Party over for software, hardware SAD

Union Finance Minster Yashwant Sinha in his Union Budget 2000 has announced major relaxations for the IT industry. However, the hardware sector seems to be unhappy over the imposistion of special additional duty (SAD) on various components.

Highlights of Union Budget 2000

• Uniform excise duty at 16%, which is going to be a single rate central VAT.



• Maximum customs duty at 35% with a 10% surcharge.



• Special Additional Duty of 4% extended to all imports except petroleum products.



• Ceiling on FII portfolio investment in individual companies increases from 24%-30% to 40%.



• Liberalisation of tax regime for Venture Capital Funds.



• IT Sector :Customs duty reduction for PCs and steep reduction in many hardware. components.Reduction in certain telecom equipment inputs.



• Reduction of duty on cellphones from 25% to 5%.



• Removal of tax concessions on export income by 20% each year.



• Duty on microprocessor, ICs to be removed.



• No approval required for venture capital funds from tax authorities. One-time tax payment of 20 per cent when the capital is distributed to investors.

Click below for the stock market and industry reactions and the implication of the budget on IT and telecom goods and services.

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IT industry unhappy with ‘Millennium’ budget

Almost nothing for communications!

Minimal Impact For IT