Final HR Budget

8/11/2019 Final HR Budget

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Decline in fiscal deficit from 5.7% in 2011-12 to 4.5% in2013-14 to 4.1% in 2014-2015.

Uniform Know Your Customer (KYC) norms for entirefinancial sector.

Finance Minister Proposes liberalization of AmericanDepository Receipt (ADR)/Global Depository Receipt (GDR)regime.

Demat account for all financial products.

INTRODUCTION


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Public Provident Fund (PPF) annual ceiling enhanced to Rs1.5 lakh from the existing Rs1 lakh.

Propose to revamp small savings scheme.

Portfolio income of Foreign Institutional Investor (FIIs) to betreated as capital gain.


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2013-2014 2014-2015

Revenue Receipt -2.6 13.4

Tax Revenue -6.2 19.0

Corporate Tax -6.2 14.6

Income Tax -2.4 26.8

Custom Duty -6.5 15.0

Union Excise Duty 1.7 11.7

Service Tax -8.4 30.7

EXPENDITURE OFGOVERNMENT(%)


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2013-2014 2014-2015

NON PLANEXPENDITURE

0.4 8.3

Revenue Account 3.5 7.8

Capital Account -25.5 14.8

PLANEXPENDITURE

-14.4 16.8

On RevenueAccount

-16.1 18.9

On Capital Account -7.5 9.0

Total Capital

Expenditure

-16.7 11.7


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RBI to create a framework for licensing small banks andother differentiated banks

public sector banks (PSBs) would need common equitycapital of Rs 2.4 trillion over the period of FY2015-FY2018to meet the Basel III norms.

Six new Debt Recovery Tribunals to be set up

Allocation to Rural Housing Fund in 2014-15, increased fromRs. 60 billion to Rs. 80 billion

BANKING SECTOR


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Proposals

Banks will be permitted to raise long term funds for lendingto infrastructure sector.

Increase in deduction limit on account of interest on loan inrespect of self occupied house property from Rs. 150,000 toRs. 200,000


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Proposals

Composite cap of FDI in Insurance raised from26% to 49% through the Foreign Investment

Promotion Board (FIPB) route.

Proposal to take up pending Insurance Bill

INSURANCE SECTOR


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The rates of income-tax as applicable for AssessmentYear 2015-16 in the case of every individual below theAge of Sixty Years

Income Slabs

Tax Rates

i. Where the total income does notexceed Rs. 2,50,000/-. NIL

ii.Where the total income exceeds Rs.2,50,000/- but does not exceed Rs.5,00,000/-.

10% of amount by which the totalincome exceeds Rs. 2,50,000/-

iii.

Where the total income exceeds Rs.

5,00,000/- but does not exceed Rs.10,00,000/-.

Rs. 25,000/- + 20% of the amount by

which the total income exceeds Rs.5,00,000/-.

iv. Where the total income exceeds Rs.10,00,000/-.

Rs. 1,25,000/- + 30% of the amount bywhich the total income exceeds Rs.10,00,000/-.


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CUSTOM DUTY

The government also raised import duty on flat-rolled stainlesssteel products to 7.5 per cent from 5 per cent earlier and reducedcustoms duty for steel-grade limestone and dolomite

Impact: The budget will have an adverse impact on the cost ofproduction, with increased custom duties on importedmetallurgical coal. Rather surprising and disappointing, given theshortage of metallurgical coal, in our country."


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Excise duty

The primary meaning of excise duty is tax onarticles produced or manufactured in the taxingcountry and intended for home consumption.


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Sr.no product Old rate% New rate%

1 Cigarettes, Cigars, Cheeroots,Cigarillosof length not exceeding 65 mm

Rs.669 Per1000sticks

Rs.1150 per1000sticks(increaseby72% )

2 Pan Masala 12% 16%

3 Unmanufactured Tobacco 50% 55%

4

Jarda scented tobacco, Gutkha andchewing tobacco 60% 70%

5 Machine used for preparation ofmeat, poultry, fruits, nuts orvegetables and on presses, crushersand similar machinery used in the

manufacture of wine, cider, fruitjuices or similar beverages and onpackaging machinery

10% 6%

6 Winding wires of copper 10% 12%

7 Branded petrol Rs. 7.50 per

litre

Rs. 2.35 per

litre


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Amendments in the Customs Act, 1962

1. The Customs Act, 1962 proposed to be amended so that a reference insaid Act to a Chief Commissioner of Customs or a Commissioner ofCustoms may also include a reference to the Principal Chief Commissionerof Customs or the Principal Commissioner of Customs, as the case maybe. Further, Principal Chief Commissioner of Customs and PrincipalCommissioner of Customs also proposed to be included in the class ofofficers of customs.

2. Section 15(1) proposed to be amended to provide for determination of

rate of duty and tariff valuation for imports through a vehicle in cases wherethe Bill of Entry is filed prior to the filing of Import Report.

3.Section 46(3) proposed to be amended to allow the filing of a Bill of Entryprior to the filing of Import Report for imports through land route.

4. Section 127B(1) proposed to be amended to provide that an applicationfor settlement of cases can also be filed in cases where a Bill of Export,Baggage Declaration, Label or Declaration accompanying the goodseffected through Post or Courier have been filed


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CHANGES IN CUSTOMS DUTY RATE

STRUCTURE

S.No.

Product Old Rate %

Old Rate

%

New Rate %

1 Bauxite 10 20

2 Coking Coal 0 2.5

3 Stainless Steel 5 7.5

4LCD & LED TV panel below

19'' 10 0

5 Coloured Picture Tubes 10 0

6 E- Book reader 7.5 0

7Half Cur or Broken

Diamonds 0 2.5

8

Ships imported

5

2.5


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8 Footwear of retail price more thanRs.500 but less than Rs.1000 perpair

12% 6%

9 Forged steel rings used in themanufacture of bearing of windoperated electricity generators

12% NIL

10 Metal core PCB and LED driver foruse in the manufacture of LEDlights and fixtures and LED lamps

12%/10% 6%

11 RO membrane element used inhousehold type filters

12%/10% 6%


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Service tax

Service Taxis a tax imposed by Government ofIndia on services provided in India. The serviceprovider collects the tax and pays the same to thegovernment. It is charged on all services except theservices in the negative list of services.


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The collections under the Service tax from the year of original levying year of1994are constantly growing. The collections are shown as in the followingtable

Financial Year Revenue Rupees(in crores) Number of services Number of Assessees

1994-1995 407 3 3943

1995-1996 862 6 4866

1996-1997 1059 6 13982

1997-1998 1586 18 45991

1998-1999 1957 26 107479

1999-2000 2128 26 115495

2000-2001 2613 26 122326

2001-2002 3302 41 187577

2002-2003 4122 52 232048

2003-2004 7891 62 403856

2004-2005 14200 75 774988

2005-2006 23055 84 846155

2006-2007 37598 99 940641

2007-2008 51301 100 1073075

2008-2009 60941 106 1204570

2009-2010 58422 109 1307286

2010-2011 71016 117 1372274

2011-2012 97509 119 1535570

2012-2013 132518 Negative List Regime 1712617


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REAL ESTATE SECTOR


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Additional deduction of interest uptoRs. 0.1 million for a person taking first

home loan upto Rs. 2.5 million.

Reduction in FDI eligibility (from50,000 sqm to 20,000 sqm) and capital

(from USD 10 mn to USD 5 mn).

Increase in excise duty on marble fromRs.30 per square meter to Rs. 60 persquare meter

Increase in provision under RuralHousing Fund to Rs. 80 billion from theexisting Rs. 60 billion

Setting up of Urban Housing Fund byNational Housing Bank and Rs. 20billion to be provided to the fund

Allocation of Rs. 40 billion to NationalHousing Board (NHB) for providingcheaper credit for affordable housingto the urban poor segment.

Increase in the deduction limit forinterest on home loans in respect ofself occupied house property from Rs.150,000 to Rs. 200,000.

BUDGET 2013-14 BUDGET 2014-15


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Reduction in FDI eligibility.

Tax incentives for REITs.

Allocation of Rs.7,060 cr of funds for development of 100 Smart Cities.

Additional income tax benefit through increase in deduction limit forinterest on home loans.

IMPACT (2014 2015)


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POWER SECTOR


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Construct a transmission system fromSrinagar to Leh region(J&K) at cost

Rs-1840 Cr ,out of which allocate Rs-226 Cr

10 year tax holiday, till March 31,2017,instead of giving yearly extension

Public private partnership and CoalIndia Limited as increases coalproduction

Advanced Ultra Super Critical ThermalCoal Technology-Rs-100 Cr

Power sector under sec-80-IA ofincome tax is extended from March 31,2013 to March 31, 2014

Ultra Mega Solar project Rs-500Cr.(Rajasthan, Gujarat, Tamilnadu,Laddakh)

Customs duty on imports of steam and

coal uniform at 2%

Solar driven water pump set Rs-400 Cr

Low cost bearing fund over five yearon lend to renewable energy project

Deen Dayal Upadhyaya Gram JyotiYojana-Rs-500 Cr

Wind energy projects and offer Rs-

8000 Cr by Non Renewable Energy

Customs duty on imports is increase



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Focus on Renewable , New and Non-Renewable Energy.

To promote cleaner and more efficient thermal power.

Enhancing coal production with quality control and environment protection.

Solar power driven agriculture pump set and water pumping.

By Deen Dayal Upadhyaya Gram Jyoti Yojana separate the transmission lines that feed electricity

generation station to agricultural and non-agricultural in rural area.

Expected benefit from this 18-20GW(18000 -2000MW).

More utilisation of Renewable natural source and save the Non-Renewable natural source.

IMPACT (2014 2015)


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TELECOM SECTOR


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Wireless operators revenues areexpected to grow 8% in 2013-14

Wireless operators revenues areexpected to grow 12-14% in 2014-15

Data service usage increases by over30%

Data service usage increases by over50%

Basic customs duty increased by 10%on specified product

Basic customs duty increased by 10%on specified product

Spectrum and levy of one timecharges have been estimated at Rs40,800 cr. for 2013-14

Spectrum and levy of one timecharges have been estimated at Rs45,400 cr. for 2014-15



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It will help to generate finance for country.

It will help to reduce import activities.

It will help to generate employment opportunities.

Products price will be increase

IMPACT (2014 2015)


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CEMENT SECTOR


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Approximately 3,000 km of roadprojects in Gujarat, MP, Maharashtra,

Rajasthan and UP to be awarded inthe first half of FY14

Demand expected to gradually pick upin second half 2014-15

Proposal to start a fund for urbanhousing by providing 20 bn to set up aUrban Housing Fund through National

Housing Bank

Growth will be limited to 4%

Proposal to provide 60 bn to the RuralHousing Fund in 2013-14 throughNational Housing Bank for ruralhousing

Enhancement in allocations for RuralHousing Fund to ensure better flow ofinstitutional credit for housing loans

Increase in interest deduction to Rs.200,000 on housing loan to providefillip to housing demand



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Increased provision under Rural Housing Fund and interest deduction onhousing loans will boost urban and rural housing demand and in turndemand for cement.

Annual cement consumption growth of 0.5% to 1.5%.

The outlay towards roads & highway is Rs. 37900cr(13% increase in2013-14).

Outlay towards urban infrastructure is Rs. 20100 cr. (twice spend in 2013-14)

IMPACT (2014 2015)


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Roads and

Highways New major

ports

New Airports

Shipping

INFRASTRUCTURE SECTOR

G G


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3,000 km of road projects will beawarded in the first six months ofFY14

An investment of an amount of 37,880cr. in NHAI and State Roads is proposedwhich includes 3000 cr. for the North

East

Budgetary allocation of 801.94 bn.for rural development schemes inFY14

New Airports Scheme for development ofnew airports in Tier I and Tier II Cities tobe launched

Allocation of ` 148.73 bn. for theJawaharlal Nehru National UrbanRenewal Mission (JNNURM)

Two new major ports will beestablished which will add 100 mn

tonnes of capacity

11635 cr. will be allocated for thedevelopment of Outer Harbour Project in

Tuticorin for phase I,SEZs will bedeveloped in Kandla and JNPT

The Budget has also allowed someinstitutions to issue tax free bonds

up to 500 Bn. in FY14

Project on Ganges called Jal MargVikas to be developed between

Allahabad and Haldia.



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The increased focus to revive growth in the infrastructure sector by boosting

infrastructure financing coupled with the measures to increase thrust on ruralinfrastructure and urban infrastructure, the Budget is expected to have apositive impact on the infrastructure sector.

While announcing budget on infra sector many infra industry share value andnifty immediately goes on upward side.

Its helpful for agriculture and manufacturing sector.

8500 km of Highways to be built in 2014-15 ,this is an average of over 23km/day ,thrice the best achievement of 8 km/day in 2012-2013.

Positive impact on Import and Export

reasons that project are stuckland acquisition ,forest and environmental

clearance, defence land tracts on highway alignment and delays in otherclearances

IMPACT (2014 2015)


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FMCG

BUDGET 2013 14 BUDGET 2014 15


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Excise duty on cigarettes and cigarshas been raised to 18 %.

Excise duty on cigarettes and cigarshas been raised in the range of 11% to72%

Excise duty on mobile phones of retailsale price exceeding 2,000 increasedfrom 1% to 6%.

Excise duty raised to 5 % on aeratedwaters containing sugars

Withdrawal of export duty on de-oiledrice bran oil cake.

Personal income tax exemption limitincreased : 2 lakh to 2.5 lakh. (Belowage of 60) & from 2.5lakh to 3 lakh.(For senior citizen ).

Withdrawal of exemption of education

cess and secondary & highereducation cess on soya bean oil, oliveoil, etc.

Reduction of custom duty from 7.5% to

nil on basic fatty acids, palm oilderivatives & other industrial gradecrude oils.

Excise duty is being reduced from 12%

to 6% on footwear of retail priceexceeding Rs 500 per pair but not



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IMPACT (2014 2015)

Cigarettes manufacturing companies affected.

Eg . ITC , VST Industries , Godfrey Philips etc.

Increase in prices of packaged juices benefits to companylike Dabur India Ltd.

FMCG sector to benefit from tax exemption limit .Benefits to soap manufacturing companies.

Eg. Hindustan Unilever Limited ,Godrej , Jyothi

Laboratories etc.

Positive for foot wear companies.eg. BATAderives 15% ofits revenue from footwear priced from Rs.500/- to Rs.1000/-


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Increase in the basic customs dutyfrom 75% to 100% on new passengercars and other motor vehicles (high-

end cars) with cost, insurance andfreight (CIF) value more than US$40,000 and/or engine capacityexceeding 3,000cc for petrol-runvehicles and exceeding 2,500cc for

diesel-run vehicles.

The finance minister had alreadyextended excise duty concessions tothe auto sector before the budget.

Increase in the basic customs duty onmotorcycles with engine capacity of800cc or more from

60% to 75%.

There were no direct measures for thesector in the speech.

Increase in the excise duty on sportsutility vehicles (SUVs) from 27% to30%.

Reduction in the excise duty on truck



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IMPACT (2014 2015)

However, measures like investment allowance benefit to thesmall and medium enterprises, and reduction in excise dutyon LED raw materials, will positively affect auto ancillarycompanies and suppliers.

The budgets concentration on improving agriculture too ispositive for the auto sector .

Allocation of Rs. 14,389 crore for roads in villages mighthelp the industry in the long run.

Automobile industry expected an announcement onincentives for electric vehicles which did not come through.


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Aviation SECTOR



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Certain concession on maintenance,

repair and overhaul (MRO) Services.

Development of airports in Tier I and II

cities.

No proposals towards reduction insales taxes on Aviation Turbine Fuel.

New airports to be developed throughPPP mode.

No proposals towards reduction insales taxes on Aviation Turbine Fuel.

e-visas at nine airports.


( )


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IMPACT (2014 2015)

More Focus is on investment in Tier I cities.

Development of airports in Tier I and II cities will lead toimprovement in connectivity.

Aimed at boosting tourism & increase the passenger traffic.

India's airport infrastructure lags behind many developed as well asemerging markets as majority of the investments have beenfocused on Tier I cities.

The proposed scheme for development of airports in Tier I and IIcities will lead to improvement in connectivity and thus propelpassenger traffic growth.

In addition, various proposals aimed at boosting tourism, shouldfurther increase the passenger traffic and thus passenger loadfactors for airlines


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Textile Sector



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Zero excise duty for the brandedgarment sector reintroduced asagainst mandatory excise duty with70% abatement.

Allocation for textile sector increasedby 21%.(ie from Rs. 47 billion to Rs 57billion), of which allocation for TUFS(Technology Up gradation FundScheme) increased to Rs. 23 billion

from Rs. 20 billion.

Investment allowance of 15% ofinvestments of Rs 1 billion or more in

plant and machinery, which is inaddition to existing depreciation rates.

Investment allowance of 15% ofinvestments of Rs. 0.25 billion

(reduced from Rs. 1 billion earlier) ormore in plant and machinery, which isin addition to existing depreciationrates available till FY 2017 (extendedby two years).




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Allocation of Rs 0.5 billion for five

apparels parks to be setup withinIntegrated Textile Parks promotedunder Scheme for Integrated TextileParks (SITPs).

Reduction of basic customs duty

reduced on specified inputs formanufacture of spandex yarn from 5%to Nil.

Allocation of Rs 0.5 billion forimproving the effluent treatmentinfrastructure of textile processingunits.

Exemption of service tax on loading,unloading, storage, warehousing andtransportation of ginned or baledcotton.

Subsidised working capital and termsloans at 6% for handloom weavers andsocieties.

Allocation of Rs. 2 billion for setting-upsix more textile mega-clusters.

Custom duty on imported raw silkincreased from 5% to 15%


IMPACT ( )


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IMPACT (2014 2015)

Fund allocation is increased to Rs. 47 billion Rs.57 billionfor upgradation of technology.

Textile Ministry has set export target of US$ 50 bn in FY15 againstUS40 bn achieved in FY14.

Generation of employment.

Exemption of Service Tax on loading , unloading , warehouse andtransportation.

Fund of Rs. 2 million for setting up six more textile mega cluster inIndia.

EDUCATION


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EDUCATION

2013-14 2014-15


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Rs. 27258 cr provided forSARVA SHIKSHA ABHIYAAN.

Rs.28635 cr is being funded forSARVA SHIKSHA ABHIYAAN

Increase of 25.6 % over the current

year of investment for RASHTRIYAMADHYAMIK SHIKSHA ABHIYAN

Rs. 4966 cr for RASHTRIYA

MADHYAMIK SHIKSHA ABHIYAN

Creation of Nalanda University as acentre of educational excellence

Rs. 500 cr for Pandit Madan MohanMalviya new teacher training programfor training teachers .

5,284 crore allocated toMinistries/Departments in 2013-14 forscholarships to students belonging toSC, ST, OBC, Minorities and girlchildren.

100 crore provided for setting upvirtual classrooms as CommunicationLinked Interface for CultivatingKnowledge (CLICK) and onlinecourses

Mid Day Meal Scheme (MDM) to beprovided ` 13,215 crore

500 crore provided for setting up 5more IITsin the Jammu, Chhattisgarh,Goa, Andhra Pradesh and Kerala.

Rs. 4,727 cr for medical education,

training and research.

5 IIMsin the States of HP, Punjab,

Bihar, Odisha and Rajasthan.

IMPACT ( )


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IMPACT (2014 2015)

The budget will be beneficial for higher education as incorporationof IIMs and IITs will increase and improve the quality of education.

Also providing more funds for SSA and RMSA will help in improvingthe quality of education for the weaker section of the society.

Pandit Madan Mohan Malviya new teacher training programTeacher training & education

Skill development which is also a important part of trainingdevelopment is also given focus in this budget.

Overall if implemented the way it is proposed it would prove

beneficial for the literacy of the country.

MGNREGA


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MGNREGA

MGNREGA stands for Mahatma Gandhi National Rural EmploymentGuarantee Act

Aims at enhancing the livelihood security of people in rural areas byguaranteeing 100 days of wage-employment in a financial year to a rural

household whose adult members volunteer to do unskilled manual work

The government is committed to provide wage and self-employmentopportunities in rural areas

In the 2014-15 budget Govt. allocated Rs. 34,000 Crore

Each person would get Rs 174.3 per day in fiscal year 2014-15

The wage increase will be different for most states.


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The wage increase will be different for most states.

Rs.212, Kerala will see the highest increase - up 17.7% from 2013-14.followed by Lakshadweep - up 17.4% at Rs 195.

For Bihar, wages will rise 16.6 % to Rs 153 while Jharkhand will see a14.9 % hike to Rs 158.

Wages in Andhra Pradesh, Mizoram, Nagaland, Sikkim and Tripura willincrease by 14.8%

The ministry also proposed depositing of wages directly into the accounts of

the wage seekers using electronic platforms of the same at the village levelthrough a bank extension network.

FOCUS: The works taken up under MNREGA shall enhance productivity inagriculture by creating infrastructure helpful for agriculture

AAJEEVIKA


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AAJEEVIKA

Aajeevika - National Rural Livelihoods Mission (NRLM)was launched bythe Ministry of Rural Development (MORD), Government of India in June2011.

Aims at creating efficient and effective institutional platforms of the rural poor

enabling them to increase household income through sustainable livelihoodenhancements and improved access to financial services.

Agenda to cover 7 Crore rural poor households in 6 lakh villages in thecountry through self-managed Self Help Groups (SHGs)


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4 %on prompt repayment in 150 districts & at 7 %in all other districts

Bank loan for women SHGs at 4% in other 100 districts

Start Up Village Entrepreneurship Programme for encouraging rural

youth to take up local entrepreneurship

Rs. 100 crore provided for this project

SKILL INDIA


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SKILL INDIA

The FM announced a National Multi Skill programme SKILL INDIAto skill

the youth with emphasis on employability and entrepreneurial Skill

Provide training and support for traditional professions like welders,carpenters, cobblers, masons, blacksmiths, weavers etc

6% term loansfor handlooms weavers

Rs. 100 crs for institutes of higher learning, including 5 new IITs and5 newIIMsacross the country


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Rs. 500 crs scheme to bridge the digital divide is to train rural youth in ITskills

In the Central Government, around 20 Ministries are closely involved inskill development

Have set up State Skill Development Missions (SSDM) & The NationalSkill Development Corporation (NSDC)for the development of skills

specifically in rural areas

NEW JOB OPENING


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NEW JOB OPENING The government putting strong emphasis onjob creation

Create 5-8 million jobsin next 3-4 yearsacross various sectors

Manufacturing sector in particular needs a push for job creation

Growth in infrastructure and construction sectorsnecessary to revivethe economy and generate jobs for millions

49% FDI i d f i d I f t t d thi ill t


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49% FDI in defence, insurance and Infrastructure and this will create

large pool of the job opportunityacross various sectors as most of thesesectors will have interconnected co-relation with other industries

Power, transport and consumer goods will see an immediate hike inhiring needs

Rs.10,000 crorefunds have been allocated for startup companies

20 new industrial clusterswill be set up soon

APPRENTICESHIP


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APPRENTICESHIP

The apprenticeship act, 1961, will be amended to make it more

responsive to industry and youth.

Recommended to bring BA, B.com and BSc graduates under the

act to enhance their skills and employability.

Businesses present in more than 4 Statescan directly register withGovernment.

Higher consolidated stipends being mandated, create necessary

incentives for the youth.

EPFO


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EPFO

The EmployeesProvident Fund came into existence with the promulgation of

the EmployeesProvident Funds Ordinance on the 15th November, 1951. Itwas replaced by the EmployeesProvident Funds Act

EPF is calculated for minimum wages.

Contribution:CONTRIBUTION ACCOUNTS

ADMINISTRATIONACCOUNTS

TOTAL

EPF EPS EDLI EPF EDLI

EMPLOYEE 12 0 0 0 0 12

EMPLOYER 3.67 8.33 0.5 1.10 0.01 13.61

TOTAL 15.67 8.33 0.5 1.10 0.01 25.61


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Increase in wage ceiling from Rs. 6500 to Rs. 15000 will bring more

individuals under the EPFO scheme

EPFOdeclared rate of interest to 8.75% from 8.33%

The rate of return is at par with other debt products in the market.

If Account is maintained for continuous five years, withdrawal iscompletely tax free

PENSION SCHEME
http://localhost/var/www/apps/conversion/tmp/scratch_10/Book1.xlsxhttp://localhost/var/www/apps/conversion/tmp/scratch_10/Book1.xlsx


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PENSIONSCHEME

The Act intends to promote old age income security by establishing,developing and regulating pension funds and to protect the interests ofsubscribers to its schemes.

Government notified a minimum pension of Rs. 1000 per month to allsubscriber members of EP Scheme.

Capital outlay increased by Rs 5000 crore over interim Budget.

One Rank One Pensiono Rs 1000 crore in Union Budget for Armed Personnel.

o Rs 2,29000 crore for Defence

ESIC


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ESIC

OBJECTIVE:

To secure sickness, maternity, disablement and medical benefits toemployees of factories and establishments and dependentsbenefits tothe dependents of such employees.

APPLICABILITY :

o To all Factories & establishments employing 20 or more employees.

oEvery employee drawing wages up to Rs. 15,000/- per month.

CONTRIBUTION :

oEmployees : 1.75% on total monthly wages

oEmployer : 4.75% on total monthly wages

Rs. 7,300-crore exemption from service tax with Retrospective effect.


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, p p

Labor ministry had pointed out that ESIC is not a corporate body carrying

on an insurance business, but an organization constituted by an Act ofParliament to discharge social security benefits to workers

Two separate tax demands along with charges of suppression of factsand intent to evade payment of service tax:

Service tax from 2005-06 to 2009-10 : Rs.3400 crores

Also Penalty of Rs.1950 crores and Service Tax of Rs. 1900 croresfor 2010-11

CSR


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CSR

Corporate social responsibility (CSR, also called corporate conscience,

corporate citizenship, social performance, or sustainable responsiblebusiness/ Responsible Business)

New Companies Act 2013- 2%of their three-year average annual net profit

Applicability-AboveRs500 crore or turnover of Rs 1,000 crore or netprofit of Rs 5 crore in a financial year.

Spending on slum development activities as an eligible item for CSR toencourage the private sector to supplement the government's efforts tomake the cities slum free


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Documents

Final HR Budget