Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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: VAT RATES :: due date for vat payment :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: cpt :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: VAT Audit :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company
« Service Tax »
 Income tax returns (ITR) filing: Not filed returns for 2 years? Beware! Deadline nearing
 All you want to know about HRA: When you can claim and how it is calculated?
 Income Tax Saving: 6 ways to save tax without investing before March 31 tax deadline
 Unnable to file your tax return? Take help of these portals
 Do you know which 80C instruments can help you save tax and carry no future tax liability?
 E-way relief, for now, to e-commerce, courier firms sending small orders
 Where to invest for saving more on taxes
 A simpler GST can become a registry of all invoices, says iSPIRT’s Sharad Sharma
  Income Tax department may defend CPC in returns fraud case
 One GST rate not possible, next reform after compliance improves,
  Communication to the Central Excise/Service Tax Taxpayers on migration to GST

Former FM: Single rate for excise & service tax could harbinger GST
February, 21st 2011

The Goods and Service Tax (GST) should be devised in such a way that there is a uniform rate for goods and services, former finance minister Yashwant Sinha said. Rather than cavil about lack of support from the state governments to the proposed indirect tax reform, the Centre should set an example by bringing about convergence of the excise and service tax rates, he said.

In an interview with FE, Sinha said it was "entirely wrong for the Centre to say that opposition to GST comes from only BJP-ruled states".

States such as Uttar Pradesh have also expressed fears over erosion of their fiscal autonomy in the GST regime, he said. "Each state is looking at its own interest," Sinha said, adding that lack of consensus on GST was not for political reasons.

As per the GST draft released by the Centre, there would be two rates of excise (10x2 and 6x2) in the first year of the new regime. These rates would converge with the service tax rate (8x2) in the third year. Currently, the service tax rate at 10% is the same as the excise duty on most goods, but there are excise rates of 4% for certain merit goods and over 20% (for big cars), in addition to specific duty component for petroleum goods. Sinha said his introduction of the Cenvat system in the Budget 2000 with the input tax credit helped muster the states support for the state VAT. In 2004, services tax was integrated into the Cenvat chain.

As the government prepares to present the Budget amidst what looks like insurmountable problems ranging from inflation to dipping FDI inflows, Sinha has chalked out a list of eight priority areas for North Block which require immediate attention.

Classifying these under two broad categories of 'deficits' and 'excesses', Sinha said if he were the finance minister, tackling them would have received top priority.

Among the deficits, Sinha identified four areas: fiscal, current account, economic reforms and governance. "Apart from the deficits, there are four 'excesses' that needs to be curbed as well," Sinha said. The four excesses include, inflation & interest rates, wasteful expenditure, corruption and populism.

Voicing little optimism on the possibility of finance minister Pranab Mukherjee bringing about critical reforms in the Budget on February 28, Sinha said since the country was subsumed by problems, budget 2011-12 could be a populist one.

"Governments are forced to come out with a populist Budget when they are about to face elections or are under seige. It looks like we are going to have a populist Budget," he said. Another big concern area, according to Sinha, is the high PLR. "Up to 2003-04 the PLR was around 6%. But today its around 13%. Some body is paying the additional 7%," he said. However he said that the falling FDI should not be the sole concern of the government.

"FDI plays a limited role in the growth of the Indian economy. The key to growth is domestic savings rate and demand. FDI is like an icing on the cake. We have to worry about why FDI has declined and must do our best to attract more FDI," he said. Over the last one-year UPA 2 has come under immense pressure from all fronts.

While on one hand the opposition parties led by BJP have been demanding a joint parliamentary committee probe into the 2G scam, the country is beset with problems of high inflation, expanding current account deficit and dipping FDI inflows.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 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