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: VAT Audit :: TDS :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: form 3cd :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: list of goods taxed at 4%
 
 
General »
  Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on November 30, 2016)
 Cases for tax scrutiny will be selected by machines
 Time to revisit 1997 direct tax rates, says P Chidambaram
 Lok Sabha passes Bill to tax black money deposits post demonetisation
 Last day to pay property tax with old notes
 Income tax department asks IDS declarants to pay tax by 30 November
 Why PM Narendra Modi must beware of the breathtaking Arthakranti tax
 Japanese firms seek easing of restrictions on funding in India
 Tax on black money: How the cookie will crumble
 Income tax officials say raids on jewellers based on 'credible intelligence' proving fruitful
 Exchange window being misused, government forced to reduce limit to Rs 2000, says Arun Jaitley

Income tax dept busts onion cartels across states; officials say prices dropped 15-31% post-crackdown
January, 12th 2011

The tax department has found the existence of cartels in onion trade across Maharashtra, Punjab and Haryana which are cornering the price-sensitive vegetable across the country. The presence of cartels was discovered during raids the I-T department conducted last week at the behest of the Finance Ministry.

The department has apprised the Finance Ministry of its findings during the raid, a senior tax official told ET. He added that it was likely that the department would extend the scope of the raids to other essential commodities.

The action comes after food inflation has spiralled to double digits and threatens to raise the overall index of prices way beyond the policymakers comfort level of 6%. The Reserve Bank of India is expected to raise a key interest rate at its quarterly credit policy review later this month.

High input and borrowing costs will have a dampening effect on corporate earnings and has been responsible for the recent tanking of the stock markets.

The tax raids were conducted in Maharashtra, Delhi, Tamil Nadu, Punjab, Haryana, Jammu & Kashmir, Gujarat and the
city of Mumbai. Interestingly, the I-T department has claimed that onion prices have come down between 15% and 31% in these places due to raids conducted by it last Saturday. (see table)

A top trade official in Maharashtra admitted the presence of black marketers who had taken advantage of the shortage to spike prices. The farmer gets around Rs 25-30 per kilo of onion even as retail prices of the commodity are hovering over Rs 70-80 when the mark-up from wholesale to retail should be just Rs 5-6 for storage and transport.

It is clear that the money is being pocketed by some unscrupulous traders. But this is not a new phenomenon. In the past, we saw this happening in pulses and now are seeing the same in onions and garlic.

The official added that retail prices would rationalise to Rs 30-35 a kilo by mid-February after the arrival of the late kharif crop and further to around Rs 20 a kilo when summer crop arrives in April.

The wholesale price index rose to a 23-week high of 18.3% for the week ended December 25, up from 14.4% in the previous week. So far, all the attention in agriculture has been concentrated on conventional crops such as cereals, oilseeds and pulses and this is the first time that a price shock is being caused by vegetables, fruits, poultry and dairy products, said Madan Sabnavis, chief economist, CARE Ratings.

Since India is already the largest producer of fruits and vegetables, the solution in the medium term is to improve logistics support. Any solution in the short term seems unlikely, with prices likely to come down only upon new arrivals.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System development CMS development Content Management Solutions CMS Solutions Content Management Services CMS Services CMS Software

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