BUDGET - BMR Advisors

Thus, import of goods for airport development projects isreduced from 31.01 percent to 25.58 percent.ExciseReduction of peak rate of excise duty from 16 percent to 14percent would reduce the cost of domestic procurements andalso the CVD component under import duties.However, excise duty cost on procurement of packagedsoftware goes up from 8 percent to 12 percent.Service taxAmendment in Import of Services Rules - Impact onremote maintenance servicesTaxation of Services (Provided from outside India and receivedin India) Rules (“Import of Service Rules”), have been amended.As per the amendment, receipt of following services via internetor an electronic network including a computer network or anyother means, would be taxable in India under reverse chargebasis at the rate of 12.36 percent:• Management, maintenance or repair services;• Technical testing and analysis; or• Technical inspection and certificationProcurement of customized softwareProcurement of customized software made liable to service taxat 12.36 percent.indiaBUDGET200867