When parliament meets today for a month-long session, early focus will be on clearing the government’s annual budget, which was presented by Finance Minister Arun Jaitley on February 1; MPs will vote on it on the 20th. But superstar status is reserved for the landmark reform, the national Goods and Services Tax (GST), which the government wants to roll out on July 1. This weekend, the Finance Minister said the measure is on track – but much will depend on how much the opposition cooperates – and that, in turn, will be influenced by the results that will be shared on Friday from five states, including Uttar Pradesh, that have just voted. Click to read more
Some of the biggest manufactuerers in the country have moved to level the playing field even before GST is put in place demanding that their vendors cut prices of goods supplied to comply with the anti-profiteering clause in the new tax regime.
The companies have already calculated the exact jump in the vendors’ margins and want that they pass it on to them. Most automobile companies and a handful of petroleum companies have started communicating to their vendors about this from early February, industry sources said. Click to read more
As the budget session of Parliament resumed on Thursday, Prime Minister Narendra Modi hoped there will be a breakthrough on the Goods and Services Tax (GST) bill and that issues will be discussed in a democratic manner.
” We hope that there will be a breakthrough+ on the GST because all states have positively cooperated. All political parties have also extended cooperation in a positive way,” he told reporters outside Parliament. Click to read more
FMCG industry which is one of the major contributors in overall GDP is going to be the topmost industry being benefited from GST.
Taxes may feel like a never ending maze to most of you. But in general people are not aware of the direct and indirect taxes they pay for while buying a product or a service. And thus, GST is being introduced so that the tax regime stays same for every state of our nation and the consumers get a superior idea of how much they have to pay. The bill is sure to bring transparency and make this ‘one country-one tax’ system. Citing some of the benefits that GST holds some of the leaders spoke on how it is going to help the smooth run of the business. Click to read more
The telecom sector’s woes are expected to accelerate once the Goods and Services Tax is implemented in July. Given that the industry operates in 22 licensed service areas, the industry will be faced with multiple jurisdictions while paying GST.
The telecom sector’s woes are expected to accelerate once the Goods and Services Tax is implemented in July. Given that the industry operates in 22 licensed service areas, it will be faced with multiple jurisdictions while paying GST. In order to avoid this the industry wants to be treated like banks where the revenues are aggregated in one place and then taxed because branches operate in different states. Click to read more
The problem with economic theorists is that they tend to make the good (or good enough) the enemy of the best. They want reality to fit their preconceptions of the ideal. Thus, they want progressive income taxes rather than regressive indirect taxes, even though the latter is easier to collect in a country like India. They don’t like transaction taxes, for they impede volumes, even though they are difficult to evade. They want neat, simple tax rates – example, an 18 per cent single tax for GST – even though it will be iniquitous, benefiting luxury products more than items used more widely. And, of course, they don’t like tax deduction at source (TDS). Why force taxpayers to collect taxes on behalf of the government? Click to read more