Union Budget 2019: SME watch

Indirect tax

Our experts share insights and in-depth analysis from Union Budget 2019 on the critical issues and key reforms announced on 5th July, 2019.

As a stimulus to the defence sector aimed at enhancement of national security, basic customs duty exemptions introduced on import of specified defence equipment (such as aircraft parts, military helicopters, artillery weapons, warships etc), and their parts by GoI, MoD or defence forces subject to satisfaction of certain pre-import conditions. This would give a thrust to the defence purchases by the GoI in the short term. Similar exemptions existed in the past as well which were withdrawn to give a level playing to the private sector and promote domestic manufacturing. However, the actual impact on the existing and future defence procurement contracts would need to be assessed.

Saurabh Kanchan
Partner, Deloitte India

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