Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: list of goods taxed at 4% :: empanelment :: VAT RATES :: VAT Audit :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: form 3cd :: TDS :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: TAX RATES - GOODS TAXABLE @ 4%
News Headlines »
 7 Tax-saving investments for the risk averse
 5 Tax tasks you should complete before March 31
 March 31 deadline nears: Check out these last-minute tax-saving investment options
 How to file income tax returns online without having Form 16 in 10 simple steps
 Deadline For Filing Income Tax Return (ITR) Is Just 11 Days Away: 10 Latest Details To Know
  10 incomes you need not pay any tax on
 How To File Income Tax Returns In Three Steps By March 31, 2018
 10 things about income tax every taxpayer should know
 What to do if your TDS is not deposited with the government
 What if you forget to verify your Income Tax return?
 TDS on rent and other tax tasks to complete before March 31

Remove undue taxes, surchages on Indian Inc.: ASSOCHAM
November, 04th 2008

The paper submitted to the Government points out that Indian firms currently pay taxes that are amongst the highest in the world.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has brought out a 20-point approach paper for achieving 15% growth in the manufacturing sector, which seeks removal of taxes, surcharges, fringe benefit tax (FBT) and education cess to make it more competitive and sustainable.

The paper submitted to the Government points out that Indian firms currently pay taxes that are amongst the highest in the world. The tax rates for firms, inclusive of surcharge, education cess and a fringe benefit tax ranging between 4-6% amounts to 38%. This again is without considering the dividend distribution tax which Indian firms are liable to pay on dividends declared.

The industry chamber admits that there are exemptions on the tax front also, making the effective tax rate in some cases at around 20%. But apparently these exemptions are not available equally to each manufacturing sector and every geographical area. Most manufacturing sectors and units remain burdened with a 34% effective tax rate which needs to be corrected.

Releasing the Paper, ASSOCHAM Secretary General, DS Rawat, said that the tax structure is prohibitive to growth in the industry. There is a definite case for the removal of the surcharge. Typically surcharges are for specified purposes and for a period of time. But what tends to happen is that it becomes a levy charged for time immemorial.

He said, An important discrimination to the manufacturing sector is the exemption of tax on long-term capital gains through investment on the stock market. The manufacturing unit pays the corporate tax but investors in his company do not pay taxes. Similarly Foreign Institutional Investor (FII) does not pay any long-term tax and the short-term capital tax is only 10% but Foreign Direct Investment (FDI) has to pay the relevant corporate tax. The foreign investors take advantage of the tax differential and arbitrage between the two investment streams by generally preferring the FII route.

On issue of logistics, the Paper points out that connectivity between the agriculture and the manufacturing sector and various small  and  large  sub  sectors  like  the  food  processing  industry  can  be  the  engine  for  high employment growth. Thus, logistic facilities connecting the supply chain needs to facilitated at greater pace.

On trade policy approach, the Paper says that it should be to create an enabling business environment to promote large- scale  investment  for  expanding  manufacturing  capabilities  improving  competitiveness  and increasing higher value added exports through generic promotional methods

ASSOCHAM has also demanded diversification in the export structure in favor of technologically advanced products desires R&D activity by  the  Indian  industry.  Furthermore,  the  importance  of  building  indigenous  brands  through publicity  and  the  ability  to  market  a  product  under  own  brand  is  must  for  international competitiveness.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

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