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: list of goods taxed at 4% :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: VAT RATES :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: articles on VAT and GST in India :: form 3cd :: TDS :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
Indirect Tax »
 Indirect taxes collection could fall short of target due to GST
 Indirect Tax Collection Under Gst Goes Down By 30 Percent
 What is a belated income tax return and what are its consequences
 Why rejig of financial year could upset your tax planning
 The threat of harsh penalty should not impede tax compliance
 What are the tax exemption limits for allowances, reimbursements paid to employees? Find out
 High-income taxpayers to get priority treatment and extra facilities
 GST input tax credit rules: How taxpayers will benefit from ITC
 More complications in filing income tax returns
 Guidelines for selection of cases for scrutiny during the financial-year 2017-2018
 CBDT asks Income Tax officials to pull their socks up as revenue collection not satisfactory

The right cut: Indirect tax cuts would benefit all
February, 25th 2009

Pranab Mukherjee, the minister in charge for finance, has finally delivered his share of fiscal boost. By cutting excise duty and service tax by 2% each across the board, he can claim to have somewhat mitigated the criticism that he did nothing during the interim budget presentation recently.

Mukherjee cited constitutional niceties to support his decision not to make any changes in the existing tax structure. However, popular pressure appears to have got the better of the need to observe constitutional propriety. We see the current economic downturn as an exceptional situation which requires policy response on a regular and consistent basis.

So, Mukherjee need not feel any sense of guilt that he has gone against his essential nature by announcing indirect tax cuts within a fortnight of presenting an interim budget. The tax cuts would certainly help improve sentiment for both industry and consumers alike.

The finance ministry will sacrifice revenues of about Rs 30,000 crore with these tax give-aways. With this, the total indirect tax give-aways in the past few months would amount to Rs 70,000 crore this fiscal. This is about 1.5% of GDP. The only worry that remains is on account of the ballooning fiscal deficit. Given the nature of the current economic crises the consensus around the world is to err on the side of doing more than might be seen as reasonable in normal times. So any fiscal boost through tax cuts is welcome at this stage.

In any case, the government cannot do much in the next three months as the nation prepares for the general election. The next government takes over sometime after mid-May. Once a new government is in place, more comprehensive tax cuts could be undertaken to boost the economy. Pranab Mukherjee did the right thing by not touching direct taxes which would have required an endorsement by Parliament.

That could prove tricky as many allies of the Congress are politically in a hard bargaining mode. Their behaviour can become unpredictable in the event of a money Bill being brought to Parliament. Therefore, cutting indirect tax is politically safe. We can now expect the central bank to deliver some more monetary boosters in the months ahead as the inflation rate races downward.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-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