The Interim Budget for the year 2014 has been presented by the H’ble FM in the Loksabha today.

Tax Highlights of the budget are presented below:-

(I) Income Tax – No Change [For Income Tax Ready Reckoner please send a request mail to]

(II) Service Tax – No change in Tax Rate i.e. 12%

Following 2 services have been exempted from Service Tax:-

a) Warehousing & Storage of Rice under ‘agriculture produce’

b) Service provided by Cord Blood Bank under ‘healthcare services’

(III) Central Excise – No change in the basic rate of excise.

Reduction in the Rate of Central Excise on following items:-

a) Capital Goods & Consumer Non-Durables – Reduced from 12% to 8%

b) Small Cars, Two Wheelers & Commercial Vehical – Reduced from 12% to 8%

c) SUVs – Reduced from 30% to 24%

d) Large & Mid Segment Cars – Reduced from 27/24% to 24/20%

e) Mobile Handsets – Reduced to 6% (with CENVAT) or 1% without CENVAT

f) Non Edible grade Industrial Oils – Reduced to 7.5%

(IV) Customs – No change except In following 2 cases:-

a) Imported Road Construction Machinery – Exemption from CVD withdrawn

b) Capital Goods imported by Bank Note Paper Mill India Private Limited – 5%



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