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 STANDARD :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: cpt :: VAT Audit :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: TDS :: due date for vat payment :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd
News Headlines »
 CBDT releases Income Tax Return statistics for last two fiscals
 CBDT issues second round of Certificates of Appreciation to tax payers for their contribution towards Nation building
 FinMin looks at cut in corporation tax
 Draft Rules for prescribing the method of valuation of fair market value in respect of the trust or the institution-Chapter XII-EB of the Income-tax Act, 1961- reg.
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers

How about a tax structure?
July, 03rd 2009

The stage is set for big-ticket reforms in the tax structure with the focus on simplicity. The era of a number of taxes such as fringe benefit tax, commodities transaction tax, securities transaction and surcharge and cesses may be over, going by the agenda outlined by the Economic Survey.

The survey has recommended a review and phasing out of these taxes, which have irked taxpayers since the time they were introduced.

FBT, which is a kind of presumptive tax under which some of the benefits given by employer to the employee are deemed as given, remains highly unpopular with the industry.

Indeed, many leading economic experts who have vehemently opposed it.

Same is the case with STT, the surcharge on income tax and the education and higher education cesses. Incidentally, FBT, STT and CTT, which is yet to be notified, and the two cesses were introduced by former finance minister P Chidambaram in the last United Progressive Alliance government.

Its time to remove taxes such as FBT, STT and CTT and simplify the tax regime in the country, said former RBI governor Bimal Jalan.

Experts also point that as the stated intent of the government is to simplify tax structure, these kinds of taxes do not go in line with this.

If you look at the income tax statute, these taxes are not taxes on income and should therefore not be part of the income tax law. FBT is a tax on expenditure and STT is a tax on transaction. So, irrespective of whether you have an income or loss, you have to pay these taxes. These taxes may not contribute much revenue to the exchequer, but it increases administrative inconvenience and compliance cost, said KPMG partner Vikas Vasal.

The survey has also called for rationalisation of the dividend distribution tax to ensure that there is no double taxation on income. While part of the tax reform agenda could roll out in the forthcoming Budget, the new Direct Tax Code expected next year may carry the rest forward.

But the review may not be limited to just direct taxes. Indirect taxes could also see some rejig in this Budget, as the Centre and states work out the nitty-gritty of the Goods and Services Tax.

Reducing Customs duties on inputs to correct the inverted duty structure could also form part of the indirect tax reforms in the coming days.

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

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