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
Latest Expert Exchange
« VAT (Value Added Tax) »
 1 step forward, 2 steps back. Is GST going the VAT way?
 1 step forward, 2 steps back. Is GST going the VAT way?
 Pending VAT comes to haunt companies claiming input tax credit
 One-time settlement of VAT, excise disputes in the works
 Haryana government uploads photos of VAT defaulters
 Filing of online return for 4th quarter of 2017-18 extension of period thereof.
 No Cenvat credit admissible on outward transportation services from factory to buyer’s premises
  Filing of reconciliation return in form 9 for the year 2016-17
 Govt may send notice to 162 companies; ask for VAT returns
 Cenvat Credit Is Not Income Liable To Be Taxed
 Cos wanting to claim VAT refund on employees' foreign stay can get professional help

Tax proposals to boost revenue
March, 23rd 2010

Consumers especially those of mobiles and Indian-made foreign liquor may be a worried lot, but the state stands to make sizeable gains from finance minister Asim Dasgupta's tax proposals.

While Dasgupta has estimated an additional net revenue generation of Rs 110 crore through his tax proposals, industry experts suggested the hike in VAT and sales tax for these two commodities could result in added revenue of over Rs 400 crore. They feel the nature of demand for these two commodities is inelastic, which will lead to a jump in revenue.

Besides, Dasgupta has doubled luxury tax on hotel rooms that have rent of over Rs 3,000 per day. This is expected to generate additional revenue of Rs 50-60 crore.

According to the budget proposal, the finance minister has revised VAT on cellphones from 4% to 12.5%, an increase of 8.5%. For GSM, the subscriber base is 1.10 crore in the Kolkata circle and 1.97 crore in the West Bengal circle. There are around 40 lakh CDMA subscribers as well.

"A VAT hike of 8.5% on cellphones in the Rs 3,000-plus category implies that for each mobile sold, the state government will get Rs 100-Rs 150. So if 1.5 crore subscribers buy new phones, an additional revenue of Rs 225-250 crore will be generated," a cellular industry professional said.

As far as IMFL is concerned, Dasgupta has proposed to revise sales tax from 30% to 37%. According to experts, this can result in additional revenue of around Rs 150 crore. Currently, the state earns around Rs 1,600 crore from foreign liquor in the form of excise and sales tax.

Secretary of West Bengal Foreign Liquor Manufacturers, Wholesalers and Bonders Association, Parag Mitra, said IMFL sales in the state amounts to Rs 2,500 crore and the government gets a sizeable portion of this figure. Mitra welcomed the budget, saying the sale of foreign liquor would not be affected much by the hike in sales tax.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

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