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: cpt :: Central Excise rule to resale the machines to a new company :: form 3cd :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: articles on VAT and GST in India :: due date for vat payment
 
 
Service Tax »
 IT infrastructure firm of GST under scrutiny for tax evasion
 GST council OKs draft law on relief to states
 GST Network gets notice for avoiding service tax
 GSTN contract may attract tax
 GST Council may discuss tax rate on gold at Udaipur meet
 Govt may rework indirect tax estimates mid-way after GST
 GST Council meeting: States allowed to tweak taxpayer division after consulting Centre
 Government may rework indirect tax maths mid-way after GST entry
 Govt may rework indirect tax mid-way after GST entry
 GST rollout will reduce disparity among states
 GST: E-tailers oppose tax laws

CII pushes for long-delayed Goods & Services Tax
July, 02nd 2013

The Confederation of Indian Industry (CII) has made a strong push for the long-delayed introduction of Goods and Services Tax (GST) to boost economic growth.

The all-encompassing GST was mooted by finance minister P Chidambaram in Budget 2007-08 and was expected to come into force by April 2010. However, the government continues to dither on implementation.

"GST is one of the most awaited reform measures on the table and industry hopes that political developments would not overshadow its progress," said Adi Godrej, chairman of the special task force on reforms of CII.
Commenting on the work of the empowered committee of state finance ministers, Godrej said, "The committee has met three times in recent months. There have been positive developments on issues like compensation to states for central sales tax, exemption list and dispute settlement authority."

CII pointed out that issues such as threshold limit, compounding scheme for small traders and taxation of inter-state trade still need to be discussed by this committee. The final design of the GST model depends on the resolution of these pending concerns.

The body says GST will benefit the Indian economy at large apart from producers and consumers by imparting efficiency to the indirect tax system. "GST has the potential to add as much as 1.5-2 percentage points to the GDP growth rate," Godrej said. "Given the current slowdown of the Indian economy, such a measure is imperative. It is a ready stimulus."

It is believed that GST will increase the tax base, curb tax evasion and raise compliance for both indirect and direct taxes. CII is concerned about media reports that a high combined central GST and state GST rate is being considered. "We suggest that the combined tax rates should not exceed 18% and that exemptions to the GST coverage should be minimal," recommended Godrej.

He urged the committee to address industry concerns relating to inclusion of all goods and services in the Constitutional Amendment Bill. Real estate is not covered by the Bill although it constitutes a significant chunk of the economy as well as consumption expenditure of households on housing. States may be allowed to levy additional stamp duty over GST at a moderate rate. Similarly, alcohol too should be covered in the Bill, said CII.

Another point related to subsuming all taxes in GST, including entry tax and entertainment tax collected by local bodies and electricity duty levied by states. CII says exclusions will negate the spirit of an all-inclusive tax and add to costs as assessees will not be able to claim input tax credit. Also, including these taxes at a later stage will require a constitutional amendment.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Experience

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