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: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: VAT Audit :: VAT RATES :: articles on VAT and GST in India :: form 3cd :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: TDS :: due date for vat payment
Customs and Excise »
 Seeks to amend Notification No. 27/2014-Central Excise
 Government doubles limit of excise duty evasion for arrest and prosecution
 Excise duty evasion limit to warrant arrest revised to Rs 2 crore
 Guidelines for launching of prosecution in relation to offences punishable under the Customs Act, 1962
 GST notification triggers uncertainty over excise duty
 Preparing for GST: govt looking at restructuring excise/customs cadre
 Refund of Terminal Excise Duty (TED) under Deemed Exports where Duty has been paid from CENVAT Credit and ab-initio waiver is not available.
 CBEC directs customs officials for random search of vessels
 Rate of exchange of conversion of the foreign currency with effect from 7th July, 2016
 Common registration and return for First Stage Dealer and Importer
 Amendment to Notification No. 61/94-Customs

More businesses may come under excise duty net
February, 28th 2012

As part of the strategy to gradually phase out tax sops, the finance ministry is considering lowering the threshold for excise duty exemption for businesses in the upcoming Budget.

Businesses with an annual turnover of less than Rs 1.5 crore are exempt from Central excise duty. A lower limit would bring more traders under the tax net and add to indirect tax collections.

Under the Goods and Services Tax (GST), the government had suggested a uniform threshold of Rs 10 lakh for both the Centre and states. The finance ministry might not be in a position to bring it down to that level in the Budget, but some reduction was not ruled out, said a government official.
The finance ministry had considered reducing the threshold last year too, but it later decided to postpone the idea to avoid a blow to the small-scale industries due to the difficult economic situation.

Indications are that the new limit may be fixed at Rs 50 lakh, if the proposal goes through, and it may be reduced further to Rs 10 lakh in GST.

While the Centre wants a uniform threshold for the Centre and states, the Empowered Committee of State Finance Ministers had suggested that the limit should be kept at Rs 10 lakh for states and Rs 1.5 crore for the Centre to protect interests of small traders.

At present, value-added tax (VAT) threshold is Rs 5 lakh for most big states. It varies for other states.

States say a uniform GST threshold limit of Rs 10 lakh is not practical, as it would pinch small industries, which would have to pass on the burden to consumers, making items of daily use dearer.

The Union governments argument is that such small businesses below Rs 1.5 crore could be compensated. Apart from a minimum audit based on risk parameters, they may be spared from filing tax returns frequently.

The combined tax-to-GDP ratio of the country declined to 15.1 per cent in 2010-11, against 17.5 per cent in 2007-08. It is likely to fall further this year due to a slowdown in tax collections.

With GST being delayed further due to differences between the Centre and the states, the government wants to go ahead with some crucial tax reforms.

A change in excise duty threshold could be part of its plan, which also includes introduction of a negative list for taxation of services, point of taxation rules and place of supply rules.

The proposed measures could give a significant boost to the governments revenue collections, which are likely to fall short of Finance Minister Pranab Mukherjees expectations.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

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