Search Result for : Taxation

The Dollar Business Bureau Manohar Lal Khattar, the CM of Haryana said the Goods and Services Tax (GST) is not going to adversely affect the textile business. This comes after several textile traders and unions have gone on a strike against the imposition of GST. "Textile has been placed in the slab of 5% under the GST. Presently, there is an embedded tax of central excise duties of 3.38% and 2.8% of VAT on cotton yarn," he said. Therefore, the 5% tax on fabric is not going to put additional burden on textile, Khattar claimed. "Moreover, the cascading effect would be mitigated with the event of the GST and the net effective tax on fabric would be minimal," he said at a seminar on ...

The Dollar Business Bureau  NITI Aayog, the Government think-tank, has decided to combine the 15-year vision document with 7-year medium-term strategy paper to bring out a comprehensive roadmap to accelerate the economic growth. “We are thinking of having a brief chapter regarding the vision in the 7-year strategy paper which will be a bulky document outlining the action plan for expediting growth. The vision document will be aspirational, about the kind of country we want to build...The kind of society we want to be in. It will be a kind of vision for the future,” Arvind Panagariya, Vice-Chairman, NITI Aayog told the media. Panagariya said that the Aayog has got reactions from around 10 states on the 3-year action agenda draft and will conclude it within 2 weeks. Earlier, the Government think thank had ...

The Dollar Business Bureau  With cement coming under the 28% tax rate structure under Goods and Services Tax (GST), the industry is not happy with the government slotting it under the highest tax structure as the sector is already struggling with low demand. The Government has failed to take an advantage to spur growth in the already struggling housing and cement sector by placing the commodity in the uppermost tax bracket of 28% under the GST, the industry body Cement Manufacturers Association (CMA) said reacting to the announcement. The industry body has also lamented that the taxation on cement, the highest in the Asia Pacific region, has impacted the health of the sector that is seeing just 70% of its capacity utilisation because of low demand.  “On a 50 kg bag ...

By Ranjeet Mahtani and Sweta Rajan During its meetings on May 18 and 19, 2017, the GST Council declared the placement of goods and services across the fixed GST rate slabs. The GST Council further released the list of goods liable for GST Compensation Cess along with the applicable rate of cess and released a list of services which would be liable to GST under the reverse charge mechanism. While the GST law empowers the Government to specify goods and services on which GST is payable by the recipient, the Council has approved only services that are likely to attract GST on reverse charge basis.  Rate specific issues The release of the GST rates has, as expected, triggered varying responses across industries. Some ...

The Dollar Business Bureau The Government of India is re-designing the Merchandise Exports from India Scheme (MEIS) in order to make it compliant with the upcoming new tax regime goods and services tax (GST), said a senior official on Wednesday. “The MEIS is being re-designed to make exports from India GST-compliant,” said Neeraj Prasad, Additional Commissioner, GST Cell, Central Board of Excise and Customs (CBEC), while addressing the Executive Committee Meeting of FICCI in New Delhi. Under the GST, the issue related to working capital requirements is being discussed upon by the Government, he added. The Ministry of Commerce provides duty benefits on various products under the MEIS. It offers duty benefits at 2%, 3% and 5% based on the product and ...

The Dollar Business Bureau It has been six months since the Modi-led government decided to invalidate more than 85% of cash in circulation. Curbing terror funding, boosting cashless economy and cracking down on counterfeit currency were among a host of reasons cited, the most critical one being elimination of black money from circulation. The UN recently released a study titled ‘Potential Impact of Demonetisation in India’, which stated that demonetisation alone will not be able to uproot the seeds of black money. To prevent future flow of black money, the study said, other complementary measures would be required. The Goods and Services Tax reform, voluntary disclosure of income scheme, the linking of taxation with unique identification numbers, were among the other supporting steps ...

The Dollar Business Bureau The CBDT (Central Board of Direct Taxes) has signed 2 agreements with Indian tax payers with an intention to strengthen the government's commitment for a non-adversarial tax regime. The unilaterally signed advance pricing agreements have a provision that allows the government to “rollback” the agreement. A release shared by the press Information Bureau suggested that the CBDT entered into these APAs to cover areas pertaining to Information Technology, Banking and Financial sectors. A pricing agreement can be understood as a written contract between a supplier and a business customer on the pricing of a specific commodity. An Advanced Pricing Agreement considers the volatilities of price, since a quote may expire or is subject to change at any time. Prices ...

Ranjeet Mahtani and Stella Joseph This week witnessed significant progress towards GST, with the GST Bills receiving Presidential assent and becoming enactments viz. the Central Goods and Services Tax Act, 2017 (“CGST Act”), the Integrated Goods and Services Tax Act, 2017 (ÏGST Act”), the Union Territory Goods and Services Tax Act, 2017 (ÜTGST Act”) and the Goods and Services Tax (Compensation to States) Act, 2017 (“the Compensation Act”). The provisions under these enactments shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. This is a crucial milestone in the journey towards GST, as now, there is certainty with regards to the exact shape and contour of the GST legislations, as and ...