CII suggestions for Budget 2007

By Vijay Kumar

CII has suggested

++ reduce the excise duty rate from 16 to 14 percent.

++ reduction of excise duty on processed foods, pesticides for agriculture, energy efficient triphosphor fluorescent lamps, electric fans, caprolactum and two wheelers from 16 to 8 percent.

++ Reduction of excise duty on all type of cars from 24 to 16 percent and on cement from Rs.400 to Rs.350 per ton.

++ allow full CENVAT credit on capital goods on the date of the receipt.

++ allow payment of excise on used capital goods at the time of removal either on transaction value or on the depreciated value, as against the present provision of reversal of full CENVAT credit.

++ allow CENVAT credit on LDO and HSD when used for generation of power or in the process of manufacture.

++ relax the requirement of pre-authentication of invoices for assessees paying excise duty of more than Rs. 5 crores.

++ fix time limit for review of abatement rate by Advisory Committee on Abatement and give feedback of the findings of the committee to the applicant.

++ bringing down the CST rate from four to two percent from April 1, 2007, and thereafter announcing a roadmap for further reduction of CST to NIL.

++ For increasing the revenue from service tax, more services should be brought under the tax net. But keep the rate at 12%.

++ initiate concrete steps for implementation of Goods and Services Tax (GST) so that the common tax can be in place by 2010