In the Indian Interim Budget 2014 certain changes have been made in the tariff structure in respect of excise and customs duties besides extending exemption from service tax to two sectors.
As per the Press Release issued by the Government of India, excise duty on all goods falling under Chapter 84 & 85 of the Schedule to the Central Excise Tariff Act has been reduced from 12% to 10% for the period upto 30-6-2014. These rates will be reviewed at the time of regular Budget, according to the government.
Excise duty has been reduced, for the period up to 30-6-2014, on small cars, motorcycle and scooters from 12% to 8% and in respect of SUVs, the rate has been reduced to 24% from 30%. Large and mid-segment cars will also attract reduced excise duty besides chassis and trailers.
The press release further adds that excise duty for all categories of mobile handsets has been restructured. The rates will be 6% with Cenvat credit or 1% without such credit. To encourage domestic production of soaps and oleo chemicals, the custom duty structure on non-edible grade industrial oils and its fractions, fatty acids and fatty alcohols has been rationalized at 7.5%. To encourage domestic production of specified road construction machinery, the exemption from CVD on similar imported machinery has been withdrawn.
On service tax front, loading and unloading, packing, storage and warehousing of rice has been exempted besides the services provided by cord blood banks.