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: VAT Audit :: empanelment :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: list of goods taxed at 4% :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: cpt :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: ACCOUNTING STANDARD :: articles on VAT and GST in India
 
 
Service Tax »
 Services sector need to brought under Section 72A of the Income-Tax Act
 Simplifying GST: Creating a Grand Simple Tax
 The way ahead for goods and services tax
 Goods & Service Tax (GST): Recent Clarifications
 Tax payers can see status of returns filed on GSTN portal
 Export And Import Of Goods Under GST
 The Finance Resolution And Deposit Insurance Bill, 2017
 Payment made in revenue sharing deal exempt from service tax
 India seen posting stronger growth as businesses adjust to new tax
 GST High Powered Committee On Return Filing - Representation by GST Research Foundation
  Changes In Central Goods And Services Tax Rules, 2017

Impact of service tax cut
March, 21st 2009

It is not possible for me to indulge in financial profligacy without adequate resources, said the acting Finance Minister Pranab Mukherjee, brushing aside criticism that the government was not doing enough to overcome the slowdown.

However, the government recently announced a 2% cut in excise duty and service tax rate to put some money into individual wallets and to boost consumer demand.

The general excise duty has been reduced from 10% to 8%, and the rate of service tax cut from 12% to 10%. Also, the 4% excise duty cut announced in December 2008 will now continue beyond March 31, 2009. The amount of money in the system is the same, but with this measure, the government has shifted some amount from its own reserves to the taxpayer's wallet. This should spur demand, says financial planner Rohit Sarin.

While the excise cut, if passed on to consumers, will mean that the prices of consumer durables, steel products and cars will come down marginally, it is the reduction in the service tax rate that will bring direct relief.

Processing charges on loans and credit card transaction costs could witness some reduction as they include a service tax component. Consumers can also hope to save on outgoings on mobile recharge vouchers, direct-tohome packages and operating systems software.

More Money Today stories

For investors, risk premium charges for insurance policies, brokerage charges on securities and transaction costs on mutual fund investments will see a marginal reduction because all of them include a service tax element as well. The cut in service tax will have a much wider impact, says Sarin.

Will these tax cuts impact overall expenses? The indirect taxes contribute 6-15% of average monthly spending. Considering a typical taxpayer (between 28 and 35 years, living in a metro, with a family of three), we asked experts to work out a spending pattern and average applicable indirect taxes. The result: the minimum gain for someone earning Rs 5 lakh annually will be to the tune of 10%. These gains are more pronounced as income, and therefore spending, goes up.

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

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