Budget 2020-21 analysis

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Table of Content
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Overview-Finance Budget 2020
Direct Taxation
Indirect Taxation

Slowdown in economic growth, declining GDP, increasing
unemployment and high individual tax rates, perhaps Budget 2020
was one of the most awaited budget of the decade where people
from all strata were looking for some incentives from the
government.
The corporate sector was awarded with lower tax rates in October
2019 and FM did the same for individuals by proposing to introduce
an entirely a simple tax regime with lower tax rates and no
deductions. Whether it is beneficial or more taxing, has to be seen
separately for each individual. Doing away with DDT is a welcome
move but taxing the same in the hands of the investors may not give
a big boost to the investor sentiment.
We are happy to share our analysis of tax provisions of Finance Bill
2020. Our analysis for direct tax is divided into various sections as
highlighted by the FM and analysis for indirect taxes are as per the
relevant law.
Overview

Section A : Direct Tax
• Changes in tax rates
• Tax incentives
• Removal of difficulties
• Measures to provide tax certainty
• Revenue Mobilisation Measures
• Improving Effectiveness of Tax Administration
• Preventing tax abuse & rationalising of provisions of Act

Direct tax : Changes in tax rates
TOTAL INCOME (Rs.) Old Tax New Tax
Upto 2,50,000 NIL NIL
From 2,50,001 to 5,00,000 5% 5%
From 5,00,001 to 7,50,000 20% 10%
From 7,50,001 to 10,00,000 20% 15%
From 10,00,001 to12,50,000 30% 20%
From 12,50,001 to 15,00,000 30% 25%
Above 15,00,000 30% 30%
Assessee being an Individual / HUF has the option to opt for tax rates as specified under Old / New Tax Regime. The benefit of the reduced tax rates
as per the new tax regime shall be allowed without permitting deductions while computing the total taxable income. Some notable deductions like
LTC, HRA, Standard deduction, housing loan interest and deductions under Chapter-VI A cannot be availed under the new tax regime.

Direct tax : Changes in tax rates
CO-OPERATIVE SOCIETIES
The co-operative society
resident shall have the
option to pay tax at 22%
under newly inserted section
115BAD subject to some
conditions.
INDIVIDUALS/ HUF
The surcharge, marginal
relief and Cess for
Individual/HUF continues to
remain same under both
Old and New Scheme.
COMPANIES
The surcharge and Cess for
Companies continues to remain same

Changes in tax rates: Comparative analysis – an example
Particulars Old Scheme New Scheme
Gross Total Income 16,50,000 16,50,000
Less:
Standard deduction (50,000) -
Deduction for interest (House property) (2,00,000) -
Under Section 80C (1,50,000) -
Total Taxable Income 12,50,000 16,50,000
Computation of Tax Old Scheme New Scheme
0-2,50,000 - -
2,50,001-5,00,000 12,500 12,500
5,00,001-7,50,000 50,000 25,000
7,50,001-10,00,000 50,000 37,500
10,00,001-12,50,000 75,000 50,000
12,50,000-15,00,000 - 62,500
15,00,001-16,50,000 45,000
Income-tax 1,87,500 2,32,500
Add: Surcharge @4% 7,500 9,300
Total Tax Liability 1,95,000 2,41,800

Direct tax- Tax incentives
New domestic
companies set up on or
after 1st October, 2019,
which commence
generation of electricity
by 31st March, 2023 and
do not avail of any
specified incentives or
deductions, may opt to
pay tax at a concessional
rate of 15 per cent.
(w.e.f. AY 2020-21)
Deduction of Interest
amount up to Rs.
1,50,000, if loan taken
from any financial
institution for acquisition
of an affordable
residential house
property.
Loan should be
sanctioned before 31st
March 2021
100% deduction allowed
on income arising from
business of developing
and building affordable
housing project.
Project Should be
approved by Competent
authority, during 1st June
2016 to 31st March 2021
Affordable Housing Loan for housing Electricity manufacturers
100% deduction of profit
and gains, available for
three consecutive
assessment years out of
the first ten years.
(Previously it was 7
years)
Turnover threshold
increased to 100 crore
during the year
(Previously it was 25
crores)
Start-ups (80-IAC)

Direct tax- Removing Difficulties faced by Taxpayers
01 02 03
Exemption to Non-Residents
from filing ITR in certain cases-
Non-Residents having total income
consisting of:
 Royalty or Fees for technical
services
 and TDS on such income has been
deducted
shall not be required to file ITR from
AY 2020-21.
Earlier exemption was available to
non residents who had total income
comprising only dividend/ interest.
Limitation of interest on PE
engaged in banking business of a
Non-resident -
Section 94B: restriction of interest
payment upto 30% of EBITDA is not
applicable to a debt issued by a
permanent establishment lender of a
non-resident engaged in banking
business in India
Effective from AY 2021-22
Deduction under section 35AD
made optional
Deduction u/s 35AD of 100% of
capital expenditure in respect of
specified business is optional from AY
2020-21.
Amendment is made to remove the
interpretational anomaly that
companies adopting concessional
rate u/s 115BAA or 115BAB can be
denied normal depreciation u/s 32.
No deduction shall be allowed under
any other section

Direct tax- Removing Difficulties faced by Taxpayers
Increase in safe Harbour for value of consideration while calculating capital gains
Full value of consideration on transfer of land or building determined as lower of actual value of consideration received/
receivable or value determined as per stamp duty authority (Stamp duty value cannot exceed 110%* of the actual
consideration).
Applicable on transfer of any immovable property: full value of consideration determined as lower of actual value of
consideration received/ receivable or value determined as per stamp duty authority (Stamp duty value cannot exceed
110%* of the actual consideration)
04
* Previously it was 105%

Direct tax- Measures to provide tax certainty
Amendment u/s 43B
Expenses disallowed u/s 43B in
case of an assessee engaged in
insurance business, shall now be
allowed as a deduction in the
previous year in which the sum is
actually paid.
Effective for AYs 2020-21 onwards
Amendments to Section 9A
Contribution made by eligible fund
manager in first 3 years, to a maximum of
INR 25 crore shall not be taken while
calculating aggregate participation or
investment in fund by an Indian Resident
(earlier the contribution of the fund
manager could not have been more than
5% of fund corpus
Condition to attain monthly average of
fund corpus at Rs. 100 crores can be
fulfilled within 12 months from last day of
month of fund establishment (earlier it
was 6 months) Applicable from AY 2020-21
Relaxation of conditions
Amendment u/s 92CB and
92CC
It is proposed to increase the
scope of Safe Harbor Rules (‘SHRs’)
and advance pricing agreements to
cover determination of attribution
of profits to PE
SHRs: effective from AY 2020-21
Effective for APAs entered on or
after April 1, 2020

Direct tax- Revenue Mobilisation Measures
Employer contribution towards employee benefits
Proposed
Existing
Contribution exceeding:
• 12% of salary in a recognised
provident fund by the employer
• ₹ 1,50,000 to an approved
superannuation fund
• 14% and 10% to National Pension
Scheme by the CG and other
employer respectively shall be
taxable in the hands of the
employee.
• In a nutshell, there was no
combined upper limit for the
purpose of deduction on the
amount of contribution made by
the employer.
The Finance Bill 2020 introduced an
upper limit of ₹ 7,50,000 in respect of
employer’s contribution in a year to:
• National Pension Scheme
• Superannuation fund
• Recognised provident fund
• any excess contribution shall be
taxable in the hands of the employee.
Also, any annual accretion by way of :
i. Interest
ii. Dividend or;
iii. Any other amount of similar
nature to balance standing in provident
fund, NPS or superannuation fund in
excess of above mentioned limit shall be
taxable in the hands of the employee.

Employer contribution towards employee benefits: Example
Proposed
Existing
Let’s take an example-
Mr. Aman is a CFO of X Ltd. His salary
structure is:
• Basic : 1,00,00,000
• Dearness Allowance: 30,00,000
• X Ltd. contributes 12,00,000 (12% of
basic salary) to the provident fund
and 1,50,000 to the superannuation
fund.
Then, Aman can avail exemption on the
total contribution Rs. 13,50,000 made
by the employer. As this contribution
will not form part of total income.
Let’s take an example-
Mr. Aman is a CFO of X Ltd. His salary
structure is:
• Basic : 1,00,00,000
• Dearness Allowance: 30,00,000
• X ltd contributes 12,00,000 (12% of
basic salary) to the provident fund
and 1,50,000 to the superannuation
fund.
Then, Out of the total contribution
made by his employer, 7,50,000 shall be
exempt from tax and remaining 6,00,000
shall be taxable in the hands of Aman.
• This shall be made applicable from
A.Y 2020-21 onwards.

Direct tax- Revenue Mobilisation Measures
Widening the scope of commodity transaction tax
• In order to widen the scope of Commodity transaction tax, The Finance Bill 2020 has proposed to charge
Commodity transaction tax on the new commodity derivative products at the following rates:
 Sale of a commodity derivative based on prices or indices of prices of commodity derivatives at the rate of 0.01
percent payable by the seller.
 Sale of an option in goods:
 Where option is exercised resulting in actual delivery of goods at the rate of 0.0001 percent by the
purchaser.
 Where option is exercised resulting in a settlement otherwise than by the actual delivery of goods at the rate
of 0.125 percent payable by the purchaser.
Here new derivative product means :
 option in goods;
 commodity derivatives based on prices or indices of prices of commodity derivatives.

Direct tax- Improving effectiveness of tax administration
E- Scheme/
Electronic/faceless
proceedings
Best Judgement (ex parte)
Assessments will also be
covered under this. [section
143(3A)] Till now, only
scrutiny assessment was a
part of this scheme.
Effective from April 1, 2020
Appellate Proceedings
before CIT(A) to be done
through e-Scheme [section
250(6A)]. Specific directions
to be issued on or before
March 31, 2022.
Penalty proceedings to be
done through e-Scheme
[section 274(2A)]. Specific
directions to be issued on or
before March 31, 2022.
Dispute Resolution
Panel (DRP)
Provisions extended to
include any variation
prejudicial to the
assessee. Till now, it was
any variation to returned
income/ expense
Eligible assessee scope
expanded to include a
non resident, not being a
foreign company. Till
now, eligible assessee
meant either a foreign
company or transfer
pricing variation cases.
Effective from April 1,
2020
Clarity on Stay by
ITAT against CIT(A)
Order
ITAT may grant stay now
only on :
Payment of not less than
20% of amount of tax,
interest, fee, penalty or
any sum payable under
the Act or
Furnish security of equal
amount
Effective from April 1,
2020
Insertion of
Taxpayer’s Charter
New section 119A
inserted empowers Board
to adopt/ declare a
taxpayer’s Charter and
issue relevant orders as
deemed fit. Provision
inserted with a view to
curb tax payer
harassment and will be
introduced in Companies
Act also
Effective April 1, 2020:
Charter yet to be notified

Direct tax- Introduction of Vivaad se Vishwas scheme
Vivaad
se
Vishwas
It aims at reducing pending direct tax litigations
Under this Scheme, a taxpayer will be required to pay only the
amount of the disputed taxes and will get complete waiver of interest
and penalty provided tax is paid by March 31, 2020
Those who will avail this scheme after March 31, 2020, but before
June 30, 2020, will have to pay some additional amount, this scheme
will remain open till June 30, 2020.
Taxpayers in whose cases appeals are pending at any level can benefit
from this scheme
* The detailed procedure will be notified soon by the department.

Direct tax- Anti- tax abuse measures
Amendment in Provisions of Residency
Existing provision Proposed provision
• A person should be resident in India in the previous year if
any of the following conditions are satisfied:-
• If his/her total stay in India in the relevant PY is 182
days or more
• If his/her total stay in India in the relevant PY is 60 days
or more & during the preceding four PY is 365 days or
more.
• A citizen of India or a PIO being outside India, comes to
visit India, then he will be considered as resident in
India if his stay in India in that year is 182 days or
more.
• An Individual/HUF shall be “not ordinarily resident” if he is
non resident in nine out of ten previous year or has been
in India for 729 days or less in 7 years preceding the
relevant previous year.
• A PIO who comes on a visit to India in any PY, is said to be
resident if any of the following conditions are satisfied:-
If his/her total stay in India in the relevant PY is 120 days
or more & during the preceding four PY is 365 days or
more.
• An Individual/HUF shall be “not ordinarily resident” if
individual/ manager of HUF is non resident in 7 out of ten
previous years
• Also, an individual shall be deemed to be resident in India if
he is not liable to tax in any other country on account of his
domicile stay. Subsequent Government Press Release
clarifies that for such individuals, income earned outside
India will not be taxed unless it is derived from an Indian
business or profession.
(Effective from April 1, 2020)

Penalty for fake invoices (New
Section 271AAD)
Penalty is leviable if:
• Any entry related to fake invoice is
found in the books of the assessee.
• Penalty shall be equal to the
amount of false entry.
• Any other person who causes such
person to make such entries shall
also be liable to such penalty.
Amendment in definition of “work” in
section 194C
Section now to cover cases where:
• Contract manufacturing is done using
raw material provided by related
parties

Change in tax rates in section 194J
Change in tax rate:
• Withholding tax rate on technical
services (excluding professional
services) to be reduced to 2% as
against existing 10%
Withholding tax on e commerce
New section 194O:
• E commerce operator to withhold tax
@ 1% on proceeds paid to ecommerce
participant (5% in case no PAN/
Aadhaar)
• Withholding to be done even if
payment received by participant
directly from customer
• No WHT for Individual/ HUF where
such sale through e commerce
operator does not exceed INR 5 lakh
• Not applicable to ad revenue received
by e commerce operator

Direct tax- Rationalization of provisions of the Act
Incorporation of MLI preamble in
domestic law
• MLI provides for modification of preamble
of Covered Tax Agreement.
• Accordingly, it is proposed to amend sec.
90(1)(b) and 90A(1)(b) to include terms of
revised preamble that reiterates that tax
treaties are not to be applied to create
opportunities of non taxation or reduction
of tax through evasion (i.e. “without
creating opportunities for non-taxation or
reduced taxation through tax evasion or
avoidance (including through treaty-
shopping arrangements aimed at obtaining
reliefs provided in the said agreement 10
for the indirect benefit to residents of any
other country or territory),”
Deferring SEP Proposal
SEP stands for “Significant Economic Presence” and
shall mean transactions in respect of goods,
services or property carried out by a NR in India
including provision of download of data or
software in India or soliciting of business activities
or engaging in interaction with such number of
users as may be prescribed, in India through digital
means.
It is proposed to defer the applicability of SEP to
starting from AY 2022-23.

Expanding the “source rule”
• Income from Advertisement that targets
Indian customers or income from sale of
data collected from India or income from
sale of goods and services using such data
collected from India, needs to be accounted
as Indian revenue
• Hence, it is proposed to amend the source
rule to clarify such position.
Exemption to FPIs from “indirect
transfers”
If a non resident held any asset by way of
Investment in erstwhile Category I and II FPIs under
the SEBI (FPI) Regulations, 2014 it was exempt
from provisions of indirect transfer
SEBI has done away with the broad basing criteria
for the purposes of categorization of portfolios and
has reduced the categories from III to II.
In view of the same, it is proposed that the
exception to Category I and II FPIs under the SEBI
(FPI) Regulations, 2014 may be grandfathered.
Further, similar exception may be provided in
respect of investment in Category-I FPI under the
SEBI (FPI) Regulations, 2019

Rationalizing the definition of
Royalty
• There is an amendment in the definition of
“Royalty” of section 9(1)(vi)
• The existing definition of “Royalty”
excludes consideration for the sale,
distribution or exhibition of
cinematographic films from and therefore,
such royalty is not taxable in India.
• It is proposed to amend the definition of
royalty so as not to exclude the same.
Section 55 of the act to compute
cost of acquisition
• In respect of an asset acquired before 1st April,
2001, taxpayer are allowed an option of either
to take the FMV of such asset on 1st April,
2001 or actual cost as cost of acquisition
• It is proposed to amend, in case of asset, being
land or building, the FMV of such an asset on
1st April, 2001 shall not exceed the stamp duty
value of such asset as on 1st April, 2001.

Dividend distribution Tax abolished
• DDT abolished, companies will no longer be required to pay DDT, and dividends now be taxed in
the hands of recipients.
• Dividend or income from units to be taxable in the hands of shareholders or unit holders.
• Amend section 10(34), that earlier exempts dividend income in the hands of shareholder
• Amend section 10(35), that earlier exempts dividend income in the hands of unit holders
• Amend sec. 10(23FD), no exemption with respect to dividend income received by a unit holder
of the business trust shall be allowed.
• Dividend Income distributed by SPV to business trust would be taxed in the hands of unit holder.
• Deduction u/s 57, shall be maximum 20 per cent in case of dividend income received.
• Dividend income received by foreign company from a domestic company shall be taxable @20%.

Other TDS provisions
• TDS shall be deducted while paying
dividend to foreign company
• A new section 194K has inserted where,
TDS is to be deducted on payment of
Income in respect of units of a mutual fund
@10% exceeding Rs. 5,000 in a Financial
Year
• TDS on dividend paid other than cash
amount exceeding Rs. 5,000 shall be @10%
( This amendment will take effect from 1st
April, 2020)
Threshold limit for Tax Audit
• The threshold limit for tax audit under
section 44AB has been increased from 1
crore to 5 crore if:
 aggregate of cash receipts does not exceed
5% of total receipts; and
 aggregate of cash payments does not
exceed 5% of total payments

Other TCS provisions
• Provisions introduced to cover
remittances made under Liberalised
Remittance Scheme (‘LRS’) of RBI or sale
of overseas tour package at 5% (10% in
case no PAN/ Aadhaar); and
• Sale of goods (aggregate value > Rs. 50
lakh) subjected to TCS @ 0.1% of sale
consideration (1% if no PAN/ Aadhaar)
Startups
• Perk taxation on exercise of ESOP to earlier
of 5 years from said date or date of leaving
employment or date of actual sale of shares
for employees of eligible startup
• Turnover criteria for eligible startups to
qualify for tax holiday increased to Rs. 100
crore from earlier Rs. 25 crore.
• Eligible startups can now claim tax holiday
for 3 consecutive years out of 10 years from
incorporation, from earlier 7 years.

The Audit Report shall be furnished at
least 1 month prior to the due date of
filing of return of income i.e.
 30th September of the AY - in case
where the Transfer Pricing provisions
do not apply
 31st October of the AY – in case
where Transfer Pricing Provisions
apply. Transfer pricing certification
due date is now October 31st
Due date of filing Audits Due date for filing ROI
The return of income to be filed u/s
139(1) by an assessee being a company
can now be filed by 31st October of the
AY as against 30th September of the AY
Not applicable in case of a company on
which Transfer Pricing provisions apply
Applicable w.e.f Assessment Year2020-21 and subsequent assessment years.

Form 26AS as referred to in section
203AA, is proposed to be replaced
by Annual Financial statement,
which in addition to information
about tax collected or deducted at
source, will also contain information
in respect of sale/purchase of
immovable property, share
transactions etc.
Section 285BB has been introduced
for the same.
Form 26AS
These amendments will take effect from 1st April, 2020.
Return Income verification
Section 140 of the Act is proposed to
be amended so as to enable any
other person, as may be prescribed
by the Board to verify the return of
income in the cases of a company
and a limited liability partnership.
Section 288 of the Act is proposed to
amended so as to enable any other
person, as may be prescribed by the
Board, to appear as an authorized
representative.
Authorized Representative

Direct tax- Segregated Portfolios
Cost of Acquisition - the amount
which bears to the cost of
acquisition of units held by the
assessee in the total portfolio, the
same proportion as the net asset
value of the asset transferred to
the segregated portfolio bears to
the net asset value of the total
portfolio.
Section 49(2AG)
Section 49(2AG)
Cost of the acquisition of the
original units held by the unit
holder in the main portfolio shall
be deemed to have been reduced
by the amount as so arrived at
under the proposed sub-section
(2AG).
Period of Holding - in case of a
capital asset, being a unit or units
in a segregated portfolio, referred
to in Section 49(2AG), there shall
be included the period for which
the original unit or units in the
main portfolio were held by the
assessee.
Section 2(42A)
• SEBI has permitted creation of segregated portfolio of debt and money market instruments by Mutual Fund schemes.
• As per the SEBI circular, all the existing unit holders in the affected scheme as on the day of the credit event shall be allotted
equal number of units in the segregated portfolio as held in the main portfolio.
• On segregation, the unit holders come to hold same number of units in two schemes –the main scheme and segregated scheme

• One-to-one matching
between donor and donee.
• Application for approval of
contribution to be claimed as
donation to be made to
Principal Commissioner or
Commissioner.
• Penalties and fee shall be
applied in case donee is
unable to furnish the
Statement of Donations.
• Deduction u/s 80GGA
restricted to Rs. 2000
Section 80G & 80 GGA
Registration u/s 12AA
The process of registration shall
be made completely electronic
under which a unique
registration number (URN) shall
be issued to all new and existing
charity institutions. In the past,
the process of the registration
was completely manual and
scattered all over the country.
It is proposed to provide that a
person who is qualified for
appointment as District Judge
shall also be eligible for the
appointment as a Member of the
Adjudicating Authority.
This amendment will take effect
from 1st April, 2020
Benami Property

Section B : Indirect taxes
• International trade
• Key GST changes
• Health cess
• Customs rate changes

A proposal is underway to allow refund of duties levied at central, state
and local levels. Such levies may include electricity duties, VAT on fuel
etc. These are forming part of cost for exporters under current
mechanism of refunds
Government empowered to prohibit uncontrolled import or export of “any
goods” as prevention measure against economic injury. Earlier, said
power was only in respect of gold and silver
Enabling provisions prescribed for administering trade agreements based
preferential tariff vide newly inserted Chapter VAA in the Customs Act.
Contains various procedural aspects including verification, approval
process, security deposit, origin criteria, suspension and restoration
Concept of duty credit ledger introduced for Custom duties payments
(similar to GST). Earlier, electronic cash ledger was introduced vide
Finance Act, 2018. Benefits such as usage of duty remission (drawbacks)
and transfer of duty credits to be administered electronically through
credit ledgers;
Indirect taxes: International trade

ITC matching
Rate ambiguity 8483
Indirect taxes: Key legislative changes under GST
Supply of pulley,
wheels & other parts
falling chapter
heading 8483 used
as a parts of
agricultural
machinery shall be
leviable to 12% GST
during 01st Jul’17 to
31st Dec’18. Rate
determination
ambiguity seems to
be resolved for
interim period.
Provisions for
penalty extended to
apply on persons
who are beneficiaries
to bogus invoices /
fake ITC claim
transactions. Penalty
equivalent to tax
evaded or ITC
availed or passed onManner of issuance
to GST TDS
certificate to be
prescribed. Provision
of late fee for delay
in issuance of TDS
certificates omitted;
Issuing TDS Certificate
Power granted to
Government for
specifying time and
manner in which tax
invoices may be
issued for specified
services
Issue of Invoice
Time limit to claim
ITC against GST
charged in a debit
note to determined
basis date of debit
note and not basis
date of original
invoice against
which such debit
note was issued
Input Tax Credit

Indirect taxes: Introduction of Health Cess
Health
Cess
New cess introduced as duty of Customs for financing health infrastructure
and services
Rate of health cess prescribed @ 5%
Levy to be effective 02nd February 2020 on transaction value of imports. It is
pertinent to note that health cess is leviable on transaction value and not only
on BCD component unlike Social Welfare Surcharge
Payment of health cess cannot be made using Duty Credit Scrips

Health Cess : Coverage
HSN (4 digit) Broad description
9018
Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scient
graphic apparatus, other electromedical apparatus and sight -testing instruments
9019
Mechano-therapy appliances; massage apparatus; psychological aptitude-testing apparatus; ozone
therapy, oxygen therapy, aerosol therapy, artificial respiration or other therapeutic respiration apparatus
9020
Other breathing appliances and gas masks, excluding protective masks having neither mechanical parts
nor replaceable filters
9021
Orthopaedic appliances, including crutches, surgical belts and trusses; splints and other fracture
appliances; artificial parts of the body; hearing aids and other appliances which are worn or carried, or
implanted in the body, to compensate for a defect or disability
9022
Apparatus based on the use of x-rays or of alpha, beta or gamma radiations, whether or not for medical,
surgical, dental or veterinary uses, including radiography or radiotherapy apparatus, x-ray tubes and other
x-ray generators, high tension generators, control panels and desks, screens, examination or treatment
tables, chairs and the like

Customs : Key BCD rate changes
Category Description Existing rate New rate
Electronic goods
Effective from 02.02.2020
Dip bridge rectifier falling under chapter heading 8504 40 21 and Populated,
loaded or stuffed printed circuit boards falling under chapter heading
8517 70 10 10% 20%
Static converters falling under chapter heading 8504 40 (except 8504 40 21)
15% 20%
Headphones & Earphones, fingerprint reader/scanner for use in cellular
mobile phones Nil 15%
Parts of microphone, micro-fuse base, micro-fuse cover etc. 10%/7.5% Nil
PCBA of cellular mobile phones 10% 20%
Vibrator/Ringer of cellular mobile phones Nil 10%
Display Panel and touch assembly of cellular mobile phones Nil 10%
Fuels & Chemicals
Other chemical products and preparations of the chemical, falling under HSN
3824 99 00 10% 17.5%
Calcined petroleum coke and Butyl Acrylate 10%/5% 7.5%

Customs : Key BCD rate changes
Household items &
appliances
Tableware, Kitchenware, toilet, office, decoration, polishing pads, gloves,
padlocks, locks, brooms, brushes, vacuum flasks, hand sleeves, hand riddles,
combs, stationery items etc.
10% 20%
Furniture falling under chapter heading 9401, 9403 to 9405 20% 25%
Toys falling under chapter heading 9503 20% 60%
Table fans, ceiling fans, hair dryers, coffee & tea makers, hair related
appliances etc.
10% 20%
Machinery falling under
chapter 84/85
Railway carriage fans, Industrial fans blowers, Air circulator, pressure vessels
etc.
7.5% 10%
Heat pumps other than air conditioning machines, Ice making machinery,
water cooler, vending machine, refrigerating equipment/devices used in
leather industry etc.
7.5%/10% 15%
Precious stones and
Metals
Gold used in manufacture of semiconductor devices or light emitting diodes
falling under chapter heading 7108
Nil 12.5%
Automobile industry
Catalytic convertor 10% 15%
Completely Built Units (CBUs) of commercial vehicles 30%/25% 40%
Semi Knocked down (SKD) forms of (effective from 01.04.2020): -
- Electric passenger vehicle
- Electric vehicles-bus, trucks & two-wheelers
15%
10%
30%
25%
Completely know down forms of electric vehicles 10% 15%
Category Description Existing rate New rate

DELHI
M- 122 GF, Greater Kailash Part I
New Delhi - 110 048, T: +91 011 4042 1835
contact@enpointeadwisers.com www.enpointeadwisers.com
2020 © En Pointe Adwisers. All Rights Reserved.
GURUGRAM
Plot No 89 LGF, Sector 44
Gurugram, Haryana – 122 003, T: +91 124 406 8006
NCR Offices

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