Union Finance Minister P. Chidambaram presented tax proposals, both on the direct taxes and indirect taxes in Lok Sabha giving no relief for the middle class people. The budget could not be called as ‘populist’ budget, rather a ‘realistic’ to change the fortune of the country following global economic crisis.
While smartphones, jewelry, motor vehicles, luxury cars, SUVs, set up box and eating out in AC restaurants will be costlier, there will be totally exempt handmade carpets and textile floor coverings of coir or jute from excise duty. Existing exemptions from service tax for low cost housing and single residential units will continue. However, 1 per cent Tax deducted at source (TDS) was imposed on sale of the immovable property over Rs. 50 lakh. The tax is not applicable to agricultural land.
Here is the complete list of goods/articles get Cheaper and Costlier after Budget 2013-14
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Costlier
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Cheaper
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- Set top boxes duty increased from 5% to 10%
- Duty on raw silk from 5% to 15%
- Luxury goods such as high end motor vehicles, motorcycles, yachts and similar vessels increased from 75% to 100%
- Duty on SUVs increased from 27% to 30%
- Gold duty free limit raised to Rs 50,000 for men and Rs 1 lakh for women travelers,
- Specific excise duty on cigarettes, cigars, cheroots and cigarillos by about 18%
- Eexcise duty rate on marble raised from Rs 30 per sq. mtr to Rs 60 per sq mtr
- 6 percent tax increased on mobile phones above Rs 2,000
- Service tax to be applied on all A/C restaurants.
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- Duty reduced on specified machinery for manufacture of leather and leather goods, including footwear from 7.5%to 5%
- Duty cut on pre-forms of precious and semi-precious stones from 10% to 2%, certain concessions to the MRO (manufacture, repair and overhaul) industry
- Handmade carpets and textile floor coverings of coir or jute,
- No CVD on imported ships and vessels,
- Abatement of 35 percent on branded medicaments of Ayurveda, Unani, Siddha, Homeopathy and bio-chemic systems of medicine.
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