Interim Budget 2014 – Highlights

Published On - February 21, 2014

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Dear Customer,
Finance Minister Mr. P Chidambaram presented the Interim Budget for fiscal year 2014-15 on Monday, 17th Feb, 2014 to cover expenditure until the government’s term ends in May this year.
Here are the some highlights from Finance Bill 2014 with related to Direct and Indirect Taxes.
  1. No changes in direct tax rates and provisions
  2. There are some reliefs in tax rates in excise duty to offer temporary boost to some sectors
    • Excise duty on small cars, motorcycles and commercial vehicles cut from 12 to 8%
    • Excise duty on SUVs cut from 30 to 24%, large and mid-segment cars from 27-24% to 24-20%
    • Excise duty on mobile handsets reduced – 6% if CENVAT benefit is availed and 1% if CENVAT benefit is not availed off
    • Excise duty on capital goods, non-consumer durables cut from 12 to 10%
  3. Service tax – Mega exemption notification amended to include:
    • Services provided by the cord blood banks
    • Services by way of loading, unloading, packing, storage or warehousing of rice
    • Transportation of rice by rail or a vessel or by a Goods Transport Agency by way of transport in a goods carriage is exempt from Service Tax
    • Milling of paddy into rice is exempt from service tax.
  4. Moratorium on interest on student loans taken before March 31, 2009; to benefit 9 lakh borrowers (Government will pay interest till Dec 2013 on education loans taken before March 31, 2009)
  5. Amendments in Customs duty:
    • The basic customs duty structure on non-edible grade industrial oils and its fractions, fatty acids and fatty alcohols rationalized at 7.5%
    • A concessional custom duty of 5% has been provided on capital goods imported by the Bank Note Paper Mill India Private Limited
  6. The Government appeals to all political parties to resolve and pass the GST laws and Direct Tax Code in 2014-15.