Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: due date for vat payment :: TDS :: empanelment :: VAT RATES :: ACCOUNTING STANDARDS :: cpt :: list of goods taxed at 4% :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company
 
 
Customs and Excise »
 Ensure transparency in excise department working: Bizmen to government
 It is time to review the customs duty on essential food imports
 Migration to GST of existing Central Excise / Service Tax Assessees
 Rate of exchange of conversion of the foreign currency with effect from 3rd February, 2017
 Budgetary Changes In Customs
 Customs and excise officials upset with GST administration deal with states
 Higher petro excise props up govt tax kitty
 Seeks to further amend notification No. 02/2011-Central Excise dated 1st March, 2011.
  Rate of exchange of conversion of the foreign currency with effect from 21st October, 2016
 Rate of exchange of conversion of the foreign currency with effect from 21st October, 2016
 Seeks to amend Notification No. 27/2014-Central Excise

Standard rate of excise duty may not see change in Budget
February, 26th 2013

With sluggish industrial growth and dampened investment environment, this Budget is unlikely to raise standard rate of excise duty. However, there could be some tinkering in rate for specific sectors.

“There is no doubt that there is tremendous pressure on the Finance Minister to bring the pre-crisis level of standard rate of excise as a part of fiscal consolidation. But we need to understand the overall investment and industrial growth situation. That is why the consideration is not to raise the standard rate,” a senior Government official told Business Line.

Last year while presenting the Budget, then Finance Minister Pranab Mukherjee raised the standard rate to 12 per cent from 10 per cent. It may be recalled that in the wake of the global financial crisis in 2008-09, the standard rate of excise duty for non-petroleum goods was reduced from 14 per cent to eight per cent in a phased manner. This rate was raised from eight per cent to 10 per cent in Budget 2010-11.

Now, on October 29, Finance Minister P. Chidambaram announced the roadmap for fiscal consolidation where he kept the fiscal deficit target for 2013-14 at 4.8 per cent. Since then, there has been a lot of speculation about raising the duty. However, with negative industrial growth (-0.6 per cent) in December, the Finance Ministry is unlikely to take a chance, the official added.

Maintaining the status quo on standard excise duty will not just give relief to the industry, but will also benefit consumers’ demand.

“This is the time for improving overall sentiments and the Finance Minister is very well aware of this,” the official said. But he did not rule out some tinkering in some sector specific rates. These sectors may include oil and sugar, he explained.

Another Government official said that although the headline inflation or wholesale price inflation (WPI) had declined to 6.6 per cent (for January 2013), still, it is not in the comfort zone.

“If the standard rate is raised, it has the potential to impact the overall price level which will fuel the inflation,” he added.

He also said that unlike the past, raising the standard duty will not generate additional revenue as environment is not conducive, on the other side, it may bring down the overall collection.

The Revenue Department is already having a tough time meeting the targets of custom and excise duty collection this fiscal. It is estimated that indirect tax collection might see an overall shortfall of around Rs 30,000 crore.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions