Sector: Media
Particulars: Service tax (Broadcasting)
Current Status: 12.24% service tax is levied on Broadcasters and not on the print media companies
Proposed measures: Services Tax to be in line with the print media for broadcaster. However, we do not expect any changes.
Impact (on sector & major stocks): Benefit for all the broadcasting companies like ZEE Entertainment,TV18, Sun TV
Particulars: Service tax (Multiplexes)
Current Status: 12.36% services tax is levied.
Proposed measures: Removal of 12.36% services tax or allowed to set off against sales tax. We expect this to remain unchanged
Impact (on sector & major stocks): Benefit PVR, INOX, Cinemax, Fame.
Particulars: Custom Duty Current Status: 12.5% duty charged on Broadcasting equipments
Proposed measures: To be eliminated. We expect this to reduce.
Impact (on sector & major stocks): WWIL, Dish TV
Sector: Metals
Particulars: Import duty on steel
Current Status: Import duty of 5% on finished steel products
Proposed measures: Hike in import duty to 15% for flat products and 10% on long products
Impact (on sector & major stocks): Domestic steel producers would benefit on better demand and sales prospects. JSW Steel, Tata Steel would be major beneficiaries
Particulars: Import duty on non- ferrous metals
Current Status: Import duty of 5% on aluminum and zinc and 3% on copper
Proposed measures: Hike in import duty up to 10% for aluminum and zinc and up to 5% on copper
Impact (on sector & major stocks): Domestic non-ferrous metal producers would benefit. Major beneficiaries: NALCO, HINDALCO, Sterlite Industries, Hindustan Zinc etc.
Particulars: Impacts from measures on real estate and automobiles
Current Status: Present tax exemption of 1.5 lakhs on home loan; Excise duty of 12% and 20% different automobile categories
Proposed measures: Tax exemption is likely to be hiked to 2-2.5 lakhs; Excise duty is likely to be cut to at least 10% and 16% on different automobile categories
Impact (on sector & major stocks): Indirect positive impact on metal companies regarding Improvement in demand
Sector: Power
Particulars: Depreciation Proposed measures: Accelerating the rates of depreciation in the initial years
Impact (on sector & major stocks): Accelerated depreciation to provide tax savings to companies incurring capex, thereby providing additional incentive to the sector.
Particulars: Benefit under Section 80IA
Current Status: Benefit to the projects starting till March 2010
Proposed measures: Extension of the deadline
Impact (on sector & major stocks): Will increase the investments in the sector. The new proposals
sanctioned will take around three to five years to commence operations.
Particulars: Allocation from the Government
Proposed measures: To hike its allocation to stateowned power companies NTPC, NHPC and Power Grid Corp
Impact (on sector & major stocks): Will lead to increased spending by the power companies.
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