Budget 2015

4Mar

Epic Union Budget 2015-16 Simplified – Laying The Foundation For Vibrant India

Budget  4

KEY HIGHLIGHTS OF BUDGET 2015-16

 CAD to be below 1.3% of GDP, based on new growth calculator FY15 real GDP is expected to be 7.4%.
 Fiscal Deficit target for FY15-16 is 3.9% and to 3.5% and 3% in next two years respectively. Revenue deficit to be 2.8% of GDP
 CPI to reduce to 5.1% by year end, FOREX reserves increased to $340 billion.
 Introduction of Gold Monetization Scheme with fixed interest rate and redeemable in cash to curb imports.
 Corporate Tax rate to be reduced to 25% from current 30% in next four years, starting next year while withdrawing the subsidies.
 Abolishing of wealth tax with additional surcharge of 2% on super rich with annual income over 1 Cr.
 Hike in Service Tax from 12.36% to 14%, followed by hike in Excise Duty to 12.5% from 12%

Budget Estimates

 Planned Expenditure– 4,65,277 Cr; Non Planned Expenditure– 13,12,200 Cr
 Expenditure on defense for FY15-16: 2,46,727 Cr
 Gross total receipts estimated at 14,49,490 Cr
 Devolution to states estimated at 5,23,958 Cr
 Share of Central Government 9,19,842 Cr
 Non– Tax Revenues for next fiscal are estimated to be 2,21,733 Cr

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2Mar

Union Budget 2015-16 India Update : BAOA terms Budget disappointing for aviation sector

Aviation

A body of business jet operators Sunday termed as “disappointing” the general Budget and said India cannot become the third largest aviation market by 2020, which it is aiming for, unless issues plaguing the aviation sector were addressed in an appropriate manner. General aviation industry is particularly disappointed with the proposed Budget, President of Business Aircraft Operators Association (BAOA) Rohit Kapoor said in a statement.

“Prediction of India becoming the third largest Aviation industry by 2020 will only remain a dream if Prime Minister Narendra Modi does not address the woes of our sector, which cumulatively holds almost three times the fleet of all commercial airliners,” Kapoor said, adding that regional and remote connectivity cannot take off in India unless larger issues were addressed.

The sector has largely been ignored by the Finance Minister Arun Jaitley in his first full Budget, presented in the Parliament Yesterday, with most of the industry’s demand remain unmet. BAOA, in its pre-Budget expectations had sought a complete re-look in the tax regime on import of general and business aviation aircraft on the ground that existing policy includes a countervailing duty which is illogical as there civil aircraft is manufactured in India.

A uniform and lower duty on both non-scheduled operator permit and private category was needed to encourage import of more aircraft for enhancing regional connectivity, the Association had listed among other demands.

Operations remain unviable thanks to severe taxation, aviation infrastructure is pathetic, BAOA said adding that jet fuel costs were highest in the world and 90 percent of Indian aircraft were being maintained overseas due to high duties and costs.

2Mar

Union Budget 2015-16 India Update : GAAR to incorporate OECD initiative norms on tax avoidance

Government proposes to come out with a modified General Anti-Avoidance Rules by incorporating provisions of the OECD’s BEPS project so as to effectively deal with the problem of tax avoidance by MNCs.

The BEPS initiative aims to ensure that taxes are paid where profits are made. Multinational companies use a wide range of cross border tax planning techniques that result in little or tax liability and such results are referred to as ‘Base Erosion and Profit Shifting’. India has been at the forefront in raising the issues concerning tax avoidance and automatic exchange of information with a view to curbing tax evasion. Finance Minister Arun Jaitley in his Budget for 2015-16 on Saturday had postponed by two years to April 1, 2017 the implementation of the controversial GAAR. It said: “The report on various aspects of BEPS and recommendations regarding the measures to counter it are awaited.

It would, therefore, be proper that GAAR provisions are implemented as part of a comprehensive regime to deal with BEPS and aggressive tax avoidance.” The implementation of GAAR provisions has been reviewed and concerns have been expressed regarding certain aspects. Besides, the BEPS under the Organisation of Economic Cooperation and Development (OECD) is continuing and India is an active participant in the project.

The government had earlier proposed imposing the GAAR from April 1, 2015, for those claiming tax benefit of over Rs 3 crore. The rules are aimed at minimising tax avoidance for investments made by entities based in tax havens. Jaitley had said that general rules of avoidance have now been redefined globally. “Now the new rules of interpretation have been completely done away with this distinction of tax avoidance and tax evasion.

And it is that rule which will have to be applied,” Jaitley had said. The leaders of 20 developing and developed countries at their summit in Brisbane in November 2014 had endorsed the action plan to tackle BEPS, to make sure companies pay their fair share of tax. The G20 action plan on BEPS is expected to be finalised by 2015. The G20 countries include Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russian Federation, Saudi Arabia, South Africa, Turkey, United Kingdom, United States and the European Union.

2Mar

Union Budget 2015-16 India Update : What goes up, what comes down

Finance minister Arun Jaitley presented the first General Budget of Prime Minister Narendra Modi’s government on Saturday. The various measures announced by the finance minister has resulted in hike in prices of some commodities and reduction in some. Here is the list:

Service/commodities whose prices will rise:

1) Home

2) Eating out

3) Cold drinks and other aerated beverages

4) Mineral water

5) Internet services

6) Cable/DTH services

7) Laptop

8) Cigarette

9) Tobacco products

10) Mobile phone

11) Commercial vehicles

12) Movies

13) Courier services

14) Healthcare services

15) Laundry services

16) Beauty parlour

17) Air travel

18) ​Imported hazel nuts

19) ​Precious stones

20) ​Branded apparels

21) ​Gym services

22) Gold

Service/commodities whose prices will fall:

1) Leather goods

2) Footwear

3) Agarbattis

4) Pacemaker

5) Tablet PCs

6) Small LCD TV

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