Excise duty: Businessmens expenses to rise after service tax hike

Businessmen hit below the belt with increase in service tax and excise duty rate. But widening of income tax bracket to provide a small breather.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
Real-time Stock quotes, portfolio, LIVE TV and more.
GeStepAhead Travelcafe SME Special
moneycontrol.com

Home » News » Personal Finance » Others

Mar 16, 2012, 04.52 PM | Source: Moneycontrol.com

Excise duty: Businessmens' expenses to rise after service tax hike

Businessmen hit below the belt with increase in service tax and excise duty rate. But widening of income tax bracket to provide a small breather.

Like this story, share it with millions of investors on M3

Excise duty: Businessmens expenses to rise after service tax hike

Businessmen hit below the belt with increase in service tax and excise duty rate. But widening of income tax bracket to provide a small breather.

Post Your Comments

Share Cancel

Moneycontrol Bureau

Inflation has also taken it's toll on the financial planning of businessmen were looking up to the finance minister to announce some measures aimed at providing them much needed relief. He has widened the income tax bracket where general income tax exemption limit has been increased from Rs 1,80,000 to Rs 2,00,000.

The rates proposed for FY 2012-13 is as under:

- Income upto  Rs 2 Lakhs – NIL
- Rs 2 Lakhs to Rs 5 Lakhs – 10%
- Rs 5 Lakhs to Rs 10 Lakhs  – 20%
- Above Rs 10 Lakhs – 30%

The real benefit on the tax front is for anyone who has a higher amount of income as the 20% tax slab has been increased from Rs 8 lakh to Rs 10 lakh. Also a bonus point is the deduction of upto Rs 10,000/- on saving bank interests.

Many provisions which have adversely affected trade and industry in the past years failed to be addressed.

Raising the service tax and excise duty to 12% will hit us badly.

Branded garment is one of the businesses that have suffered the most in the last fiscal since it had to pay an additional 10.5% Central Excise Duty whereas the textile sector was exempted. Reducing the excise duty on readymade garments will be widely appreciated.

The finance minister's introduction of a negative list for service tax is a well defined list of services which are under the purview of it. Except for 17 services all will fall under the purview of service tax. Given the complexity of the service industry, businessmen are apprehensive that any such move will create ambiguity and result in genuine services having to suffer.

Doubling of infra tax free bonds to Rs 60,000 crore is a viewed as a big positive for us.

In the Budget, hike in excise duty to 12% has seen automobiles and other products including consumer durables leading to the burden being passed onto the consumer. On the whole, with excise duty going up, diesel cars, cigarettes, computers and mobile phones are all expected to get costlier now.

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Excise duty: Businessmens expenses to rise after service tax hike

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login