Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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 :: empanelment :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: VAT RATES :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: VAT Audit :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: cpt
 
 
Indirect Tax »
 Why rejig of financial year could upset your tax planning
 The threat of harsh penalty should not impede tax compliance
 What are the tax exemption limits for allowances, reimbursements paid to employees? Find out
 High-income taxpayers to get priority treatment and extra facilities
 GST input tax credit rules: How taxpayers will benefit from ITC
 More complications in filing income tax returns
 Guidelines for selection of cases for scrutiny during the financial-year 2017-2018
 CBDT asks Income Tax officials to pull their socks up as revenue collection not satisfactory
 Nearly 15 pct growth in direct tax collections for fiscal 2017-18
 Transformation of indirect taxation landscape
 Plenty of hiccups' expected as India rolls out new tax reform

Tax-saving benefit given to wind industry may hurt solar sector
July, 23rd 2014

The restoration of the tax-saving ‘accelerated depreciation’ benefit for the wind industry comes at a time when profit-making enterprises are being coaxed to put up solar projects to save on taxes. (The ‘AD benefit’ allows a company to write down 80 per cent of the cost of the machinery as depreciation, thus lowering profits on which tax is calculated.)

In States such as Tamil Nadu a number of “AD customers” have cropped up for the solar industry. Only on Wednesday, three textile manufacturers near Karur in Tamil Nadu announced that they had put up a 10 MW solar plant. Thangavel Balachandran of one of the companies – Aravind-A Traders – told Business Line that the project would not be viable without the ‘accelerated depreciation’ benefit.

But now that that AD has been given to those who put up wind power projects too, it moves a part –though not all – of the business from ‘solar’ to ‘wind’.

Wind gives more bang for the buck than solar. A megawatt of solar capacity would cost about Rs. 7 crore, slightly higher than a wind project of the same size. However, while solar would generate 1.5 million kWhr a year, wind could give between 2 million and 2.4 million, depending on the location.

Of course, solar power gets paid more, but the gap between the prices of wind and solar based electricity is falling.

Also, investors who debate between wind and solar to save current taxes are likely to opt for the former because the solar industry is full of expectations of fall in prices. Moreover, solar is still a new kid on the block and as such wind is more bankable.

“With the flight of ‘AD capital’, solar sector will suffer,” says Vishal Pandya, Director of REConnect, a consultancy that operates in the renewable energy area. However, solar has an advantage – it is highly modular. One could put up a solar plant for only as much money as he has to invest, or to save tax.

It is possible to put up a 50 or 100 kW solar plant; a wind turbine of a corresponding size, if available, will not make economic sense.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Services SEO LLC e-boost Search Engine Optimization Services Internet Marketing Services Website Placement Services On-site Webs

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