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: cpt :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: form 3cd :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: VAT Audit :: TDS :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: articles on VAT and GST in India
 
 
Indirect Tax »
 Government clarifies tax on solar power equipment, parts at 5%
 Income Tax Department Steps up Actions under Benami Transactions (Prohibition) Amendment Act, 2016
 Register for GST, if you pay indirect, service tax
 Income tax raids on Uttar Pradesh bureaucrats on charges of tax evasion
 Only genuine farm income must be exempt from tax’
 CBEC rechristened Central Board of Indirect Taxes and Customs
 Income tax department to challenge ITAT relief to Cairn Energy in HC
 5 crucial ways how doing business will be different under GST
 What is the lowdown on the Goods and Services Tax
 Ineligible Input Tax Credit Under Gst Regime
 What is GST, how is it different from now: Decoding the indirect tax regime

Centre needs to walk the talk on indirect tax reform
January, 22nd 2016

The Centre needs to walk the talk on indirect tax reform. The fact of the matter is that the Centre, glaringly, prefers not to provide input tax credit and set-offs for entire segments like capital goods and whole sectors like petroleum products, never mind that we have long had a dual value-added tax (VAT) system at the Centre and the states, with tax only payable on the value added. As the recent Arvind Subramanian committee report points out, no input tax credits are allowed for the Union excise duties on capital equipment acquired for use in such key industries as transportation, infrastructure, distribution or construction. The purported reason is that they are outside the scope of manufacturing. As if manufacturing takes place in self-contained cocoons.

Meanwhile, the Centre has — rightly — again raised the excise duty on the main petro-products like diesel and petrol, given the drop in international oil prices. The latest hike is the second in less than two weeks. But in tandem, the government surely needs to extend VAT for automotive fuel. True, petro-products provide hugely disproportionate tax revenue for the government. But it simply amounts to tax-on-tax and inefficient cascading rates, and we really ought to modernise consumption taxes and widen the tax base. Abroad, in Europe, for instance, high taxes on oil coexist with VAT on such items.

We need a similar system here, so as to modernise logistics, transport and distribution. The Subramanian panel estimates blocked input taxes on capital goods adding up to as much as 75% of total investment of Rs 7.4 lakh crore in plant and machinery in 2014-15. The government must create a functional VAT of central taxes, regardless of when the goods and services tax (GST) kicks in.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 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