The extension of benefits under Section 10(23 G) of the IT Act to financial institutions will help the company raise long term money for expansions.
The proposal to increase the rate of depreciation from 25 per cent to 40 per cent. on life-saving medical equipment will result in lower tax outgo and higher cash flows this year.
The proposal to reduce the customs duty on specified life saving equipment from 25 per cent to 5 per cent will mean lower costs for hospitals and patients as well.
Blue Star
The airconditioning industry had been pitching for a reduction in excise duty from 32 per cent to 16 per cent, but it is reduced to 24 per cent only.
Even abatement rates on MRP were reduced from 40 per cent to 35 per cent, which means that manufacturers would be able to cut prices by no more than 4.3 per cent in order to maintain the same level of profitability.
Industry observers expect these price cuts will help improve demand
The sops for tourism and healthcare sectors are also expected to have a positive impact on the company, since these sectors are major end-users for the air-conditioning and refrigeration industry.
SB&T International
SB&T operates as a 100 per cent export oreinted unit in Seepz, and hence, will benefit from the restoration of the benefits u/s 10A/10B of the Income Tax Act.
The reduction in customs duty on gold bars and coins from Rs 250 per gram to Rs 100 will lower costs (and hence prices), resulting in higher demand.
Similarly, customs duty on cut and polished diamonds/gemstones have been reduced from 15 per cent to 5 per cent.
Also, rough coloured gemstones and semi-processed, half-cut, or broken diamonds have been exempted from customs duty.
But since the company sources most of these needs locally, it stands to benefit from the lower prices of these products thanks to the lowering of duties.
United Breweries
The continuation of additional customs duty on imported liquor will benefit the company.
Although the basic customs duty on imported liquor has been reduced to 166 per cent, the additional duty structure has been recast into four tiers.
Additional duty on imports priced upto $10 per case of 9 litres is 150 per cent.
Additional duty on imports priced between $10-$20 is 75 per cent, and imports priced between $20-$40 is 50 per cent.
Additional duty on imports priced above $40 per case is 40 per cent
This new structure means top-end brands will be cheaper, but at the same time ensures protection for Indian industry for lower-priced brands.
