Representative image indicating EVs
Credit: iStock Photo
The Union Budget for the upcoming financial year is all set to be presented on February 1, 2025, by Finance Minister Nirmala Sitharaman. According to reports, the Narendra Modi government may consider slashing income tax for individuals earning up to Rs 15 lakhs per annum and extend the tax relief bracket in a bid to provide relief to the middle class and boost consumption.
Ahead of the Budget, Vivek Jalan - Partner Tax Connect Advisory Services LLP said, "Exemption of Customs duty on import of technology, machines, equipment for manufacturing Li-Io Cells in India - With Electric Vehicle Sector focus area of the Government, relief is expected for manufacturing of EVs and parts of EVs, especially Lithium Ion Celss (batteries), which are the biggest component of EVs,"
He added, "It is understood that technology, machines, equipment for manufacturing Li-Io Cells have to be sourced from out of India as of now as India does not have the requisite capabilities. Customs duty payment on these would lead to cost inefficiencies for Li-Io battery manufacturers in India."
Jalan continued, "Industry, as well as other Ministries, have represented to the MoF already regarding exemption of Customs duty on import of technology, machines, equipment for manufacturing Li-Io Cells in India. This should get some consideration from Government in Union Budget 2025."
Speaking about settlement of dispute scheme in Customs, he said "As per information It is understood that more than 50000 cases of Customs are pending before Supreme Court, High Court, CESTAT and Commissioner Appeals stage. Further more than 5000 cases are registered every year. All kinds of disputes are there ranging from valuation, classification, refunds, interests, penalties, remission of duties, etc. Even the judiciary is clogged and Government’s revenue is also stuck in the genuine cases too."
"A Settlement of Dispute Scheme in Customs is long pending now that such Schemes have been rolled out In all other tax laws. Hence it is expected that such a Scheme may see light of day in Customs too. It will help importers/ Exporters," he opined.
Jalan also said, "To bring much-needed relief for Indian intermediaries like Indian Auctioneers/ E-Auction platforms, E-Commerce platforms serving international markets, textile and other brokers serving international clients, it is expected that the Union Budget would provide a GST exemption on their services when provided to persons out of India."
He concluded "For Eg. Commission received by Indian agents for goods which are supplied as well as received out of India is now sought to be exempt from GST. The same is expected to be done by deleting Section 13(8)(b) of IGST Act 2017, on place of supply for intermediaries."
Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.