PwC On Budget
By Rile at February 26, 2010 | 9:29 pm | Print
PwC analysis on indirect taxes, I-T.
Basic Customs Duty on several other specified petroleum products is being increased from 5% to 10%.
Information Technology Software Services are proposed to be taxed under services tax even if used for non commercial purposes.
The Budget proposal rationalizes the Customs duty applicable on medical, surgical, dental and veterinary equipments falling under chapter heading no. 90.18 to 90.22. At present such equipments attracts varying rates of customs duty and are spread over many lists. This multiplicity of rates is being done away with and now all medical equipments (with some exception) will attract 5% Basic Customs Duty, 4% CVD/excise duty and NIL Special Additional Duty on Excise. The effective rate of Customs duty shall be 9.2%.
Withdrawal of concessional customs duty on spares for maintenance of medical equipment except in specified cases.
Retention of full exemption from Basic Customs Duty and CVD / Excise duty for specified medical devices as well as for assistive devices, rehabilitation aids and other goods for disabled. Import of Cobalt-chrome alloys special grade stainless steel etc. for manufacture of orthopedic implants to be exempt from Basic Customs Duty.
Service Tax levy is proposed to be extended to the following Health Services:
Health check up by hospitals or medical establishments for the employees of business entities.
Vis-FE
