the Fourth Consecutive Time in the history of Faridabad, we had an Instant and
LIVE Budget Analysis, with a panel of Experts,
Chartered Accountants from the Faridabad C.A. Branch of NIRC of Institute of
Chartered Accountants of India, We also had the media, We had eminent Bankers,
from Financial Institutions, including Mr Ajay Garg, Director of Corporation
Bank. We had our own FSIA panel of Consultants. We had our own Mr Rajive Chawla,
who later in the day was panel speaker and voice of SME at the CNBC, Zee
Business TV Channel and many other TV channels
we had …….. the dynamic businessmen of
Budget 2011 came in, on 28th Feb as per schedule. And many more finer
nuances have become apparent in the fine print. More will be discovered in the
coming days. But till then, some big points à
and our FSIA analysis on à
How they effect you ?
let us start our review in two parts
Rates “No Change”
expected a change in rates
thankfully, there is No increase or Decrease
on Garments for “Local Sales”
130 products added at 1% only
more like Garments at 10%
Many new services added / extended.
notes = All newspapers are saying this is bad, and against public. However we at
FSIA also bring to your notice that now the benefit is that all of these get
ready to embrace the GST. And they also get MODVAT of 100% of the service
tax/excise paid on their inputs. So the actual effect on the provider will not
be too much.
tax big change
of Service Tax Shifted from “Receipt
Basis to Accrual
off date is 1.4.2011 ( as per Point of Taxation Rules 2011) Notification no
will happen to the bills already issued and not collected ???
= to be finalised
tax New change
CA bills you, he charges service tax
CS bills you, he also charges you the service tax
when an Advocate bills you, he did not charge you service tax till now.
the newly inserted clause no zzzzm, all business advice/ sales tax consultancy /
excise consultancy / ESI-EPF consultancy / tribunal / appeal consultancy / by
“any body” is included
rate = same 10%
are a excisable entity
get full Modvat of this against your excise
are a service provider entity
get full Modvat of this against your service tax
tax Returns – Late Filing Penalty
now the late fee (penalty) was only upto Rs 2000. Now the “Late filing fee
to Rs 20000
rate of interest on delay now increased from to 18% p.a.
in Service tax – Made Stiff
if somebody is caught, stealing the service tax ( in any form, sec 89), then, he
shall be prosecuted. Imprisoned for between 1 year to 3 years.
this imprisonment will not be
less than 6 months, except in case of just 4 exceptions, like
age, first timer etc.
Rates changed, Small reduction
for most Tax payers
exemption limit (till which, you do not have to pay any tax). This will be as
: Rs. 1,80,000
: Rs. 1,90,000
: Rs. 2,50,000 ( 60 yr to 80
Very Senior Citizens : Rs.
5,00,000 ( over 80 years )
?? Most of you save a small value in
Income TAXES = Savings are upto Rs. 2060. per person
effective Tax Rates, have become further, very very low
1 = Tax % has come down to very very low.
: We have “assumed” some savings in Section 80C, and new section 80CCF ( new
infrastructure bonds ). Actual savings vary from person to person. And, please
note, apart from this, you can take benefit of Mediclaim, HRA, conveyance
allowance, and perks etc also.
2 = TDS per month, has come down
too, to pity amounts.
( Minimum Alternate Tax ) – Section 115JB
The companies, who have book profits but don’t pay income tax due to some
deductions / exemptions, They have
been forced to pay heavier taxes.
a look !!
increase has been tremendous and pretty sharp.
does this apply to ?
companies who set up plants in backward areas, like Himachal, Uttaranchal etc
companies who had EOU units
also now, all the SEZ units too
Taxation : Bubble
= MAT is yes ( same 20.01% )
Dividend tax is also YES ( 15% + sc+ cess ) = 16.22%
, for a SEZ unit with a profit of Rs. 1 crores,
now income tax payable shall increase from NIL lakhs (upto 2010-11)
to Rs. 19.93 lakhs(in AY 2011-12)
to Jaipur SEZ / Noida SEZ units
to IMT Faridabad . . .
all the Industrial sectors in Faridabad, Palwal, Noida, Manesar Gurgaon, and all
go so far . . .when you are taxable anyway ??
raised from 4% to 5% for all declared goods
15 of CST Act, 4% will be replace with 5%
of items =
all varieties of Iron and Steel like
Ingots, slabs , rounds, rods, squares, angles, channels, tees,
discs, rings, forgings and steel castings ;
tool, alloy and special steels of any of the above categories ;
steel melting scrap in all forms including steel skull, turnings and borings ;
steel tubes both welded and seamless, of all diameters and lengths,
for all FSIA members,
who are either make Steel (Sales), or Steel components ( their Purchase).
all varieties of Man-made fabrics
varieties of petroleum products
“Non co-operative” countries will be “notified”
is a measure for black money management.
Effect = If any Govt does not help à
we can BAN them
: The “Attractive pull” factor of
these “dark hidden secret areas” goes down
is coming closer - for non
the language of section 115JC. This is exactly based on the language and tenor
of the laws in USA. Infact even the MAT is now called AMT ( Alternate Minimum
Tax = This is the same nomenclature as used by the Government of USA ).
in coming years, normal partnerships and even proprietorships may also be
covered in MAT , as in USA.
details, refer to our previous e circular on this subject. Click link below
the Wikipedia site for this at http://en.wikipedia.org/wiki/Alternative_Minimum_Tax
the Govt of USA – IRS dept website for this at http://www.irs.gov/taxtopics/tc556.html
Message from the FSIA Team
is growing at 20.3% ( GDP-Current prices ).
are a part of this growth Story. Come our Time is now.
somebody said at the C I I Meeting last month,
was always good to be born in India, But, mark my words .…..
is the best
time to be
Economic Survey 2011
of India. Click here
Growth % (at
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