Budget 2015 Pharmaceutical Changes

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Today India's Finance Minister Mr. Arun Jately is  announcing Union Budget 2015-16 and following changes have been made for Pharma Industry.

Rs. 33150 Crore has been allotted to Healthcare and must be something there to Pharma Industries.

Govt. Supposed to start the GST by April 01/2016 this will defiantly a big effect on Tax Structure for Pharma Industry as well.

The rate of excise duty applicable to goods covered by the Medicinal and Toilet Preparations Act, 1955 is being increased from 12% to 12.5% ad valorem. In this regard, notification No.1/2015-M&TP dated 1st March, 2015 refers

Notification No.12/2012-Customs [S.No.148(C)] fully exempts Basic Customs Duty and CVD leviable on life saving drugs and medicines imported by an individual for personal use subject to the Condition No.10, which stipulates that importer produces a certificate (in prescribed form) issued by the Director General or Deputy Director General or Assistant Director General, Health Services, New Delhi, Director of Health Services of the State Government or the District Medical Officer/Civil Surgeon of the district, in each individual case, that the goods are life saving drugs or medicines. The prescribed Form is being amended so as to provide that such certificate shall be valid for a period of one year in case of patients who have to import such drugs and medicines on a regular basis. Condition No.10 of notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.10/2015-Customs, dated the 1st March, 2015 refers.

For Finished Products of Pharmaceutical Excise duty will be 6% only since the cess have been included.

Central Excise Duty to be increased from 12.5% the earlier rate of duty for Raw material is 12% increase will also subsumed education cess/Higher Education Cess.

Service Tax Increased from 12.36 to 14%

Overall, the Budget offers no direct benefit to the pharmaceutical industry, ...

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