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Showing posts from September 22, 2016

Early budget to help rake in more tax revenues

The advancement of the Union Budget day by a month will make the government richer as tax collections are set to be healthier, according to experts.Economists said that Rs.80,000-Rs.1 lakh crore could get added into the government kitty as budget proposals will get implemented with effect from the first day of the fiscal.

For instance, the changes in levies such as service tax made in Budget 2016 came into effect on June 1. From next year such changes will be implemented from April 1. 

This way the government will earn service tax revenues for two extra months.

“It a very positive move and will bring in certainty once the budget is presented at the beginning of the year,” DK Joshi, chief economist, Crisil said.

The government also put an end to the distinction between plan and non-plan expenditure. “Removal of the distinction between plan and non-plan expenditure will simplify and streamline decision-making and help in efficient use of resources,” Chandrajit Banerjee, director general, CI…

Jaitley Warns Against Too Many Exemptions in GST

KEEPING THAT BALANCE Speaking at Incredible India Global Investors' Summit, FM says the more the exemptions, the higher will be the rate

A day before the Centre and states sit down to thrash out key issues of the goods and services tax (GST), finance minister Arun Jaitley has cautioned against too many exemptions, warning it will lead to higher rates for others.

“More the exemptions, the higher will be the rate... Because when you exempt some people, you charge others a higher rate. For everybody to accept exemptions, actually would end up in a higher rate,“ Jaitley said at the Incredible India Global Investors' Summit while making a larger case against incentives and exemption. “India indefinitely cannot survive and sustain merely on regimes of incentives and exemptions,“ he said.

The GST Council, a body of the Centre and states, will meet for the first time on Thursday and Friday to decide on GST rates, exemptions, thresholds at which it will kick in, and other details of the l…

States want GST Council and FMs' panel, too

States want the empowered committee of state finance ministers to continue, though a GST (Goods and Services Tax) Council has been set up to recommend on key areas such as draft model Bills, rates, dual control of central and state officials over assesses.

"The states want the empowered committee to function parallel to the GST Council. The empowered committee will help states create consensus on key issues to be taken up by the GST Council," said a government official.

The GST Council is headed by the finance minister, while the empowered committee is chaired by a state finance minister. West Bengal Finance Minister Amit Mitra is the current chairman of the empowered panel. Doubts over the existence of the empowered committee arose after the constitution of the GST Council.

The committee was set up in 2000 to monitor implementation of uniform floor rates of sales tax by states and Union territories, monitor phasing out of sales tax-based incentive schemes and roll out of value…

GST FAQs: E-tailers, taxi aggregators need to register

A day before the GST Council's first meeting, the Central Board of Excise and Customs (CBEC) on Wednesday came out with an extensive clarifications detailing taxability of e-commerce players and taxi aggregators under the new setup.

The 268-page frequently asked questions (FAQ) booklet, released by Finance Minister Arun Jaitley, answered 500 questions on 24 topics, including registration, valuation and payment, scope and time of supply, refunds, seizure and arrest.

It has also clarified that taxi aggregators, including Ola, will have to register under goods and services tax (GST) and there will be no threshold exemption for them.

Similarly, e-commerce players such as Flipkart and Amazon will have to seek registration under the GST regime, irrespective of the value of supply made by them.

It also clarified that companies, including Titan, which supply watches and jewels through their own websites, will not be considered as e-commerce operators.

“A person providing any information or any…

After 92 years, Rail Budget is history

The Cabinet on Wednesday approved the merger of the Railway and General Budgets from 2017-18, ending a 92-year-old colonial tradition.

It also cleared abolishing the classification of Plan and non-Plan expenditure in the Budget and agreed in-principle to advancing its presentation in Parliament from the last working day in February. The government wants the Finance Bill to be passed before April 1.

“The government is in favour of advancing the Budget date. However, a number of states are going to the polls early next year. We will take a call on a new date after studying the election calendar,” Finance Minister Arun Jaitley said at a press conference after the Cabinet meeting on Wednesday.

Uttarakhand, Manipur, Goa, Punjab and Uttar Pradesh are slated to go to the polls early next year.

Suresh Prabhu will be the last railway minister to have presented a Budget and Jaitley will be the first finance minister to present a combined one next year.

“India was the only country with a separate Ra…