Budget Publication

7/29/2019 Budget Publication

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February 2013

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In depth. Incisive. Comprehensive.Budget analysis with Deloitte



Contents

Foreword 1

State o the Economy 3

Budget Highlights 11

Budget Proposals-Direct Taxes 19

Budget Proposals-Indirect Taxes 32

Policy Proposals 43Glossary 46


http://slidepdf.com/reader/full/budget-publication 3/50Budget analysis with Deloitte 1

S t a t e o f t

h e E c o n o m y

B u d g e t H i g h l i g h t s

B u d g e t P r o p o s a l s - D i r e c t T a x e s

B u d g e t P r o p o s a l s - I n d i r e c t T a x e s

P o l i c

y P r o p o s a l s

G l o s s a r y

C o n t a c t s

Foreword

The Union Budget o 2013-14 held

special importance this year as it

was announced in the backdrop

o a challenging macroeconomic

environment where India had achieved

its lowest GDP growth in a decade.

Characterized with a depressed global

economic outlook and prevalence o

domestic policy bottlenecks, the year

started with news that the previous

scal’s ourth quarter GDP had dropped

to 5.5%. That coupled with low growth,

macro-economic issues such as high

scal decit, expansionary subsidies and

worsening current account balance has

added to the slowdown. Expectations

were thereore high as to the path the

Finance Minister will take in guiding the

Indian economy to recovery.

Though there were no high prole

announcements or big recovery plans

outlined, the Finance Minister did not

disappoint. He acknowledged the pain

points in the economy and recognized

that to boost industrial sector growth,

proactive actions would be needed.

Policy announcements on creating

additional industrial corridors and

promoting micro, small and medium

enterprises through SIDBI are welcome.

However, oten we have seen that such

policy announcements need strong

ground level implementation.

A key positive aspect o the Budget

was in respect to commitment shown

towards the scal consolidationplan. Despite the act that planned

expenditure has increased by almost

30% rom the last year, the Finance

Minister continued to target scal

decit o 4.8% in 2013-14. The Finance

minister also announced that scal

decit or 2012-13 has been limited to

5.2%. This is clearly due to the ocused

measures undertaken in the second hal

o the year in cutting expenditure. With

lower than estimated tax collections,

meeting scal decit targets was always

going to be dicult. The Finance

Minister needs to be lauded on this.

Coming to the direct tax policies, not

many amendments are suggested in

the budget. With regard to GAAR,

announcements made by the Finance

Minister in January 2013 have beenpartially incorporated in the legislation.

This is expected to provide some level

o assurance. On personal taxes, a

surcharge o 10% has been introduced

on individuals with taxable income in

excess o ` 1 crore or a period o one

year. An important amendment relates

to tax on royalty and ees or technical

services to non-residents which stands

increased rom 10% to 25%. Showing

his commitment to inrastructure, the

Finance Minister has extended the tax

holiday in the power sector by one year

or commencement o operations. As a

matter o comort, the Finance Minister

reiterated his commitment to the Direct

Taxes Code by mentioning that the Bill

will be tabled in parliament beore the

end o the budget session.



On indirect taxes, the peak rate o

customs duty, excise duty and service

tax have remained unchanged though

reduction has been provided on basic

customs duty related to certain articles.

The scope o the negative list has been

proposed to be expanded to include

courses oered by institutes aliated

to the State Council or Vocational

Training and testing activities in relation

to agricultural produce. On the service

tax ront, exemptions related to certain

services have been curtailed.

28 February 2013



S t a t e o f t

h e E c o n o m y




P o l i c

y P r o p o s a l s

G l o s s a r y

C o n t a c t s

State of the Economy

S t a t e o f t h e E

c o n o m y



B u d g e t

P r o p o s a l s - I n d i r e c t T a x e s

P o l i c y P r o p o s a l s

G l o s s a r y

C o n t a c t s



State of the Economy

Economic conditions during the

year

The Indian Economy is currently going

through a challenging phase as GDP

growth slowed down to nearly a decade

low in 2012-13. Domestic as well as

external actors have played a part in

this downall. Other macroeconomic

issues such as high public expenditure,

depleting investment and saving levels,

worsening current account balance

as well as depreciation o the Rupee

have added to the present economic

pressures over-shadowing positive

aspects such as moderation in infation

and recovery o stock markets during

the year.

With gradual rise in oreign trade overthe years, the Indian economy now

looks more integrated with the global

economy and hence the uncertain and

weak economic climate across the

world is aecting the Indian economy

adversely even more than beore. World

growth projections have been slashed

by the International Monetary Fund

(IMF) during 2012-13 as downside

risks persist in the Euro area. Renewed

setbacks through considerable scal

strain in the ace o an austerity driven

recession has added to Eurozone woes.

A scal overbalance has also ensured

that the US with tight conditions has

not been able to drive global recovery

to the extent expected in 2012-13. As

subdued global economic conditions

temper the global growth appetite,

the policy o product and market

diversication as an export strategy

has not worked or India. The import

demand in emerging markets including

various Asian countries reduced along

with the advanced economies to

expand the trade imbalance, resulting

in the large current account decit that

India has seen.

Domestically, the year started with

negative sentiments or oreign investors

with the introduction o investment

denting proposals like retrospective

tax adjustments and General Anti-

Avoidance Rules (GAAR) in the Budget

2011-12. These measures aectedoreign investment fows in India both

through the institutional and direct

route. Given low investor condence

and weak economic sentiments, the

government proactively announced

structural reorms in the second hal o

2012-13.

While a host o measures were taken

to attract investors, ocused actions

were taken to reduce subsidies (oil and

ertilizers) with the intention o lowering

expenditure and in turn reducing the

scal decit. However, the success o

these policy reorms is expected to be

gradual. Consistent implementation

during the coming years as well as



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P o l i c

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G l o s s a r y

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additional reorms to address other

macroeconomic imbalances will dictate

the pace o recovery.

The current state o the economy

necessitates the introduction o a

robust plan o action or revival o

the economy. Even though the

long-term prospects o the economy

look promising, cautious optimism

is the tone in the short to medium-

term. In this light, we present in the

ollowing analysis o the current state

o the Indian economy and its uture

prospects.

GDP growth slides urther

Since the global nancial crisis o

2008-09, the Indian economy grewto a healthy 8.6% till 2010-11. Since

then, growth started declining. The

trend continued in 2012-13 with a

disappointing growth rate o 5.4% in

the rst hal, resulting in lowering o

expectations. The second quarter’s

growth at 5.3% is one o the lowest

quarterly growth rates seen in the

last decade and the annual growth o

5% will be the lowest since 2002-03.

This slowdown has been across all

the sectors – Agriculture, Industry

as well as Services, though Industry

and particularly the manuacturing

sub-sector has been the worst

perormer.

The GDP growth rates o the economy

or the previous three years are depicted

in Figure 1.

The agricultural sector, despite

accounting or less than 15% o GDP,

plays an important role in the economy

considering its more than 50% share

o employment. Ater an impressive

growth o 7.9% in 2010-11, agricultural

growth rate declined to 3.6% in

2011-12 and urther dipped to 1.8%

in 2012-13. The agriculture sector in

India is largely monsoon dependent.

This downall is primarily attributable to

the delayed and decient rainall. It is

worth noting that technological gains

in agriculture and armers’ response

to better inrastructure is expected to

positively aect perormance o this

sector in the coming years.

Figure1: Percentage GDP Growth Rates

-

1

2

3

4

5

67

8

9

10

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2010-11 2011-12 2012-13



A larger concern exists with respect

to the Services sector which has

moderated during 2012. The sector,

which showed resilience even at the

time o nancial crisis in 2008 -09, has

suered this year with quarterly growth

rates o just 6.9% and 7.2%, due to

slack external demand rom Europe and

the US.

Particularly, the sub category o

“trade, hotels, transport, storage

and communication” - an important

component in services - is expected to

perorm the worst with annual growth

at 5.2%, as compared to growth rates

o 7% and 12.3% in 2011-12 and

2010-11, respectively. Additionally,

growth across various categories o theService sector such as cargo handling,

civil aviation and railway reight have

moderated.

Figure 2 depicts the perormance o the

year-on-year growth in the IIP Index and

its components or the period rom April

to January 2012.

The latest Index o Industrial Production

(IIP) gures indicate that the industrial

sector has grown at a rate o 0.7%

during the period April ’12 to December

’12 compared with a growth rate o

3.7% in the corresponding period last

year, overall ar lower than the annual

growth o 6.8% in 2010-11.

Worrying gures o growth in the

mining and manuacturing sectors have

been the major actors behind the dip

in IIP growth. Regulatory hurdles and

lack o project clearances have aectedthese sectors resulting in growth

constraints. Particularly, the capital

goods industries decelerating at 10.3%

Figure 2: Growth in IIP and its Components

-8%

-6%

-4%

-2%

0%

2%

4%6%

8%

10%

12%

A p r ' 1

2

M a y ' 1 2

J u n ' 1 2

J u l ' 1

2

A u g ' 1

2

S e p ' 1

2

O c t ' 1

2

N o v ' 1

2

D e c ' 1 2

G r o w t h i n I I P a n d i t s c o m p o

n e n t s ( % )

Source: Economic Quick Estimates of IIP, CSO -February, 2013

Mining Manufacturing Electricity General



S t a t e o f t

h e E c o n o m y




P o l i c

y P r o p o s a l s

G l o s s a r y

C o n t a c t s

in the rst three quarters o 2012-13,

posed a challenge during the rst hal

o the year.

Though sluggish investment activity

and ragile global economic recovery

have barred the industrial growth this

year, systematic implementation o the

National Manuacturing Policy as well as

the rise in external demand is expected

to improve the perormance in the next

year.

On the demand side, growth in private

consumption moderated during

2012-13, primarily due to high infation.

Investments have also remained fat on

account o issues such as project cost

overruns and regulatory delays. Sectorssuch as road transport and highway,

power, petroleum, railways, coal,

etc. continue to suer due to lack o

policy clearances and more importantly

unds. Well-structured and continued

implementation o reorms may lighten

up the investment prospects in the near

uture.

Fiscal woes continue

Ater the initial budget target o

5.1% o GDP or the scal decit,

the Government revised its scal

consolidation roadmap in October

2012. As per the revised roadmap, the

scal decit o the central government

will be reduced in a calibrated way

rom the new target o 5.3% o GDP in

2012-13 to 3.0% o GDP by 2016-17(Figure 3). Similar to the previous year

when the budgeted scal decit o

4.8% actually ared at 5.7% o GDP,

the scal decit target or 2012-13

looks unlikely to be achieved. With

lower tax collections, inability to meet

divestment targets and burgeoning

expenditure outgo, the Indian

economy is acing considerable scal

strain. The Government may look at

taking necessary steps to widen the

tax base, cut excess expenditure and

have a xed divestment plan in place.

A number o these measures have

been implemented, which are already

showing results. For example, the

Government was able to achieve scal

surplus in the month o December 2012

by cutting down expenditure. However,

expenditure restraints need to continuewith particular ocus on containing

subsidies, i the scal consolidation plan

o 3% is to be achieved by 2017.

2.5

6.06.5

4.8

5.75.3

4.84.2

3.63.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2 0 0 7

- 0 8

2 0 0 8

- 0 9

2 0 0 9

- 1 0

2 0 1 0

- 1 1

2 0 1 1

- 1 2

( P )2 0 1 2

- 1 3

( R E ) 2 0

1 3 - 1 4

( T )2 0 1 4

- 1 5

( T )2 0 1 5

- 1 6

( T )2 0 1 6

- 1 7

( T )

F i s c a l d e fi c i t a s a % o f G D P

Figure 3: Trends in Fiscal Deficit

Source: Economic Survey 2012-13



Inationary pressures moderate

Infation has remained elevated post

the 2008 global nancial crisis on

account o easing monetary policy and

quantitative stimulus used as a rescue

package or boosting growth. For most

o 2010-11 and 2011-12, the Wholesale

Price Infation (WPI) remained around

9%. Though steps were taken by

the RBI through a repo rate increase,

infation reused to subside.

During late 2012-13, infation nally

moderated to reach 7.6% (Figure 4).

Currently, infation stands at a three

year low o monthly infation in January

2013 at 6.62%. Gradual moderation

o international commodity prices

including crude oil prices and easing o

geo-political tensions in the Middle East

helped in moderating domestic infation

during the year.

While the downward trend in wholesale

infation is a welcome sign, retail

infation remains elevated as it surged to

10.6% in December 2012.

During 2012-13, till now the RBI has

cut policy rates on two occasions, rstly

an aggressive 50 basis point cut in April

2012 and second in January 2013 by 25

basis points, bringing the Repo rate to

7.75%. The RBI has been airly

cautious in conducting its monetary

policy through 2012-13, despite

increasing pressures rom the industry

to cut the rates in order to motivate

slowing economic growth. However,

the RBI has reduced the cash reserve

ratio and the statutory liquidity ratio in

order to maintain adequate liquidity in

the economy. This monetary easing is

expected to improve the investment and

4.70

8.10

3.80

9.608.90

7.60

0.00

2.00

4.00

6.00

8.00

10.00

12.00

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

(Till Jan'13)

I n fl a t i o n ( % )

Figure 4: Wholesale Price Index

Source: Economic Survey of India 2012-13



S t a t e o f t

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P o l i c

y P r o p o s a l s

G l o s s a r y

C o n t a c t s

growth prospects consequent to the

reduction in interest rates.

External sector perormance worsens

The external sector is characterized by

a more than proportionate decline in

exports as compared to imports leading

to increase in trade decit and increased

Current Account Decit (CAD). The

trade decit increased to US$ 189.8

billion (10.2% o GDP) in 2011-12 as

compared to US$ 127.3 billion (7.4%

o GDP) during 2010-11. A similar trend

continued during 2012-13 as the trade

decit urther worsened to 10.8% o

GDP in the rst hal as seen in Figure 5.

The major decline in exports growth is

an eect o the sluggish global demandand an uncertain macro-economic

environment. In its January 2013 update

o the World Economic Outlook, the

International Monetary Fund projected

the world trade volume to grow at 2.8%

in 2012 as compared to 5.9% in 2011

indicating the drop in global demand.

Even exports to emerging economies

have declined during 2012-13 showing

dismal economic conditions across the

globe. On the import side, the decline

in non-oil imports is largely o-set by

inelastic growth in petroleum, oil and

lubricants (POL) imports, contributing

almost 35% o total imports. Despite

Government announced export

promotion schemes like extension o

interest subvention, broadening scope

o Focus Market Scheme and Focus

Products Scheme, exports recovery will

primarily depend on the level o global

economic activity.

The Government has undertaken several

policies to achieve the goal o smooth

unctioning o the nancial markets.

SEBI gave eect to the Alternative

Investment Funds Regulations 2012,

in an eort to regulate the market

better, ensure stability and increase

market eciency. Another step was the

liberalization o the External Commercial

Borrowings (ECB) Policy during 2012-13

by enhancing the limit or renancing

rupee loans, allowing ECB or capital

expenditure in inrastructure sector

-7.4

-10.2 -10.8

4.66.0 6.2

-2.8-4.2 -4.6

3.7 3.64.8

-12-10-8-6-4-202468

2010-11 2011-12 Apr-Sep, 2011-12

P e r c e n t a g e

o f G D P

Figure 5: Trade Deficit, Net invisibles, CAD and Net

Capital Inflows (as % of GDP)

Trade Deficit Net InvisiblesCurrent Account Deficit Net Capital Inflows

Source: Economic Survey, 2012-2013



and reducing the withholding tax rom

20% to 5% or a period o three years.

With eective measures taken by the

regulatory body, the economy did

witness an improved investment activity

in 2012-13.

Budget Announcement and

Conclusion

The Finance Minister presented the

Union Budget 2013-14 by suggesting

need or an inclusive and sustainable

growth. He clearly recognized that

current account and scal decits

along with infation, low investments

and growth have been problem areas.

Although he highlighted the widening

o CAD as a concern, he suggested that

the Commerce Ministry will proposeexport boosting policy announcements.

The Finance Minister did, on the other

hand, identiy the importance o oreign

investment infows to counter the

widening CAD and introduced certain

proposals to widen the scope or FIIs to

invest more in India through a simplied

investment process.

The Finance Minister also introduced

proposals to induce more investments

by encouraging Inrastructure Debt

Funds and providing incentives or the

manuacturing sector undertakings to

invest more in plant and machinery.

Also, a Cabinet Commission is proposed

to be established in order to address

and remove bottlenecks in case o large

stalled projects. Similarly, declining

domestic savings o households are

addressed with incentives encouraging

investments in nancial instruments like

Mutual Funds and housing loans.

Another positive aspect o the Budget

announcement was in respect o

the commitment shown to the scal

consolidation plan. Despite the act that

planned expenditure is increased by

almost 30% rom last year, the Finance

Minister continued to target scal

decit o 4.8% in 2013-14. The Finance

Minister also announced meeting o

the scal target or 2012-13, as the

estimated scal decit is limited to 5.2%or 2012-13.

The eorts o the Finance Minister

to initiate strong reorms are

laudable. Although the impact o

the recently announced measures

has largely remained unnoticed, the

announcements seem to have resulted

in liting investor sentiments. While

the Finance Minister has highlighted

opportunities in reviving growth, the

success o reorms will largely depend

on the implementation process and the

commitment shown by all stakeholders.



S t a t e o f t

h e E c o n o m y




P o l i c

y P r o p o s a l s

G l o s s a r y

C o n t a c t s

Budget Highlights


c o n o m y




P o l i c y P r

o p o s a l s

G l o s s a r y

C o n t a c t s



Personal taxation

No change proposed in the present slab

or tax rates which is currently as under:

Tax Rate Current Slabs, `

Nil Upto 200,000*

10% 200,001 – 500,000

20% 500,001 – 1,000,000

30% Above 1,000,000

* Basic exemption limit or senior citizens and

very senior citizens is ` 250,000 and ` 500,000

respectively

•Surchargeproposedattherateof

10% payable i income exceeds ` 100

lakhs

•Rebateupto ` 2,000 available to

resident individuals whose totalincome does not exceed ` 5 lakhs

•Impetustorst-timehomebuyers

– Additional deduction o ` 1 lakh

(over and above the existing ` 1.5

lakhs) on interest on housing loan

not exceeding ` 25 lakhs and value

o property not exceeding ` 40

lakhs

– Only or loans sanctioned during FY

2013-14

– Can be carried orward to next year

i not ully utilized

•RajeevGandhiEquitySavingsScheme

– Deduction presently available to

new retail investors or investmentin equity share extended to include

investment in equity oriented

mutual und

– Eligible limit o gross total income

o the investor or this purpose is

proposed to be enhanced rom

` 10 lakhs to ` 12 lakhs

– Deduction available or three

consecutive years

• Keyman Insurance Policy assigned to

the ‘Keyman’ beore its maturity will

not enjoy the exemption available

or a lie insurance policy and will

continue to be treated as a Keyman

Insurance Policy

Budget HighlightsDirect Taxes



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G l o s s a r y

C o n t a c t s

Increase in surcharge or

corporates

Particulars Below ` 1 crore Above ` 1 crore upto

` 10 crores

Above ` 10 crores

Surcharge

rate

Eective

tax rate

Surcharge

rate

Eective

tax rate

Surcharge

rate

Eective

tax rate

Domestic Nil

(Nil)

30.90%

(30.90%)

5%

(5%)

32.45%

(32.45%)

10%

(5%)

33.99%

(32.45%)

Foreign Nil

(Nil)

41.20%

(41.20%)

2%

(2%)

42.02%

(42.02%)

5%

(2%)

43.26%

(42.02%)

Note:

•Figuresinbracketreferstothecurrentrates

•Educationcessof3%hasbeenconsideredfor

determining the eective tax rates

Surcharge at 10% to be payable on

additional taxes levied on distribution oprots by domestic companies / mutual

unds / securitization trusts and on

buybacks.

Policy proposals

Direct tax code

•DTCnotanamendedversionof

existing tax laws but a new code

based on best international practices

•MinistryofFinancetoconsiderStanding Committee recommenda-

tions and place the revised DTC Bill

beore the Parliament

Circular on Development Centres

• Circularcoveringtaxmattersof

Development Centres based on based

on Rangachary Committee recom-

mendations to be issued shortly

Sae Harbour

• RulesonSafeHarbourtobeissued

ater examining the Rangachary

Committee recommendations

Tax incentives and relies

Incentive or investment in specifed

plant or machinery

• ApplicabletoaCompanyengaged

in the manuacture o article or thingand which invests more than ` 100

crores in specied plant or machinery

• Investmenttobedonebetween

1 April 2013 to 31 March 2015



• Deductionof15%onactualcost

o plant or machinery acquired and

installed

• Assetstobeheldforaperiodof5

years, ailing which deduction availed

shall be treated as income

Extension o sunset clause or power

sector

• Sunsetdateforthepowersectorto

commence eligible activity extended

rom 31 March 2013 to

31 March 2014

Deduction or employment o new

workmen

• Presently,deductionavailablefor

additional wages paid to new regular

workmen employed in manuac-turing or production activities

• Amendmentproposedtorestrict

the deduction only in respect o

workmen employed in manuac-

turing activities carried out in a

actory

Concessional rate o withholding tax

on interest

Interest income or a non-resident rom

the rupee denominated long-term inra-

structure bonds o an Indian company is

eligible or lower rate o withholding tax

@ 5% - Applicable rom 1 June 2013

Buyback o shares

• Additionaltaxof20%ondistributed

income in the course o buyback

o shares by unlisted companies,

payable by such company

• Distributedincomeistheconsider-

ation or buyback less issue price o

the shares

• Buybackconsiderationexemptinthe

hands o the shareholder

Rate o tax on royalty and ees

or technical services payable to a

non-resident

• Rateofwithholdingonroyaltyand

ees or technical services payable to

a non-resident increased rom 10%

to 25%

• Lowerrateaspertaxtreatycanbe

availed, subject to tax residency

certicate

Dividends rom specifed oreigncompany

• Benecialtaxrateof15%on

dividend income rom specied

oreign company extended by 1 year

till 31 March 2014

• Dividenddistributiontaxnot

payable on dividends payable out o

dividends received rom a specied

oreign company being a subsidiary

General Anti-avoidance Rules

•GAARprovisionsnowapplicablefrom

1 April 2016

• Amendmentsproposedinline

with the Shome Committee

recommendations-

– Denition o Impermissible

Avoidance Arrangement amended

to restrict to arrangements, the



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P o l i c

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G l o s s a r y

C o n t a c t s

main purpose o which is to

obtain a tax benet as against

“the main purpose or one o the

main purposes”

– Constitution o an approving panel

comprising three members being

a judge o the high court, member

o the Indian Revenue Service

and member having specialized

knowledge

Transer o immovable property

• Considerationfortransferofany

immovable property o ` 50 lakhs

and above attracts withholding tax

@ 1% - Applicable rom

1 June 2013

• Saleconsiderationonthetransfer

o immovable property when heldas stock in trade to be the higher o

the stamp duty value or the actual

consideration in computation o

business prot

• Purchaseofimmovablepropertyby

individual or HUF or inadequate

consideration (Consideration minus

Stamp duty value > ` 50,000) taxable

in the hands o the recipient

Amendments in response to

judicial precedents

• Baddebtswrittenoffaredeductible

only i the same exceeds the credit

balance in the provision or bad

and doubtul debts account made

under section 36(1)(viia) without any

distinction between rural and other

advances

• Amendmentmadeinresponsetothe

Supreme Court decision in Catholic

Syrian bank

Others

•Commodities transaction tax -

Introduced at the rate o 0.01%

on commodity derivatives (except

agricultural commodities)

•Securities transaction tax - Existingrates on taxable securities transactions

reduced

•Tax Residency Certicate is necessary

but not a sucient condition or

claiming the benets under the treaty

•Income o Securitisation Trust to be

exempt rom income tax subject to

conditions

•Pass through status or Alternate

Investment Funds



Customs Duty

• PeakrateofBasicCustomsDuty

maintained at 10%

• Exemptionfromeducationcess,

secondary and higher education cess

is being withdrawn on aeroplanes,

helicopters and a ew other goods

• BCDincreasedonthefollowing:

Description o goods

From To

Cars / motor vehicles

(irrespective o engine

capacity) with CIF

value more than $

40,000

75% 100%

New motorcycles

with engine capacity

o 800cc or more

60% 75%

Raw silk 5% 15%

Set Top Boxes 5% 10%

Steam coal Nil 2%

•BCDreducedonthefollowing:

Description o

goods

From To

Specied textilemachinery and parts

thereo

7.5% 5%

Pre-orms o precious

and semi-precious

stones

10% 2%

Specied machinery

or use in the leather

industry or ootwear

industry

7.5% 5%

Bituminous coal 5% 2%

• IncreaseinCountervailingdutyonsteamcoalfrom

1% to 2%

• ReductioninCVDonbituminouscoalfrom6%to

2%

• ExemptionfromBCDonlithiumionautomotive

battery or manuacture o lithium ion battery packs

or supply to manuacturers o hybrid and electric

vehicles

• ExemptionfromBCDextendedtopartsandtesting

equipment or maintenance, repair and overhauling

o aircrats and their parts

• Exportdutyintroducedonthefollowinggoods:

– Bauxite (eective rate –10%)

– Raw sugar, white or rened sugar (eective

rate – Nil)

– Ilmenite – processed (eective rate –10%)

– Ilmenite – unprocessed (eective rate – 5%)

• Exemptionfromexportdutyonde-oiledricebran

oil cake• Limitondutyfreebaggageallowanceforjewellery

enhanced as below:

Coverage From To

An Indian passenger,

who has been residing

abroad or over one year

•Gentleman passenger

•Lady passenger

` 10,000

` 20,000

` 50,000

` 100,000

A person who is transer-

ring his residence to India


•Lady passenger

` 10,000

` 20,000

` 50,000

` 100,000

Budget HighlightsIndirect Taxes



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G l o s s a r y

C o n t a c t s

o excise duty provided no CENVAT

credit on inputs is availed

•Brandedmedicamentsusedin

Ayurvedic, Unani, Sidha, Homeopathic

or Bio-Chemic system brought under

MRP-based assessment with an

abatement o 35%

•Excisedutyonchassisofdiesel

motor vehicles or transport o goods

reduced rom 14% to 13%

•Excisedutyof4%imposedonsilver

produced or manuactured during the

process o zinc or lead smelting

•Speciedgoodsmanufactured

and captively used as interme-

diate products by units located in

Uttaranchal or Himachal Pradesh have

been exempted rom excise duty

•AppellateTribunalcanextendoperation o stay or a period o 185

days where the delay is not attribut-

able to the assessee. The stay order,

however, will stand vacated at the

end o 365 days rom the date o the

order

•Anexplanationhasbeeninsertedin

Rule 3 o the CENVAT Credit Rules,

2004 to enable recovery o amounts

not paid on removal o inputs or

capital goods, as such or ater being

put to use and also in those cases

where they have been ully or partially

written o

•Section11oftheCentralExciseAct,

1944 has been amended to provide

or recovery o money due to the

Government rom an assessee, rom

any person who holds money or oron account o the assessee

Service Tax

•ServiceTaxrateremainsunchanged

Changes eective upon enactment o

the Finance Bill, 2013

•Negativelistmodiedasfollows:

– Courses run by Industrial Training

Institute / Centre aliated to State

Council or Vocational Training

included in negative list under the

denition o ‘approved vocational

educational course’

– Scope o testing related to the

agriculture sector broadened or the

purpose o inclusion in negative list

– Course run by an institute aliated

to the National Skill Development

Corporation subject to service tax

– Process amounting to manuactureto include processes under the

Medicinal and Toilet Preparations

(Excise Duties) Act, 1955

•AppellateTribunalcanextend

operation o stay or a period o 185

days where the delay is not attribut-

able to the assessee. The stay order,

however, will stand vacated at the

end o 365 days rom the date o the

order

•NewSection78Aintroducedto

impose penalty on directors and

ocials o the company or specied

oences in cases o willul actions

•Amnestyschemeproposedtobe

introduced or those assessees who

have not led or have stopped ling

service tax returns

•IfademandofServiceTaxmade



under extended period o limitation

is ound to be unsustainable by the

Appellate authority/Tribunal/Court on

grounds o limitation the tax liability

or eighteen months (normal period o

limitation) may be computed

Changes eective 1 March 2013

•AResidentPublicLimitedCompany

would be eligible to seek advance

ruling

•Abatementinrespectofconstruction

o a complex, building, civil struc-

tures etc., is being reduced rom the

existing 75% to 70% or construction

other than residential properties

having a carpet area up to 2000

square eet or where the amount

charged is less than ` 1 crore

Changes eective 1 April 2013

•Allrestaurantshavingair-conditioning

or central air-heating acility liable to

service tax

•Exemptionsinrelationtotransporta-

tion o goods by various modes (road,

railways & vessels) aligned

•Servicetaxexemptiononthe

ollowing have been withdrawn:

– Vehicle parking to general public

– Aircrat repair or maintenance

services provided to government,

a local authority or governmental

authority

– Renting o immovable property and

auxiliary education services provided

by educational institution

– Charities or advancement o any

other object o general public utility

•Exemptionfortemporarylicensingof

copyright o cinematographic lms

restricted to lms exhibited in cinema

halls or theatre

Central Sales Tax

•CentralSalesTaxratecontinuesat2%

against production o Form C

Goods and Services Tax

•MajorityoftheStateGovernments

have agreed on the need or aConstitutional amendment to acili-

tate GST introduction

• ` 9,000 crore set apart towards

payment o rst installment o

balance CST compensation due to the

States

•StateFinanceMinistersandtheGST

Council to drat the GST legislation

•DraftbillonConstitutional

amendment and a Drat bill on GST to

be introduced in the Parliament in the

coming months



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P o l i c

y P r o p o s a l s

G l o s s a r y

C o n t a c t s

Budget Proposals

Direct Taxes

S t a t e o f t h e E c o n o m

y




P o l i c y P r o p o s a l s

G l o s s a r y

C o n t a c t s



Budget ProposalsDirect Taxes*

* Unless otherwise stated, the proposed provisions will be applicable rom nancial year 2013-14

Rates o Income tax

Individuals / HUFs

There is no change in the basic slab

rates and tax rates or individuals /

HUFs.

It is proposed to levy a surcharge at the

rate o 10% o the Income tax where

total income exceeds Rs. 1 crore.

Table 1: Tax Rates or Individuals/HUFs

Income Slabs

( ` )

Rate o Tax

(%)

Up to 200,000 Nil

200,001-500,000 10

500,001-1,000,000 20

1,000,001 and

above

30

It is proposed to allow a rebate to

resident individuals whose total income

does not exceed ` 500,000. The rebate

will be equal to amount o income

tax payable on the total income or an

amount o ` 2,000; whichever is less.

Notes:

• Forresidentseniorcitizensof60yearsbutless

than 80 years o age, the basic exemption

limit remains unchanged at ` 250,000.

• Forresidentseniorcitizensof80yearsor

more, the basic exemption limit remains

unchanged at ` 500,000.

• EducationCesswillcontinuetobeleviedat

the rate o 3% o Income Tax.

Companies

There is no change in the basic tax rates

or companies.


rate o 10% and 5% o the Income tax

or domestic companies and oreign

companies respectively, where the

total income exceeds ` 10 crore. The

eective rate o tax or domestic and

oreign companies is depicted in table

below

Table 2: Tax Rates or Companies

Income

Slabs ( ` )

Domestic

Company (%)

Foreign Company

(%)

Normal MAT Normal MAT

Upto 1crore

30.90 19.05 41.2 19.05

Exceeding

1 crore less

than 10

crore

32.45 20.00 42.02 19.44

Exceeding

10 crore

33.99 20.96 43.26 20.00

FirmsThere is no change in the basic slab

rates or rms.



total income exceeds ` 1 crore. Hence,

the eective tax rate under normal

provisions and AMT will be 33.99% and

20.96% respectively, where the incomeexceeds ` 1 crore.



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Co-operative Societies

There is no change in the basic tax rates

or Co-operative Societies.



total income exceeds ` 1 crore.

Corporate Taxation

Deduction or investment in new

plant and machinery

•Itisproposedthatacompany

engaged in the business o manuac-

ture or production o any article or

thing, which acquires and installs a

plant and machinery (other than ship

or aircrat) as dened on or ater 1

April 2013 but beore 31 March 2015will be allowed or the nancial year

2013-14, a deduction o 15% o the

aggregate amount o actual cost o,

such asset where such cost exceeds

` 100 crores.

•Itisproposedthatthecompany

will be allowed a deduction or the

nancial year 2014-15 o 15% o

aggregate amount o actual cost o

plant and machinery (other than ship

or aircrat) as dened ater reducing

the deduction as allowed in the

nancial year 2013-14.

•Itisproposedthatifsuchplantand

machinery is sold or otherwise trans-

erred except in case o amalgamation

or demerger within a period o ve

years rom the date o its installation,

the amount o deduction allowed

(either by way o depreciation or

otherwise) will be deemed to be

income chargeable under the head

“Prots and gains rom business and

proession” in the year o transer,

in addition to the taxability under

the head “capital gains”, arising on

account o transer o such plant and

machinery.

•Itisproposedthatiftheplantand

machinery is sold or otherwise

transerred in connection with amal-

gamation or demerger within ve

years o its installation, the aoresaid

amendment relating to deemed

income and capital gains will be appli-

cable to the amalgamated company

or resulting company.

Additional income tax on distributed

income by company or buy-back o

unlisted shares

•Itisproposedthattheconsideration

paid by a company or purchase o its

own unlisted shares which is in excess

o the sum received by the company

at the time o issue o such shares

(i.e. the distributed income) will be

charged to tax. The company will be

liable to pay additional income tax

at the rate 20% o such distributed

income paid to the shareholder.

•Itisalsoproposedthat:

– the additional income tax paid by

the company will be treated as nal

payment o tax and no credit will

be claimed by the company or any

other person in respect o such tax.



– no deduction will be allowed to the

company or shareholder in respect

o the income which has been

charged to tax or the tax thereon.

•Further,theincomearisingtothe

shareholders in respect o such

buy-back by the company will be

exempt.

The proposed amendment will be appli-

cable rom 1 June 2013.

Deemed ull value o consideration in

case o transer o land or building or

both held as stock in trade

•Itisproposedthatwheretheconsid-

eration on transer o an asset (other

than a capital asset), being land or

building or both, is less than thestamp duty value then such value will

be deemed to be the ull value o the

consideration or computing prots

and gains rom such transer.

•Itisalsoproposedthatwherethe

date o agreement xing the value

o consideration or such asset and

the date o registration o transer o

such asset are not same, the stamp

duty value on the date o agreement

will be taken as ull value o consider-

ation. The stamp duty value on the

date o agreement can be taken only

in case the amount o consideration

or a part thereo has been received by

the assessee by any mode other than

cash.

Tax exempt status to certain

Alternative Investment Funds

•Currently,theincomeofaVCC/VCF

which satises the investment and

other conditions as provided in VCF

Regulations is exempt.

•ItisproposedthattheexistingVCCs

and VCFs registered beore 21 May

2012 and which are regulated by the

VCF Regulations will continue to be

tax exempt.

•Additionally,itisproposedthatany

income o VCCs / VCFs registered

under the AIF Regulations will be tax

exempt. For this purpose, VCC will

mean a company and VCF will mean

a und (set up as a trust), which has

been granted a certicate o registra-

tion as VCF being a sub-category oCategory I AIF and which satises the

ollowing conditions:

– That at least two-thirds o its

investible unds are invested in

unlisted equity shares or equity

linked instruments o VCU.

– No investment has been made by

such AIFs in a VCU which is an

associate company as specied.

– Units o a trust set up as AIF or

shares o a company set up as AIF,

are not listed on a recognized stock

exchange.

•ItisproposedthatVCUwillbedened

as per AIF Regulations.


cable rom nancial year 2012-13.



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y P r o p o s a l s

G l o s s a r y

C o n t a c t s

Benefcial tax rate on dividend rom

oreign company

•Itisproposedthatthebenecial

tax rate o 15% (plus surcharge and

education cess) on dividends received

by an Indian company rom a specied

oreign company will continue or the

nancial year 2013-14, i such income

is included in the total income o the

Indian company or the said year.

Removal o cascading eect on

dividend received rom oreign

subsidiary

•Currently,thereisnocascadingeffect

o DDT on dividend declared / paid

by an Indian company which in-turn

has earned dividend rom its Indian

subsidiary.•Itisproposedtoextendsuchbenet

to dividend declared / paid by an

Indian company, which has earned

dividend rom a specied oreign

subsidiary in the same year and such

dividend income has been oered to

tax by the Indian company.

This amendment would be eective

rom 1 June 2013.

Exemption o income o Investor

Protection Fund

•Itisproposedthatincome,bywayof

contribution received rom a deposi-

tory, o the Investor Protection Fund

will be exempt rom tax. However, any

amount standing to the credit o the

Fund and not charged earlier to tax,

will be taxed in the year in which such

amount is shared with the depository.

Deduction o bad debts in case o

certain banks

•Itisproposedtoclarifythatinthe

case o certain banks and nancial

institutions, the amount o bad debts

actually written o shall be limited

to the amount by which such bad

debts exceed the credit balance in the

provision o bad and doubtul debts,

without any distinction between rural

and other advances.

Amounts paid / appropriated to State

Governments

•Itisproposedthatthefollowing

amounts paid/appropriated by StateGovernment undertakings (as dened)

to the State Government will not be

deductible:

– Royalty, licence ee, service ee,

privilege ee, service charge or any

other ee or charge levied exclusively

on a State Government undertaking

by the State Government

– Any amount which is appropriated,

whether directly or indirectly, rom

a State Government undertaking by

the State Government

Non-resident taxation

Tax Residency Certifcate

•Currently,itisprovidedthatanon-res -

ident tax payer will be required to

obtain a TRC containing the prescribed



particulars to be eligible to claim any

relie under the tax treaty.

•ItisproposedtoprovidethatsuchTRC

will be necessary but not a sucient

condition or claiming any relie under

the tax treaty.


cable rom the nancial year 2012-13.

Taxation o income by way o royalty

or ees or technical services

•Currently,ataxrateof10%is

prescribed or income by way o

royalty or ees or technical services

earned by non-residents, pursuant to

agreements entered into on or ater 1

June 2005.

•Itisproposedtoincreasetherateoftax on royalty or ees or technical

services rom 10% to 25%. However,

the increased tax rate would be

subject to rates prescribed in the

relevant tax treaty.

General Anti-Avoidance Rule

•ItisproposedtomakeGAAReffective

rom the nancial year 2015-16.

•Currently,anarrangementwillbeheld

to be an impermissible avoidance

arrangement i the main purpose

or one o the main purposes o the

arrangement is to obtain a tax benet.

•It is proposed that the arrangement

will be held to be an impermissible

avoidance arrangement only i the

main purpose o the arrangement isobtaining a tax benet.

•Currently,anarrangementwillbe

presumed to have been carried out

or the main purpose o obtaining

tax benet i even a step o the

arrangement is to obtain a tax benet

irrespective o the act that the main

purpose o the whole arrangement is

not to obtain a tax benet.

•Itisproposedthattheabovepresump-

tion will continue unless it is proved to

the contrary by the taxpayer.

•Itisproposedtoprovideanadditional

condition that an arrangement will be

deemed to lack commercial substance

i it does not have a signicant eect

upon the business risks or net cash

fows o any party to the arrangement,

apart rom any eect attributable

to the tax benet that would beobtained.

•Currently,itisprovidedthatwhile

determining whether an arrangement

lacks commercial substance or not,

actors such as period o existence o

arrangement, payment o taxes under

the arrangement or exit route being

provided by the arrangement, will not

be taken into account.

•Itisproposedtoprovidethatsuch

actors may be relevant but will not

be sucient or determining whether

an arrangement lacks commercial

substance or not.

•Currently,theterms‘party’and‘tax

benet’ have been dened in an

exhaustive manner.

•Itisproposedtoamendthedenition

o the above terms to make it aninclusive denition.



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y P r o p o s a l s

G l o s s a r y

C o n t a c t s

Procedure or invoking GAAR

•Currently,itisprovidedthatthedirec-

tions o the AP (constituted to adju-

dicate cases in which GAAR has been

invoked) will be binding on the AO.

•It is proposed that the directions

o the AP will be binding on the

taxpayer and the CIT and his subor-

dinates. It is also proposed that no

appeal shall lie against the directions

o the AP.

•Currently,theAPistobeconstituted

o not less than three members being

ocers not below the rank o CIT and

joint secretary to the Government o

India.

•It is proposed that the Central

Government may constitute one or

more APs, each o which will consisto the ollowing three members:

− Chairperson being a person who is

or has been a judge o a High Court;

− One member not below the rank o

CCIT; and

− One member who would be an

academic or scholar having special

knowledge on direct taxes, business

account and international trade

practices.

•Itisproposedthatthetermofthe

AP shall ordinarily be or one year

and may extend to a period o three

years and the AP will have the powers

vested in the AAR.

Prior approval or search assessments

•Currently,assessmentorre-assessment

orders passed by an AO in searchcases cannot be passed without prior

approval o the Joint CIT.

•Itisnowproposedtoprovidethatan

approval o the Joint CIT will not be

necessary in cases where the assess-

ments or re-assessments pursuant to

a search are made by invoking GAAR

and ater obtaining permission o the

CIT.

The proposed amendment will be

applicable rom the nancial year

2015-16.

Personal taxation

Additional deduction or interest paid

on housing loan or frst home buyers

•Forrst-homebuyers,itisproposedto

allow an additional deduction o Rs.

100,000 in respect o interest payable

on housing loan sanctioned by anancial institution during nancial

year 2013-14 subject to the ollowing

conditions:

− The loan amount sanctioned does

not exceed ` 25 lakhs;

− The value o the residential house

property does not exceed Rs. 40

lakhs;

− The owner does not own any other

residential house property on the

date o sanction o the loan

•Incasetheinterestpayableduring

nancial year 2013-14 is less than

` 100,000, the balance amount

not claimed as a deduction may be

claimed in nancial year 2014-15.

•Nodeductionofsuchinterestclaimed

shall be allowed under any other

provisions o the Act.



Income rom Other Sources

•Currently,whereanindividualorHUF

receives any immovable property

without consideration, the stamp duty

value o such immovable property will

be chargeable to tax i the amount o

stamp duty exceeds ` 50,000.

•Itisproposedthatwhereany

immovable property is received or a

consideration which is less than the

stamp duty value o the property by

an amount exceeding ` 50,000, the

stamp duty value o such property

as exceeds such consideration, shall

be chargeable to tax in the hands o

the individual or HUF as income rom

other sources.

•Itisalsoproposedthatwherethe

date o agreement xing the valueo consideration or such asset and

the date o registration o transer o

such asset are not same, the stamp

duty value on the date o agreement

will be taken as ull value o consider-

ation. The stamp duty value on the

date o agreement can be taken only

in case the amount o consideration

or a part thereo has been received by

the assessee by any mode other than

cash.

Conditions or lie insurance premium

•Currently,anysumreceivedundera

lie insurance including bonus on such

policy issued on or ater 1 April 2012

will be exempt rom tax, provided

the premium on such policy does not

exceed 10% o the actual capital sumassured. Further, the deduction on

account o insurance premium paid up

to 10% o actual capital sum assured

is allowed rom the total income.

•Itisproposedtoenhancethislimitof

10% o the actual capital sum assured

to 15% where such policy is on lie

o an individual who is suering rom

disability or severe disability reerred

to under section 80U or a specied

ailment/ disease reerred to under

section 80DDB. Similarly, it is proposed

to allow deduction in respect o

premium paid on insurance policy up

to 15% o the actual sum assured

in respect o the person reerred to

above.


applicable in respect o policy issued

on or ater 1 April 2013.

Deduction available or equity

oriented unds

•Currently,deductionof50%of

investment made (subject to a limit

o ` 25,000) in listed equity shares

under schemes notied by the Central

Government is available in the year o

investment. Further, this deduction is

available where the gross total income

o the resident individual does not

exceed ` 10 lakhs.

•Itisproposedtoextendtheaforesaid

deduction or investments made in

listed units o equity-oriented und.

This benet will be available or

three consecutive assessment years

beginning with the rst year o acqui-

sition o shares/units. Further, the limit

o gross total income o the residentindividual is enhanced to ` 12 lakhs.



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Medical health insurance beneft

extended

•Currently,deductionupto ` 15,000

is allowed or premium paid towards

Central Government Health Scheme or

any payment made towards preven-

tive health check-up o the assessee or

his amily.

•Itisproposedtoallowthisdeduction

in respect o any amount paid to

any other scheme as notied by the

Central Government.

Other amendments

Amendments to withholding taxes

•TDSontransferofcertainimmovable

property(otherthanagriculturalland)

It is proposed to provide that taxat 1% is required to be deducted

by every transeree (other than the

transeree in the case o compulsory

acquisition o immovable property)

rom a sum paid/credited to a resident

transeror as consideration or transer

o immovable property.

For this purpose, immovable property

means any land (other than agricul-

tural land) or any building or part

o a building. Tax is not required to

be deducted i the consideration or

transer o immovable property is less

than Rs. 50 lakhs.


applicable rom 1 June 2013.

•ConcessionalrateofTDSoninterest

extendedtocertainrupeedenomi-

natedlong-terminfrastructurebonds

Currently, a concessional TDS rate o

5% applies to payment o interest

on borrowings made by an Indian

company in oreign currency either

under a loan agreement or by way

o issue o long-term inrastructure

bonds, as approved by the Central

Government.

It is proposed to provide that the

concessional rate o TDS on payment

o interest will be available where a

non-resident or a oreign company

has deposited any sum o money

in oreign currency in a designated

account and the said money is utilisedater converting in rupees to subscribe

to any long-term inrastructure bonds

issued by the Indian company.

Further, it is provided that the

aoresaid borrowing by the Indian

company will be deemed to be

received in oreign currency.

The term ‘designated account’ is

dened to mean a bank account

opened solely or the purpose o

deposit o money in oreign currency

and utilization o such money or

payment o subscription o the

long-term inrastructure bonds issued

by the Indian company.

The proposed amendment will beapplicable rom 1 June 2013.



Deductions rom income

•Extensionofsunsetclauseforpower

sectorundertaking

Currently, a deduction at 100% o

prots is available to an undertaking

or a period o 10 consecutive years

out o 15 years, i the undertaking:

– begins to generate power by 31

March 2013;

– starts transmission and distribution

by laying new transmission or distri-

bution lines by 31 March 2013;

– renovates and modernises existing

network o transmission by 31

March 2013

It is proposed to extend the above

terminal date or a urther period o

one year i.e. upto 31 March 2014.

•Deductionforadditionalwagespaid

tonewregularworkmenemployedin

afactorymanufacturinggoods

Currently, a deduction is allowed or

30% o additional wages paid to new

regular workmen employed in any

previous year by an Indian company

deriving prots rom any industrial

undertaking engaged in manuacture

or production o article or thing.

It is now proposed that the above

deduction be available to an assessee

engaged in manuacturing o goods in

a actory.

Further, it is proposed to amend

the provisions to provide that thededuction would not be available i

the actory is hived o or transerred

rom another existing entity or

acquired by the assessee company as

a result o amalgamation with another

company.

•Deductionfordonationmadeto

NationalChildren’sFund

Currently, deduction o 50% is

allowed or donation made to

National Children’s Fund.

It is proposed to allow 100%

deduction or donation made to the

National Children’s Fund.

Procedural amendments

•Defectivereturnofincome

Currently, a return o income led istreated as a deective return i all the

conditions prescribed are not ullled.

It is proposed to include, as a

condition, any ailure to pay sel-as-

sessment tax together with interest

which would render the return being

treated as a deective return.

• Specialaudit

Currently, an AO having regard to the

nature and complexity o the accounts

o a tax payer, can ater obtaining

specied approvals, direct the tax

payer to get his accounts audited by

an accountant and urnish a report o

such audit.

It is proposed that the ollowingactors can also be considered by the



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P o l i c

y P r o p o s a l s

G l o s s a r y

C o n t a c t s

AO or directing the tax payer to get

his accounts audited:

– Volume o accounts;

– Doubts about correctness o the

accounts;

– Multiplicity o transactions in the

accounts or specialised nature o

business activity o the tax payer;

and

– The interests o the revenue.

The proposed amendment will apply

rom 1 June 2013.

•Wealthtaxreturns

It is proposed to amend the

Wealth-tax Act, 1957 to empower

the CBDT or making relevant rules to

acilitate electronic ling o the returno net wealth.

Miscellaneous

•Taxationofsecuritisationtrusts

A new Chapter is proposed to be

introduced whereby a securitisation

trust will be required to pay additional

income tax on income distributed to

its investors, at the rate o 25% in

case o the investor being an indi-

vidual or HUF, and at the rate o 30%

in case o any other investor. However,

no additional income tax will be

payable i the income distributed by

the securitisation trust is received by a

person who is not chargeable to tax

under the Act.

The above proposal will be eectiverom 1 June 2013.

Further, it is proposed that income

rom securitization activities o a

securitisation trust which is regulated

by SEBI / RBI will be exempt rom tax.

It is also proposed that distributed

income received by the investor will

be exempt rom tax.

•Taxondistributedincomebya

MutualFund

Currently, additional tax o 12.5%

is charged on income distributed to

individuals or HUF by a und other

than money market mutual und or

liquid und. The same is proposed to

be increased to 25%.

It is also proposed that in the eventthat an income is distributed by a

Mutual Fund under an inrastructure

debt und scheme to a non-resident

(not being a company) or a oreign

company, the mutual und will be

liable to pay additional tax at the rate

o 5% on such distributed income.

The above proposal will be eective

rom 1 June 2013.

•‘Taxdue’forthepurposeofliability

ofpartners/directorsincaseof

liquidation

It is proposed to clariy that the term

‘tax due’ or the purpose o liability o

partners / directors in case o liqui-

dation o LLP / private company will

include penalty, interest or any othersum payable under the Act.



The proposed explanation will be

applicable rom 1 June 2013.

•Amendmentinthedenitionof“agri -

culturalland”

Currently, or the purposes o dening

“agricultural income” and “capital

asset”, land is inter-alia considered to

be “agricultural land” i:

– it is situated in any area within the

jurisdiction o a municipality or

cantonment board having popula-

tion o not less than ten thousand

according to the last preceding

census; or

– it is situated in any area within such

distance not exceeding eight kilo-

meters rom the local limits o any

municipality or cantonment board asnotied having regard to the extent

and scope o urbansiation and other

relevant actors.

It is proposed to amend the second

criteria so as to provide that land

will be considered as an “agricul-

tural land” i it is situated in any

area within the distance, measured

aerially o not being more than:

– two kilometers, rom the local limits

o any municipality or cantonment

board and which has a population

o more than ten thousand but not

exceeding one lakh; or

– six kilometers, rom the local limits

o any municipality or cantonment

board and which has a population

o more than one lakh but not

exceeding ten lakh; or– eight kilometers, rom the local

limits o any municipality or canton-

ment board and which has a popu-

lation o more than ten lakh.

It is also proposed to dene the term

“population” to mean population

according to the last preceding census

o which the relevant gures have

been published beore the rst day o

the previous year.

Similar amendments are also proposed

or the purposes dening “urban land”

in the Wealth-tax Act, 1957.

Commodities Transaction Tax

•AnewtaxcalledCTTisproposedto

be levied on taxable commoditiestransactions traded in a recognized

association. Taxable commodities

transaction will mean a transaction

o sale o commodity derivatives

other than agriculture commodities,

traded in recognized associations.

Commodity derivative is dened to

mean a contract or delivery o goods

which is not a ready delivery contract,

or, a contract or dierences deriving

value rom prices or price indices o

underlying goods; related services and

rights such as warehousing or reight;

or with reerence to weather and

similar events.

•Thetaxisproposedtobeleviedat

0.01% on the value o such trans-

action and will be collected by the

recognized association rom the seller.Provisions with regard to urnishing



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y P r o p o s a l s

G l o s s a r y

C o n t a c t s

o return, assessment, levy o interest

and penalty, etc. have also been

prescribed.

•Thetaxwillbeleviedfromadate

to be notied by the Central

Government.

•ItisproposedthattheCTTpaidshall

be allowed as a deduction i the

income arising rom the commodities

transaction is included as a part o

business income.

Securities Transaction Tax

•ItisproposedtoreduceSTTrates

on taxable securities transactions as

under:

Sr.

No.

Nature o

taxable securities

transaction

Payable by Existing

Rate (%)

Proposed

Rate (%)

1 Delivery based purchase

o units o an equity

oriented und entered

into, in a recognized

stock exchange

Purchaser 0.1 No tax

2 Delivery based sale

o units o an equity

oriented und entered

into, in a recognized

stock exchange

Seller 0.1 0.001

3 Sale o utures in

securities

Seller 0.017 0.01

4 Sale o a unit o an

equity oriented und tothe mutual und

Seller 0.25 0.001

The amendments will apply to a transaction made on or ater 1 June 2013.



Budget ProposalsIndirect Taxes



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Budget ProposalsIndirect TaxesCustoms

Import Duty

Rate Changes

•PeakrateofBCDretainedat10%.

Changes in eective rates o duty

•Aeroplanes,helicoptersandtheir

parts, soya bean oil, olive oil and

other specied oils were exempted

rom payment o education,

secondary and higher education

cesses. The exemption has now been

withdrawn.

•Thefollowinggoodshavebeen

exempted rom BCD:

- Lithium ion automotive battery or

manuacture o lithium ion battery

packs meant or supply to manuac-turers o hybrid and electric vehicles

- Parts and testing equipment or

maintenance, repair and over-

hauling o aircrat parts

•ConcessionalBCDforspecied

parts o hybrid and electric vehicles

available till April 2013 has been

extended up to 31 March 2015.

•ConcessionalBCDrateof5%

extended to stainless steel wire cloth

Table 3: Increase in Basic Customs Duty

Description o

goods

Up to 28

February 2013

(%)

Eective 1

March 2013

(%)

New Cars / motor

vehicles (irrespec-

tive o engine

capacity) with CIF

value more than$ 40,000

75 100

New motorcy-

cles with engine

capacity o 800cc

or more

60 75

Raw Silk 5 15

Set Top Boxes 5 10

Steam Coal Nil 2

stripe and wash coat.

•CVDonsteamcoalhasbeen

increased rom 1% to 2%, while CVD

on bituminous coal has been reduced

rom 6% to 2%.

The above changes will be eective

rom 1 March 2013.



Table 4: Decrease in the Basic Customs Duty

Description o

goods

Up to 28

February 2013

(%)

Eective 1

March 2013

(%)

Specied textile

machinery and

parts thereo

7.5 5

Pre-orms o

precious and

semi-precious

stones

10 2

Specied

machinery or

use in the leather

industry or

ootwear industry

7.5 5

Bituminous coal 5 2

Hazel nut 30 10

De-hulled oat

grain

30 15

Export Duty

•Table5:IntroductionofExportDuty

Description o

goods

Eective 1 March 2013

(%)

Bauxite (natural), notcalcined and calcined

10

Ilmenite, unprocessed 10

Ilmenite, upgraded 5

Raw sugar, white or rened

sugar

Nil



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y P r o p o s a l s

G l o s s a r y

C o n t a c t s

•De-oiledricebranoilcaketobe

exempted rom export duty.

•Flatrolledproductsofironor

non-alloy steel, plated or coated

with zinc exempted rom export duty

retrospectively rom 1 March 2011.


rom 1 March 2013.

Changes in the Customs Act, 1962

•Thetimelimitforpaymentofimport

duty is reduced rom 5 to 2 days rom

the date on which the bill o entry is

returned to the importer.

•Storageofimportedgoodsinapublic

warehouse, pending clearance or

home consumption, is permitted

up to a period o 30 days. TheCommissioner o Customs is now

empowered to extend the period by

urther 30 days.

•Provisionalattachmentofproperty

now extended to cases involving

suppression, willul mis-statement or

collusion.

•Section104hasbeenamendedto

speciy oences that are non-bailable.

These oences, punishable under

Section 135, relate to:

- evasion or attempted evasion o

duty exceeding ` 50 lakh; or

- prohibited goods notied under

Section 11; or

- non declaration o import or export

o goods in accordance with the

provisions, and market price o

which exceeds ` 1 crore; or- raudulently availing o or attempt

to avail o drawback or exemption

rom duty provided, i the amount

o drawback or exemption rom

duty exceeds ` 50 lakh.

•AppellateTribunalcannowextend

operation o stay or a urther period

o 185 days where the delay is not

attributable to the assessee. The stay

order, however, will stand vacated at

the end o 365 days rom the date o

the order.

•Denitionof‘activity’forthepurpose

o Advance Ruling is amended to

include any new business o import or

export proposed to be undertaken by

an existing importer or exporter.


rom the date o enactment o Finance

Bill 2013.

•Limitondutyfreebaggageallowance

or jewelry has been enhanced as

below:

Coverage Up to 28

February

2013 ( ` )

Eective 1

March

2013 ( ` )

An Indian passenger, who has

been residing abroad or overone year


•Lady passenger

10,000

20,000

50,000

100,000

A person who is transerring

his residence to India


•Lady passenger

10,000

20,000

50,000

100,000



Central Excise Duty

Rate Changes

Normal rate o Central Excise Duty retained at 12%.

Changes in eective rates o duty

Table 6: Increase in Excise Duty

Description o goods Up to 28

February 2013

Eective 1

March 2013

Silver produced or manuactured duringthe process o zinc or lead smelting

Nil 4%

Stainless steel pattis and pattas ` 30,000 per

machine per

month

` 40,000 per

machine per

month

Marble slabs and tiles ` 30 per square

meter

` 60 per square

meter

Mobile handsets including cellular phones

having retail sale price more than ` 2,000

1% 6%

SUVs with engine capacity exceeding

1500 cc

27% 30%



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Table 7: Increase in Excise Duty or Cigarettes etc. (per thousand)


February 2013

Eective 1

March 2013

Non-lter exceeding 65mm but not

exceeding 70mm

` 1,463 ` 1,772

Filter exceeding 65mm but not

exceeding 70mm

` 1,034 ` 1,249


exceeding 75mm ` 1,463 ` 1,772


exceeding 85mm ` 1,974 ` 2,390

Other ` 2,373 ` 2,875

Cigar and cheroots 12% or ` 1,370

whichever is

higher

12% or ` 1,781

whichever is

higher

Cigarillos 12% or ` 1,370

whichever is

higher

12% or ` 1,781

whichever is

higher

Cigarettes o Tobacco Substitutes ` 1,258 per

thousand

` 1,511 per

thousand

Cigarillos o Tobacco Substitutes 10% or ` 1,473

whichever is

higher

12% or ` 1,738

whichever is

higher

Other 10% or ` 1,473whichever is

higher

12% or ` 1,738whichever is

higher



Table 8: Decrease in the Excise Duty


February 2013

(%)

Eective 1

March 2013 (%)

Henna powder or paste, not mixed

with any other ingredient

6 Nil

Peanut butter 6 Nil

Tapioca (Sago) 6 Nil

Chassis o diesel motor vehicles or

transport o goods

14 13

Branded garments completely made

up o cotton (not containing any other

textiles)

12 6

Handmade Carpets, Carpets and other

textile foor coverings etc.

2 (without credit)

or 6 (with credit)

Nil

SUVs registered or use solely as taxi 80% o excise

duty paid at the

time o clearance

72% o excise

duty paid at

the time o

clearance#

Cruise ships, Excursion boats , erry-

boats, Cargo Ships, Barges and similar

vessels or the transport o persons or

goods

6 Nil

Tugs and Pusher crat 6 Nil

Light-vessels, re-foats, dredgers,

foating cranes, and other vessels the

navigability o which is subsidiary to

their main unction; foating docks;

Floating or submersible drilling or

production platorms

6 Nil

Other vessels, including lieboats other

than rowing boats and warships

6 Nil

# Exemption by way o reund o 28% o excise duty paid at the time o clearance would be applicable

subject to prescribed conditions



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Other relevant changes in excise duty

•Manufacturersofbrandedreadymade

garments and made ups can now

avail exemption rom payment o

excise duty provided no CENVAT

credit on inputs is availed.

•Brandedmedicamentsused

in Ayurvedic, Unani, Sidha,

Homeopathic or Bio-Chemic system,

have been brought under MRP-based

assessment, with an abatement o

35%.

•Concessionalexcisedutyof6%,

currently available till 31 March 2013,

has been extended up to 31 March

2015 on the ollowing:

- battery packs, battery charger, AC

or DC motor and AC or DC motor

controller, used in manuactureo electrically operated vehicles,

including two and three wheeled

electric motor vehicles,

- battery packs o lithium ion

batteries supplied to manu-

acturers o hybrid and electric

vehicles extended up to 31 March

2015

•Speciedgoodsmanufactured

and captively used as interme-

diate products by units located in

Uttaranchal or Himachal Pradesh

have been exempted rom payment

o central excise duty.

•ExcisedutyprescribedtobeNilfor

ollowing excisable goods:

- Tapioca starch manuactured and

captively consumed within the

actory o their production, inthe manuacture o Tapioca sago

(sabudana).

- All goods or manuacture o erti-

lizers including bentonite sulphur,

provided that the procedure

laid down under Central Excise

(Removal o Goods at Concessional

Rate o Duty or Manuacture o

Excisable goods) Rules, 2001 is

ollowed.


rom 1 March 2013.

Changes in the Central Excise Act,

1944

•AnystatementissuedbyaCentral

Excise Ocer containing the details

o non-payment, short payment,

non-levy and short levy o duty is

deemed to be service o notice•Theprovisionsrelatingtoadvance

rulings are proposed to be amended

as ollows:

- Denition o ‘Activity’ under

Section 23A(a) has been widened

to include any new business

o production/ manuacture by

existing producers or manuac-

turers enabling such producers /

manuacturers to seek advance

ruling on starting a new line o

business.

- Scope o application o Advance

Ruling extended to include admis-

sibility o the credit o service tax

paid on or deemed to have been

paid on input services used in the

manuacture o excisable goods.

- Resident public limited companieshave been included as class o

persons or purpose o seeking



advance ruling

•AppellateTribunalcanextend

operation o stay or a urther period

o 185 days where the delay is not

attributable to the assessee. The stay

order, however, will stand vacated at

the end o 365 days rom the date o

the order.

•SingleMemberBenchcannow

dispose cases involving duty or

penalty up to ` 50 lakh as against

` 10 lakh

•Section9Ahasbeenamendedto

speciy those oences that are

non-bailable. These oences, punish-

able under Section 9, relate to:

- evasion o duty exceeding

` 50 lakh; or

- contravention o provisions o thelaw, in relation to credit o any

duty, in excess o ` 50 lakh.



Bill 2013.

Changes in CENVAT Credit Rules,

2004

An explanation has been added to Rule

3 o the CENVAT Credit Rules, 2004 to

enable recovery o amounts not paid

on removal o inputs or capital goods,

as such or ater being put to use and

also in those cases where they have

been ully or partially written o. The

amounts can now be recovered as

provided in Rule 14.

The above change will be eective rom

1 March 2013.

Service Tax

Service Tax rate remains unchanged.

Changes in the Finance Act, 1994

•Negativelistmodiedasfollows:

- Courses run by Industrial Training

Institute / center aliated to State

Council or Vocational Training

included in negative list under the

denition o ‘approved vocational

educational course’. This entry

hitherto covered only those courses

aliated to the National Council

or Vocational Training.

- Scope o ‘testing’, previously

conned to seed testing only,

broadened or the purpose o

inclusion in negative list, to cover

all testing related to the agriculturesector

- Courses run by an institute aliated

to the National Skill Development

Corporation would now be taxable.

- Processes amounting to manuac-

ture under the Medicinal and Toilet

Preparations (Excise Duties) Act,

1955 will also be covered under

the negative list.

•Asaresultofchangesmadeto

Section 35C(2A) o the Central Excise

Act, 1944, (as made applicable to

service tax provisions), Appellate

Tribunal can extend operation o

stay or a period o 185 days where

the delay is not attributable to the

assessee. The stay order, however,

will stand vacated at the end o 365days rom the date o the order.

•Ifademandofservicetaxmade



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y P r o p o s a l s

G l o s s a r y

C o n t a c t s

under extended period o limitation

is ound to be unsustainable by

the Appellate authority / Tribunal

/ Court on grounds o limitation,

the tax liability or eighteen months

(normal period o limitation) may be

computed.

•Tribunalisnowempoweredto

condone delays in ling appeals and

cross objections by the assessee.

Earlier, this was limited to appeals

and cross objections led by the

revenue only.



Bill 2013.

Penalties and Oences•Section77(1)(a)ofFinanceAct,1994

contains residuary penal provisions.

The said Section prescribes a penalty

o ` 10,000 or ` 200 per day o

deault. It is now proposed that the

penalty o ` 200 per day o deault

should be done away with.

•NewSection78Ahasbeenintro-

duced. The said Section prescribes a

penalty o up to ` 100,000 in respect

o specied oences, including those

relating to wrong availment o input

service tax credit on services not

received, issuing invoices or services

not rendered and the like, on any

director, manager, secretary or other

ocer o a company responsible or

commission o such oence.

•Amendmentshavebeenproposedtoincrease the period o imprisonment

rom three years to seven years, in

some cases.

•Section91(1)hasbeenintroducedto

grant the Commissioner o Central

Excise the power to arrest in specied

cases.

Introduction o amnesty scheme

•Anamnestyschemeunderservice

tax is proposed to be introduced by

inclusion o new Chapter VI in the

Finance Act, 1994 covering service

tax and other dues payable or

the period 1 October 2007 to 31

December 2012.

•Suchpendingduescanbepaidin

two installments; one beore 31

December 2013 and the next beore

30 June 2014. Interest and penalty

would be waived or assessees optingor the amnesty scheme.

•Thefollowingconditionsaretobe

ullled in order to avail the benet o

the scheme:

- There should not be any notice or

order beore 1 March 2013 on the

same issue

- The liability was not disclosed in

the returns led

- No inquiry or investigation is

initiated by way o search, issuance

o summons, requisition o

accounts and records and pending

as on 1 March 2013

- No audit is initiated and pending

as on 1 March 2013.

The above scheme will be eective rom

the date o enactment o Finance Bill2013.



Changes in exemptions

•Allrestaurantshavingair-conditioning

or central air-heating acility would

be covered under the service tax net.

The requirement o serving liquor has

been omitted.

•Exemptionsinrelationtotransporta-

tion o goods by various orms (road,

railways & vessels) have been aligned.

•Thefollowingexemptionshavebeen

withdrawn:

- Transportation by road o

petroleum & petroleum products,

postal mails or postal bags and

household eects

- Vehicle parking to general public

- Aircrat repair or maintenance

services provided to government,

a local authority or governmentalauthority

- Renting o immovable property

and auxiliary education services

provided by educational institution

- Charities up to ` 25 lakh or

advancement o any other object

o general public utility.

•Exemptionfortemporarylicensingof

copyright o cinematographic lms

restricted to lms exhibited in cinema

halls or theatres.


rom 1 April 2013.

Other changes

•AResidentPublicLimitedCompany

would now be eligible to seek

advance ruling; the term ‘Resident’

and ‘Public Limited Company’ being,

as dened in the Income Tax Act and

the Companies Act respectively.

•Abatementinrespectofconstruction

o a complex, building, civil struc-

tures etc., is being reduced rom the

existing 75% to 70% or construction

other than residential properties

having a carpet area up to 2000

square eet or where the amount

charged is less than ` 1 crore.


rom 1 March 2013.

Central Sales Tax

•CSTratecontinuesat2%against

production o Form C.

Goods and Services Tax

•Anoverwhelmingmajorityofthe

State Governments have agreed

on the need or a Constitutional

amendment or introduction o GST.

•CentralGovernmentwouldcompen-

sate the States or loss in revenue on

account o reduction in the CST rate.

• ` 9,000 crore set apart towards

payment o rst installment o

balance CST compensation due to

the States.

•StateFinanceMinistersandtheGST

Council have been assigned the task

o drating the GST legislation.

•DraftBillsontheConstitutional

amendment and GST to be intro-

duced in the Parliament in the

coming months.



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P o l i c

y P r o p o s a l s

G l o s s a r y

C o n t a c t s

Policy Proposals


c o n o m y




P o l i c y P r

o p o s a l s

G l o s s a r y

C o n t a c t s



Policy Proposals

Direct taxes

•DTCBillbasedonbestinternational

practices will be compatible with the

needs o a ast developing economy.

It will be placed beore the House

during the Budget session.

•TaxAdministrationReform

Commission will be set up to review

the application o tax policies and tax

laws and submit periodic reports that

can be implemented to strengthen the

capacity o tax system.

•Safeharbourruleswillbenotied

ater examining the reports o the

Rangachary Committee, which is

expected by 31 March 2013.

Capital Markets

•Itisproposedthatwhereaninvestor

has a stake o 10% or less in a

company, it will be treated as an FII

and where an investor has a stake o

more than 10%, it will be treated as

FDI.

•FIIswillbepermittedtoparticipatein

the exchange traded currency deriv-

ative segment to the extent o their

Indian rupee exposure in India.

•FIIswillalsobepermittedtousetheir

investment in corporate bonds and

Government securities as collateral to

meet their margin requirements.

•SEBItoprescriberequirementfor

angel investor pools by which they

can be recognised as Category I AIF

venture capital unds.•Smallandmediumenterprisestobe

permitted to list on the SME exchange

without being required to make an

initial public oer.

•Stockexchangestobeallowedto

introduce a dedicated debt segment

on the exchange.

•Thelistofeligiblesecuritiesinwhich

Pension Funds and Provident Funds

may invest will be enlarged to include

exchange traded unds, debt mutual

unds and asset backed securities.

Banking and Financial

•AstandingCouncilofExpertstobe

constituted in the Ministry o Finance

to analyse the international competi-

tiveness o the Indian nancial sector.

•NationalHousingBanktosetupUrban Housing Fund.

•Smallandmediumenterprises,tobe

permitted to list on the SME exchange

without being required to make an

initial public oer.

•Proposaltoset-upIndia’srst

Women’s Bank as a public sector

bank.

•SIDBItosetupaCreditGuarantee

Fund or actoring.

Insurance

•Insurancecompaniestobe

empowered to open branches in

Tier-II cities and below without prior

approval o IRDA.

•KYCofbankstobesufcientto

acquire insurance policies.•Bankstobepermittedtoactas



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y P r o p o s a l s

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insurance brokers. Banking corre-

spondents allowed to sell micro-in-

surance products. Goal o having an

oce o LIC and an oce o at least

one public sector general insurance

company in towns with population

exceeding 10,000 to be achieved.

Inrastructure

•Measureshavebeenidentied

towards new and innovative instru-

ments to mobilise unds or invest-

ment in the inrastructure sector.

•TheCabinetCommitteeonInvestment

has been set up and decisions have

been taken in respect o a number o

gas, power and coal projects.

•Apolicytoencourageexplorationand production o shale gas will be

announced.

•Inthemediumtolongterm,needto

reduce dependence on imported coal

has been identied.

•Aproposalhasbeenmadetodevisea

PPP policy ramework with Coal India

Limited as one o the partners.

•Benetsorpreferencesenjoyedby

MSME to continue upto three years

ater they grow out o this category.

•MinistryofCorporateAffairstonotify

that unds provided to technology

incubators located within academic

Institutions and approved by the

Ministry o Science and Technology or

Ministry o MSME will qualiy as CSR

expenditure.

•Chennai-BengaluruIndustrialCorridor

to be developed.

•Preparatoryworkcommencedfor

Bengaluru-Mumbai Industrial Corridor.

Environment

•‘Generation-basedincentive’reintro-

duced or wind energy projects.

Entertainment

•ProposaltoexpandprivateFMradio

services to 294 more cities.

•Around839newFMradiochannels

will be auctioned in 2013-14 and ater

the auction, all cities having a popu-

lation o exceeding 100,000 will be

covered by private FM radio services.



Glossary

AAR – Authority or Advance Rulings

Act – Income tax Act, 1961

AIF – Alternative Investment Fund

AIF Regulations – SEBI (Alternative Investment

Funds) Regulations, 2012

AMT – Alternate Minimum Tax

AO – Assessing Ocer

AP – Approving Panel

BCD – Basic Customs Duty

CBDT – Central Board o Direct Taxes

CCIT – Chie Commissioner o Income Tax

CIF – Cost, Insurance and Freight

CIT – Commissioner o Income Tax

CST – Central Sales Tax

CTT – Commodities Transaction TaxCSR – Corporate Social Responsibility

CVD – Countervailing duty

DDT –Dividend Distribution Tax

DTC – Direct Taxes Code

FDI – Foreign Direct Investment

FII – Foreign Institutional Investor

GAAR – General Anti-Avoidance Rule

GST – Goods and Services Tax

HUF – Hindu Undivided Family

IRDA – Insurance Regulatory and Development

Authority

KYC – Know Your Customers

LIC – Lie Insurance Corporation o India

LLP – Limited Liability Partnership

MAT – Minimum Alternate Tax

MSME – Micro Small and Medium Enterprises

PPP – Public Private Partnership

RBI – Reserve Bank o India

SEBI – Securities and Exchange Board o India

SIDBI – Small Industries Development Bank o India

SME – Small and Medium Enterprises

STT – Securities Transaction Tax

SUV – Sports Utility VehicleTDS – Tax deducted at Source

TRC – Tax Residency Certicate

VCC – Venture Capital Company

VCF – Venture Capital Fund

VCF Regulations – SEBI (Venture Capital Fund)

Regulations, 1996

VCU – Venture Capital Undertaking



S t a t e o f t

h e E c o n o m y




P o l i c

y P r o p o s a l s

G l o s s a r y

C o n t a c t s

Contacts

Mumbai

IndiaBulls Financial Centre

Tower 3, 27th-32nd Floor,

Senapati Bapat Marg,

Elphinstone Road (W),

Mumbai – 400013

Tel: + 91 (022) 6185 4100

Fax: + 91 (022) 6185 4101

Bangalore

Deloitte Centre, Anchorage II,

100/2, Richmond Road,

Bangalore – 560 025

Tel: +91 (080) 6627 6000

Fax: +91 (080) 6627 6409

Delhi NCR

Building 10, Tower B,

7th Floor, DLF Cyber City,Gurgaon – 122 002

Tel : +91 (0124) 679 2000

Fax : + 91 (0124) 679 2012

Chennai

No.52, Venkatanarayana Road,

7th Floor, ASV N Ramana Tower,

T-Nagar, Chennai – 600 017

Tel: +91 (044) 6688 5000

Fax: +91 (044) 6688 5019

Kolkata

Bengal Intelligent Park Building,Alpha, 1st foor, Plot No –A2,

M2 & N2, Block – EP &

GP Sector – V,

Salt Lake Electronics Complex,

Kolkata – 700 091

Tel : + 91 (033) 6612 1000

Fax : + 91 (033) 6612 1001

Ahmedabad

“Heritage” 3rd Floor, Near GujaratVidyapith, O Ashram Road,

Ahmedabad – 380 014

Tel: + 91 (079) 2758 2542

Fax: + 91 (079) 2758 2551

Hyderabad

1-8-384 & 385, 3rd Floor,

Gowra Grand S.P. Road,

Begumpet,

Secunderabad – 500 003

Tel: +91 (040) 4031 2600

Fax:+91 (040) 4031 2714

VadodaraChandralok, 31, Nutan

Bharat Society,

Alkapuri, Vadodara – 390 007

Tel: + 91 (0265) 233 3776

Fax: +91 (0265) 233 9729

Pune

706, ICC Trade Tower,

B Wing, 7th Floor,

Senapati Bapat Road,Pune – 411016

Tel : +91 (020) 6624 4600

Fax : + 91 (020) 6624 4605



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