Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: form 3cd :: TDS :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment
 
 
« Service Tax »
 India’s E-Service Tax Will Add To Foreign Content Providers’ Woes
 GST Council to discuss model laws, tax jurisdiction today
 Tax Invoice Under GST
 Insurance may fall under 12% tax slab in GST, from 14% service tax currently
 GST draft makes it must for companies to pass tax benefit to consumers
 To speed passage, Government plans GST Bills as money Bills
 No service tax on train tickets booked through IRCTC till December 31
 GST Council meet postponed to December
 Banks integrating systems with RBI, GST Network to collect tax: Arun Jaitleya
 Service tax waived for online train ticket booking till Dec 31
 Key challenges in implementation of Goods and Services Tax

Budget Diwali this year
October, 05th 2011

Rising fears of recession, hike in service tax on consumer durables, high gold prices and an uncertain job market are expected to play dampeners this festive season, leading to what customers call a 'Budget Diwali'.

Shoppers in Chennai are apprehensive of spending. Rising inflation and micro-management on short-term spending kept most shoppers away from stores for the aadi season, which might continue till Diwali, said Narayanan of a textile shop, speaking to City Express.

Reiterating that customers are, of late, in no mood to splurge, the director of a leading advertising agency said that textile sales during the month of aadi declined by 7 per cent in a year-on-year basis, while gold sale saw a 10 per cent dip.

This reluctance to spend has also been observed among established brands, who have cut down on advertising expenditure, he said, pointing to a 15 percent drop in ad-spending by big brands during the Aadi discount season.

Textile, gold and electronic items sales are considered the three main indicators of market performance during a season. According to Ramesh, supervisor in a leading textile store at T Nagar, said: There was a brief dip in footfalls during aadi initially, but it picked up later. Three weeks ahead of Diwali, the build-up to the festival in terms of sale volume even during weekends has not been as expected. Owing to delayed payment of bonuses and salary, walk-ins were less during weekends."

Change in buyer-attitude due to lower resale rates and fear of an economic slowdown is hampering sales, said Saravanan, an electronic shop owner. "This aadi season, sales took a hit and later showed signs of recovery due to Navarathri and Deepavali," he said.

The recent hike in service tax by 2 per cent on durable goods and free sale of fans, mixer- grinders by the State government have hampered sale of these products. The month of October has not witnessed the expected sales, said Nithyanandam of an electronic store.

People from the IT sector, once considered big spenders, are feeling the heat of price rise and fear of recession. The sector witnessed exorbitant growth till 2008 and saw some of the worst layoffs in recent times. IT employees are being cautious with their spending too, and tend to focus more on savings and investments. The usual festive mood is not prevailing, said software professional Jaishankar. Citing an example at his workplace he said, "My colleagues are still in a dilemma as to whether they should spend or not this season," he said.

Government employees too are not committed to large-scale buying, according to a government official in a PSU.

Working professionals are not considering gold coins or ornaments as a gift during Diwali citing high prices.

Some choose gift cheques and electronic durables mainly because of availability of EMIs.

The number of people availing personal loans during festive seasons has plunged by 10% due to prolonged uncertainty in the job market, said an executive of a private bank.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Sitemap

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions