Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get 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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: empanelment :: ACCOUNTING STANDARDS :: due date for vat payment :: VAT Audit :: articles on VAT and GST in India :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: TDS :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: ACCOUNTING STANDARD :: VAT RATES
 
 
« General »
 Fall in tax collection compounds crisis
 Govt sets up task force to review income tax laws
 Tax queries: Contact employer to get Form 16 error rectified
 Finance Ministry may hike monetary limit for filing tax appeals
 Compilation of all notifications issued ON
 Banking transaction tax to have cascading effect: NIPFP
 While filing tax in India, NRIs do not have to state overseas income
 Tax ease on cards, some daily use items may become cheaper
 It’s one year of GSTN, too
 SBI home, auto loan interest rates cut, set to be effective from Nov 1
 MNCs will have to furnish extra disclosures from March 2018

Liberation from 29 different tax regimes
August, 16th 2016

After almost 13 years of being ‘work in progress’ the political consensus on the proposed Goods and Services Tax (GST) regime came this month, with the target rollout date of April 1, 2017.

Prime Minister Narendra Modi said GST will help “the country begin its march towards freedom from tax terrorism.”

Freedom from tax terrorism? Yes, since GST is a single tax on supply of goods and services, right from the manufacturer to the consumers. But, as is the case with anything new, there is anxiety among the common man as well. Can GST be called ‘freedom from taxes’? Will it bring down the monthly bills? Will kuchcha bills become a thing of the past, as Modi promised?

Tax liberation

Mahesh Jaising, Partner, BMR & Associates LLP, says: “Implementation of GST would not mean freedom from taxes, but definitely liberation of taxes. With multiple level of taxes being subsumed under the GST, the cascading effects of taxes is eliminated and the GST regime itself addresses myriad tax issues, for instance dual levy of taxation.”

While there is a consensus among all — politicos, industry, and tax experts — that initially GST will be inflationary and the cost of some services may go up, they also point out that this could just be early hiccups and, once the dust settles, the tax regime will be advantageous for the consumer. For example, electricity is expected to be outside the purview of GST, so the current State duty on the bills will continue.

“What needs to be appreciated is the higher sense of simplicity that GST will bring in as opposed to the current multiplicity of taxes. GST is a much fairer and uniform taxation system,” says Ajay S Shriram, Chairman and Senior Managing Director, DCM Shriram, and former CII president. “Today you have 29 mini-Indias within one India in terms of common market. With GST you will have one common market,” he says.

“As GST will make inter-State supply of goods hasslefree and, therefore, save time, it will definitely help everyone in the value chain. For the industry, according to estimates, it will result in savings of almost 5-8 per cent. This will not only reduce the cost of production, but increase efficiency and even benefit the consumers.”

According to Jaising, GST contemplates a seamless flow of credits, with traders specifically being able to avail credit (with excise duty and service tax presently being a cost today).

If the standard GST rate of 18 per cent as recommended vide the Revenue Neutral Report is adopted, the prices of most consumer goods (currently attracting VAT at 14-14.5 per cent in addition to excise duty) should come down. On the contrary, GST on services would be higher than the present rate of service tax of 15 per cent and, as such, services such as telecommunication, insurance and banking would become costlier, he adds.

State demand

While the debate on the three enabling legislations — Central GST, State GST and Integrated GST — is yet to start, indications are that the Centre may accept the demand of the States that small traders should be under their administrative control.

For the consumer, in the long run, GST is meant to ease the overall tax burden.

There will be only one tax from the manufacturer to the consumer, leading to transparency of taxes paid and prevention of leakages.

With this, the overall tax on most commodities will come down.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

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