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: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: VAT Audit :: empanelment :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: form 3cd :: ACCOUNTING STANDARD
« VAT (Value Added Tax) »
 Amendments in the second Schedule received from Finance Deptt.
 VAT exemption stays in tax reform bill
 Income Tax Appellate Tribunal Bangalore Banches Bangalore 'A' Bench DB Case Causelist for The Week from 22-05-2017 To 25-05-2017
 Amendments in Second schedule appended to Delhi Value Added Tax Act, 2004
 Haryana govt exempts solar devices from VAT net
 Court rules out VAT on Paradise equity transfer
 VAT gone but riddle of derivatives traded on commodity exchanges lives on
 Rule 2(L) Of Cenvat Credit Rules, 2004 Amended
 Haryana govt exempts solar equipment from VAT
 AP to push for same benefits under GST for VAT exempted goods
 Andhra Pradesh to push for same benefits under GST for VAT exempted goods

VAT in high-end
January, 13th 2010

For the first time staring at a shortfall in value added tax (VAT) collection, the state finance department is exploring the option of charging higher VAT on expensive mobile phones and fountain pens. The idea was floated once before but was shot down by the cabinet. This is now being actively considered for the budget.

According to the initial proposal, pens priced above Rs 5,000 and mobile phones costing more than Rs 10,000 may come with a 12.5% VAT tag rather than the present 4%. Explained a senior finance department official:

Approximately 96% of all mobiles are priced less than Rs 6,000. Hence anyone who is buying a phone worth Rs 10,000 or more obviously has the ability to pay a higher VAT. Same applies for fountain pens. Somebody buying such an expensive pen might as well pay a higher tax.

The finance department had set a target of Rs 10,000 crore for VAT collections during 2009-10. Trends so far suggest that there may be a 10% shortfall this time even though for the coming year there is already talk of a Rs 12,000 crore target.

For that to be achieved, we will need to adjust some of the rates. While the shortfall this year is because of recession, the more than 20% hike that we are looking at is slightly more than the natural increase by 15% which happens every year. Hence the reconsideration at VAT rates, the official explained. The differential tax rates on luxury items just two are under consideration at present will bring Rs 30 crore to the exchequer annually.

There is also a plan to do away with the VAT subsidy on 40 items including diesel and CNG which the department hopes will contribute to next years VAT collections.

Withdrawing the subsidy will also mean that the Rs 1,600 crore that we lose from the compensation package the Centre offers to states for levying VAT at the prescribed rates will start coming to us. That money will come in handy, the official added.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Portal Design Website Design Portal Designing Website Designing Web Design Professional Portal Design Professional Website Design Professional Web Design Portal Design India Website Design India Portal Designing India Website Designing India Web Design India Professional Portal Design India Professional Website Design India Chicago Professional Web Design New York Professional Web Design California Website Design Florida Website Design New Jersey Website Design Britain UK Website Design London Manchester Website Design

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