Hello everyone. Hereby I deliver my readers an analysis of the proposed changes related to the Textile Sector. Pranabda's Budget has proposed to increase the Planned Allocation to Rs. 4500crore from Rs. 4090crore last Fiscal. Rs. 3140crores has been allocated to TUFS(Technology Up-gradation Funding Scheme), its a scheme that aims to spur modernization and more investment in this sector. Firstly lets know about the proposed changes in the INDIRECT TAXATION related to Textile products. If we deeply introspect, we shall find that no big changes have been made here. The DUTY STRUCTURE as per my research:
1). Excise duty on NAPHTHA reduced to 14%. A good move indeed. Electricity producers were demanding this since a long time.
2). Excise duty on some Textile chemicals namely Man-made fibres is as below:
-Polyester's E.D. again brought to 8% from 4% last Fiscal.
-Latex rubber thread's E.D. increased to 8%. It is widely used in Garment Industry. Thus, the price of related Garments is soon to hike.
-CENVAT credit has been given as a benifit and on a counter move, E.D. on Cooton yarn expanded to 4% from 0%.
3). Excise Duty REDUCED ON following:
-LCD(Liquid Crystal Display) plates.
-Mobile items.
-Luxury cars.
-LPG(Liquefied Petroleum Gases).
4). Custom Duty REDUCED ON:
-On 9 specified drugs, Custom duty is reduced. This will make these commodities dearer by 10-15%.
-On branded Jewelry.
5). Custom Duty increased on Gold, to make Gold, Golden!
6). Service Tax regime not to be levied on Manufacturing
This is an analysis of Major Indirect Tax analysis, if you have any views to share or additions to this data, you are welcomed with utmost gratitude. Enjoy the Analysis.
Bhagirath Baria
- Bhagirath Baria
- The Author of this blog has keen interest in understanding Economics and its implications on the Individual and the Economy as a whole. Has been writing articles and analysis of issues that may skip general observation, but exert deep influence on people's lives and their decisions. Discussions and Debates related to conventional as well as non-conventional Economics is done here. The author of this blog doesn't classify himself to any particular School of thought in Economics. He is tilted toward Mainstream Economics, though has keen interest in a few Heterodox schools too. Wishing all the readers a truly enriching experience.
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