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BSSIA/MEM/CIR/BUDGET/292/2005-2006 Date: 28th February, 2006
EFFECT OF UNION BUDGET 2006-2007
Dear Sir,
1. Exemption Limit for Tax on Income remains upto Rupees One Lakh.
2. Tax in Withdrawal Cash from your Current Account will continue above Rupees
25,000 per day.
3. Fringe Benefit Tax will continue.
4. Import duty on certain Raw materials has been brought down.
5. Filing of yearly Declaration after crossing Rs. 40 Lakh
to avail exemption from Registration under Central Excise
will continue.
6. Yearly Exemption upto Rupees One Hundred Lakh will continue.
7. Service Tax rates have been hiked from 10% to 12%.
8. Minimum Alternative Tax (MAT) increased from 7.5 percent to 10 percent.
9. Fixed Deposits in Scheduled Banks for 5 years will get exemption from Income Tax under
Section 80C.
10. Service Tax have been imposed on ATM, Maintenance & Management, Share Transfer, International Air Travel excluding
Economy Class.
Government has accepted that there are 120 Lakh SSI Units in India and not 30 Lakh as being advocated by the Ministry
of Finance. This figure was claimed by Bombay Small Scale Industries Association in the year 1987-88 in their Pre-Budget
Proposal. SSI are the largest Employers to Un-Skilled, Semi Skilled & down trodden persons & are the Innovators.
The SSI Units are not provided any Technical Support, Marketing assistance and any special subsidy in any Tax or Duty
being imposed on the Goods produced in this Sector. The SSI are forced to provide more money to Government & Government
employees for carrying out self employment scheme. The SSI are provided more respect and honour by the Importers of
Indian made Goods in the World as compare to Large Scale.
Any member has any specific need can approach the Association.
Yours truly,
For Bombay Small Scale Industries Association
RAKSHPAL ABROL
President,
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