GST – Goods and Service Tax CA CMA CS Exams

Contents In This Article

What is GST?

What are the benefits of GST?

Goods and Service Tax – GST. Today we are providing basic concepts about GST – Goods and Service Tax like What is GST? , benefits, rate of GST, applicable date of GST, items on which GST may not be applied etc to CA, ICWAI / CMA, CS students. This article gives you some basic knowledge about Goods and Service and it is very useful to CA IPCC, CA Final, ICWAI Inter, CMA Final, CS students.

One of the biggest taxation reforms in India — the Goods and Service Tax (GST) — is all set to integrate State economies and boost overall growth. GST will create a single, unified Indian market to make the economy stronger.

[button_link size=”medium” src=”http://superprofs.com/resources/gst-goods-service-tax-ca-cma-cs-exams/”]Goods and Services Tax in India is set to be implemented from 01/04/2016.[/button_link]

The implementation of GST will lead to the abolition of other taxes such as octroi, Central Sales Tax, State-level sales tax, entry tax, stamp duty, telecom licence fees, turnover tax, tax on consumption or sale of electricity, taxes on transportation of goods and services, et cetera, thus avoiding multiple layers of taxation that currently exist in India.

But just what is GST all about and how will it impact you?

What is GST?

Goods and Services Tax – GST is a comprehensive tax levy on manufacture, sale and consumption of goods and services at a national level.

Through a tax credit mechanism, this tax is collected on value-added goods and services at each stage of sale or purchase in the supply chain.

The system allows the set-off of GST paid on the procurement of goods and services against the GST which is payable on the supply of goods or services. However, the end consumer bears this tax as he is the last person in the supply chain.

Experts say that GST is likely to improve tax collections and boost India’s economic development by breaking tax barriers between States and integrating India through a uniform tax rate.

What are the benefits of GST?

Under GST, the taxation burden will be divided equitably between manufacturing and services, through a lower tax rate by increasing the tax base and minimizing exemptions.

It is expected to help build a transparent and corruption-free tax administration. GST will be is levied only at the destination point, and not at various points (from manufacturing to retail outlets).

Currently, a manufacturer needs to pay tax when a finished product moves out from a factory, and it is again taxed at the retail outlet when sold.

How will it benefit the Centre and the States?

It is estimated that India will gain $15 billion a year by implementing the Goods and Services Tax as it would promote exports, raise employment and boost growth. It will divide the tax burden equitably between manufacturing and services.

What are the benefits of GST for individuals and companies?

In the GST system, both Central and State taxes will be collected at the point of sale. Both components (the Central and State GST) will be charged on the manufacturing cost. This will benefit individuals as prices are likely to come down. Lower prices will lead to more consumption, thereby helping companies.

What type of GST is proposed for India?

India is planning to implement a dual GST system. Under dual GST, a Central Goods and Services Tax (CGST) and a State Goods and Services Tax (SGST) will be levied on the taxable value of a transaction.

All goods and services, barring a few exceptions, will be brought into the GST base. There will be no distinction between goods and services.

Which other nations have a similar tax structure?

Almost 140 countries have already implemented the GST. Most of the countries have a unified GST system. Brazil and Canada follow a dual system where GST is levied by both the Union and the State governments.

France was the first country to introduce Goods and Service Tax system in 1954.

Will this be an extra tax?

It will not be an additional tax. CGST will include central excise duty (Cenvat), service tax, and additional duties of customs at the central level; and value-added tax, central sales tax, entertainment tax, luxury tax, octroi, lottery taxes, electricity duty, state surcharges related to supply of goods and services and purchase tax at the State level.

What will be the rate of GST?

The combined Goods and Service Tax rate is being discussed by government. The rate is expected around 14-16 per cent. After the total GST rate is arrived at, the States and the Centre will decide on the CGST and SGST rates.

Currently, services are taxed at 10 per cent and the combined charge indirect taxes on most goods is around 20 per cent.

Will goods and services cost more after this tax comes into force?

The prices are expected to fall in the long term as dealers might pass on the benefits of the reduced tax to consumers.

Why are some States against GST; will they lose money?

The governments of Madhya Pradesh, Chhattisgarh and Tamil Nadu say that the information technology systems and the administrative infrastructure will not be ready by April 2010 to implement GST. States have sought assurances that their existing revenues will be protected.

The central government has offered to compensate States in case of a loss in revenues.

Some States fear that if the uniform tax rate is lower than their existing rates, it will hit their tax kitty. The government believes that dual GST will lead to better revenue collection for States.

However, backward and less-developed States could see a fall in tax collections. GST could see better revenue collection for some States as the consumption of goods and services will rise.

How will GST be implemented?

The empowered committee is likely to finalize the details of Goods and Service Tax by August. But States have to sort out several issues like agreement on GST rates, constitutional amendments and holding talks with industry associations. Experts feel the drafting of legislation and the implementation of law will take time. Goods and Services Tax in India is set to be implemented from 1st April 2016.

What are the items on which GST may not be applied?

Alcohol, tobacco, petroleum products are likely to be out of the GST regime.


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GST Applicability in CA CMA CS – Changes in Tax Syllabus

Get the details about GST Applicability in CA CMA CS – Changes in Tax Syllabus. The Goods and Services Tax Bill or GST Bill proposes a national Value added Tax to be implemented in India from 1 April 2017. We got so many queries regarding Applicability of GST in CA CMA CS Exams. Today SuperProfs Team exclusively providing clarification regarding Applicability of GST in Tax subject in CA CMA CS exams.

GST to spur overhaul of CA, CS and CMA course syllabus

The implementation of the goods and services tax (GST) bill will call for major changes in the CA, CS and CMA syllabus.

GST Applicability in CA CMA CS - Changes in Tax Syllabus

GST shall replace following Acts.

  • Service Tax
  • Excise Act
  • Central Sales Tax Act
  • Value Added Tax

In place of 4 Acts one Act will be introduced which is GST. Govt. has notified 1-4-2017 as the date of implementation of GST.

We expect GST to be implemented in CA, CS and CMA exam for following attempts assuming the rule of 6 months gap between implementation and month prior to exam month.

GST Applicability in CA CMA CS – Changes in Tax Syllabus

CA – April to October : 7 months gap

Nov 2017

CS / CMA – April to November  : 8 months gap.

Dec 2017

 

Therefore GST will not be implemented in May 2017 / June 2017 exam.

Let us see the predict the proposed syllabus after implementation of GST.

 

Old Syllabus (IDT) New Syllabus (GST)
  • Service Tax
  • Excise Act
  • Central Sales Tax Act
  • Value Added Tax
  • Customs Act 1962
  • GST
  • Customs Act 1962

 

Course Subject Old Syllabus New Syllabus
CA IPCC Taxation IDT (50 Marks) GST (40 Marks)
CA Final Indirect Tax IDT (100 Marks) GST (100 Marks)
CS Executive Tax Laws and Practice IDT (30 Marks) GST (30 Marks)
CS Professional Advanced Tax Laws and Practice IDT (70 Marks) GST (70 Marks)
CMA Inter Indirect Tax IDT (100 Marks) GST (100 Marks)
CMA Final Indirect Tax IDT (50 Marks) GST (100 Marks)

Plan and Strategy to clear CA, CS and CMA exam

CA, CS or CMA are lengthy courses rather than tough course. To prepare these courses you need to learn, study and memorise almost 5000 pages of informations. Out of these 5000 pages, 400 pages data shall be asked in exam. Now you know it becomes challenging.

I stress you to memorise these pages. All the concepts have reasons. You need to understand that reasons. When you understand that reasons it means that you have understood the concept. Now the next step is to memorise. Memorising means to put the information from temporary memory to permanent memory in such a way that you are able to answer any question relating to that topic in a correct way.

Depending upon your capacity you can memorise one page or more than one page in a single day.. Sometimes it is difficult to memorise even one paragraph. For this it is always better to make your own notes. Notes might carry charts and tables which shall help you collate data for easy understanding and memorising.

When you listen you understand, but when you write, your understanding the concept and chances of easy memorising exceeds many fold.

You can also try to memorise by reading it aloud. When you read it aloud you concentrate more in the readings.

When you are listening lectures keep a separate copy where you write every small points. Professors often make story, charts and tables to make you understand the concept. These story can easily be memorised. You again write that charts and tables so that both work of listening and memorising happens simultaneously.

Most of the students feels that by seeing the questions and its solution you have understood that practical solution but the reality is this that at the time of exam you may not be able to solve it. Therefore for practical questions do solve it in black and white, it will improve your presentation skill also.

Always carry a pocket diary where you can make routine. Your diary should reflect target goals to be achieved and how much you achieve each day. This will help you realise whether your target is achievable or not.

One thing is sure believe in yourself and everything is achievable.

CS K K Agrawal

THE CHANGING CONTOUR OF CORPORATE ADJUDICATION IN INDIA

National Company Law Tribunal (NCLT) is a Quasi-Judicial body that adjudicates issues relating to Companies in India. An Appeal can be filed against an order of NCLT to National Company Law Appellate Tribunal (NCLAT).  Both of these Tribunals  were constituted by Central Government in exercise of its  powers conferred by Section 408 and 410 of the Companies Act 2013 via notification dated 1st June 2016.

As per the aforesaid notification, Company Law Board (CLB) stand dissolved with effect from 1st June 2016 & Notification of Section 466 makes the last Chairman of Company Law Board as Provisional and first chairman of NCLT.

National Company Law Tribunal (NCLT)

Chairperson of NCLAT is Justice S.J Mukhopadhaya while President of NCLT is Justice MM Kumar.

It was year 2002, when we first heard about NCLT and NCLAT. The Companies (2nd Amendment) Act, 2002 provided setting up of National Company Law Tribunal and National Company Law Appellate Tribunal to replace the existing Company Law Board and The Board for Industrial and Financial Reconstruction. The establishment of NCLT as a specialized institution for corporate adjudication system is based on the recommendation of Justice Eradi Committee, a committee set up to examine the law relating to winding up and Insolvency  in order to re-model it in line with latest developments and innovations in corporate law & governance.

Madras Bar Association v. Union of India

The Petitioner Madras Bar Association via Writ Petition no. 1072 of 2013 had challenged the constitutionality for creation of NCLT AND NCLAT on the ground  “Provisions regarding formation of NCLT and  NCLAT are ultra vires of  Article 14 of the constitution”.

The Supreme Court by rejecting the contention of the Petitioner held that a Legislature can enact a law transferring the jurisdiction exercised by court in regard to any specific subject to any tribunal and any Tribunal to which any existing jurisdiction of court is transferred should also be Judicial Tribunal and should have members, person of rank, status and capacity of the court which was then dealing with the matter.

The Supreme Court did not upheld the issue raised by the Petitioner which resulted into formation of NCLT and NCLAT.

NCLT AS A MEGA TRIBUNAL

NCLT had consolidate the jurisdiction of the following :-

  1. Company Law Board
  2. The Board for Industrial and Financial Reconstruction
  3. Appellate authority for Industrial and Financial Construction
  4. Jurisdiction and Power of High Court relating to winding up.  

NCLT

The Central Government had constituted the following Benches of the National Company Law Tribunal mentioned in column (2) of the table below, located at the place mentioned in column (3) and to exercise the jurisdiction over the area mentioned in column (4), namely:-

Serial Number Title of the Bench Location Territorial Jurisdiction of the Bench
1. (a) National Company Law Tribunal, Principal Bench.

(b) National Company Law Tribunal, New Delhi Bench.

New Delhi (1) State of Haryana. (2) State of Rajasthan.

(3) Union territory of Delhi.

2. National Company Law Tribunal, Ahmedabad Bench. Ahmedabad (1) State of Gujarat. (2) State of Madhya Pradesh.

(3) Union territory of Dadra and Nagar Haveli.

(4) Union territory of Daman and Diu.

3. National Company Law Tribunal, Allahabad Bench. Allahabad (1) State of Uttar Pradesh.

(2) State of Uttarakhand.

4. National Company Law Tribunal, Bengaluru Bench. Bengaluru (1) State of Karnataka.
5. National Company Law Tribunal, Chandigarh Bench. Chandigarh (1) State of Himachal Pradesh.

(2) State of Jammu and Kashmir.

(3) State of Punjab. (4) Union territory of Chandigarh.

6. National Company Law Tribunal, Chennai Bench. Chennai (1) State of Kerala. (2) State of Tamil Nadu.

(3) Union territory of Lakshadweep.

(4) Union territory of Puducherry.

7. National Company Law Tribunal, Guwahati Bench. Guwahati (1) State of Arunachal Pradesh. (2) State of Assam. (3) State of Manipur. (4) State of Mizoram. (5) State of Meghalaya.

(6) State of Nagaland.

(7) State of Sikkim. (8) State of Tripura.

8. National Company Law Tribunal, Hyderabad Bench. Hyderabad (1) State of Andhra Pradesh.

(2) State of Telangana.

9. National Company Law Tribunal, Kolkata Bench. Kolkata (1) State of Bihar.

(2) State of Jharkhand.

(3) State of Odisha. (4) State of West Bengal.

(5) Union territory of Andaman and Nicobar Islands.

10. National Company Law Tribunal, Mumbai Bench. Mumbai (1) State of Chhattisgarh.

(2) State of Goa.

(3) State of Maharashtra.

CONSTITUTION OF NCLT AND  NCLAT

  1. There are 2 Classes of members to NCLT viz a) Judicial Members b) Technical Members.
  2. Tribunal is headed by the President and Appellate Tribunal is headed by the Chairperson.
  3. NCLAT shall not exceed 11 members for hearing appeals against the order of Tribunal.

ADVANTAGES OF CONSTITUTING NCLT AND NCLAT

  1. It shall avoid multiplicity of litigation before various Forums (CLB, BIFR, High Courts, AAIFR).
  2. The Tribunal comprises of Technical Experts who will provide more concrete & precise decisions.
  3. There would be a reduction in pendency of cases.
  4. There are 11 benches of NCLT which provides justice at one doorstep.
  5. There would be reduction in period of winding up from 20-25 years to 2 years.

SCOPE OF SERVICES FOR PRACTICING COMPANY SECRETARIES(PCS) UNDER NCLT

The Establishment of NCLT/NCLAT have offered various opportunities to Practicing Company Secretaries as they are been authorised to appear before the Tribunal/Appellate Tribunal. Areas opened up for Company Secretaries in Practice under NCLT are as follows :-

  1. PCS as a member of NCLT : PCS can be appointed as a Technical member of NCLT provided he/she must have 15 years of working experience as Secretary in whole time practice.
  2. Area opened up for PCS under NCLT as for the first time they would be eligible to appear for matters which were erstwhile dealt by High Court viz Merger, Amalgamation and Winding up proceedings.
  3. Enlarge scope in Revival of Sick Companies.

CONCLUSION

The Constitution of NCLT AND NCLAT are part of the efforts for faster resolution of Corporate disputes, thus improving the ease of doing business in India. It shall offer various opportunities to various professionals like CS/CA/CMA as they are authorised to appear before Tribunal/Appellate Tribunal.

Applicability of Companies Act 2013 CMA Inter Final Dec 2014

Applicability of Companies Act 2013 for December 2014 CMA Inter & Final Exams

Applicability-of-Companies-Act-2013-CMA-Inter-Final-Dec-2014

It is hereby notified for general information that the Sections of The Companies Act 2013 as specified in Annexure I for Intermediate Course and Annexure II for Final Course, along with its Rules framed thereunder shall be applicable for the CMA Intermediate Course and CMA Final Course Examinations respectively for December 2014 Examination. Applicability of Companies Act 2013

Note:

(i) The provisions of the Companies Act, 1956 which are still in force would form part of the syllabus till the time their corresponding or new provisions of the Companies Act,2013 are enforced.

(ii) If new legislations are enacted in place of the existing legislations, the syllabus would include the corresponding provisions of such new legislations with effect from a date notified by the Institute.

(iii) For reference and benefit of CMA students, the Department would release relevant material.

(iv) For applicability of Companies Act,2013 for June 2015 examinations would also be notified in due course and appropriate reading material would also be made available to students well in advance before examinations. Applicability of Companies Act 2013

(v) The sections notified for December 2014 Examination were notified by MCA,GOI w.e.f.12.9.2013.

Institute reserves the right to modify applicability of sections of the Companies Act,2013. All concerned are hereby requested to note this announcement and facilitate to make a proper and wide publicity to meet the concern of stakeholders on the stated subjects.

This issues with an approval of the competent authority.
CMA Chiranjib Das
Joint Director, Head – Academics Department ( Board of Studies)
Secretary to the Board of Studies Committee

Download Supplementary Reading Material on Notified Sections of Companies Act 2013 – for December 2014 CMA Examinations – CMA Intermediate Course Syllabus 2012.

Companies Act 2013

Notes on Notified Sections of Companies Act, 2013 (for December 2014 CMA Examinations – CMA Intermediate Course Syllabus 2012) is now available on the website of the Institute under Student’s Download Section. Applicability of Companies Act 2013

Please Click here to download the reading material.

Download Announcement regarding applicability of The Companies Act 2013 for CMA Inter Final December 2014 Exams

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Supplementary Reading Material on Notified Sections of Companies Act 2013 – for December 2014 CMA Exams

CMA Intermediate Course – Syllabus 2012

Notified sections of The Companies Act 2013 will applicable in following papers.

Inter

Papers 5 – Financial Accounting
Paper 6 – Laws, Ethics & Governance
Paper 12 – Company Accounts & Audit

Final

Paper 13 – Corporate Laws & Compliance (CLC)
Paper 18 – Corporate Financial Reporting (CFR)
Paper 19 – Cost Audit & Management Audit (CMAD)

 Click here to download the reading material of applicable Sections.

Applicability of Companies Act 2013

Budget 2015 – 16 Highlights – Tax Amendments – Central Govt. India

Key Features of Budget 2015 – 2016

India Budget 2015 – 2016 Highlights. Today we are providing highlights of India Budget 2015 – 16, and a list of what will be costlier & list of what will be cheaper as per Budget 2015 – 16, Key Features of Budget 2015-2016, Income tax, Service tax amendments, Changes in tax, Tax slab rates, sector-wise highlights and other important points in Budget 2015. This is very useful to CA IPCC, Final, ICWAI Inter, CMA Final, CS Executive and Professional students.

Budget-2015-Highlights-India-Tax-amendments-CA-IPCC-Final-CMA-CS

 

List of Items Costlier and Cheaper as per Budget 2015 – 2016

See below list of items costlier and cheaper as per Budget 2015.

Following is a list of what will be costlier:

  • Cigarettes and other tobacco products
  • Completely built imported commercial vehicles
  • Cement
  • Aerated, flavoured drinks and packaged water
  • Plastic bags and sacks
  • Business and executive class air travel
  • Visit to amusement and theme park
  • Music concerts
  • Liquor
  • Chit fund and lottery
  • Gold and gold jewellery

Following is a list of what is cheaper:

  • Leather footwear priced above Rs 1,000 per pair
  • Locally made mobile phones
  • LED/LCD panels, LED lights and LED lamps
  • Solar water heater
  • Pacemakers, ambulance and ambulance services
  • Computer tablets
  • Agarbattis
  • Microwave ovens
  • Refrigerator compressors
  • Peanut butter
  • Packaged fruits and vegetables
  • Visit to museum, zoo and national park.

Benefits to Middle Class Tax-Payers Budget 2015 – 16

  • Limit of deduction of health insurance premium increased from `15000 to `25000, for senior citizens limit increased from `20000 to `30000.
  • Senior citizens above the age of 80 years, who are not covered by health insurance, to be allowed deduction of `30000 towards medical expenditures.
  • Deduction limit of `60000 with respect to specified decease of serious nature enhanced to `80000 in case of senior citizen.
  • Additional deduction of `25000 allowed for differently abled persons.
  • Limit on deduction on account of contribution to a pension fund and the new pension scheme increased from `1 lakh to `1.5 lakh.
  • Additional deduction of `50000 for contribution to the new pension scheme u/s 80CCD.
  • Payments to the beneficiaries including interest payment on deposit in Sukanya Samriddhi scheme to be fully exempt.
  • Service-tax exemption on Varishtha Bima Yojana.
  • Concession to individual tax-payers despite inadequate fiscal space.
  • Lot to look forward to as fiscal capacity improves.
  • Conversion of existing excise duty on petrol and diesel to the extent of `4 per litre into Road Cess to fund investment.
  • Service Tax exemption extended to certain pre cold storage services in relation to fruits and vegetables so as to incentivise value addition in crucial sector.
  • Negative List under service-tax is being slightly pruned to widen the tax base.
  • Yoga to be included within the ambit of charitable purpose under Section 2(15) of the Income-tax Act.
  • To mitigate the problem being faced by many genuine charitable institutions, it is proposed to modify the ceiling on receipts from activities in the nature of trade, commerce or business to 20% of the total receipts from the existing ceiling of `25 lakh.
  • Most provisions of Direct Taxes Code have already been included in the Income-tax Act, therefore, no great merit in going ahead with the Direct Taxes Code as it exists today.
  • Direct tax proposals to result in revenue loss of `8315 crore, whereas the proposals in indirect taxes are expected to yield `23383 crore. Thus, the net impact of all tax proposals would be revenue gain of `15068 crore.

Ease of doing business – Minimum Government Maximum Governance Budget 2015 – 16

  • Simplification of tax procedures.
  • Monetary limit for a case to be heard by a single member bench of ITAT increase from `5 lakh to `15 lakh.
  • Penalty provision in indirect taxes are being rationalised to encourage compliance and early dispute resolution.
  • Central excise/Service tax assesses to be allowed to use digitally signed invoices and maintain record electronically.
  • Wealth-tax replaced with additional surcharge of 2 per cent on super rich with a taxable income of over `1 crore annually.
  • Provision of indirect transfers in the Income-tax Act suitably cleaned up.
  • Applicability of indirect transfer provisions to dividends paid by foreign companies to their shareholders to be addressed through a clarificatory circular.
  • Domestic transfer pricing threshold limit increased from `5 crore to `20 crore.
  • MAT rationalised for FIIs and members of an AOP.
  • Tax Administration Reform Commission (TARC) recommendations to be appropriately implemented during the course of the year.
  • Education cess and the Secondary and Higher education cess to be subsumed in Central Excise Duty.
  • Specific rates of central excise duty in case of certain other commodities revised.
  • Excise levy on cigarettes and the compounded levy scheme applicable to pan masala, gutkha and other tobacco products also changed.
  • Excise duty on footwear with leather uppers and having retail price of more than `1000 per pair reduced to 6%.
  • Online central excise and service tax registration to be done in two working days.
  • Time limit for taking CENVAT credit on inputs and input services increased from 6 months to 1 year.
  • Service-tax plus education cesses increased from 12.36% to 14% to facilitate transition to GST.
  • Donation made to National Fund for Control of Drug Abuse (NFCDA) to be eligible for 100% deduction u/s 80G of Income-tax Act.
  • Seized cash can be adjusted towards assessees tax liability.

Budget 2015 – 16 Tax Proposal

  • Objective of stable taxation policy and a non-adversarial tax administration.
  • Fight against the scourge of black money to be taken forward.
  • Efforts on various fronts to implement GST from next year.
  • No change in rate of personal income tax.
  • Proposal to reduce corporate tax from 30% to 25% over the next four years, starting from next financial year.
  • Rationalisation and removal of various tax exemptions and incentives to reduce tax disputes and improve administration.
  • Exemption to individual tax payers to continue to facilitate savings.
  • Broad themes :
    • Measures to curb black money;
    • Job creation through revival of growth and investment and promotion of domestic manufacturing – “Make in India” ;
    • Improve ease of doing business – Minimum Government and maximum governance;
    • Improve quality of life and public health – Swachh Bharat;
    • Benefit to middle class tax-payers; and
    • Stand alone proposals to maximise benefit to the economy.

Others

  • Increase in basic custom duty:
    • Metallergical coke from 2.5 % to 5%.
    • Tariff rate on iron and steel and articles of iron and steel increased from 10% to 15%.
    • Tariff rate on commercial vehicle increased from 10 % to 40%.
  • Basic custom duty on digital still image video camera with certain specification reduced to nil.
  • Excise duty on rails for manufacture of railway or tram way track construction material exempted retrospectively from 17-03-2012 to 02-02-2014, if not CENVAT credit of duty paid on such rails is availed.
  • Service-tax to be levied on service provided by way of access to amusement facility, entertainment events or concerts, pageants, non recoganised sporting events etc.
  • Service-tax exemption:
    • Services of pre-conditioning, pre-cooling, ripening etc. of fruits and vegetables.
    • Life insurance service provided by way of Varishtha Pension Bima Yojana.
    • All ambulance services provided to patients.
    • Admission to museum, zoo, national park, wile life sanctuary and tiger reserve.
    • Transport of goods for export by road from factory to land customs station.
  • Enabling provision made to exclude all services provided by the Government or local authority to a business entity from the negative list.
  • Service-tax exemption to construction, erection, commissioning or installation of original works pertaining to an airport or port withdrawn.
  • Transportation of agricultural produce to remain exempt from Service-tax.
  • Artificial heart exempt from basic custom duty of 5% and CVD.
  • Excise duty exemption for captively consumed intermediate compound coming into existance during the manufacture of agarbathi.

 Sector-wise Highlights as per Union Budget 2015

TAXATION

1 Abolition of Wealth Tax.
2 Additional 2% surcharge for the super rich with income of over Rs. 1 crore.
3 Rate of corporate tax to be reduced to 25% over next four years.
4 No change in tax slabs.
5 Total exemption of up to Rs. 4,44,200 can be achieved.
6 100% exemption for contribution to Swachch Bharat, apart from CSR.
7 Service tax increased to14 per cent.

AGRICULTURE

1 Rs. 25,000 crore for Rural Infrastructure Development Bank.
2 Rs. 5,300 crore to support Micro Irrigation Programme.
3 Farmers credit – target of 8.5 lakh crore.

INFRASTRUCTURE

1 Rs. 70,000 crores to Infrastructure sector.
2 Tax-free bonds for projects in rail road and irrigation
3 PPP model for infrastructure development to be revitalised and govt. to bear majority of the risk.
4 Atal Innovation Mission to be established to draw on expertise of entrepreneurs, and researchers to foster scientific innovations; allocation of Rs. 150 crore.
5 Govt. proposes to set up 5 ultra mega power projects, each of 4000MW.

EDUCATION

1 AIIMS in Jammu and Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam.
2 IIT in Karnataka; Indian School of Mines in Dhanbad to be upgraded to IIT.
3 PG institute of Horticulture in Amritsar.
4 Kerala to have University of Disability Studies
5 Centre of film production, animation and gaming to come up in Arunachal Pradesh.
6 IIM for Jammu and Kashmir and Andhra Pradesh.

DEFENCE

1 Allocation of Rs. 2,46,726 crore; an increase of 9.87 per cent over last year.
2 Focus on Make in India for quick manufacturing of Defence equipment.

WELFARE SCHEMES

1 GST and JAM trinity (Jan Dhan Yojana, Aadhaar and Mobile) to improve quality of life and to pass benefits to common man.
2 Six crore toilets across the country under the Swachh Bharat Abhiyan.
3 MUDRA bank will refinance micro finance orgs. to encourage first generation SC/ST entrepreneurs.
4 Housing for all by 2020.
5 Upgradation 80,000 secondary schools.
6 DBT will be further be expanded from 1 crore to 10.3 crore.
7 For the Atal Pension Yojana, govt. will contribute 50% of the premium limited to Rs. 1,000 a year.
8 New scheme for physical aids and assisted living devices for people aged over 80 .
9 Govt. to use Rs. 9,000 crore unclaimed funds in PPF/EPF for Senior Citizens Fund.
10 Rs. 5,000 crore additional allocation for MGNREGA.
11 Govt. to create universal social security system for all Indians.

RENEWABLE ENERGY

1 Rs. 75 crore for electric cars production.
2 Renewable energy target for 2022: 100K MW in solar; 60K MW in wind; 10K MW in biomass and 5K MW in small hydro

TOURISM

1 Develpoment schemes for churches and convents in old Goa; Hampi, Elephanta caves, Forests of Rajasthan, Leh palace, Varanasi , Jallianwala Bagh, Qutb Shahi tombs at Hyderabad to be under the new toursim scheme.
2 Visa on Arrival for 150 countries.

GOLD

1 Sovereign Gold Bond, as an alternative to purchasing metal gold.
2 New scheme for depositors of gold to earn interest and jewellers to obtain loans on their metal accounts.
3 To develop an Indian gold voin, which will carry the Ashok Chakra on its face, to reduce the demand for foreign coins and recycle the gold available in the country.

FINANCIAL SECTOR

1 Forward Markets Commission to be merged with the Securities and Exchange Board of India
2 NBFCs registered with the RBI and having asset size of Rs 500 crore and above to be considered as ‘financial institution’ under Sarfaesi Act, 2002, enabling them to fund SME and mid-corporate businesses
3 Permanent Establishment norms to be modified to that mere presence of offshore fund managers in the country does not lead to “adverse tax consequences.”

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