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: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: due date for vat payment :: TDS :: articles on VAT and GST in India :: VAT Audit :: list of goods taxed at 4% :: VAT RATES :: cpt :: form 3cd :: ACCOUNTING STANDARD
 
 
General »
 The most thrilling idea before every Budget: No income tax
 Finance Ministry likely to tweak Minimum Alternate Tax norms to boost industry
 Income tax department warns people to keep away from benami transactions
 New helpline for income tax e-filing
 The Central Government notifies the Companies (Amendment) Act, 2017
 GST Returns: Government Relaxes Rectification Norms
 Will govt bring change in income tax slab? here's the present structure
 No income tax exemption to cooperative banks
 Bitcoin investors may have to pay capital gains tax
 What industry expected when Modi government implemented GST
  The Finance Resolution And Deposit Insurance Bill, 2017

Tax forgone helps new industries to come up
February, 28th 2015

There may be an element of overstatement in the finance ministry’s claim of revenue forgone on account of tax breaks to businesses and such unrealised revenue actually serves a conscious purpose of encouraging certain industries that would never have come up without these incentives, points out the Economic Survey 2014-15.

The survey, presented in Parliament on Friday, said the projected revenue forgone of Rs 11.4 lakh crore for 2013-14 is not in the nature of a receipt that was waived off by the government. It actually represents targeted incentives for the promotion of certain sectors. One factor contributing to the overstatement is the fact that the peak rate of customs duty on non-agricultural goods has been kept at 10% for a number of years as against schedule rates that are manifold higher.

Also, the estimate of tax revenue forgone does not factor in “externalities by way of ancillary economic gains due to the progress of any sector”, said the survey. While broadly justifying such tax breaks meant to promote industries, the survey also suggested that there may be a case for rationalising some of the tax exemptions. Already there is an 18.5% Minimum Alternate Tax (MAT) on companies the corporate tax liability of which falls below 18.5% of the book profits on account of tax breaks.

The survey said the the proposed Goods and Services Tax (GST) would reduce the overall tax burden on goods, which is currently estimated at 25-30%. The new indirect tax regime is also expected to make Indian products more competitive in world markets leading to higher exports and economic growth. However, in the near term, revenue gains to the exchequer may not be significant as GST would replace a number of state-level and central taxes and their cascading effect.

The budgeted 19.8% growth in gross tax revenue and a revenue buoyancy of 1.5 for 2014-15 on a GDP growth estimate of 13.4% at current market price may be an overstatement given the growth trends in both, said the survey.

Overstatement?

* One factor contributing to the overstatement — on revenue forgone — is that the peak rate of customs duty on non-agricultural goods has been kept at 10% for years as against schedule rates that are manifold higher

* Also, the estimate of tax forgone does not factor in ‘externalities by way of ancillary economic gains due to the progress of any sector’

* The budgeted 19.8% growth in gross tax revenue and revenue buoyancy of 1.5 for 2014-15 on a GDP growth estimate of 13.4% at current market price may be an overstatement given the growth trends in both

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

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