Kerala Finance Minister Thomas Issac said there will be four rates for services at 5, 12, 18 and 28 per cent, similar to tax slabs for goods.
With the goods and service tax (GST) subsuming central levies like excise duty, service tax and state VAT, the Central Board of Excise and Customs (CBEC) has reorganised its existing central excise and service tax field formations to suit the requirements of the new regime.
"In this country, 22-26 per cent is shadow economy (ie illicit economic activities like black market transactions and undeclared income existing alongside the official economy)," the minister of state for finance said here.
In the first meeting of PAC headed by its new chairman, Congress leader Mallikarjun Kharge, members also raised the issue of tax evasion by companies by misusing trusts, a PAC member present at the meeting said.
Hailed as the biggest tax reform since India's independence, GST will replace an array of central and state levies with a national sales tax, thereby creating a single market and making it easier to do business in the country.
"Unlike in other countries, the transition to the new tax regime would be smooth here because there are multiple points of taxation in the country. Hence, the possibility of sudden spurt in inflation is remote," said Adhia, who is spearheading the implementation of the Goods and Services Tax.
"If they continue on this path in the next three to five years, the level of deficit will be less than 2 per cent" of gross domestic product, IMF regional chief Jihad Azour told AFP in an interview.
Revenue Secretary Hasmukh Adhia said a system of GST Compliance Rating will be put in place so that every trader or businessman will be rated based on their track record.
While the world awaits this announcement, celebrations have started in advance. Today, the United States accounts for close to 25% of global GDP and it has already seen a significant recovery in economic growth. GDP growth, which stood at 1.6% in 2016 is expected to rise to 2.3% in 2017 and 2.5% next year as per the IMF in its April 2017 World Economic Outlook. While markets have got to wait for details, it’s clear that one big beneficiary of this reform will be metals.
Tax rates on various goods and services will be decided by the GST Council on the recommendation of the Fitment Committee.
A new financial year has begun and it is one that will see several changes in the way you manage, compute and file your taxes. It is always a good idea to start early rather than wait till March, next year. So, this week, we bring you the Money Money Money guide to simple tax planning – everything you need to know with respect to personal taxation in FY18. Our tax guru on this episode is Mayur Shah, Partner at EY.
"India has recorded quite an impressive growth performance in recent years. Our view is that the elimination of fuel subsidies and the targeting of social benefits has delivered in terms of allowing the union budget target to be achieved at 3.5 per cent of GDP," Vitor Gasper, Director of the IMF Fiscal Affairs Department told reporters at a news conference here yesterday.
"The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval for signing of a Protocol amending the convention between India and Portugal for avoidance of double taxation.
In a report titled 'South Asia Economic Focus - Globalisation Backlash', it said eliminating tax evasion and corruption -- the most talked objectives of junking old 500 and 1000 rupee notes -- is "typically a demanding process involving multiple measures overtime."
Recently the government made it mandatory to provide both Aadhaar card number and PAN number while filing for taxes.
Sarna asked officials of each zone to carry out the outreach at the local level to explain the new structure as also its benefits, registration and compliance.
The central and state governments were ready to roll out the GST, said Revenue Secretary Hasmukh Adhia, adding that firms should not count on a postponement of a tax more than a decade in the making.
In a press statement released this past Friday, the income tax department said that the efforts of Law Enforcement Agencies (LEAs) under the department of revenue have witnessed phenomenal success towards eliminating domestic black money during the last three years.
"Debt waivers create a moral hazard from a credit repayment perspective and we cannot have omnibus waivers," chairman Harsh Kumar Bhanwala told reporters here, a week after UP government announced a Rs 36,000-crore farm loan waiver package.
The analysis published in The British Medical Journal said South Asia with a population of 1.1 billion adults has about 170 million adult smokers – and mostly from India – and very low rates of cessation.
The Chairman of the Godrej Group termed as "ridiculous" suggestions in some industry and business quarters that the GST roll out be pushed to October one from July one.
In the entire 2015-16, these zones had received duty exemptions worth Rs 52,216 crore, according to the data given by Commerce and Industry Minister Nirmala Sitharaman in a written reply to the Lok Sabha.
Australian wheat with about nine percent protein was sold to Indian millers at around USD 220-USD 221 a tonne, including cost and freight (C&F).
Home loan interest rates have reduced significantly on the back of huge inflow of deposits in the banking system and creating a good atmosphere for end-users. Homebuyers can now purchase homes of their choice by making full cheque payment.