February is an important month of the year for most of the business fraternity, as the new India budgetis announced in this month. Especially those dealing with import export trade are glued to their Television sets during the India new budget sessions. In February, every year the Finance Minister of the country presents the Union Budget in the Lok Sabha.
The reason why new India budgetis of utmost importance for the traders is pretty obvious. Most of the new announcements related to Customs andCentral Excise Notifications are made during thebudget session. For latest information on budgetvisit Infodrive India’s website that would be hosting India new budget2011-2012 as soon as it is announced. Important announcements include:
- Budget changes in Custom Duty
- Budget changes in Excise Duty
Budget changes in Service Tax
New India budgetis one of the most important factors that can greatly influence the import export trade. During the Indian budget sessions, new announcements are made regarding the restrictions, allowances and changes made on the taxes levied by the government on the import export trade. Some of the aspects of the India new budgetthat holds prime concern for the traders include:
Annual Financial Statement (AFS)
It is an estimated India budgetdocument that deals with the receipts and disbursements by the Government of India for the coming financial year. The entries of receipts and disbursements are shown under the following three parts, in which Government Accounts are kept
I. Consolidated Fund
II. Contingency Fund
III. Public Account
Demand for Grants (DG)
The Demand for Grants (DG) usually includes an estimation of the total provisions required for a service, that is, provisions on account of revenue expenditure, capital expenditure, grants to State and Union Territory Governments. After the document is produced, voting is done by the members of the Lok Sabha. However, expenditure on a service includes both ‘voted’ and ‘charged’ items of expenditure,
After the Demands for Grants are voted by the members, the Appropriation Bill is procured at the Parliament for approval. It includes the amount required to meet the expenditure charged on the Consolidated Fund.
The Financial Bill is a mandatory document to be produced at the Parliament for approval along with the Appropriation Bill. Moreover, it is a fulfillment of the requirement of Article 110 (1) (a) of the Constitution. The following issues are dealt while proposing taxes in the budget.
I. Detailing the imposition
IV. Alteration or regulation
Memorandum Explaining the Provisions in the Finance Bill
This provides an understanding of the taxation proposals contained in the Finance Bill, the provisions and their implications.
Macro-economic framework for the relevant financial year
It contains the assessment of the growth prospects of the country’s economy with specific underlying assumptions. The country economic growth in terms of GDP growth rate, fiscal balance of the Central Government and the external sector balance are the aspects.