Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: TDS :: due date for vat payment :: articles on VAT and GST in India :: VAT RATES :: cpt :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
« News Headlines »
 A tax saver scheme with higher returns
 GST registration mandatory for TDS entities
 Govt rules out extension for filing GSTR-3B returns after December
 Tax department’s e-filing portal out of action for 2 hours
 Use ITR-2 to show salary and capital gains income
  TDS Applicability On Government Contracts Under Gst (Under Section 51 Of The Cgst Act, 2017)
  How to file ITR for FY 2016-17 and all the links you need
 All about E-way Bill under GST
 Good and simple tax: on the GST regime
 Seeks to extend the time limit for filing of GSTR-1, GSTR-2 and GSTR-3
 Good news, find Tax Return Preparers soon at a place near you; 5 things to know

Hidden taxes discolour white & brown goods
February, 24th 2007

Consumers in India are hoping for a better deal from finance minister P Chidambaram this time round as he gives final touches to Budget 2007. Indian consumers are paying a hefty lot more than their counterparts in China or the UK for a refrigerator or when simply filling fuel in their cars.

And thats because the taxmen in the country have loaded a huge tax component in the retail price of your personal and home appliances. While 21% of the retail prices of washing machines, refrigerators and microwaves in India are on account of excise and sales tax levies, the corresponding figure is only 15% for China and the UK.

Put simply, if a consumer is paying Rs 100, maximum retail price, for a washing machine in India, then Rs 21 is on account of the indirect tax levies such as VAT and excise the duty levied on goods manufactured within the country. However, in China and the UK, only Rs 15 of Rs 100 is on account of taxes.

According to a KPMG study, the total indirect tax as a percentage of the price to the end consumer for automobiles is almost 85% higher in India compared to the UK, and marginally higher than in China. For instance, 24% of the retail price of a small car is on account of the indirect tax component in India, and for other cars, the corresponding figure is 28%. In China, the corresponding figures are 17% and 27% for small cars and larger cars respectively. In the UK, it is a flat 15%. The study is based on several assumptions, a KPMG official indicated.

A comparison of the indirect tax component in the final prices of consumer durables can be made only after taking into account purchasing power parity. In China, the indirect tax component may be lower, but the levies may be made up through some direct tax, said PricewaterhouseCoopers (PwC) principal consultant MS Mani. In China, for instance, entrepreneurs are given land free of cost and water, and electricity supply at concessional rates, which amounts to a subsidy. This may be made up through some direct tax levy on consumers, he explained.

The final price a consumer pays on a product includes its cost plus several indirect taxes such as excise and VAT. Higher tax levies inflate the final price of the product for the retail consumer. Thus, a reduction in tax levies benefits consumers through cuts in retail prices.

Mobile phones are the only item where Indias levies are lower than those in China and the UK. While only 3.8% of the final price of a cellphone is on account of indirect taxes in India, the levies account for 15% of the retail selling price in China and the UK.

 
 
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