Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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: ACCOUNTING STANDARDS :: VAT RATES :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: articles on VAT and GST in India :: list of goods taxed at 4% :: empanelment :: due date for vat payment :: form 3cd :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
General »
 India’s GST among most complex in world, and it is 0% tax rate that is hurting the idea
 Can’t overrule courts with retrospective amendments, says Supreme Court
 Why tax planning should be an all-year round activity
 8 financial tasks you should do in the next 30 days
 Income Tax department may defend CPC in returns fraud case
  Income tax department sends notices to investors over tax treaty gains
 Seven months after GST rollout: Time for handholding over, Centre to intensify efforts to curb tax evasion
 Individual angels may get tax relief too
 The differences between tax and cess
 Startups that raised funds from angel investors face tax scrutiny
 Tax collection assumptions in India's budget ambitious

Retain tax exemption of state PSUs, Modi tells FinMin
April, 29th 2013

Bihar Deputy Chief Minister Sushil Modi has asked the Centre to remove the clause in the Finance Bill 2013 that seeks to disallow state PSUs from availing income tax exemption on fee and royalty paid by them to state governments.

In a letter to Finance Minister P. Chidambaram, Mr. Modi, who is also Chairman of Empowered Committee of State Finance Ministers, argued that the provision the Budget was against the Constitutional scheme of distribution of taxation powers between the Centre and the States.

“The proposed amendment amounts to imposition of tax on state government’s income and therefore violates Article 289 of the Constitution of India,” he said.

From the national prospective, Mr. Modi added, “It does not add to the combined revenues of the central government and state governments taken together. Thus, there is no efficiency angle either.”

The Finance Bill 2013 proposed to amend Section 40 of the Income Tax Act with a view to disallowing tax deduction on payments such as privilege fee, licence fee, royalty, charges made by a state PSU to the state government.

The budget proposals, Mr. Modi said, have opened another front in the uneasy relationship between the Centre and the states at a time when the Union government needs the consent of the states for implementation of the Goods Service Taxes (GST).

“You are aware that states are already agitated by some of the actions or inactions of the central government on the issue of compensation of introduction of Value Added Tax (VAT). The proposed move will further erode the confidence of the state governments and delays the introduction of GST,” he said in his letter.

Earlier, Tamil Nadu Chief Minister J. Jayalalithaa had expressed her opposition to the amendments to the I-T Act.

Ms. Jayalalithaa, in a letter to Prime Minister Manmohan Singh, has sought the deletion of the clause and said that states have the powers to levy such fees and royalties under Article 265 of the Constitution.

She added that the provision would boost the income of the Union government to the detriment of the legitimate tax and non-tax revenue of the state governments.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

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