Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Service Tax »
Open DEMAT Account in 24 hrs
 Income Tax SFT return filing due date extension: Facility to remain open for a couple of days Latest news
 Income tax filing: Waiting for your Form 16? Here is what you need to know
 Salaried? Rental tax calculation rules you should know before ITR filing in 2023
 What are new tax regime's slabs? Know its limits, benefits, and more
 How much additional tax do you need to pay? ITR filing last date for FY 2019-20
 Income Tax Return Filing: How to file ITR - step-by-step guide
 New Income Tax Slabs for Super Senior Citizens 2023-24: Which rate will apply for ITR now?
 Income Tax Return filing 2023 data: How many Indians aged 18-35 years file ITR?
 Make tax-saving a part of your overall investment plan
 Filing ITR? Maximize Your Tax Savings With These 7 Allowance Benefits
 Extension of time limit for compliance to be made for claiming any exemption under Section 54 to 54GB of the Income-tax Act, 1961 ('Act') in view of the then-Covid-19 pandemic

More than a 3rd of state taxes to stay out of GST
May, 15th 2017

While states and the Centre celebrate the shift to goods and services tax (GST), they have managed to keep at least one-third of the revenue outside the new regime and in the process denied consumers the benefit of a lower levy.

A study based on the projected tax collection in 17 states by Motilal Oswal Securities in 2017-18 showed that alcohol, real estate and petroleum, oil & lubricants accounted for 37% of the own tax revenue of these provinces. Although there is an annual review in case of the oil sector, no such mechanism exists for alcohol and real estate. State finance ministers have been keen to retain their control over these three sectors, as they are cash cows, where tweaks can help meet their revenue tar ..

Alcohol and real estate are also seen as sectors where there is significant generation of black money and illegal trades.

By introducing GST, the Centre and states are hoping to make the economy more transparent and plug leakages, besides ensuring that consumers benefit as tax on taxes or the cascading effect of various indirect taxes at every stage goes away. Clearly, a third of the states' economy would be bereft of the benefit.

The analysis by Motilal Oswal lead economist Nikhil Gupta, accessed by TOI, covered 17 major states that accounted for around 85% of the national GDP, almost 90% of gross market borrowings by all states. The thrust of the study, however, on the excise revenues from alcohol, was that the share of own tax revenue of states is projected to stay around 4.2% of total receipts during the current financial year compared with the recent peak of 6.3% in 2012-13. The 17 states have budgeted to collect Rs 83,300 crore from alcohol during the current fiscal, a rise of around 14% as against the near 10% growth seen during the past three years.Within states, those such as Karnataka depend excessively on alcohol to generate revenue.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting