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: empanelment :: cpt :: TDS :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: form 3cd :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: ACCOUNTING STANDARD
 
 
« VAT (Value Added Tax) »
  VAT returns: Relief for traders as UT allows old form
  Grant of Registration under DVAT and CST
 Taxpayers Face Big Financing Costs From VAT Bill 2017
 VAT returns: Relief for traders as UT allows old form
 Gov’t agrees to retain VAT exemptions of seniors, PWDs Read more: https://business.inquirer.net/223121/govt-agrees-retain-vat-exemptions-seniors-pwds#ixzz4W5NV2I48 Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook
 Understanding VAT refunds
  Note ban got Maharashtra govt an extra ?125cr from fuel VAT
 Note ban got Maharashtra govt an extra ?125cr from fuel VAT
 Higher tax mop up reflects no slowdown post demonetisation, says Arun Jaitley
 Traders transition from VAT to GST
 FM Arun Jaitley defends note ban with jump in tax numbers

20% VAT to hit exchequers revenues
July, 13th 2009

The Tobacco Institute of India on Sunday said the decision by the governments of Delhi and Maharashtra to increase the value added tax to 20% on tobacco products may encourage tax-evading tactics leading to revenue loss to the exchequer.
The potential revenue loss could be as high as Rs3,000 crore annually, the institute said.

...on all India basis, it is estimated that the illegal cigarettes (smuggled foreign cigarettes and tax evaded domestically manufactured) account for as much as 10 per cent of the industry, TII Director Udayan Lall said in a written response to a query.

The consequent revenue loss could be estimated between Rs2,500 to Rs3,000 crore, he said.

Recently, Delhi and Maharashtra governments has increased the VAT rates to 20% from 12.5% on tobacco products and according to experts, this may encourage other states to follow the suit.

This would also encourage retailers to purchase cigarettes and other tobacco products from wholesale dealers in the neighbouring states and smuggle them in the state without paying taxes.

Higher tax rate may further increase the evasion as the incentives become bigger, Ernst &Young Associate Director Tax and Regulatory services Vivek Sharma said.

Cigarettes accounts for around 15% of the total tobacco products but in terms of revenue as it contributes to 85% of the total taxes collected on tobacco products.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 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