Thread: Excise Rates & Service Tax Rates slashed by 2% till 31st March 2009.

Finance Minister Pranab Mukherjee announced the reduction of the general rate of central excise duty and service tax in Parliament on Tuesday.

This has already been taken into consideration since tues. I am at the moment not sure under which tariff or circular it falls in..

with this move, it is expected to cost the government about 300 billion rupees next fiscal, will help bringing down the rates....

This means there will be reductions in rates of lots of materials like capital machineries, rubber, leather, chemicals, etc etc....due to excise cut...

Also, due to S.T. cut there ll be reduction in telecom, entertainment, couriers, consultancies, etc etc....

which is expected to cost the government about 300 billion rupees next fiscal, will help bringing down the rates....

Also, there ll b reduction in real estates & infra structure indirectly as E.D. has been reduced on Cement as well.....

Pls. comment as how will it help the Indian Economy and the Recession going on???

Common man will benefit more due to the service tax cut. A 2% cut in service tax brings an overall benefit of 2.06%. All utility bills will come down.

all Indian manufctured goods should also cost marginaaly less due to the cut in excise duty.

Correct. But the effect of service tax cut will be more transparent and quickest to reach us.

As for excise cut of 2%, a Rs. 32,000/- LCD TV will become cheaper by about Rs. 650/-.

But I am pissed off that banks are not passing the interest rate cuts (announced long ago by RBI) to customers as yet. Only new loan applicants have benefited somewhat.

well i wud like to add up....one more thing tht ppl working on contract basis or having mfg plants/units.....will ve an extra benefit of less amount being blocked which is inturn a very good thing.....so tht there is a lil extra money.....in times like this whr there is a cash crunch - liquidity issues....!

Originally Posted by just4kix

But I am pissed off that banks are not passing the interest rate cuts (announced long ago by RBI) to customers as yet. Only new loan applicants have benefited somewhat.

The PLR rates of banks are coming down. so there is a cascading effect on all the consumers.

Of course, as far as the "Housing Package" is concerned, the PSU banks are taking the plea that it is for new acquisitions only and therefore can be given only to new loans given for new transactions.

There is also a concensus among all PSU banks for non-takeover of each others loan accounts.