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 :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: cpt :: empanelment :: VAT Audit :: TDS :: due date for vat payment :: list of goods taxed at 4% :: form 3cd :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4%
 
 
News Headlines »
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act
 Have you got interest on your income tax refund?

Chinese checkers plan play tax on St
June, 15th 2007

Speculation is swirling that China will scrap tax on interest income to help cool the stock market, but the idea is drawing frowns in some parts of the government. Abolishing the 20% withholding tax would make returns on deposits now negative after inflation more attractive and so might staunch a record outflow of cash from banks and into the stock market, economists say.

But Liu Shangxi, a deputy director with the Research Institute of Fiscal Science under the ministry of finance, said tampering with the tax to tackle a passing problem would run counter to Beijings intention to build a predictable taxation system. Tax changes are very serious. Taxes should not be adjusted in response to market conditions, Liu said.

A tax researcher with the Chinese Academy of Social Sciences, who declined to be named, was also sceptical about the rumoured move. The issue has never been put on the table in the government discussions Ive attended, though the academic debate is always there, she said.

The tax came under fire in March when 27 delegates to the Chinese Peoples Political Consultative Conference, a largely symbolic advisory council, proposed scrapping the tax.

The delegates said the tax, which was introduced in 1999, should be abolished because it had failed in its purpose of boosting consumption; moreover, it adds to the pain for depositors, especially when inflation-adjusted rates are in negative territory.

But the CASS researcher said it would be premature to adjust any one tax without taking account of the overall personal I-T system.

The debate over the tax has become acute because deposit rates now badly lag inflation. Demand deposits pay just 0.72%, while one-year certificates of deposit return 3.06% or 2.45% after tax. With consumer inflation running at a 27-month high last month of 3.4%, households withdrew a record 278.4 billion yuan ($36.5 billion) from banks in May. Most of the money apparently went into the surging stock market, which hit a record high on May 29.

Alarmed by the speed of the rally, the government tripled stamp duty in the early hours of the following day. The market lost 20% but has since recovered to within 5% of its record, prompting feverish talk of what steps the government might take next.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Development Software Programming Software Engineering Custom Software Development Requirement Based Software Development Software Solutions Software Serv

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