Union Budget 2013-14 is already a week old – decoded, demystified and debated right from Saint Thiruvalluvar’s quote in the opening remarks to Swami Vivekananda’s message in the closing (of the FM’s speech) – of course with nothing saintly in between. It was cleverly camouflaged commerce all through in the seeming guise of social welfare!
“What clearly eye discerns as right, with steadfast will and mind unslumbering, that should man fulfil”, said the Hon’ble FM Chidambaram, quoting his favourite poet Saint Thiruvalluvar. So should the Sovereign! Well, even if it doesn’t as it is wont to most often than not, he knows for sure that as individual citizens and as a nation, we firmly believe and prove that “All the strength and succor you want is within yourself“. What Swami Vivekananda said more than a century ago is truly reflective of the times we live in today – without the immense inner power we possess we couldn’t continue to see HOPE in the economic rubble of inflation, corruption and dysfunction.
Canons of taxation from the ancient Hindu texts prescribe – “Taxes must be collected like a bee collects honey from the flowers, little by little without injuring the flower. So also like a leach sucking blood mildly and a calf sucking milk without bruising the udder. Taxes must be as harmless as a tigress carrying her cub by its skin without sinking her teeth in.” The current Budget proposals may be aligned to these canons but where is the FLOWER? where is the MAN? where is the COW? where is the CUB? So much has already been sucked over the years and throughout the year before the Budget under the guise of several duties and taxes both by the Centre and the States that the hapless citizen is like a DEAD HORSE – flogging him will not help. Perhaps hence PC has looked at the super rich citizens.
Highlights of the Budget 2013-14 and a few other important regulatory changes are carried in this issue of Lexspeak.
To read the earlier issues and articles Click Here
Lex Valorem Team
The word ’tax’ is derived from ’taxare’ meaning ’pierce sharply’. This year’s budget may not seem to pierce sharply but the cleverly worded changes add to our woes in no small measure. Rising inflation + more payments under TDS bracket + more services under the service tax net = shrinking disposable income.
Tax slabs and tax rates for individuals untouched.
Nominal amount available as tax credit for income < Rs.5 lacs.
First time home buyers get additional interest deduction.
Profits distributed via buy back of shares to attract tax.
TDS on royalty hiked.
And a few more changes…..
Peak customs duty at 10%.
Certain type of cars and luxury motor cycles attract higher rate of duty.
Leather, footwear, textile, MRO of aircrafts to attract lower rate of duty.
Advance ruling for new line of business by existing manufacturer.
Mobile phones to cost more due to hike in excise duty.
Eating out in AC restaurants to cost more.
No change in service tax rates.
Defaulters being wooed by Voluntary compliance Scheme.
Negative list modified with few exemptions provided and withdrawn.
Note: Above summary is selective and not exhaustive in nature. Only relevant notifications have been linked.
Post Export EPCG Scheme – clarified
The Ministry has clarified that duty credit scrips issued under post export EPCG Scheme will be restricted to only basic custom duty paid on capital goods. Earlier it read as “Duty paid on capital goods”.
Import of second hand goods restricted
Used computers, laptops, air conditioners, copying machines, diesel generator sets etc., can be imported only against a license. However refurbished spares of capital goods may be imported without a license. It is to be noted that all second hand goods other than capital goods continue to be restricted under the import policy, requiring a specific license.
ST-3 Return for July – September, 2012
Service Tax Return for July – September, 2012 has been notified. Last date for filing the return is 25th March, 2013
Note: The contents of this Newsletter are only a summary and has not dealt with any issue in detail. Any action taken or proposed to be taken must be in consultation with professionals and not merely based on the articles / news updates. Lex Valorem disclaims all liability on action taken without professional advice.