Truck fleet operators have a reason to rejoice, as the central government has decided to raise their presumptive income levels to Rs 7,500 a month on each vehicle.
Taxpayers engaged in the business of plying, hiring or leasing goods carriages but not owning more than 10 such vehicles fall under this category.
A substantial chunk of transactions in this industry takes place on a cash basis. Presumptive tax is levied to reduce and prevent avoidance of tax under such transactions.
The government has also made presumptive income at Rs 7,500, against Rs 5,000 for heavy goods vehicle (HGV) and Rs 4,500 for other vehicles computed now.
“Considering the erosion in the real values of the amount of specified presumptive income due to inflation over the years and also to simplify this presumptive taxation scheme, it is proposed to provide for a uniform amount of presumptive income of Rs 7,500 for every month (or part of a month) for all types of goods carriage without any distinction between HGV and vehicle other than HGV,” stated the finance ministry.
This amendment will take effect from April 1 next year, and apply in relation to assessment year 2015-16 and subsequent years.
Further, the government has exempted excise duty on parts of tractors removed from one or more factories of a tractor manufacturer to another factory of the same manufacturer for production of tractors.
Currently, parts of tractors manufactured and used in one plant is exempt from excise duty. However, those manufactured in one plant but used in another tractor plant of company attracts excise duty of 10 per cent.