The financial bill 2011 passed by the Finance Minister had mixed comments predominantly favoring almost all the sectors. The bill chucked the excise duty on the automotive spares to half of what it was before the budget and canceled the 5% percent service tax on health care which was supposedly burdening to patients. The hikes include those of the industries that produce branded clothes and smaller ready made manufacturers.
Those firms that held shares with foreign companies enjoy a tax reduction of around 15%. It doesn’t matter even if they held just 26 %of those possible shares... Exports have to make up to the sad news as there aren’t any tax deductions in their sector dating from April 1, 2005. Such companies have to consider their total profits in calculating the MAT or the maximum alternate tax.
The imports and exports of printers and computer parts have an excise duty reduction and taxation of the pensioned employee has a reduction as well. Power projects enjoy advantages of reduced taxation on the import of silicon wafers. Similarly, import of coal and metallic elements join the tax deduction list.
GST, the most awaited taxation practice would most probably come under action from the year 2012 in the month of April. The withdrawal of taxes in the health care facet is just a relaxation and the finance minister promised that there wouldn’t be any unwanted taxation if GST could come into action. Textiles and garments suffer a tight taxation this time and they have to pay an excise duty of 4.5 % as not given in the budget. There are even announcements by the minister that such industries can opt for tax freeing even if it generated larger turnovers ranging from 8 to 9 crores in the near future.
The tax freedom or exemptions done in the health care sector has relieved a lot of stress. Eventually people feel happy and received it with utmost pleasure. But there are sectors that are quite upset with the effects on their side. The auto motives and garments would obviously be irritated and the car sellers have a serious decision of raising the car prices though they had a chuck of half their taxes.
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