BUDGET 2011-12 : IT SECTOR HIGHLIGHTS

Given are the Union Budget 2011-12 highlights concerning IT Industry and employees.

· Unambiguous definitions of input services proposed + Service taxpayers with turnover of Rs 60 lakh exempted from Audit + Penal provisions in Service tax streamlined
· Service tax levied on hotel accommodation above Rs 1000 per day with 50% abatement + AC Restaurants providing liquor + diagnostic labs + air travel (Rate hiked by Rs 50) + legal services provided by individuals to business
· Service tax – Cenvat Credit rules to be rationalised
· Excise proposals to generate Rs 7000 Cr revenue
· Jumbo rolls import granted exemption
· MAT rate hiked from 18% to 18.5%
· Foreign dividend in hands of resident Indians to attract 15% tax
· Surcharge on domestic companies reduced to 5%; MAT levied on developers as well as units of SEZ
· Tax exemption limit raised to Rs 1.8 lakh; Sr Citizens’ age reduced from 65 to 60; New category of Sr citizens created for 80 above – Rs five lakh exemption limit fixed
· Service tax refund to exporters and SEZ Units: A new scheme to be notified soon
· DTC Bill to be finalized soon + Constitutional Amendment Bill for GST to be tabled in Parliament during Budget Soon + Pilot GST Portal to be put online by June

– Mr. Sharad Poddar
Director Finance
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