Tax changes in sectors of Agriculture, rural economy and environment under Indian Budget 2016-17

 Budget 2019-2020, Customs duty changes on products - chapterwise

Customs duty tariff rate changes as per Indian Budget 2017-18
Central Excise Duty changes as per Indian Budget 2017-18
Service Tax rate Changes under Indian Budget 2017-18

(Updating soon after Budget 2017-18 on 1st February,2017 under text format and pdf format)

274Budget 2016-17 changes in customs import duty tariff,excise duty and service tax

Indian Union Budget 2016-2017, changes in import customs tax tariff, chapter wise

Indian Budget 2016-17, Excise duty tariff changes, chapter wise

Changes in Service Tax as per Budget 2016-17




Tax changes in sectors of Agriculture, rural economy and environment under Indian Budget 2016-17


According to Indian Budget 2016-17,  Dividend Distribution Tax (DDT) uniformly applies to all investors

irrespective of their income slabs. This is perceived to distort the fairness and

progressive nature of taxes. Persons with relatively higher income can bear a

higher tax cost. I, therefore, propose that in addition to DDT paid by the

companies, tax at the rate of 10% of gross amount of dividend will be

payable by the recipients, that is, individuals, HUFs and firms receiving

dividend in excess of `10 lakh per annum.

The budget proposes to raise the surcharge from 12% to 15% on persons,

other than companies, firms and cooperative societies having income above

`1 crore.

The budget proposes  to collect tax at source at the rate of 1% on purchase of

luxury cars exceeding value of Rs.ten lakh and purchase of goods and

services in cash exceeding Rs.two lakh. For compliant tax payers with

resources, this levy not only advances collection of tax when the expenditure

is incurred, but it provides data to the tax authorities to identify the persons

who incur such expenditure, but may be missing from the tax base. Farmers

and notified class of persons will have an option of giving a form by which

TCS will not be charged.


Rate of Securities Transaction tax in case of ‘Options’ is proposed to

be increased from .017% to .05%.


In order to tap tax on income accruing to foreign e-commerce

companies from India, it is proposed that a person making payment to a nonresident,

who does not have a permanent establishment, exceeding in

aggregate `1 lakh in a year, as consideration for online advertisement, will

withhold tax at 6% of gross amount paid, as Equalization levy. The levy will

only apply to B2B transactions.


The budget proposes  to impose a Cess, called the Krishi Kalyan Cess, @ 0.5%

on all taxable services, proceeds of which would be exclusively used for

financing initiatives relating to improvement of agriculture and welfare of

farmers. The Cess will come into force with effect from 1st June 2016. Input

Tax credit of this cess will be available for payment of this cess.

The pollution and traffic situation in Indian cities is a matter of

concern. I propose to levy an infrastructure cess, of 1% on small petrol,

LPG, CNG cars, 2.5% on diesel cars of certain capacity and 4% on other

higher engine capacity vehicles and SUVs.


The budget proposes  to impose an excise duty of ‘1% without input tax

credit or 12.5% with input tax credit’ on articles of jewellery [excluding

silver jewellery, other than studded with diamonds and some other precious

stones], with a higher exemption and eligibility limits of ` 6 crores and ` 12

crores respectively. Necessary steps will also be taken to enable the new

taxpayers to comply with this levy without any difficulty.


The budget proposes to change the excise duty on branded readymade garments

and made up articles of textiles with a retail sale price of `1,000 and above

from ‘Nil without input tax credit or 6%/12.5% with input tax credit’ to ‘2%

without input tax credit or 12.5% with input tax credit’.

The budget proposes  to rename the ‘Clean Energy Cess’ levied on coal, lignite

and peat as ‘Clean Environment Cess’ and simultaneously increase its rate

from `200 per tonne to `400 per tonne.

To discourage consumption of tobacco and tobacco products, I

propose to increase the excise duties on various tobacco products other than

beedi by about 10 to 15%.

The budget proposes  to amend the Finance Act, 1994 so as to declare assignment

by the Government of the right to use the radio-frequency spectrum and its

subsequent transfers a service, to make it clear that assignment of right to use

the spectrum is a service leviable to service tax and not sale of intangible




Exemption of excise duty on non manufacturers of goods for installation of cold storage

Exemption on goods financed by UN and Intl agency extends to sub contractors

Area based excise duty exemption presently available to the North Eastern States

BED and NCCD on pan masala, tobacco products, crude petroleum, mobile phones and motor vehicles

Clarification to Department of Scientific and Industrial Research (DSIR)

Customs duty exemption clarification for aircraft engines and parts

OLP and PTCR for manufacture of refrigerator compressor exemption clarification

clarification on exemption of Liquefied Natural Gas (LNG) for SEZ

Exemption of Excise duty of BCD and CVD on power project

No refund of SAD under notification No.102/2007-Customs dated 14.09.2007

Tax changes for specified goods imported for petroleum exploration under Indian Budget 2016-17

Direct imports by Government will attract customs duties

Exemption for disposable sterilized dialyzer and micro barrier of artificial kidney

Excise duty CENVAT is being levied on articles of jewellery under Indian Budget 2016-17

Excise duty CENVAT for readymade garments and made up articles of textiles

1 per cent service charge on purchase of luxury cars over Rs. 10 lakh, Indian Budget 2016-17

September 30 to be the deadline followed for undisclosed income, Indian Budget 2016-17

1% CESS on petrol cars and 2.5% CESS on diesel cars, Union Budget 2016-17

4% High Capacity Tax on SUV'S , Indian budget 2016-17.

No change in Income tax slabs, Indian Budget 2016-17

Additional levy of 1% on luxury cars, Indian Budget 2016-17

200% penalty on misreporting income, Union Budget 2016-17

EXCISE DUTY of 1% UP on JEWELRIES, Indian budget 2016-17

Tobacco tax goes up to 10-15%, Indian Budget 2016-17

1% increase on cess on CNG and PETROL cars, Indian budget 2016-17

Tobacco products except beedi goes on hike, Indian Budget 2016-17

Budget 2016-17, 9 categories of Tax reforms introduced

Latest Indian budget changes for import of clocks, watches and parts

Import tax tariff changes for vehicles and parts other than railway or tramway as per Indian Union Budget 2016-17

Duty tariff changes for import of antiques, work of art collectors peices as per latest Indian Budget 2016-17

Latest Indian budget changes for import of miscellaneous manufactured articles as per HS code 96

Import duty changes for toys, games and sports equipments under HS code 95 as per Indian Budget 2016-17

Import tariff changes for furniture,lamps and lighting fittings,nameplates & the like under HS code 94 as per new Indian budget

 Government tax tariff changes for import of arms and ammunition under Indian Budget 2016-17

Import tax tariff changes for musical instruments and parts as per Indian Union Budget 2016-17

Duty tariff changes for import of medical or surgical instruments and apparatus, optical, photographic parts and accessories as per latest Indian Budget 2016-17

Latest Indian budget changes for import of boats, ships, floating structures as per HS code 89

Import tariff changes for aircraft, spacecraft, aircraft parts, spacecraft parts under HS code88 as per new Indian budget

Govt tariff changes for import of railway or tramway locomotive, traffic signaling equipments, track fixtures and fittings as per Budget 2016-17

How to import your goods?

Click here to know India Trade Classification(ITC) 

Different types of Containers

How to export your product?

Click here to know HTS (Harmonized Tariff System) code of your product

What are the risks and solutions in Export Business? 

What is Bank post shipment credit to exporters? 

Types of export containers 

Measurement of export containers 

Export Import Policy of India 2015-20 

MEIS, Merchandise Exports from India Scheme 

SEIS, Service Exports from India Scheme 

Merge your Commercial Invoice and Packing List for all your future exports 

Export procedures and documentation

What is post shipment credit to exporters?

Bank financial benefits to Exporters

How does Letter of Credit work?

How to get Export Orders?



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