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: form 3cd :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: VAT RATES :: cpt :: TDS :: due date for vat payment :: ACCOUNTING STANDARD :: VAT Audit
 
 
Direct Tax »
 CBDT signifies achievements towards eliminating domestic black money
 Seafarers get tax exemption from Ministry of Finance
 Financial institutions need to get accounts self-certified for FATCA by April 30
 Direct tax incentives to promote start-ups
 Employer didn't deposit the TDS it deducted on your salary. How to claim it?
 Central Board of Direct Taxes clarifies on cash curb, Aadhaar
 CBDT to issue PAN, TAN within a day to improve Ease of Doing Business
 Expats who stayed in India for 182 days or more must apply for Aadhaar card: CBDT
 CBDT accomplishes direct taxes collection target for FY 2016-17
  No relief to those who defaulted on 1st IDS installment: CBDT
 New Income Tax forms: What information is being asked for? All you want to know about the new rules

Industry opposes new direct tax code
December, 25th 2009

The Gems and Jewellery Federation (GJF), the national body of the jewellery trade, and the apex industry body Gems and Jewellery Industry (GJI) have opposed the provisions of 2% minimum alternative tax (MAT) and tax deduction at source (TDS) at the supply point proposed in the new Direct Tax Code. Both the industry bodies have also made representations to the Finance ministry to seek modifications in the DTC.

GJF strongly objects to 3 key issues of DTC which include search & seizure provisions, tax on gross assets and TDS on all payments. Anantha Padmanaban, Director of GJF said.

GJF also objects to 2% tax on gross assets since the industry operates on small margins with high inventory levels, he said.

In this case a company earning 2% net profit would require to pay the same tax as a company earning 8% net profit. GJF also objects to the deduction of tax at 10% on all payments made for gold, diamonds, jewellery, as it would result in blockage of working capital for the industry, which is facing a major liquidity crunch.

Certain schedules proposed in the direct taxes code like search and seizure provisions, tax on gross assets are highly penalising to the industry which is already reeling under the effects of global recession. GJF has more than 300,000 manufacturers, wholesalers and retail jewelers in India.

Meanwhile, Bachraj Bamalwa, vice-chairman of GJM, addressing a press conference at Kolkata on Thursday said such provisions would have a cascading effect on the Rs 1,12,000 crore Indian gems and jewellery market with the government virtually trying to confiscate traders working capital.

Bamalwa said the government with the proposal of 10% TDS at the supply point would virtually block Rs 10,000 crore by way of advance taxes and it would be similar to taxing capital without considering the income from it.

One kilo of gold currently costs around Rs 17 lakh, on which the supplier has a profit of around Rs 4,000. Paying 10% TDS at the supply source means he would have to pay Rs 1.70 lakh to the government at the time of transaction, Bamalwa said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Web Application Development Web based Software Solution Web Application Deployment Web Application Solutions Web Application Software Development Web Application Deployment Web Application Programming Web Application Design and Development

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