapitalisation of banks with further funds to be provided per
requirements
• Security Receipts issued by securitization company or a reconstruction company would be permitted to be listed
and traded in SEBI registered Stock Exchanges

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BUDGET PROPOSALS – POLICY (2/2)
Digital Economy
• Petrol pumps, fertilizer depots, municipalities, Block offices, road transport offices, universities, colleges, hospitals
and other institutions to have facilities for digital payments
• Acceptance of all Government receipts through digital means, beyond a prescribed limit, is under consideration
Fiscal Parameters
• Fiscal deficit to be contained at 3 percent
• Revenue deficit pegged at 2.9 percent

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LEGISLATIVE INTERVENTIONS PROPOSED (1/2)
• Model Law on Contract Farming to achieve integration of farmers with agro-processing units to be circulated to
the states for adoption
• Labour law reforms so as to consolidate all labour laws into 4 codes, viz.:
- Wages
- Industrial relations
- Social security and welfare
- Safety and working relations
• New Metro Rail Act to facilitate greater private participation and investment in construction and operations
• Amendment to Airports Authority of India Act to enable effective monetization of land assets. Resources raised to
be used for modernisation and upgradation of select airports
• Multi State Cooperatives Societies Act mooted protection of poorer classes
• Arbitration & Conciliation Act, 1996 to be used for infrastructure projects related disputes resolution
• Focus on resolution of stressed legacy accounts of Banks by strengthening the legal framework through Insolvency
and Bankruptcy Code, SARFAESI and Debt Recovery Tribunal Acts
• Creation of Payments Regulatory Board in Reserve Bank of India
• Negotiable Instruments Act to give more teeth to payees to be able to recover their dues in cases of dishonoured
cheques
• Proposed amendment to the Indian Trust Act to empower government to specify instruments that may be used for
making investments by Trusts

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LEGISLATIVE INTERVENTIONS PROPOSED (2/2)
• Amendment to Representation of Peoples Act to ensure anonymity to contributors/donors, contributing/donating
through electoral bonds
• Amendment to Oil Industry Development Act to meet funds requirement by oil & gas CPSEs and Central
Government in relation to activity in the oil & gas sector
• Securities Appellate Tribunal to be the nodal quasi judicial appellate body for SEBI, IRDA and PFRDA
• Amendment to the Indian Post Office Act mooted. Objective appears to be for the Central Government to have the
authority to prescribe rates beyond those mentioned for postal articles. This appears to have been proposed with
the objective of empowering and better revenue generation for the Indian Post

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DIRECT TAX PROPOSALS (1/8)
Personal taxation
Income slab
(INR)
Proposed Existing
0 to 2,50,000 Nil Nil
2,50,000 –
5,00,000
5 percent
(rebate of INR
2500 if total
income less than
INR 3,50,000)
10 percent
(rebate of INR
5,000 if total
income less than
INR 5,00,000)
5,00,000 –
10,00,000
20 percent 20 percent
More than
10,00,000
Income Slab
(INR)
Proposed Existing
50,00,000 –
1,00,00,000
10 percent Nil
More than
1,00,00,000
Income tax Surcharge* on Income tax
Education cess and higher education cess continue at 1
percent and 2 percent respectively (effective 3 percent
on the income tax and surcharge)
*Surcharge is applicable with marginal relief.

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Income slab
(INR)
Proposed Existing
Turnover 0 -
50,00,000
50,00,000 –
1,00,00,000
Income Slab
(INR)
Proposed Existing
100,00,000 –
10,00,00,000
7 percent 7 percent
More than
10,00,00,000
Education cess and higher education cess continue
at 1 percent and 2 percent respectively (effective 3
percent on the income tax and surcharge)
*Surcharge is applicable with marginal relief.
Corporate taxation (Domestic Companies)
Income tax Surcharge* on Income tax

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Additional Resource Mobilisation
• All residents except Domestic Companies and charitable/religious trusts, hospitals, educational
institutes/universities liable to pay tax at the rate of 10 percent on dividend income exceeding INR 10 Lakhs
• Persons/HUF not required to have their accounts audited made liable to deduct tax at source at the rate of 5
percent from rent paid towards immovable property
Real Estate
• Affordable housing given ‘Infrastructure Status’
• Holding period for computing LTCG reduced from 3 to 2 years for immovable property. Base year brought forward
to 2001 (instead of 1981). Instrument for investment to save on LTCG expanded to include specific bonds issued
by the Central Government, notified as an investment instrument for this specific purpose
• Relaxation in applicability of capital gains in JDA. Capital gains tax to be applicable only when the construction is
complete (evidenced by way of a completion certificate for whole or part of the project)
• Any payment made to the Land Owner by the Builder under a JDA to attract withholding tax at 10 percent
• Income tax on gain from capital asset rationalised in the case of JDAs. Gain to be computed as the difference
between FMV of the share in land and building of the owner and the cost of acquisition by the owner

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Real Estate (Cont’d…)
• Housing projects eligible for 100 percent tax holiday (i.e. Affordable Housing) to be provided the following relief:
- ‘Carpet area’ of 30 and 60 square meters for specified metros and other regions respectively to be
considered eligible (earlier criteria was ‘Built up area’)
- Completion period extended to 5 years (from 3 years)
- Metro peripheral areas not to be included in the criteria set out for metros (i.e. for housing with carpet area
of 30 square meter)
• House property which is a stock in trade for builders would not be taxable on notional rent for a period of 1 year
from the date of completion certificate
Measures for stimulating growth
• Lower withholding tax rate of 5 percent on ECBs, long term bonds, including infrastructure bonds extended until
July 1, 2020. Similar benefit given to Masala Bonds
• Start Ups can enjoy benefits of profit linked exemption for five years and Dilution provision relaxed
• Carry forward of MAT/AMT credit allowed for 15 years. Benefit not available to MAT/AMT paid through FTC
• Deductions for provision for NPA of banks to be increased to 8.5 percent instead of 7.5 percent
• Non-scheduled cooperative banks with NPA to recognize interest as income on receipt basis

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Promotion of Digital Economy
• Daily cash expenditure towards revenue and capital expenses capped at INR 10,000 per day per recipient. Any
expense beyond would be disallowed as a deduction and/or depreciation benefit would be lost in case of capital
asset
• Bar on receipt of INR 3,00,000 in cash and above per day, per person or per event/occasion or per transaction.
Penalty clauses introduced in case of contravention
Transparency in electoral funding
• Cash donations to political parties from one person capped at INR 2,000
• Electoral Bond to be introduced for facilitating donations to political parties – such bonds would leave avenues
open for anonymous donations
• Political parties to file returns in the time limit prescribed in the Income Tax Act. Non filing may lead to withdrawal
of exemptions
Ease of Doing Business
• Exemption from indirect transfer provisions to FPIs and FIIs category I and II retrospectively from April 1, 2012
• Removal of condition of maintenance of average monthly corpus of an offshore fund, if the fund is being wound up
in that year
• Companies supplying crude for statutory reserves can continue to sell left over crude oil in the domestic market.
Conditions for such sales to be notified by the Central Government

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Ease of Doing Business (Cont’d…)
• Concessional rate of withholding tax specified at 2 percent on receipts by entities engaged exclusively in call center
business
• Domestic transfer pricing to apply only if one of the transacting related parties enjoy profit linked deductions
• Conversion of preference share to equity share not to attract income tax on capital gains
• Cost of acquisition of the shares of Indian company in the hands of a resulting foreign company to be the same as
it was in the hands of demerged foreign company
• Income from sale of carbon credits to be taxed at 10 percent (plus applicable surcharge/cesses) on a gross basis
• Non-resident to non-resident transfer of Masala Bonds to be outside the purview of capital gains. Gains on
account of appreciation of Rupee at the time of redemption by secondary holders would be ignored for computing
capital gains
• AO to rectify the assessment order upon furnishment of proof of settlement of dispute to the effect that foreign
tax liability stands discharged and that credit of such amount has not / would not be claimed in any other
assessment year
• Several administrative measures taken including in relation to appealability of certain orders as well as widening of
the CBDT’s powers to issue instructions, ten year limitation period
Anti Abuse Provisions
• Rationalisation of provision of to determine full value of consideration for computation of capital gains in cases of
transfer of shares of an unlisted company’s shares where the value may be determined as per prescribed principles

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Anti Abuse Provisions (Cont’d…)
• Receipt of any amount without adequate consideration in excess of INR 50,000 taxable as income from other
sources. Exemption to specified organizations and transactions available.
• More comprehensive coverage to non deductibility of expenses on which withholding has not been effected
• Deduction on account of interest curtailed in case of AEs.
- AEs to include any enterprise that provides guarantee (implicit or explicit) for such loan, and/or deposits a
corresponding and matching amount of funds with lender
- Quantum of deduction limited in an AY to lesser of 30 percent of EBITDA or actual interest
- Carry forward of the interest expense (if higher than 30 percent of EBITDA) allowable for 8 years
- Only applicable if interest payment exceeds INR 1 crore in a year
- Banking and Insurance businesses are exempt from this curtailment
• Increase in the total income or reduction in loss upon primary adjustment is to be repatriated to India. If
repatriation is not effected, then such adjustment would be deemed to be an advance made to the AE. Interest on
such amount would be deemed to be income of the Taxpayer. Provision not applicable where the amount of
primary adjustment does not exceed INR 1 crore
• Corpus to corpus transfers in case of trusts/university/other educational institutes/hospitals etc. not to be
considered as ‘application’ of funds by donor trusts/university/other educational institutes/hospitals etc.
• Several non taxable entities mandated to file returns to foster accountability including certain government
instrumentalities

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Rationalisation measures
• Alignment of MAT with Ind-AS
• Profit linked deduction to SEZ Units available against total income as opposed to Unit income. However, deduction
cannot exceed total income
• Original cost of acquisition/period of holding to be considered in case of redemption of units of consolidated plan
of mutual fund
• Definition provided under the IT Act or explanation issued by the Central Government to prevail where a particular
term is not defined under the DTAA
• Charitable trusts or institutions registered under section 12AA/12A to require fresh registration in case of
modification or amendment in its objective that does not confirm with the terms of registration
• Search and seizure proceedings can be initiated by the tax authorities without disclosing the reason to any person
or authority or appellate tribunal. The provisions to apply retrospectively from 1975

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INDIRECT TAX PROPOSALS (1/3)
Customs
• Amendments to Customs Act, 1962 and Customs Tariff Act, 1975
Budget 2017-18 has proposed certain procedural amendments. Key proposals are captured below:
- Definition of importers and exporters to include ‘beneficial owner’, i.e. a person on whose behalf the goods
are being imported/exported or who exercises effective control over such goods
- Bill of entry to be filed within next working day of arrival of goods. Late presentation of the bill of entry will
result in the imposition of charges to be prescribed
- Goods brought in for CBM and petroleum operation required to be disposed off can be sold in the Domestic
Tariff Area on payment of applicable duty. Value in such cases is mandated not to be below 30 percent of the
original value after claiming depreciation. Hence, customs duty would apply on at least 30 percent of the
original value in all such cases
Excise
• EOUs will be eligible to import or procure raw materials/inputs at concessional/Nil rate of BCD, excise duty/CVD or
SAD, provided they fulfill all conditions for being eligible to such concessional or Nil duty
Service tax
• VGF under Regional Connectivity Scheme to be exempt for one year from the date of operation of the Scheme
• Works Contract Valuation Rules tweaked retrospectively to include the value of land for computation of service tax
on ad hoc basis where value of goods, etc. is not separately available

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Service tax (Cont’d…)
• VGF under Regional Connectivity Scheme to be exempt for one year from the date of operation of the Scheme
• Works Contract Valuation Rules tweaked retrospectively to include the value of land for computation of service tax
on ad hoc basis where value of goods, etc. is not separately available
• Processes amounting to manufacture have been made taxable (by way of excluding these from the Negative List),
albeit placed in the Mega Exemption notification. Hence, service tax continues not to apply on such activities.
Though, authorities can impose a tax on such activities by way of delegated legislation (i.e. via issuance of
notification withdrawing the exemption)
General
• AAR under customs, excise and service tax merged with the AAR under Income tax laws. Procedural changes
introduced including towards fee, etc. and constitution of the AAR
• Settlement Commission vested with the power to review its orders
• Co-noticee can also approach the Settlement Commission
• Interest on loans, advances and deposits to be ignored for reversal of cenvat credit for all Taxpayers except
banking companies and financial institutions including a non-banking financial company
• 3 months (extendable to 6 months) prescribed for allowing cenvat credit in case of transfer of business. No clarity
with regard to filing of any particular application to seek approvals for transfer of credit in such cases, though the
provision appears to suggest that an approval would be required

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General (Cont’d…)
• Research and Development Cess Act to be repealed from April 1, 2017
• Cess collected but not deposited would have to be remitted to the RBI per the provisions related to repeal and
savings. No clarity on imposition of liability where cess has not been collected

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WAY AHEAD
In the next one year, India is poised to go through several major reforms on the fiscal and tax front. Introduction of GST
appears imminent in July 2017. The Union Budget being presented on February 1 of this year, as opposed to end of
February, has, by design, been intended to have the government machinery geared to begin implementation from the
beginning of the fiscal year.
This clearly indicates an intent on the part of the government that several measures proposed under the Union Budget
would start rolling out from March 1, 2017. Businesses would be well advised to take note of the changes and future
course that India charts out not only with regard to taxes, but also on policy, several of which have been discussed in
the course of this presentation. The Big Question then is – what is the need of the hour? This depends on the
perspectives.
From the government’s perspective, lip service to business friendliness would not do. There have to be cogent
measures so that private investors are able to lead from the front, specifically in the areas of infrastructure and
education. From a business perspective, ideation would be required, with a healthy dollop of awareness of the law.
From the perspective of professionals like us, we believe staying ahead of the curve is the key. On an immediate basis
therefore, readiness for GST takes precedence. On this note, we take your leave, and wish you all the best in your
future endeavors.
Thank you and best regards.
Team Aureus

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TEAM AUREUS
Abhinav Sharma
Akanksha Jain
Astha Srivastava
Chinmay Agarwal
Kriti Marwaha
Manish Parmar
Shloka Rawat
Suresh Uniyal
Viineet V. Srivastav
NK Kantawala
Rashmi Chaudhury
Abhishek Dutta

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GLOSSARY
AAR Authority for Advance Ruling
AE Associated enterprises
Airport Authority
of India Act
Airport Authority of India Act, 1994
AMT Alternate Minimum Tax
AO Assessing Officer
AY Assessment Year
BCD Basic Custom Duty
BE Budget Estimate
CBDT Central Board of Direct Taxes
CBEC Central Board of Excise and Customs
CBM Coal Bed Methane
CCR Cenvat Credit Rules, 2004
CEA Chief Economic Advisor
CPSE Central Public Sector Enterprise
CRR Cash Reserve Ratio
CVD Countervailing Duty
Debt Recovery
Tribunal Act
Debt Recovery Tribunal Act, 1993
DTAA Double Taxation Avoidance Agreement
DTC Direct Tax Code
EBIDTA
Earnings before interest, tax depreciation and
amortization
EC Educational Cess
ECB External Commercial Borrowings
EOU Export Oriented Units
FDI Foreign Direct Investment
FI Financial Institution
FII Foreign Institutional Investor
FIPB Foreign Investment Promotion Board
FM Finance Minister
FMV Fair Market Value
FPI Foreign Portfolio Investment
FRBM Act Fiscal Responsibility and Budget Management Act, 2003
FTC Foreign Tax Credit
FY Financial Year
GDP Gross Domestic Product
GDR Global Depositary Receipt
GFD Gross Fiscal Deficit
GST Goods and Services Tax
HUF Hindu Undivided Family
ICT Information and Communication Technology
IMF International Monetary Fund

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GLOSSARY
Ind AS Indian Accounting Standards
Indian Post Office
Act
Indian Post Office Act, 1898
Indian Trusts Act Indian Trusts Act, 1882
INR Indian National Rupees
Insolvency and
Bankruptcy Code
Insolvency and Bankruptcy Code, 2016
IRCON Indian Railway Construction Company Limited
IRCTC Indian Railway Catering and Tourism Corporation
IRDA Insurance Regulatory and Development Authority
IRFC Indian Railway Finance Corporation Limited
IT Act Income Tax Act, 1961
JDA Joint Development Agreement
LED Light Emitting Diode
LNG Liquefied Natural Gas
LTCG Long Term Capital Gains
MAT Minimum Alternate Tax
Multi-State
Cooperative
Societies Act
Multi-State Cooperative Societies Act, 2012
MW Mega Watts
NBFC Non Banking Financial Corporations
Negotiable
Instruments Act
Negotiable Instruments Act, 1881
NHAI National Highway Authority of India
NPA Non Performing Assets
Oil Industry
Development Act
Oil Industry Development Act, 2010
PNG Petroleum & Natural Gas
PPP Public Private Partnership
PSE Public Sector Enterprises
PSU Public Sector Undertaking
RBI Reserve Bank of India
RD Revenue Deficit
Representation of
People’s Act
Representation of Peoples Act, 1951
RO Reverse Osmosis
SAD Special Additional Duty
SARFESI
Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002
SEBI Securities and Exchange Board of India
SEZ Special Economic Zone
SHEC Secondary and Higher Education Cess
STT Securities Transaction Tax
SWAYAM Study Webs of Active Learning for Young Aspiring Minds
TDS Tax Deduction at Source
UGC University Grants Commission
USD US Dollars
VGF Viability Gap Funding

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aureus@aureuslaw.com
Thank you

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Customs
• BCD rate changes
APPENDIX
Commodity From To
Solar tempered glass or solar tempered (anti-reflective coated) glass for
manufacture of Solar cells /panels /modules
5 percent Nil
Liquefied Natural Gas 5 percent 2.5 percent
o-Xylene 2.5 percent Nil
2-Ethyl Anthraquinone for use in manufacture of Hydrogen Peroxide,
subject to actual user condition
7.5 percent 2.5 percent
Hot Rolled Coils for use in the manufacture of welded tubes and pipes 12.5 percent 10 percent
Magnesium Oxide (MgO) coated cold rolled steel coils for use in the
manufacture of cold rolled grain oriented steel (CRGO)
10 percent 5 Percent
Nickel and articles thereof 2.5 percent Nil
Purified Terephthalic Acid (PTA), Medium Quality Terephthalic Acid (MTA)
and Qualified Terephthalic Acid (QTA)
7.5 percent 5 percent

31
Customs
• Rate changes
APPENDIX
Commodity From To
Clay 2 Powder (Alumax) for use in ceramic substrate for catalytic convertors,
BCD 7.5 percent BCD 5 percent
Vinyl Polyethylene Glycol for use in manufacture of Poly Carboxylate Ether BCD 10 percent BCD 7.5 percent
Ball Screws, Linear Motion Guides and CNC Systems for use in the
manufacture of all types of CNC machine tools
BCD 7.5
percent/BCD 10
percent on CNC
Systems
2.5 percent
Parts/raw materials for manufacture of solar tempered glass for use in solar
photo-voltaic cells/ modules, solar power generating equipment or systems,
flat plate solar collector, solar photovoltaic module and panel for water
pumping and other applications subject to actual user condition
CVD 12.5 percent CVD 6 percent
Catalyst and Resin for use in manufacture of cast components of Wind
Operated Electricity Generator [WOEG]
BCD 7.5 percent
CVD 12.5 percent
SAD 4 percent
BCD 5 percent
CVD Nil
SAD Nil

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Customs
• Rate changes
APPENDIX
Commodity From To
All items of machinery, including, instruments, apparatus and
appliances, transmission equipment and auxiliary equipment
(including those required for testing and quality control) and
components, required for initial setting up of fuel cell based system for
generation of power or for demonstration purposes subject to certain
conditions
BCD 10 percent / 7.5
percent
CVD 12.5 percent
BCD 5 percent
CVD 6 percent
All items of machinery, including, instruments, apparatus and
appliances, transmission equipment and auxiliary equipment (including
those required for testing and quality control) and components,
required for balance of systems operating on bio-gas or methane or by-
product hydrogen subject to certain conditions
BCD 10 percent / 7.5
percent
CVD 12.5 percent
BCD 5 percent
CVD 6 percent
Membrane sheet and Tricot/Spacer for use in manufacture of RO
membrane element for household type filters
CVD 12.5 percent CVD 6 percent

33
Customs
• Rate changes
APPENDIX
Commodity From To
Eligible items imported by a manufacturer of leather footwear
or synthetic footwear or other leather products for exports by
that manufacturer
3 percent of FOB value
of said goods exported
during the preceding
financial year
5 percent of FOB value
of said goods exported
during the preceding
financial year
Miniaturized POS card reader for m-POS (not including mobile
phones or tablet computers), Micro ATM as per standards
version 1.5.1, Finger Print Reader / Scanner, and Iris Scanner
Applicable duty Nil
Parts and components for manufacture of miniaturized POS card
reader for m-POS (not including mobile phones or tablet
computers), Micro ATM (as per standards version 1.5.1), Finger
print reader / scanner, and Iris scanner
Applicable duty Nil

34
Customs
• Rate changes
APPENDIX
Commodity From To
All parts for use in the manufacture of LED lights or fixtures including
LED lamps
Applicable BCD, CVD BCD 5 percent
CVD 6 percent
Imports of inputs for use in the manufacture of LED (Light Emitting
Diode) driver of MCPCB (Metal Core Printed Circuit Board) for LED
lights and fixtures or LED Lamps
Applicable BCD BCD 5 percent
Goods imported through postal parcels, packets and letters, of CIF
value not more than Rs 1k per consignment
Duty payable not
exceeding INR 100
per consignment
CIF value not
exceeding INR
1000 per
consignment
Miniaturised POS card reader for mPOS (other than Mobile Phone or
Tablet Computer), Micro ATMs as per standards version 1.5.1,
fingerprint scanner and Iris Scanner
Applicable BCD, CVD,
SAD
BCD, CVD, SAD -
Nil
Silver medallions and coins having silver content not below 99.9%,
other semi-manufactured forms of silver and article of silver
CVD NIL CVD 12.5 percent

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Excise
• Increase in tax rate
APPENDIX
Commodity From To
Solar tempered glass for use in solar photovoltaic
cells/modules; solar power generating equipment or systems,
flat plate solar collector, solar photovoltaic module and panel
for water pumping and other applications, subject to actual
user condition
Nil 6 percent
Cigar, cheroots, Cigarillos, Cigarillos of tobacco substitutes &
Others of tobacco substitutes
12.5 percent or Rs.3755
per thousand,
whichever is higher
12.5 percent or
Rs.4006 per thousand,
whichever is higher
Cigarettes of tobacco substitutes Rs.3755 per thousand Rs.4006 per thousand
Paper rolled biris – handmade Rs.21 per thousand Rs.28 per thousand
Paper rolled biris – machine made Rs.21 per thousand Rs.78 per thousand

36
Excise
• Reduction in tax rate
APPENDIX
Commodity From To
Parts/raw materials for manufacture of solar tempered glass for use
in solar photovoltaic cells/modules, solar power generating
equipment or systems, flat plate solar collector, solar photovoltaic
module and panel for water pumping and other applications,
All items of machinery required for initial set up of fuel cell based
power generating systems in the country or for demonstration
purposes
All items of machinery required for balance of systems operating on
biogas/ bio-methane/ by-product hydrogen
Cigarettes of tobacco substitutes Rs.3755 per thousand Rs.4006 per thousand

37
Excise
• Nil rate of tax
APPENDIX
Commodity From To
Resin and catalyst for manufacture of cast components for Wind
Operated Energy Generators [WOEG], subject to actual user
condition
12.5% Nil
Miniaturized POS card reader for m-POS (not including mobile
phones or tablet computers), Micro ATM as per standards version
1.5.1, Finger Print Reader / Scanner, and Iris Scanner
Applicable duty Nil
Parts and components for manufacture of miniaturized POS card
reader for m-POS (not including mobile phones or tablet
computers), Micro ATM (as per standards version 1.5.1), Finger
print reader / scanner, and Iris scanner
Applicable duty Nil

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