Highlights of
Union Budget 2006 - 07
in relation to Indian
Rubber Industry
NDIRECT TAXES :
Import Duties
Additional duty of
Customs of 4% has been extended to cover all imported goods.
Peak rate of Customs duty
on non-agricultural products has been reduced from 15% to 12.5%.
Customs duty has been
reduced on Ethyl Vinyl Acetate from 10% to 5%.
Customs duty has been
reduced on Butyl Rubber from 15% to 10%.
Excise Duties
Excise duty has been
reduced from 16% to 8% on Footwear of retail between Rs. 250 and Rs. 750 per
pair.
Abatement from Retail
Sales Price for levy of Excised duty on Footwear of RSP exceeding Rs. 250/- and
Rs. 750/- per pair has been reduced from 40% to 37% consequent to reduction in
excise duty from 16% to 8%.
Excise duty has been
reduced from 16% to 8% on Heat resistant latex rubber thread.
Excise duty has been fully
exempted on Paddy de-husking rice rubber rolls.
Excise duty of 16% has
been imposed on Specified Goods meant for display in any fair of exhibition in
India.
Cess ondomestic petroleum
crude oil increased from Rs. 1800 per tonne to Rs. 2500 per tonne.
Service Tax
The rate of Service Tax is
being increased from 10% to 12% (effective rate 12.24%)
Service Tax imposed on ATM
operations and Credit Card, Debit Card, Charge Card or other payment card
related services.
Direct
Taxes :
Income Tax
No Change in personal or
corporate rate of Income Tax.
Minimum Alternate Tax
(MAT) raised from 7.5% to 10%.
Section 80C to cover fixed
deposits of five years and more with a scheduled bank.
Removed the limit of Rs.
10,000 in respect of contribution to Pension Fund u/s 80ccc, subject to the
overall ceiling of Rs. 1,00,000.
Changes in sections 54EC
(Capital Gain) to restricted to two institutions i.e. National Highways
Authority of India (NHAI) & Rural Electrification Corporation Ltd. (REC).
Exemption available U/s 54
ED in respect of long term capital gains arising on sale of listed securities or
units of mutual fund/UTI invested in eligible equity shares withdrawn.
PAN to be made compulsory
for some more transactions.
Fring Benefit Tax (FBT)
Valuation of tour and
travel for FBT purpose reduced from 20% to 5%.
Contribution to approved
superannuation fund by employer, in excess of Rs. 1 lakh per employee, will
attract FBT.
Union Budget 2004-2005
