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: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: form 3cd :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: VAT RATES :: VAT Audit :: ACCOUNTING STANDARDS
 
 
News Headlines »
  Best ways to save tax in 2017
 8 unknown stocks that could yield huge returns
 Government may set threshold for probe into deposits to prevent harassment of taxpayers
 How to calculate capital gains tax
 April 1 still the target for GST: FM
 How to respond to CBDT’s tax compliance notice
 Goods & Services Tax (GST)(As On 01-01-2017)
 Excise, service taxpayers to migrate to GST portal by January 31
 Tax numbers belie slowdown: FM
 Income tax (1st Amendment) Rules, 2017
 Anti-avoidance tax rule to kick in from April 2017

Tax sops to units in hill states may go
December, 22nd 2006

The finance ministry is likely to do away with area-based tax concessions in Budget 2007-08. This will jolt Himachal Pradesh and Uttaranchal, which have attracted huge investments to the consternation of neighbours Punjab and Haryana.

A finance ministry official said, With no other means of enhancing revenues, we will need to contain the number of area-based exemptions. Such benefits to industry had cost the exchequer Rs 1,500 crore in 2004-05.

The finance ministry was planning to restrict the number of tax exemptions for Uttaranchal and Himachal Pradesh, which were extended up to 2007-08, while withdrawing several indirect tax sops.

The move would put these two states at par with their neighbours. After the Budget, new units and expansion by existing units in Uttaranchal, Himachal and Kutch in Gujarat would not be eligible for tax breaks.

The Centre was in a bind after Punjab and Haryana sought similar incentives to prevent existing industries in these states from shifting to Himachal and Uttaranchal. They claimed that exemptions had turned Baddi, an industrially-backward area in Himachal, into a pharmaceutical and textile hub, while auto companies now preferred Uttaranchal.

NO FREE LUNCH
Area-based tax benefits cost the govt Rs 1,500 cr in 04-05
Punjab, Haryana sought incentives similar to HP, Uttaranchal
Sops to J&K and the Northeast likely to be retained
 
Even Gujarat and Tamil Nadu wanted the ministry to do away with area-based sops having lost a number of pharma investments in their region to the two hill states.

Industries in the two hill states enjoy a number of sops, including a ten-year excise holiday and 100% income-tax waiver for the first five years. Besides, new units can also avail of a 15% capital investment subsidy on a maximum of Rs 30 lakh.

The government was, however, likely to retain the sops offered by Jammu & Kashmir and the Northeastern states because of their special status. The move to axe area-based exemptions is in line with the ministrys intention to prune tax sops so that deficit targets could be met.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

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