indian union budget€¦ · the indian union budget 2015 –highlights 1 the indian union budget...
TRANSCRIPT
INDIAN UNION BUDGET
2015
1The Indian Union Budget 2015 – Highlights
The Indian Union Budget 2015 - Foreword
• Famous US Actor & Comedian Bill Cosby said “I don't know the key to
success, but the key to failure is trying to please everybody” our
Finance Minister Mr. Arun Jaitley has followed the same line of
thinking while presenting the Union Budget 2015
• Mr. Pragmatic, as he was named during the last budget, has
continued on the path of slow and steady progress rather than block
buster big bang reforms which might please the majority in the short-
run but may have dire consequences in the long-run
• The Budget has a long-term vision and is aimed at strengthening the foundations of the Indian economy
which it is hoped will bring rich dividends in the future
• The focus of the Budget has been to promote measures to attract investments in key sectors, especially
focus on development of Infrastructure which acts as the backbone for growth, simplification and
stability of the tax regime, development of the financial sector, reduction of black money and maintaining
fiscal discipline over the long-run
• Overall the Budget is practical and puts forth the Finance Minister Mr. Arun Jaitley as a strategic
architect to fulfill the Prime Minister – Shri Narendra Modi's economic vision for a glorious India
• The godfather of Investing Warren Buffet says "Successful Investing takes time, discipline and patience”
and the same is true for Economic Growth and Progress of a country
The Indian Economy at a glance
2The Indian Union Budget 2015 – Highlights
The year that was
5.1%
6.9%7.4%
2012-13 2013-14 2014-15
3
Macro Overview
GDP Growth Rate1 Sector wise breakdown of GVA2
Rupee Vs Dollar GVA Growth Rate
The Indian Union Budget 2015 – Highlights
57.00
58.00
59.00
60.00
61.00
62.00
63.00
64.00
Apr-
14
May-1
4
Jun-1
4
Ju
l-14
Aug-1
4
Sep-1
4
Oct-
14
Nov-1
4
Dec-1
4
H
L
H LHigh during 14-15 (April
– Dec) at Rs. 62.75 per
dollar
Low during 14-15 (April –
Dec) at Rs. 59.31 per
dollar
4.90%
6.60%
7.50%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
2012-13 2013-14 2014-15
1Based on New Series Estimates, 2014-15 is an Advance Estimate (For more
information regarding new series estimate please refer to page 3)
19% 19% 19% 18%
33% 32% 31% 30%
48% 50% 51% 53%
2011-12 2012-13 2013-14 2014-15
Agriculture & Allied Activities Industry Services
2GVA : Gross Value Added, GDP = Ʃ GVA at basic prices + product taxes –
product subsidies (calculated at factor price)
Source : Economic Survey 2014-15, ** Data for month April- December
4
Accounting Changes : New Series GDP Estimates Vs. Old Series GDP Estimates
The Indian Union Budget 2015 – Highlights
5.1%
6.9%7.4%
2012-13 2013-14 2014-15
Old Series GDP Growth Estimates New Series GDP Growth Estimates
Key Changes :
• The base year has been shifted to 2011-12 from 2004-05 to reflect structural changes in the economy
• The GDP is now measured by market prices instead of factor costs, to take into account gross value addition in goods and
services as well as indirect taxes
Why is the New Series better ?
• The new series captures, in large segments of the economy, the value chain more completely; and also updates in other
segments, the basis for computing value addition
• The new series also describes growth in value addition better, through its greater use of value linked indicators. This is
important because as an economy develops, growth in value added comes from improvements in the per unit value
addition rather than in growth of volume
• From this perspective, the new series better equips us to understand the changes which are taking place and will take
place in the years to come
4.5%4.7%
5.9%
2012-13 2013-14 2014-15
Source : Economic Survey 2014-15, ** Data for month April - December
5
Macro Indicators
Inflation & Monetary Factors Industrial Performance
The Indian Union Budget 2015 – Highlights
8.90%7.40%
6.00%
3.40%
8.00%
7.75% 8.00%
7.75%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
2011-12 2012-13 2013-14 2014-15**
Inflation and Repo rate
Inflation Rate Interest Rate
• The Average Headline WPI Inflation came down to a four
year low of ~3.4% in 2014-15 after averaging almost 7.5%
over the last 3 years on the back of the fall in global
commodity prices
• CPI Inflation also came down to ~6.2% from 9.7% from
last year
• Following a tight monetary policy, RBI reduced the Repo
rate once by 25 bps to 7.75% on account of decline in
inflation rate
Our Views : The cooling in inflation is a result of significant
drop in crude oil prices, but the RBI remains cautious and
has abstained from announcing any major cuts in repo rate
or given any further indication of doing so
• IIP of 2.1% suggests that the industrial sector is
recovering slowly
• Growth of 2.1% can be attributed to recovery in the
mining sector (1.7%) and impressive growth in the
electricity sector (10%)
• Advanced Estimates show industrial growth of 5.9% as
per the new series
Our Views – The government is in damage control &
repair mode to bring back confidence amongst the
business community and revive economic growth. Recent
initiatives such as Make In India and Digital India are its
triggers
8.2%
2.9%
1.1%
-0.1%
2.1%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
2010-11 2011-12 2012-13 2013-14 2014-15**
IIP
Pe
rce
nta
ge %
Index of Industrial Production (IIP) %
Source : Economic Survey 2014-15, ** Data for month April - December
6
Fiscal and Current Account Deficit
Fiscal Deficit (as a % of GDP) Current Account Deficit (as a % of GDP)
Fiscal Deficit over the last 10 Years (as a % of GDP) Forex Reserves over the last 6 Years (in $ Bn)
The Indian Union Budget 2015 – Highlights
4.1% 4.1%Budgeted vs. Actual
3.90% 4%3.30%
2.50%
6%6.50%
4.80%
5.70%
4.80% 4.60%4.10%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*
Our Views – In the July 2014 Interim Budget, the
government assumed its role with a challenge to bring
down the fiscal deficit from 4.6% to 4.1% and they have
achieved their target. Now the government is aiming to
reduce it further to 3% as planned in FRBM (Amendment)
Act 2012. This plan of action is to be supported by
subsidy reductions and moving towards the golden rule
of borrowing only for public investment
1.7% 1.3%2013-14 vs. 2014-15
Our Views – It is a remarkable achievement to maintain the
Current Account Deficit (CAD) at such levels when
compared to the levels of ~4.5% in the year 2012-13. CAD
Stood at US$ 17.9 billion (April – September) as against
US$ 26.9 billion in the same period of 2013-14. This has
been achieved through lower trade deficits along with
moderate growth in invisibles, fortuitous decrease in crude
oil prices, and a surge in capital inflows enabled by higher
portfolio investment, foreign direct investment and lower
external commercial borrowings
$279
$305
$294 $292
$304
$314
$260
$270
$280
$290
$300
$310
$320
2010 2011 2012 2013 2014 2015*
Source : Economic Survey 2014-15, *Data for month April - December * 2015 : Data is for April2014 - September2014
Big Policy Announcements
7The Indian Union Budget 2015 – Highlights
The year to come
8
Big Policy Announcements – the year to come (1/2)
The Indian Union Budget 2015 – Highlights
• Major game changing reforms announced in the current budget are :
- Efforts to continue on various fronts to implement GST from April 1, 2016 which will be a game changer
for the country
- Jan Dhan Yogna, Aadhar and Mobile (JAM Trinity) - for direct benefit transfer (to allow direct subsidy
transfer to bank accounts of beneficiaries)
• Micro Units Development Refinance Agency (MUDRA) Bank, with a corpus of Rs. 20,000 crores, and
credit guarantee corpus of Rs. 3,000 crores to be created
• NBFCs registered with the RBI and having an asset size of R. 500 crore and above may be considered
for notifications as a „Financial Institution‟ in terms of the SARFAESI Act, 2002
• Pradhan Mantri Jeevan Jyoti Bima Yojana to cover both natural and accidental death risk of Rs. 2
lakhs at premium of Rs. 330 per year for the age group of 18-50
• National Investment and Infrastructure Fund (NIIF), to be established with an annual flow of Rs.
20,000 crores to it
• Gold monetization scheme to allow the depositors of gold to earn interest in their metal accounts and
the jewelers to obtain loans in their metal account to be introduced (Indian gold coin to be introduced)
• Public Debt Management Agency (PDMA) bringing both external and domestic borrowings under one
roof to be set up in fiscal 2015-16
9
Big Policy Announcements – the year to come (2/2)
The Indian Union Budget 2015 – Highlights
• Comprehensive Bankruptcy Code of Global standards to be brought in during fiscal 2015-16 towards
ease of doing business
• Bill for a comprehensive new law to deal with Black Money parked abroad to be introduced in the
current session of Parliament. PML Act, 2002 and FEMA to be amended to enable administration of
new Act on black money
• Benami Transactions (Prohibition) Bill to curb domestic black money to be introduced in the current
session of Parliament.
• Removal of distinction between Foreign Portfolio Investment (FPI) and Foreign Direct Investment
(FDI) for making it easier for overseas investors to invest in Alternative Investment Funds (AIFs)
• Pass through status extended to other AIF categories i.e. Real Estate, Private Equity and Hedge
Funds
• Modification of the Permanent Establishment (PE) norms such that mere presence of a fund manager
in India would not constitute PE of the offshore funds resulting in income attribution in India
• Implementation of General Anti Avoidance Rule (GAAR) has been deferred by 2 years
• Abolition of Wealth Tax Act, 1957 & the burial of the Direct Tax Code (DTC)
• Proposal to reduce peak tax rate from 30% to 25% over the next four years
Sectoral Highlights
10The Indian Union Budget 2015 – Highlights
What does it mean for your business?
11
Agriculture
Real Estate
Infrastructure
What does this mean for your business? (1/6)
Expectations Announcement Impact
The Indian Union Budget 2015 – Highlights
• A cut in excise duty for agro-chemicals
in order to support better yield by
making them more affordable for the
farmers
• The purchase of Micro Irrigation
equipment/systems by farmers should
be eligible for priority lending by banks
to agriculture sector
• Rs.5,300 crore to support micro-
irrigation and watershed development
• Rs. 25,000 crore in 2015-16 to the
corpus of Rural Infrastructure
Development Fund (RIDF) and Rs.
15,000 crore for Short Term RRB fund
• To take major steps towards
initiatives like smart cities and
housing for all
• Increase in interest loan deduction
limit for housing loan and other
criteria to be made lenient for
availing housing loans
• Vision housing for all, with the aim to
build 2 crores houses in urban areas
and 4 crores houses in rural areas by
2022
• Rationalization of capital gains regime
for the sponsors exiting at the time of
listing of the units of REITs *
• Introduction of „single–window
clearance„ system for businesses
engaged in infrastructure
development
• Heavy spending on Infrastructure
and taking out projects from the trap
of delays and red tape
• 5 new Ultra Mega Power Projects, each
of 4000 MW in the Plug and Play mode
• Expert committee to draft legislation to
replace multiple-permission mechanism
by pre-existing regulatory mechanism
• Tax free infrastructure bonds for the
projects in the rail, road and irrigation
sectors
* Refer Direct Tax - Financial Sector Highlights for details
12
Banking Sector
Insurance Sector
Mutual Funds
What does this mean for your business? (2/6)
Impact
The Indian Union Budget 2015 – Highlights
• Dilution of government stake in
Public Sector banks (PSBs) up to
51% in near future to meet capital
requirement
• Higher autonomy to PSBs while
making them more accountable for
performance and consolidation of
banks
• A separate limit in section 80CCE for
deduction up to Rs. 1.5 Lakh for
insurance premium payments
• The deduction limit under section
80D for health insurance premium to
be increased from Rs 15,000 to Rs
50,000
• Switching of investment under various
plans of a mutual fund scheme or inter-
scheme should be exempted from
capital gains tax
• The industry is demanding tax
concessions for unit linked pension
plans under section 80CCD of the
Income tax act
• An autonomous Bank Board Bureau
to be set up to improve the
governance of public sector banks
• Micro Units Development Refinance
Agency (MUDRA) Bank, with a
corpus of Rs. 20,000 crores, and
credit guarantee corpus of Rs. 3,000
crores to be created
• Service tax exemption on service
provided by way of Varishtha Pension
Bima Yojna
• Limit of individual health insurance
deduction of the health insurance
premium increased from Rs. 15,000 to
Rs. 25,000 & for senior citizens limit
increased from Rs. 20,000 to Rs.
30,000 *
• Tax neutrality on merger of similar
schemes of mutual funds
• Service Tax exemption for Mutual
Fund Agents of Asset Management
Companies (AMCs) withdrawn
Expectations Announcement
* Refer Direct Tax - Personal Taxation Highlights for details
13
Defence
Auto Sector
Renewable Energy
What does this mean for your business? (3/6)
Impact
The Indian Union Budget 2015 – Highlights
• „Make in India‟ initiative to
encourage domestic production of
defense equipment instead of
buying them from overseas
• Introduction of various exemption
schemes to the businesses involved
in domestic equipment production
• „Make in India‟ policy is being pursued
to achieve greater self-sufficiency in the
area of defence including air-crafts
• Budget for the defence sector
increased by 10.95% to Rs 2.46 lakh
crore as compared to the revised
estimates of Rs. 2.22 lakh crore for
2014-15
• To boost the „Make in India‟ initiative
and provide much needed impetus to
the commercial vehicle industry
• Cut in excise duty
• Increase in basic custom duty tariff rate
on commercial vehicles from 10% to
40%
• Concessions on custom and excise duty
available to electric vehicles and hybrid
vehicles extended up to March 2016.
• Allocation of more funds towards the
green energy projects so as to have
more focus on the cleaner and greener
sources of energy and ensure
sustainable growth
• Strengthening of the distribution and
transmission system in rural areas
• Strong government focus on Clean
Energy and making India self sufficient.
Renewable energy targets announced till
2022 which comprise of 100,000 MW for
solar energy, 60,000 for wind
energy, 10,000 MW for bio-mass and 500
MW for small hydro
Expectations Announcement
14
Tourism and
Hospitality
Metals and Mining
Healthcare
What does this mean for your business? (4/6)
Impact
The Indian Union Budget 2015 – Highlights
• Expected to increase visa on arrival
to more countries to boost tourism
• Give infrastructure status to hotels
and resorts so as to allow them to
take benefit of section 80-IA of the
Income Tax Act
• Visa on arrival to be increased to 150
countries in stages
• Major Initiative taken to promote
Swach Bharat will increase tourism in
the country
• Reducing export duty on low grade
iron ore (<50%)
• Increasing import duty on steel in
view of increase in import from china
to boost domestic production
• Basic Custom Duty tariff rate on iron
and steel and article of iron and steel
increased from 10% to 15%
• Clean energy cess increased from Rs.
100 to Rs. 200 metric tone of coal
• Basic custom duty on metallurgical
coke is increased from 2.5% to 5%
• Income tax write-offs for 250% of R&D
expenses
• Setting up medical technology parks
• Steps to create a health data base
linked to „Aadhar‟ numbers to enable
access to the person‟s medical history
across health care institutions
• All ambulance services provided are
exempt from service tax
• Providing social security system for all
Indians specially for poor, but no
specific announcements to boost the
healthcare sector
Expectations Announcement
15
IT & ITES
What does this mean for your business? (5/6)
Impact
The Indian Union Budget 2015 – Highlights
• To include IT/ITES in the list of
specified services for availing 150%
deduction on expenditure incurred
on skill development projects
• Tax incentives for software products
originating from India to promote the
„Make in India‟ campaign
• Fast-track implementation of
National Electronics Policy 2012
• Rs. 1,000 Crores have been set aside
for Self Employment and Talent
Utilization (SETU), a Techno-
financial, incubation and facilitation
program to support start –ups
• Expert committee to examine possibility
of replacing multiple prior permissions
by pre-existing regulatory mechanism
for star-ups
• Removal of Special Additional Duty
(SAD) from IT hardware manufacturing
industry
Food Processing
• Announcement of incentives for
setting up ware houses, cold
storage facilities, food processing
clusters in order to achieve the twin
objectives of lower food inflation
and higher realization for the
farmers
• Service Tax exemption provided to
services of pre-conditioning, pre-
cooling, ripening etc. of fruits and
vegetables
• Transportation of agricultural produce
to remain exempt from Service Tax
Expectations Announcement
16
What does this mean for your business? (6/6)
Impact
Consumer Electronics
Education
The Indian Union Budget 2015 – Highlights
• Extension of tax benefits to principal
repayment of higher education loan
• Interest subvention on education
loans
• Grant of infrastructure status to the
higher education sector
• Removal of Special Addition Duty
since it is not aligned with the “Make
in India” initiative
• Reduction is excise duty from 12% to
10%
• Reduction is custom duty on certain
imported parts for manufacturing Air
Conditioners, Washing Machines and
Refrigerators
• All goods except populated printed
circuit boards, fully exempted from
Special Addition Duty
• Basic Custom Duty on Black Light
Unit Module, Organic LED for
LCD/LED TV panels reduced to Nil
• Excise duty structure for mobile
phones changed
• National skill mission to consolidate
skill initiatives spread across
several ministries to be launched
• A student Financial Aid Authority to
administer and monitor the front end
all scholarship as well Educational
Loan Schemes, through the
Pradhan Mantri Vidya Lakshmi
Karyakram
Expectations Announcement
Direct & Indirect Tax Highlights
17The Indian Union Budget 2015 – Highlights
18
Changes in the Tax laws – affecting Individuals (Personal Taxation)
Personal
Taxation
Taxation – All
assessees‟
FDI - Taxation
measuresService Tax
Cross Border
Taxation &
Transfer Pricing
The Indian Union Budget 2015 – Highlights
• Tax deduction allowed u/s 80C for contribution made to the girl child under the
Sukanya Samriddhi Account Scheme, the interest income thereon and the
withdrawal of the contribution as per the rules there-under would be tax free
• Increase in deduction on health insurance premiums paid under Sec 80D from
from Rs.15,000 to Rs. 25,000
• In case of senior citizens - Health Insurance Premium limits u/s 80D enhanced
from Rs. 20,000 to Rs. 30,000 or Special tax benefit for health expenses
incurred allowed upto Rs.30,000
• Raising limit of deduction for pension schemes under Sec 80CCC & 80CCD by
Rs.50,000.
• The total exemption available from AY 16-17 under section 80C, 80 CCC and 80
CCD combined has accordingly been enhanced from Rs 100,000 to Rs.
150,000
• Exemption limits for Transport Allowance in case salaried employees increased
from Rs. 800 per month to Rs. 1600 per month, having an incremental impact of
Rs. 9,600, making the total annual deduction Rs. 19,200
• Increase in surcharge on Taxable Income above Rs. 1 crore from 10% to 12%
Excise and
Customs
No increase in basic
exemption limit for
individual taxpayers
19
Changes in the Tax laws – affecting all assessees
The Indian Union Budget 2015 – Highlights
• Wealth Tax abolished with effect from AY 2016-17. However, disclosure of assets to be made in Income tax return
• Any payment or advance given for transfer of immovable property included in Sec 269SS & 269T as a measure
to curb black money
• PAN being made mandatory for any notified purchase or sale exceeding Rupees 1 lakh. (yet to be notified)
• Procedural mechanism for processing TDS extended to TCS statements
• Taxation under MAT - share of profit from AOP received by a Company exempted bringing the tax treatment at par
with taxation of share of profit from a AOP received by a Partner of a Partnership Firm
Category / Income Non-corporate Tax payer
(Domestic)
Non-Residents (Excl.
Foreign Co)
Domestic Companies
Taxable Income < Rs. 1 Cr. Nil Nil Nil
Taxable Income between
Rs. 1 Cr. To Rs. 10 Cr.
From 10% to 12%
ETR – 33.99% to 34.608%
From 10% to 12%
ETR – 33.99% to 34.608%
From 5% to 7%
ETR – 32.445% to 33.063%
Taxable Income above
Rs. 10 Cr.
From 10% to 12%
ETR – 33.99% to 34.608%
Increased from 10% to 12%
ETR – 33.99% to 34.608%
Increased from 10% to 12%
ETR – 33.99% to 34.608%
• Surcharge on Income has been increased affecting effective tax rates (ETR) - summarized as below:
No change in tax rates
No change in tax exemption
slabs for non corporate taxpayers
Personal
Taxation
Taxation – All
assessees‟
FDI - Taxation
measuresService Tax
Cross Border
Taxation &
Transfer Pricing
Excise and
Customs
20
Changes in the Tax laws – affecting Cross Border Transactions & Transfer Pricing
The Indian Union Budget 2015 – Highlights
• Reporting compliances in Form 15CA / 15CB extended to all remittances
including non taxable remittances u/s 195(6) – Rules to be notified
• The scope of residency status widened by introduction of “Place of Effective
Management” (POEM) under section 6
• Deferment of General Anti Avoidance Rules (GAAR) by 2 years to AY 18-19
• Reduction in the tax rate on Royalty and FTS from 25% to 10% u/s 115A in
case of non-residents from AY 16-17
• Clarification on tax provisions applicable on indirect transfer of assets -
Substantial interest defined – under section 9
• Domestic Transfer Pricing threshold limits for specified domestic transactions
(SDT) u/s 92BA increased from Rs. 5 Cr. To Rs. 20 Cr. – Compliance burden
reduced on small assesses
• CBDT to notify rules for giving foreign tax credit
No change in tax rates &
surcharge applicable to
Foreign Companies
Personal
Taxation
Taxation – All
assessees‟
FDI - Taxation
measuresService Tax
Cross Border
Taxation &
Transfer Pricing
Excise and
Customs
21The Indian Union Budget 2015 – Highlights
While the direct tax proposals are not sector specific, in line with the
Make in India vision and the ease of Doing Business certain measures
have been brought into the Direct Tax Proposals to promote the
investment climate in India
• Pass through status has been given to Cat-I and Cat-II Alternative Investment
Funds (AIF) through the introduction of a special tax regime
• Fund managers presence in India not to constitute business connection for
income attribution of offshore funds
• Taxation regime for Real Estate Investment Trusts (REITs) & Infrastructure
Investment Trusts (Invit) simplified by allowing benefit to unit-holders at exit
and allowing pass through status to income of the Trusts
• MAT not applicable on Long term Capital Gains of FIIs in India
Changes in the Tax laws – affecting Foreign Direct Investment in India
Personal
Taxation
Taxation – All
assessees‟
FDI - Taxation
measuresService Tax
Cross Border
Taxation &
Transfer Pricing
Excise and
Customs
22
Changes in the Tax laws for Indirect Taxes
The Indian Union Budget 2015 – Highlights
• Increase in the rate of service tax to 14% from 12.36%
• Service-tax exemption to construction, erection, commissioning or installation
of original works pertaining to an airport or port withdrawn
• Possibility of imposition of Swachh Bharat Cess on taxable services @ 2%
• Transport & Logistics: service tax hike of 2.4% for non economy class air-
travel
• Service-tax to be levied on service provided by way of access to amusement
facility, entertainment events or concerts, pageants, non recognized sporting
events etc.
• Online registration of service tax in 2 working days
• Allow credit of service tax under partial reverse charge without linking it to the
payment to the service provider
• Transportation of agricultural produce to remain exempt from Service-tax
• New Service tax exemption on transport of goods for export by road from
factory to land customs station, pre-conditioning and pre-cooling etc. of fruits
and vegetables, life insurance service provided through Varishtha Pension
Bima Yojana, ambulance services and admission to zoo, national park and wild
life sanctuary etc.
Personal
Taxation
Taxation – All
assessees‟
FDI - Taxation
measuresService Tax
Cross Border
Taxation &
Transfer Pricing
Excise and
Customs
23
Changes in the Tax laws for Indirect Taxes
The Indian Union Budget 2015 – Highlights
• Excise duty on cigarettes increased by 25% for sub 65mm cigarettes
• Food processing: Excise Duty on mineral water and aerated drinks increased
to 18%
• Excise duty on sacks and bags of polymers of ethylene other than for
industrial use increased from 12% to 15%
• Import tax on met coke increased to 5% from 2.5%
• While EC and SHEC presently applicable to petroleum products, including petrol
and HSD are being exempted, the Additional Duty of Excise has been increased
on them by Rs. 6 per litre.
• Auto – LCV‟s & HCV‟s: Import Duty on vehicles with capacity more than 10
seats increased to 40% from 10% - protects domestic industry for Make in India
• Customs duty on Import of LED, LCD panels made Nil
• Special Additional Duty on iron, steel scrap cut by 2%
• Govt. reduces excise duty on leather footwear to 6%
• Basic Custom duty on certain inputs, raw materials, inter mediates and
components in 22 items, reduced to minimise the impact of duty inversion
• Excise duty on chassis for ambulance reduced from 24% to 12.5%
Personal
Taxation
Taxation – All
assessees‟
FDI - Taxation
measuresService Tax
Cross Border
Taxation &
Transfer Pricing
Excise and
Customs
No change in Basic rate of
excise & custom duty
24
Conclusion
• India has gone from the days of gloom and doom to mass euphoria in the last 10 months. The way both
Indians and global investors look at India today and what they expect from it in the short-run, is somewhat
unrealistic. But this Euphoria has put India back on the Global map as the Destination To Do Business. There
are initiatives that are being taken to enhance the “Make in India” mission with impetus being given to
improve manufacturing capacities, undertake technological improvements, increase productivity and provide
employment to its masses coupled with social security.
• While, the macro indicators of the economy, the impact on the different sectors of the Policy initiatives and
the direct and indirect tax proposals have been discussed in this presentation made by the S.R.D.
Knowledge Team, the detailed analysis of the fine print of the budget and our views will be available on the
S.R. Dinodia & Co. LLP. website soon.
The Indian Union Budget 2015 – Highlights
S.R. Dinodia & Co. LLP – Your Intelligent Connect
For more information on how S.R. Dinodia & Co. LLP can provide business solutions that work for you,
Contact us at [email protected] or visit us at www.srdinodia.com
For our blog – Intellinsight, you may visit intellinsight.srdinodia.com
Sources
Speech of Hon‟ble Finance Minister Shri Arun Jaitely
Finance Bill, 2015
Memorandum to Finance Bill, 2015
Economic Survey of India 2015
This information contained herein is in summary form and is therefore intended for general guidance only. This publication is not intended to address the circumstances of any particular
individual or entity. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. This publication is not a substitute for
detailed research and opinion. Before acting on any matters contained herein, reference should be made to subject matter experts and professional judgment needs to be exercised. S.R.
Dinodia & CO. LLP cannot accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication.
25
ASSURANCE SERVICES
Statutory Assurance Management Assurance Advisory Services SocioConnect Assurance
TRANSACTION ADVISORY SERVICES
Business Valuation Corporate Finance Advisory Mergers and Acquisitions & Re-
structuring Sales, Divestitures and Demergers Transaction Evaluation (Due Diligence) Negotiation & transaction Management CapitalConnect
TAXATION SERVICES
Direct Taxation Advisory Cross Border Taxation Taxation Litigation Services TaxConnect Services
REGULATORY ADVISORY SERVICES
Corporate Law Foreign Exchange Law Limited Liability Partnership Law EthiConnect
For further details, contact
Sandeep Dinodia,
Vice Chairman & Managing Partner
Tel: 011-43403305
Pallavi Dinodia,
Partner
Tel: 011-43703311
Telephone: 91-11- 4370 3300
Fax : 91-11-41513666
Website : www.srdinodia.com
K-39, Connaught Circus,
New Delhi – 110001, INDIA
S.R. Dinodia & Co. LLP. is a member of MGI, an international alliance of independent accounting, auditing, consulting and tax firms that offers business solutions worldwide.