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
« Service Tax »
 12 ways to avoid paying more for bank services
 I-T return filing: Income Tax offices, Ayakar Seva Kendras to remain open from March 29-31
 Top 5 money matters you must settle before March 31 From income tax returns to LTCG,
 Steep fines for missing March 31 income tax deadline
 CBEC clears some air on refunds under GST, central excise, service tax laws
 3 key tax changes for senior citizens which will come into effect from April 1, 2018
 Income tax returns (ITR) filing: Not filed returns for 2 years? Beware! Deadline nearing
 All you want to know about HRA: When you can claim and how it is calculated?
 Income Tax Saving: 6 ways to save tax without investing before March 31 tax deadline
 Unnable to file your tax return? Take help of these portals
 Do you know which 80C instruments can help you save tax and carry no future tax liability?

GST not to be a cakewalk, admits Pranab
May, 19th 2010

Finance minister Pranab Mukherjee made some candid confession on Tuesday when he said that implementing the indirect tax reformGoods and Services Tax (GST) may not be a cakewalk for him vis--vis the other tax reform, Direct Tax Code (DTC).

At the same time he exuded confidence that the two tax reforms, would boost the tax-GDP ratio in India to a whopping 15% in the next three years from the current 11% level.

For DTC, I am the master, you may blame me, you may accuse me, I am to share it. But GST, 28 masters, so I shall have to keep all 28 masters with me, Mukherjee said at the Idea Exchange programme organised by The Indian Express on Tuesday.

While the DTC will replace the age-old Income Tax Act, 1961, GST would replace the plethora of indirect taxes levied by the Centre and the states.

The minister also indicated the threshold for levy of GST would be common for the States and the Centre and their tax rates would be low but without exemptions. What I am emphasising on is you have the common threshold level, you have the common and uniform rates. The aggregate impact of taxes should be less because these principles are to be followed.

If the rate of taxes is less, compliance is better and you have minimum exemptions, he said. He further added that removing exemptions, reduction in rates and expansion of horizontal tax base instead of vertical, would get more revenue. You are concerned with the net revenue, not of the rates, said Mukherjee.

The rising tax buoyancy and reduction in subsidies will help the government pare its fiscal deficit. Mukherjee said the government need to compress oil subsidy, though continuing the food subsidy. Explaining his calculations on how to reach the right fiscal consolidation mark, he said that he has taken into account Rs 1 lakh crore of subsidies including a fertiliser subsidy at Rs 42,000 crore.

To sum it up, if the food, interest subvention and subsidies all taken together would be maintained at about Rs 1.06 lakh crore, it could be possible to have the fiscal deficit at 5.5%, he said. However, on oil subsidy, he said he expected some this year. Moreover, the subsidy could be in a way which people understand and not bonds. I shall have to live within my means and I will cut my coat according to the size of the cloth. This is the basic principle that means I will not allow the fiscal deficit to move beyond a tolerable level.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

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