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 :: empanelment :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: cpt :: articles on VAT and GST in India :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: VAT RATES :: VAT Audit :: list of goods taxed at 4%
 
 
« General »
 Tax savings that do not actually help save much
 Indirect tax officers seek PM Modi’s intervention for smooth roll-out of GST
 Income Tax and Budget 2017: Here’s all you need to know about tax maths for let-out property
 Tax Department To Launch 2nd Phase Of Bank Accounts' Scrutiny Next Month
 How to claim tax benefit on tuition fees under Section 80C
 Online Income Tax grievance redressal facility launched at 60 offices
 Demonetisation impact on government tax revenue marginal; direct tax personal income grew at above budget estimates
 ICAI seeks more accountability, transparency in defence sector
 Will Budget help double farmers’ income?
 Verify online deposits made post demonetisation, income tax department asks taxpayers
 Union Budget 2017: Best budget is do not change anything, do no harm, implement well

Lose tax-haven tag
April, 01st 2010

The curtain has finally come down on the popular tax exemption scheme in the hill states of Himachal Pradesh and Uttarakhand that had drawn millions in investments from a range of industries such as pharmaceuticals, FMCG and automobile.

A number of companies, including Hindustan Unilever, makers of Dove and Lifebuoy soaps, and motorcycle maker Hero Honda have invested in the two states.

Despite the intense political pressure and lobbying from these two states that have non-Congress governments, finance minister Pranab Mukherjee allowed the tax holiday to lapse as he looks to clean up the exemption-ridden tax regime in run-up to the launch of a comprehensive goods and service tax regime.

The governments of these states had written to the prime minister and finance minister and had also lobbyied with the Planning Commission for an extension of these sops.

Henceforth, new investments in these states will not be eligible for 100% excise duty holiday provided as a part of the industrial development package for the uplift of these industrially backward states.

However, all investments made until March 31, 2010, will continue to enjoy the benefit for another 10 years.
This tax holiday has come under severe criticism for reasons such as misuse, flight of capital from neighbouring states and skewed development in these states.

The Union finance ministry had tightened the eligibility norms for availing excise exemption in these states to ensure only companies carrying genuine manufacturing activity enjoyed the benefit. Companies merely labelled, packaged or did sorting instead of manufacturing were no longer eligible for the tax holiday.

The Centre incurred a revenue loss of over Rs 10,000 crore in the current financial year on account of area-based exemption that is available to states such as Jammu & Kashmir and north eastern states.

With comprehensive indirect tax reform, goods and services tax (GST), on its way, both the Centre and states are looking at replacing the complete duty exemption with a tax refund scheme. The empowered committee of state finance ministers had also recommended replacing area-based and industry-based exemptions with direct subsidy.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Internet Marketing Website Marketing Internet Promotion Internet Marketing India Website Marketing India Internet Promotion India Internet Marketing Consultancy Website Marketing Consulta

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