Highlights of Virtual Mini Budget
announced by Finance Minister of India
on
8th January 2004:

Thanks to my dad for the following information:-



Peak customs duty on non-farm goods cut by 5% to 20%
4 % special additional duty (SAD) of Customs abolished.
Excise duty on aviation turbine fuel halved to 8%
Inland Air Travel Tax of 15% abolished.
Customs duty on cellphones halved to 5%
Excise duty on computers halved to 8%
Customs duty on coal cut by 10%to 15%
Customs duty on power equipment cut by 15% to 10%
Duty on life saving drugs and equipment cut to 5%
Baggage rules liberalised.
Laptops as part of baggage exempted from duty.
Peak rate of customs duty on non-agricultural goods reduced from 25% to 20%
Customs duty on project imports with investment of at least Rs 5 crores, in plant and machinery, reduced from 25% to 10%
Customs duty on coal reduced from 25% to 15%
Customs duty on nickel and articles thereof reduced from 10% to 5%
Customs duty on power transmission and distribution projects reduced from 25% to 10%
Customs duty on electricity meters reduced from 25% to 15%
Duty on 6 items (namely VCD/VCR, washing machines, personal computers, laptop computers, refrigerators of capacity up to 300 L,and cooking range) under Transfer of Residence made duty free.
Duty on 17 items under Transfer of Residence reduced from 30% to 15%
Import of cinematographic films, exposed but not developed, imported as part of baggage, made duty free.
Quantity of alcoholic liquor/wines allowed duty free under baggage increased from 1 litre to 2 litres.
Laptops brought as part of baggage exempted from customs duty.
Manufacturers will now be allowed to remove semi-finished goods and finished goods for further processing or testing, without payment of excise duty.
Electronic filing of service tax returns, presently allowed only in respect of 10 services, is being extended to all the 58 taxable services.
Service providers providing more than one taxable service will be allowed to take single registration and file a single return.
Only a simple verification will now be made for grant of registration for Service Tax.
Round-the-clock electronic filing of customs documents for clearance of goods, presently available in 9 customs formations, extended to 23 customs formations.
Customs clearances will be based on self-assessment and selective examination
Customs duty on specified life-saving bulk drugs, formulations, medical euipments reduced to 5%. These items are also exempted from countervailing duty by way of excise duty exemption.
Customs duty on parts of artificial limbs and specified rehabilitation aids reduced to 5%. These items are also exempted from CVD by way of excise duty exemption.
Excise duty on medical, surgical, dental and veterinary furniture is being reduced from 16% to 8%
Mosquito nets treated with pesticide are being exempted from excise duty.
Customs duty on Information Technology Agreement-bound items reduced
Customs duty on specified raw materials/inputs used for manufacture of electronic components or optical fibres/cables reduced from 15% / 5% to 5% / NIL.
Customs duty on specified capital goods used for manufacture of electronic goods reduced from 15% / 10% to NIL
Specified infrastructure equipment for basic/cellular/Internet, V-SAT, radio paging and public mobile radio trunked services and parts of such equipments exempted from basic customs duty.
Customs duty on cellphones is being reduced from 10% to 5%
Excise duty on computers reduced from 16% to 8%
Recorded video compact discs and digital video discs exempted from excise duty.