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
Latest Expert Exchange
« News Headlines »
 Income-tax (5th Amendment) Rules, 2018 - Notification under section 9A (3) of the Income-tax Act, 1961 in respect of Fund Manager Regime
 Income Tax department warns salaried class again filing wrong ITRs
 ITR-1 form for AY 18-19 now available for e-filing
 New Income Tax Return Form for Salaried Class available in Portal
 Income Tax Return: ITR-1 ready for e-filing, says I-T department
 6 Tax changes you need to keep in mind while filing ITR for FY17-18 Income Tax Return efiling
 Income-tax (5th Amendment) Rules, 2018
 Last-minute tax tips for late filers
 What demonetisation did to tax collections
 Income–Tax (Fourth Amendment) Rules, 2018
 Want your income tax refund early? Follow these 10 steps while filing returns

Tax on securities transactions could be scrapped
February, 01st 2007

May be replaced by Goods & Services Tax
 
It could soon be party time on Dalal Street, as the government is considering the elimination of the securities transaction tax (STT). The catch? It could be replaced by the proposed omnibus Goods & Services Tax (GST).

This means that instead of taxing individual entities every time they transact in the equity market, the tax system will be oriented towards taxation of the value of the financial services provided. Such services can include anything from asset management to investment services.

The proposal was floated by the finance ministry-appointed Percy Mistry Committee to prepare a road map to develop Mumbai as an international financial centre.

The move is aimed at making the tax structure for the financial sector compatible with international standards. According to S Madhavan, executive director, taxation, PwC, while doing way with the transaction-based tax was welcome, the GST model also needed to be studied. He said many countries provided the financial sector exemption from GST.

But the committee is learnt to be in favour of phasing out all tax exemptions that could brand Mumbai a tax haven. Instead, it has endorsed the road map suggested by the earlier Kelkar Committee on tax reforms which said financial services be brought under GST.

TAKING STOCK
Instead of taxing individual entities, the system will be oriented towards taxation of the services provided
The move is aimed at making tax structure for the financial sector compatible with global standards
 
Since the Mistry Committees views will require fairly large-scale changes in the present tax system, it has apparently suggested that the government set up a working group to thrash out the modalities. The GST was mooted by finance minister P Chidambaram in Budget 2006 for introduction by 2010, as a comprehensive tax for both goods and services.

Chidambaram had introdued STT in Budget 2005. In Budget 2006, the rates were hiked from 0.1% on the value of the purchase or sale of an equity share to 0.125%.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Custom Software Development Outsourcing Custom Software Development Offshore Cus

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