If the company A is located in a non-GST state, it would pay a total tax of Rs 300 (Rs 200 on finished product and Rs 100 on input), compared to Rs 200 paid by other producers in a GST state. The Centre is hoping that in such a scenario companies in GST states would lobby for introduction of the pan-India tax, which will subsume most state and Centre-level taxes.
Key roadblock: Constitutional amendment required to provide wider taxation powers to Centre, states.
The move to extend the income tax benefits enjoyed by units covered by the Software Technology Parks of India Act and those set up in export oriented units by another year -- up to March 31, 2011 will benefit around 6,000 STPI units and 2,486 EoUs. In its budget-related wish list, the commerce ministry had recommended a three-year extension of the scheme, while the industry has been asking for five.
Corporate Affairs Minister Salman Khursheed said his ministry would push for affirmative action in the corporate sector through fiscal incentives.
Prospects of a stable government at the Centre have prompted at least six economic forecasters to raise their growth estimates for the current fiscal, citing lower-than-expected political risk after the recent general elections.
Under the Fiscal Responsibility and Budget Management Act, the Centre should have eliminated the revenue deficit and brought down the fiscal deficit to 3 per cent of gross domestic product by March 2008. This target was extended by a year. Then, due to the global economic crisis, the government decided to suspend implementation of the FRBMA. As a result, the fiscal deficit for 2008-09 crossed 6 per cent of GDP and is projected at 5.5 per cent in fiscal 2009-10.
Government officials said the Asean FTA, as well as a similar pact with South Korea involving free trade of goods, services and investment, could be signed on the sidelines of the summit of Asean nations, scheduled in October this year. The India-South Korea Comprehensive Economic Partnership Agreement is also ready for signing, sources added.
As part of its fiscal tightening measures, the finance ministry has asked all government departments not to seek any increase in their allocations for 2009-10 over and above what has already been provided for in the Interim Budget presented on February 16.
Developers will now be able to get their land classified as an SEZ at the initial stage of approval by submitting legal documents that prove land ownership. With exports falling sharply in the last six months, faster development of SEZs is seen as one way of increasing overseas sales of Indian goods and services, an official said.
Chairman of the Economic Advisory Council to the Prime Minister Suresh D Tendulkar, as well as other member of the apex panel submitted their resignation on Tuesday.
This meant targets set for primary school admissions, assured income for every family and roads, water, housing and electricity. And yearly spending of over Rs 1,20,000 crore (Rs 1,200 billion), up from Rs 36,000 crore (Rs 360 billion) in the last year of the National Democratic Alliance government.
The Planning Commission's term runs concurrently with that of the government. The commission, whose inputs are vital on important policy related matters, is likely to have new faces when the new team is announced, said a top government functionary who had earlier worked in the apex planning body.
The Taj Mahal, the timeless masterpiece built by Mughal emperor Shah Jahan, along with other heritage sites like the Qutab Minar, will be valued in the government books at just Re 1. This is part of the broad move to move government accounts towards accrual-based accounting system from the cash-based one within the next five years. Like a corporate balance sheet and profit and loss account statements, the government too will undertake similar book keeping.
India's exports have declined for the seventh consecutive month in April.
India Inc's initiative to adopt Industrial Training Institutes (ITIs) across the country is facing problems because of low level of cooperation on the field as well as red-tapism, industry lobby groups have claimed.
Ficci: Rationalise tax structure; CII: Space for fiscal incentives is limited.
The investigation arm of the Monopolies and Restrictive Trade Practices Commission, the country's anti-trust body, has launched a probe against 10 cellular service providers, including state-owned ones, for allegedly charging customers for Short Message Services that are not delivered.
National Sample Survey Organisation, a division within the ministry of statistics, has been roped in to collect price data for the new series and a dry run is on the anvil in the next couple of months. The new series will have 2004-05 as the base year, as against 1993-94 in the present mode and will reflect a consumption basket that is relevant in today's scenario, thereby making inflation data more reliable. The new series will have 2004-05 as the base year.
The new foreign direct investment guidelines may be revised with respect to the banking sector to avoid an adverse fallout for Indian banks with majority foreign equity.
Even as India reacted strongly against the proposed changes in the US visa regime, trade experts said the country could do little in multilateral forums like the World Trade Organization to appeal against implementation of such measures.
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