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: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: articles on VAT and GST in India :: cpt :: VAT Audit :: form 3cd :: empanelment :: TDS :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: due date for vat payment :: Central Excise rule to resale the machines to a new company
 
 
« Service Tax »
 India’s E-Service Tax Will Add To Foreign Content Providers’ Woes
 GST Council to discuss model laws, tax jurisdiction today
 Tax Invoice Under GST
 Insurance may fall under 12% tax slab in GST, from 14% service tax currently
 GST draft makes it must for companies to pass tax benefit to consumers
 To speed passage, Government plans GST Bills as money Bills
 No service tax on train tickets booked through IRCTC till December 31
 GST Council meet postponed to December
 Banks integrating systems with RBI, GST Network to collect tax: Arun Jaitleya
 Service tax waived for online train ticket booking till Dec 31
 Key challenges in implementation of Goods and Services Tax

Excise duty, service tax may go up by 2%
February, 22nd 2010

With barely five days to go for the presentation of the Union Budget for 2010-11, there are strong signals that Finance Minister Pranab Mukherjee will start withdrawing the economic stimulus set in place last year to revive the sagging economy, by announcing a two percentage point rise in excise duty on most goods.

Government sources, who did not wish to be identified, indicated a similar across-the-board two-percentage point increase in service tax to 12 per cent. These measures may be simple, effective ones to shore up government finances.

A six percentage point cut in excise duty in most goods from 14 per cent to 8 per cent  through 2008 and 2009 have left a gaping hole in public finances, forcing the government to borrow a record Rs 400,000 crore or 6.8 per cent of the Gross Domestic Product to plug its fiscal deficit.

Until December, the government had collected Rs 63,045 crore as central excise duty, and it appears unlikely that the budget estimate of Rs 106,477 crore will be achieved.

The tax cuts, announced in three phases to counter the downturn, has resulted in foregone revenues that total up to Rs 42,000 crore.

The budget will partially reverse the cut in excise duties by increasing them by at least 2 percentage points, said Rajeev Malik of Macquarie Securities.

The government cannot continue with the kind of large revenue and fiscal deficits and will have to initiate fiscal consolidation in the coming fiscal year ( 2010-11), the Prime Ministers Economic Advisory Council, headed by former Reserve Bank of India governor C. Rangarajan, said in its review of the economy on Friday.

The underlying economic recovery offers the scope to fully reverse the two percentage point cut in the service tax, said an official.

This would imply a rise in the cost of the 109 services such as beauty salons, health and fitness clubs and rent-a-car services.

The government is planning to peg service tax collections for 2010-11 at about Rs 75,000 crore up from the Rs 65,000 crore in 2009-10.

The government, however, will have to carefully walk wedge to ensure that higher taxes do not worsen the overall price situation hit by inflation levels of food commodities reaching nearly 18 per cent.

Excise duties and service tax will remain in place until the government rolls out a uniform goods and services tax (GST). The government is targeting to roll out GST from October 1 although contentious issues remain to be ironed out, especially on specific tax rates.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

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