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: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: cpt :: VAT Audit :: ACCOUNTING STANDARDS :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: VAT RATES :: TDS :: articles on VAT and GST in India :: empanelment
 
 
General »
 Advance tax payout by top cos grows just 2% in Sept quarter
 Why abolishing personal income tax may not be a good idea
 Questions about the GST cess
 How to prepare for the looming tax-extension deadline
 Income tax: Gratuity for employees raised to Rs 20 lakh; here is how you will benefit
 Haryana to set up scrutiny panel on GST benefits
 Waive certain taxes for companies in insolvency proceeding
 I-T department to appoint 7600 more tax return preparer scheme to cover entire country
 All eyes are on GST as Centre plans higher social pension
 Exporters demand total exemption from GST
 Here's what you must know to stay clear of taxman

Businesses leaving for AP, tax base eroding, says Telangana
September, 22nd 2014

Telangana government has claimed that an exodus of businesses to Andhra Pradesh is underway after the new state came into existence in June this year, and there would be a significant erosion of the tax base once Hyderabad ceases to be the common capital.

"There are already incipient signs of about 3,000 dealers, businesses and trading houses shifting their base to the residual state of Andhra Pradesh. The momentum will pick up in the years to come.

"There will be erosion of tax base not only in respect of VAT, but also stamps and registration, motor vehicles tax and state excise," the Telangana government has said in a memorandum submitted to the 14th Finance Commission.

"The present tax base will witness massive erosion once Hyderabad ceases to be the common capital of the successor states of Andhra Pradesh and Telangana.

"The number of people visiting Hyderabad will come down drastically and there is likely to be a consequent fall in sales of petroleum products and other commodities," it added.

As per the Andhra Pradesh Reorganisation Act Hyderabad will be the common capital for ten years; thereafter it will be the capital of only Telangana.

According to the government, many dealers report sales (to tax authorities) only in Hyderabad though the products are sold all over (the erstwhile) Andhra Pradesh, creating a false picture that Hyderabad (and Telangana) has a huge revenue-generation potential.

Hyderabad accounted for nearly 80 per cent of the VAT collected in the entire erstwhile AP, creating this erroneous impression about the revenue potential, it says.

With limited revenue potential of the eight of the ten backward and drought-prone districts, and "imminent erosion" of the tax base in the remaining two districts, the fiscal scenario is bleak and a matter of serious concern, it says.

The share of Telangana in the total tax base of united AP would be around 44 per cent, it predicts, adding that the Finance Commission must take into account erosion of tax base and increase in the establishment expenditure of the new state, and allocate more funds.

It also alleges that there has been "systematic erosion" of resources of Telangana between 2001-02 and 2009-10, as large tracts of government land, particularly in Ranga Reddy district of Telangana (which is adjacent to Hyderabad city) were sold to private parties for over Rs 9,000 crore.

"In the light of these facts, the claim that the combined state developed the capital city of Hyderabad falls flat. People in Ranga Reddy district, more particularly farmers, lost their livelihood forever," it has said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

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