One of India's leading industry bodies - the Associated Chambers of Commerce and Industry - on Friday urged the government to bring sugar, textiles and tobacco products under value added tax.
In the late 1990s, the Gujarat government had issued a policy allowing deferment of sales tax/VAT up to a certain amount, with the benefit capped for a period not exceeding 17 years. Projects with investment over Rs 1,000 crore could be eligible for the tax benefit. A deferment benefit on sale tax means a dealer is allowed to postpone the payment of tax on purchase of raw materials sales of products for a fixed period or/and up to a specific monetary limit.
In a decision that will affect the lawyers specialising in sales tax laws as well as former sales tax officers' who work as sales tax practitioners, Bombay High Court has held only Chartered Accountants (CAs) can audit and certify accounts for traders. Hitherto, traders had to hire only sales tax lawyers or former sales tax officers as advisors in tax matters. It allows lawyers & other sales tax practitioners to represent traders before tax authorities but not audit accounts.
The feeling was that the higher levy would prompt the company to increase prices in the process hurting volumes. But the unchanged central excise duty, analysts say, outweighs the VAT increases in Maharashtra and Delhi. As a result, estimates for the current year have been upped with expectations that the company could grow its top line by as much as 13-14 per cent driven by a 6-7 per cent rise in volumes.
Sources aware of the development said as part of the project, the airline had signed an agreement with Reliance Industries Ltd, which would extend quality control services at its coastal terminals for ATF imported by the airline.
Over 65 per cent of respondents of a survey conducted by arabianbusiness.com said they could leave the UAE if the tax burden is added to the skyrocketing cost of living. The UAE could face a mass exodus of expatriates who were considering leaving the UAE as an option. ''Tax is on the way, and that's not part of the bargain I made when I came here,'' remarked the respondents.
There are about 60 second-hand car dealers in Lucknow and small cars such as the Maruti 800, Indica, and Santro are favourites with buyers. The small-car segment accounts for about 75 per cent of second-hand car sales. Second-hand car dealers collect 2 per cent commission from both buyers and sellers for each deal.
An official panel on Tuesday ruled out any increase in value added tax (VAT) rates as part of a package to compensate states on account of revenue loss due to a one per cent cut in Central Sales Tax that was to have happened in the beginning of this fiscal.
To improve compliance, govt may introduce lottery reward for filing GST. The Consumer Welfare Fund, where anti-profiteering proceeds are deposited, will be used to reward the lucky winners on monthly and annual bases. The prize money, yet to be fixed, may run into several lakhs of rupees for the annual draw, and about Rs 50,000 for monthly draws.
Commerce Minister Kamal Nath is pushing for a major policy change, one that would result in foreign travellers to India being refunded the value-added tax they pay on purchases made here.
Finance Minister P Chidambaram on Tuesday said the country must have a basic tax structure that is broad-based and oriented to low tax rates.
Will have to pay 12% tax besides 3% education cess.
Traders in Kerala on Thursday decided not to sell cigarettes in the state from April 16 as tobacco-manufacturing companies were 'not prepared' to pay the value-added tax for the products.
Mobile phones in West Bengal will become more expensive than any other part of the country, thanks to the state government increasing the state value added tax on the product from 4 per cent to 12.5 per cent. The increase in prices, to be effective from September 8, is expected to give a major fillip to the grey market in the state.
The aim of the exercise was to further simplify GST forms and make the filing process more user-friendly, the finance ministry said in a tweet, reports Dilasha Seth.
In layman terms this means that in cases where buyers purchase houses before completion of construction, builders would be levied works contract tax on the building material.
The resistance to VAT in Uttar Pradesh has been declining after the tax's success in 21 states.
After the Centre, the states have joined the fight against inflation. Later this month, they will discuss a proposal to exempt rice, wheat and pulses from value added tax.
Alarmed at the deteriorating financial health of states, World Bank on Tuesday suggested sweeping reforms including early introduction of value-added tax, expenditure control and other fiscal discipline measures to eliminate their revenue deficit by
Sitharaman raised excise duty and road and infrastructure cess on the auto fuels by Rs 2 per litre each to raise over Rs 28,000 crore.
\nThe traders had earlier decided to go on a strike from October 2, to protest the implementation of VAT on essential foodgrain.
Tata Motors has set up a separate team at its plant in Pune to examine ways to cut manufacturing costs on the Nano, the small car scheduled for an October launch, to bring the ex-showroom price down to the psychological Rs 1 lakh mark, managing director Ravi Kant said.
Delhi government on Wednesday exempted life-saving medicines from taxation under the value added tax regime and decided to approach the Empowered Committee of State Finance Ministers for reduction in sales tax on diesel.
With 21 states agreeing to switch over to value added tax from April 1, finance minister P Chidambaram on Thursday asked the remaining states, including Uttar Pradesh and BJP-ruled states, to implement it and add a historic dimension to centre-state
The government is likely to offer a slew of tax sops to telecom operators, including asking state governments not to levy sales tax on telecom services, seven years of exemption of revenue sharing on revenues from rural subscribers, etc.
The central government wants to impose the levy; many states are opposed - at least, to the Centre doing so
All textile items, currently exempted from value added tax, will attract 4 per cent VAT from the next fiscal, the empowered committee said on Thursday.
Official panel on Value Added Tax decided to defer the phase out of the Central Sales Tax from next month to April 2007 after its failure to arrive at an agreement with the Union Government.
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