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: ACCOUNTING STANDARDS :: form 3cd :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: empanelment :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: list of goods taxed at 4% :: articles on VAT and GST in India
VAT (Value Added Tax) »
 Cenvat Credit Of Additional Duties Of Customs [Cvd] On Imported Coal
 Excise Dept puts VAT refund on fast track
 Consumer fora receive 18 VAT plaints
 Appointment of Assistant VATO - F.3(14)/Fin(Rev-I)2012-13/DSVI/334
 Bio-diesel body seeks VAT relaxation
 HC seeks Delhi, centre reply on restaurants charging excess VAT, service tax
 Shakti Autos booked for evading VAT, bogus sales
 VAT sops to IOCL Paradip refinery hits Odisha revenue growth
 Government to announce new VAT rates in October
 World Wide Gst, Vat, Sales Tax Rate
 Article on Transition Process of Registrations under VAT / Service Tax Laws to GST Law

Deora VAT move hints at fuel hike
June, 22nd 2010

Petroleum Minister Murli Deora clearly indicated a rise in prices of petrol and diesel on Monday when he told state governments to reduce and rationalise sales tax/VAT (value added tax) of the two auto fuels.

In his letter, Deora asked the chief ministers to have the issue reviewed at their level so that the much-needed tax reform (of freeing fuel prices) can be implemented. If so, it would result in a price hike of petrol and diesel by up to Rs 3 per litre.

He said a rise in the international oil prices exerts an upward pressure on domestic prices of petroleum products. Ad valorem rates of VAT imposed by the state governments further aggravates the impact of international oil prices on the consumer, Deora added.

The Empowered Group of Ministers (EGoM) under Finance Minister Pranab Mukherjee is expected to meet sometime this week to consider freeing of petrol and diesel prices.

Enclosing a statement of VAT rates in different states, Deora pointed out that they are very high in most and need to be reduced. In few states, he said, the VAT on petrol and diesel is as high as 33 per cent and 24.7 per cent respectively.

In the current taxation structure, said Deora, VAT is levied by the states on an ad valorem basis, i.e. as a percentage of the price of the product. This means that when oil prices are high, taxation on the products is higher, rendering it even more expensive.

To address this issue, the ad valorem component of the VAT can be converted into a specific component, at the current levels, he said.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Company Overview

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