Finance Bill 2011-Memorandum 2

CUSTOMS

Note: (a) “Customs Duty” means the customs duty levied under the Customs Act, 1962.

      (b) “CVD” means the Additional Duty of Customs levied under sub-section (1) of section 3 of the Customs Tariff Act, 1975.

       (c) “SAD” means the Special Additional Duty of Customs levied under sub-section (5) of section 3 of the Customs Tariff Act, 1975.

Changes come into effect immediately unless otherwise specified.

Major proposals about customs duties are the following:

A. GENERAL

1. The First Schedule to the Customs Tariff Act, 1975 is being amended vide Clause 57 of the Bill to give effect to the tariff changes relating to the Union Customs Duties.
2. The basic customs duty rates of 2%, 2.5% and 3% are being unified at the median rate of 2.5%.

B. Proposals involving changes in rates of duty, whether by amendment of tariff rates or by notification

I. FOOD/AGRO PROCESSING/AGRICULTURE:

1. Basic customs duty is being reduced from 5% to 2.5% on specified agriculture machinery namely paddy transplanter, laser land leveler, cotton picker, reaper-cum-binder, straw or fodder balers, sugarcane harvesters and track used for manufacture of track-type combine harvester.
2. Basic customs duty is being reduced from 7.5% to 2.5% on parts and components required for the manufacture of equipment at (1) above.
3. Basic customs duty is being reduced from 7.5% to 5% on micro-irrigation equipment (tariff item 8424 8100).

Read complete Memorandum of Finance Bill 2011 as below :-

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Finance Bill 2011

FINANCE BILL, 2011

PROVISIONS RELATING TO FINANCE BILL, 2011

Introduction

The provisions of the Finance Bill, 2011 relating to direct taxes seek to amend the Income-tax Act, 1961, inter alia, in order to,-

(i) increase the basic exemption limit in the case of individual taxpayers;

(ii) lower the qualifying age of senior citizens from 65 years to 60 years and also to increase the current exemption limit in such cases;

(iii) provide a higher exemption limit to very senior citizens above the age of 80 years;

(iv) reduce the surcharge on tax in the case of companies;

(v) provide impetus to overseas borrowings by facilitating setting up of infrastructure debt funds;

(vi) rationalise the taxation of income distributed by debt mutual funds;

(vii) levy Minimum Alternate Tax (MAT) on developers of SEZ and units operating in them;

(viii) levy Alternate Minimum Tax (AMT) in the case of Limited Liability Partnerships;

(ix) provide a set of counter-measures in relation to jurisdictions with which there is a lack of effective exchange of information;

(x) provide a concessional rate of tax on dividends received by Indian companies from their foreign subsidiaries during

               

Read complete Memorandum of Budget 2011-12 in PDF format as below:-

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