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: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: empanelment :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: form 3cd :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: TDS :: due date for vat payment :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4%
 
 
VAT (Value Added Tax) »
 Haryana govt exempts solar equipment from VAT
 AP to push for same benefits under GST for VAT exempted goods
 Andhra Pradesh to push for same benefits under GST for VAT exempted goods
 Petrol prices set to rise in Goa with increase in VAT
 Payment systems to remain open on all days from March 25, 2017 to April 1, 2017
 Delhi cuts VAT on ATF to 1% for regional flights; other states to announce the same soon a
 Shops cannot charge VAT on discounted items: Consumer forum
 Delhiites have to pay lowest taxes as AAP govt announces cuts on VAT on various items
 Tamil Nadu minister justifies VAT hike on fuel
 State Government urged to withdraw hike in VAT on petrol, diese
 High VAT may encourage illegal trading

ITC shares under pressure after Karnataka hikes VAT on tobacco
March, 22nd 2012

Shares of cigarette major ITC underperformed the broader markets and the FMCG index on the Bombay Stock Exchange Wednesday on concerns about higher taxes in states. ITC faces risk of more taxes imposed by state governments over next two months.

Brokerage firm Barclays said more tax changes are expected when states announce their budgets. This is precisely what happened in Karnataka today. The state government has proposed a hike in VAT on tobacco products from 15% to 17% in the Budget today. Karnataka contributes 9% to the volume of ITC's business.

Though excise duty was hiked in the Union Budget presented last week, most brokerages had maintained favourable calls on the stock reasoning that the company had the pricing power to pass on the hike.

"Excise duty structure becomes hybrid with effective hike at ~15%. The hybrid system raises the proportion of variable taxes. Remain confident of ITCs pricing power, no downside to estimates," brokerage firm CLSA had said in its report on the company.

However, with more and more states hiking duty on tobacco, the FMCG giant may under some pressure.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Services SEO LLC e-boost Search Engine Optimization Services Internet Marketing Services Website Placement Services On-site Webs

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