BUDGET HIGHLIGHT’S OF 2008-09(Customs & Excise)
The industry and trade was hopping of removal of SAD 4% in current budget,which was not done
Ø No change in peak rate of customs duty, BCD remains 10%
Ø Excise duty rate has been reduced from 16% to 14%
Ø EOU,STP,EHTP sale to DTA Excise duty equivalent to 25% of basic customs duty + CVD now changed to 50% of basic customs duty + CVD. ( abatement reduced from 75%->50%.
Ø MP3/ MP4 or MPEG 4 Players with or without radio/video reception facility will attract 5% customs duty.
Ø Excise duty on packaged software has been increased from 8% to 12%
Ø Excise duty on customized software ( any custom designed software, developed for specific user or client) would be NIL
Ø Rates of abatement on all items under MRP based assessment has been revised vide notification no.014/2008-N.T
All CBU with abatement reduced 40% -> 38%, 35%->33%, 30%->28%, 25%->23%. For laptop and PC abatements remains 22.5% unchanged.
Ø NCC duty 1% has been imposed on CTH 851712 (Mobile phone) and this duty shall be levied as additional duty of customs under section 3(1) of CTA 1975.
Ø Wireless data cards with PCMCIA/USB/ PCI (G-TRAN) express ports are exempted from excise duty.
Ø Excise duty on High speed Diesel ( HSD) intended for same without brand name changed from 6% ad volerum + Rs. 3.25 per litre to Rs.4.60 per litre.
Ø Excise duty on heat resistant rubber tention tape ( HRRTT) falling under heading 400821 reduced from 16% to 8%.
Ø Basic customs duty exempted for additional items for manufacture of Set Top Boxes i.e. SMPS power board and IR module.
Ø Time limit for re export with drawback benefit under section 74(2) is reduced from 36 month to 18 months (95% in less than 3months and max 60% upto 18 months.
Ø Customs duty exemption ( BCD) granted for RM and Componenets for manufacture of Connectors, relays, CRT, Part of CRT, Semicondutor, Plasma display panel and Module.
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