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 :: Central Excise rule to resale the machines to a new company :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: list of goods taxed at 4% :: due date for vat payment :: ACCOUNTING STANDARDS :: TDS :: VAT Audit :: VAT RATES :: cpt :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India
 
 
General »
 Shah gets notices over civic tax dues
 Tax revenue down in first six months after prohibition
 Post demonetisation, Income Tax department sends 30 cases of irregularities to Enforcement Directorate, CBI
 Don’t rush into a new tax without being prepared
 Can’t tax income from palace rent: Supreme Court
  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

FE Editorial : GSTation
February, 24th 2009

One of the last major elements of reform in tax policy is the introduction of the goods & services tax (GST). The appeal of the GST lies in four key advantages: elimination of all other bad taxes such as octroi, stamp duty, electricity duty, etc; unification of India into a single common market; correct handling of imports and exports and elimination of the artificial distinction between goods and services. If properly implemented, using the ideas and institutional capabilities from the work done by the National Securities Depository Ltd (NSDL) on the tax information network (TIN), GST can reduce corruption and transactions costs. What is not widely understood is the substantial revenue potential of GST. Tax revenues from services will increase substantially, through improvements in compliance that come with integration into a single Vat chain, and through the shift from piecemeal taxation of services towards taxation of all services. At present, the service tax rate is 12%. It increasingly appears that a GST rate of 12% to 14% will yield adequate tax revenues. If a rate of 12% is chosen, it would ease the process of integrating services into GST since there would be no increase in the tax rate for services and a substantial drop in the tax rate for goodsboth are critical in these demand-threatened times.

Making progress on GST requires cooperation from states. The appeal to states lies in three things. First, GST reduces constraints on business and thus increases economic growth, which benefits participating states. Second, GST gives tax revenues to state governments from all services. Third, GST gives state governments hooks into high quality tax administration, based on NSDL and the TIN system, assuming the central government plays its cards right. The UPA government has largely failed to make progress on the GST agenda. Back in 2004, the immediate opportunity for progress lay in merging Cenvat and the central service tax into a central GST and building top quality administrative mechanisms for it. Once this was fully running, one by one, state governments would have plugged into it. Instead, these years have been lost. While the Central Board of Direct Taxes and NSDL have made progress on TIN, thus yielding a steady pace of progress on tax administration for income tax, the administrative capabilities for GST have not come about. Building GST must be a critical element of the tasks of the next government.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
System Testing Solution Manual Software Testing Solutions Automation Software Testing Solutions System Workflow Testing System Manual Testing

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