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 :: form 3cd :: due date for vat payment :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: VAT RATES :: TDS :: list of goods taxed at 4%
 
 
« Direct Tax »
 CBDT committee to review 'naming, shaming' of tax defaulters
 CBDT committee to review ‘naming, shaming’ of tax defaulters
 Can we measure demonetisation’s impact on income tax collections?
 CBDT signs 2 more advance pricing pacts
 Income tax returns: How to calculate income from house property
 CBDT proposes new accounting standards for real estate firms
 1 lakh entities face I-T action as ‘clean money’ drive gains pace
 Here are 4 things to know about how CBDT improves ease of doing business by issuing PAN and TAN within 1 day
 Online platforms make tax filing easy, help fill details automatically
 Delhi HC refuses to stay tax case against Young Indian
 CBDT issues draft ICDS on real estate

Ministry sees scope for higher direct taxes share in overall tax kitty
August, 21st 2008

The Finance Ministry sees scope for increasing the share of direct taxes in the overall tax kitty of the country, noting that the current level of 35 per cent stood much lower when compared with the 55-60 per cent level in many other countries.

Asserting that this stance was by no means a signal for higher direct tax rates, the Revenue Secretary, Mr P.V. Bhide, told a FICCI tax conference here that direct taxes could prove to be the only available source of additional resource mobilisation for the Central Government in the coming days.

He said that Government would in future have no other option but to start working on elimination of income tax incentives and exemptions that had outlived their utility besides bringing in non-invasive deterrence measures.

Option of additional revenue mobilisation through indirect tax is no longer available. Excise duty rates are minimalistic. As we get into GST negotiations, there is little we can do to move into higher rates. There are also international obligations on the imports (customs duty) side. So the additional resource mobilisation has to come from direct taxes, Mr Bhide said.

Stating that fiscal deficit control has become an economic necessity and legal obligation, Mr Bhide said reducing fiscal deficit had become all the more important in the wake of current spiral in inflation. Earlier, the reduction in fiscal deficit was needed to prevent crowding out of investment, but now this has become imperative due to present inflation situation, he noted.

Currently, the countrys tax-GDP ratio stood at 17.5 per cent, with the same measure at the central taxes level at 12.5 per cent. Mr Bhide said that direct taxes-GDP ratio stood at 6.5 per cent.

Tax experts attending the conference felt that eyeing direct taxes for more revenues could be laudable effort, but noted that there was no justification in continuing with existing high tax rates to sustain the collections growth trend.

One should not lose sight of global tax competitiveness in the present scenario where emerging economies are vying to get their share of FDI. Therefore it is widening of tax base that is important to sustain momentum in collections rather than making a case for continuing with existing higher tax rates, Mr Aseem Chawla, Partner, Amarchand & Mangaldas, told Business Line.

 

 
 
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