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: VAT Audit :: empanelment :: cpt :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: TDS :: ACCOUNTING STANDARD :: due date for vat payment :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: VAT RATES :: list of goods taxed at 4%
 
 
« VAT (Value Added Tax) »
 Is it a modified Value Added Tax?
 GST regime: VAT Commissioner and CBEC to work with businesses
 Amendments in the Second Schedule appended to the Act (Delhi Value Added Tax Act, 2004)
 Guidelines relating to downloading of Statutory Forms-Modification thereof
  Grant of Registration under DVAT & CST
 VAT on petroleum products to continue, to be decided by GST Council
 Government rolls out settlement scheme to clear VAT, CST dues
 Maharashtra government offers VAT benefit to realty buyers
 Govt should focus on income tax instead of VAT
 Amendments in the second Schedule received from Finance Deptt.
 VAT exemption stays in tax reform bill

MCD poll in mind, Delhi Govt plans Rs 40/cylinder subsidy to BPL families
June, 29th 2011

Delhi Chief Minister Sheila Dikshit has stolen a march on all her compatriots in executing a populist LPG policy. While the Delhi Government had withdrawn Value Added Tax (VAT) on LPG the last time prices were raised, on Monday the city Cabinet decided to subsidise the cost of LPG by Rs 40 per cylinder for the Below Poverty Line (BPL) and Antyodaya card holders.

According to public distribution system (PDS) records, nearly 5.25 lakh families would benefit from this scheme, while middle class families have been kept out of the ambit of relief. The LPG will be priced at Rs 355.35 per cylinder for families covered under BPL and Antyodaya schemes. However, consumers in the national Capital not in the BPL and Antyodaya scheme will have to shell out Rs 395.45 for an LPG cylinder after the hike.

The cost of diesel would be brought down by 37.5 paise per litre as the Government has decided to withdraw VAT on the increased prices. Diesel will now cost Rs 40.75 a litre in the national Capital. Delhi has become the fourth State after West Bengal, Haryana and Uttarakhand to announce reduction in prices of oil products.

Political experts say that the Delhi Government has taken the decision to provide subsidy to only 4.50 lakh families keeping in view coming MCD elections next year. The BPL and Antodaya card holders are traditional Congress voters in Delhi. The decision to provide subsidy to 4.50 lakh card holders means subsidy to 25 lakh voters who certainly will play a major role in the coming MCD election, said experts. It may be noted that after trifurcation of the MCD and 50 per cent seat quota for women in the MCD, the party high command has entrusted Sheila the task to win the MCD polls next year.

On the other hand, the Government claims that 25 lakh people would benefit from the subsidy on LPG, while the data available with the PDS department reveals that there are only 35,000 BPL card holders who have LPG connections. It would be wrong to say that the Government has kept the middle class and upper class families out of the ambit of relief. Most of the colonies inhabited by these people already have piped PNG gas connection, said a Government official.

After long deliberations in the Cabinet meeting, Chief Minister Sheila Dikshit said that the LPG cylinder will cost Rs 40 less for BPL and Antyodaya while diesel will cost 37.5 paise less per litre. She said the decision on LPG subsidy and cut in diesel prices will put a burden of around Rs 39 crore annually on the State exchequer. Asked about the minimal cut in diesel prices, she indicated that the Government wanted to keep room for providing relief in the event of further hike in prices of petroleum products in future.

Insiders say that the Finance Department had come up with a proposal to grant subsidy of Rs 20 on each LPG cylinder but this was rejected by the Chief Minister as the Government would have to pay Rs 500 crore as subsidy. There were differences in the Cabinet Ministers on the issue as two ministers reported to have favoured the proposal of finance department. On the other hand, Dikshit was of view that the Government should look into future and its financial position as there are talks that the prices will be further increased. The Delhi Cabinet has preferred to go ahead with the proposal to give subsidy to only BPL and Antodaya card holders as it needs only Rs 38 crore for the subsidy amount.

Under attack from all sides for raising the price of fuel, the Congress had on Saturday asked party-ruled States to reduce taxes on petroleum products to give a reprieve to the common man. West Bengal Chief Minister Mamata Banerjee announced withdrawal of sales tax on cooking gas to partially neutralise the impact of the price hike. The decision would reduce the price of a cylinder of LPG by Rs 16 in West Bengal. Haryana has also stepped in to reduce the impact of the latest hike in prices of cooking gas and diesel on the common man by announcing a waiver of the 5 per cent VAT on kerosene.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Bath SEO Company Birmingham SEO Company Bradford SEO Company Brighton and Hove SEO Company Bristol SEO Company Cambridge SEO Company Canterbury SEO Company Carlisle SEO Company Chester SEO Company Chichester SEO Company Coventry SEO Compan

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