Finance Minister Arun Jaitley in his Budget had proposed to raise service tax from 12.36 percent (including education cess) to 14 percent. The proposal takes effect from June 1.The tax is levied on all services, expect a small negative list.
The new service tax rate of 14 percent will come into effect from 1 June, government today said, in a move that will make eating out in restaurants, insurance and phone bills expensive, among many other things.
The Budget session of Parliament concluded today with passage of record official business in recent years but the government failed to ensure passage of the controversial Land Acquisition Bill as also key reform measure of GST amid stiff resistance from opposition.
The budget session in Rajya Sabha, which concluded today, witnessed the rare passage of a private member's bill on the rights of transgenders and a historic measure to operationalise the Land Boundary Agreement with Bangladesh.
According to Shekhar Gupta, vice-chairman of India Today Group, the current Land Bill is a better version of the previous ones. Since the bill was pushed in early, it portrayed the government as arrogant.
As the fiscal year, 2014-15, draws to a close today, the government has managed to contain its fiscal deficit at 4.1 percent of gross domestic product that it had outlined in the Budget last year and reiterated this year.
Scotching murmurs of differences between the government and the RBI over regulation of money market, Finance Minister Arun Jaitley today said there is no 'disconnect' between the two and hoped banks would follow the central bank in reducing interest rates.
The governments focus would be on pushing through the Land Acquisition Bill as well the goods and services (CST) constitutional amendment when the Parliament resumes following a recess from today in the Budget session, Finance Minister Arun Jaitley told CNBC-TV18 in an interview.
In a surprise move, the Reserve Bank of India (RBI) today cut the benchmark repo rate by 25 basis points to 7.5 percent. Analysts said the out-of-cycle interest-rate cut confirms the central bank has definitively embarked on its much-awaited easing cycle.
Accordint to Angel Broking, Indian Rupee will trade sideways today as higher fiscal deficit target in the budget will exert pressure. However, optimism in Asian equities after rate cut from china will be supportive.
"Budget is very pro-corporate India. You know the cost of this corporate bonanza, in the first year, it is Rs 20,000 crore, in second year Rs 40,000 crore, in third year Rs 60,000 crore and in the fourth year Rs 80,00 crore," former Finance Minister Chidambaram told Headlines Today in an interview.
Today the real test for the Budget would be and in that case, it is interesting because this Budget does a lot for FIIs, it is an open invitation to the FIIs that look you are the one community we want, you are the one community which is welcome, whether the general anti-avoidance rule (GAAR) has been postponed.
Thomas John Muthoot, Chairman and Managing Director, Muthoot Fincorp is of the view that all three gold related announcements made by FM in today's budget are towards bringing out the locker gold into the formal system and facilitate transparency in the recycling sector and also reduce the dependency on imports.
The 2015-16 budget presented today, is very progressive budget, which has measures on one hand to propel India to a new trajectory of growth, and on the other, seeks to provide support to the weaker sections of society.