Rediscover Gujrat .....Rediscover the Gujrati in You

Web GujaratPlus.com

Announce this site to others •  Feedback • Site Survey •

This page is no longer updated. Please go to our main page here

Cars, CNG kits will be cheaper Thursday, March 1, 2001

Cars and two-wheelers will be cheaper with Finance Minister Yashwant Sinha announcing a reduction of excise duty on passenger cars to 32 per cent from 40 per cent and on two-wheelers with engine capacity over 75 cc to 16 per cent from 24 per cent.

CNG kits and parts will now attract a low duty of five per cent. The same is extended to LPG conversion kits and their parts. Since LNG is not produced in India, the CVD on import of LNG is being exempted. Excise duty on diesel, which was reduced to 12 per cent, has now been restored to 16 per cent Cenvat.

Sinha also said he had increased customs duties on second-hand car imports to 105 per cent from 35 per cent to protect the domestic auto industry. India will lift quantitative import restrictions on 700 items, including passenger cars, in April as a result of World Trade Organisation pact.

India's automobile industry had sought the tax cuts to boost car sales which had fallen 6.27 per cent in the first 10 months of 2000-01 from the same period a year earlier. Taxes currently account for over 50 percent of the cost of a new car in India.

The customs duty on information technology and telecom products and their inputs and components has been reduced to 15 per cent from March 1, 2001.

The customs duty on cut and polished colour gem stones has been brought down to 15 per cent to help enhance export of these items.

Customs duty on cements and clinkers has been reduced to 25 per cent to help the customers.

Journalists can now import cameras, computers and fax machines upto a value of Rs 1,00,000 for personal use duty free once in two years instead of five years.

The duty on cinematographic cameras, projectors and related equipment used by the film industry has been reduced to 15 from 25 per cent.

In order to curb gold smuggling, the duty on gold has been reduced to Rs 250 for 10 grams from Rs 400.

A special surcharge of excise duty of 15 per cent on cigarettes has been proposed. Goggles, mattresses, imitation jewellery and rubberised mattress will attract four per cent duty each.

The finance minister has also proposed 16 per cent excise duty on branded garments. He has also proposed increase in import duty on tea, coffee, copra raised from 35 to 70 per cent. On crude edible oils, it will be 55 per cent.

CVD will be levied at a suitable rate on import of foreign liquor, he said.

Sinha has proposed to remove all income tax surcharge on corporate and non-corporates except the two per cent surcharge for the Gujarat Earthquake Fund. Income between Rs 40,000 and Rs 1 lakh will get 30 per cent exemption under Section 88 instead of 20 per cent now.

Tax will be computed on the total income of the employee based on the cost to the company, excepting on cars and house rent. Tax payable on distribution of dividends of domestic companies and UTI will be increased from 10 per cent to 20 per cent.

Tax deduction limit on interests on housing loans on self-occupied property will be raised from Rs 1 lakh to Rs 1.5 lakh.

Cigarettes and chewing tobacco will attract a special surcharge of 15 per cent, the finance minister proposed.

 

This site is dedicated to our friend Younus M, who passed away on 28th Sept 00, and left on us an indelible memories ! - Team GujaratPlus.com

[P] Privacy Policy | © Copyright 2000-2006 |

Designed & Hosted by eZee Web Solutions