Page 6 - Taxation

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'Need to moderate rate, widen tax base for Viksit Bharat goal by 2047'

There is a need for a shift in the taxation mindset from rates to revenue by moderating tax rates and widening base in order to achieve the goal of 'Viksit Bharat' by 2047, experts said. They underscored the need on transition from rates to revenue focused on lowering tax rates, enlarging the tax-paying base and thereby creating the means for financing of India's investment and development needs. "Conventional higher tax rates haven't resulted in significant tax buoyancy. Recognising this fact, governments in India since 1991 onwards have clearly batted for moderate tax rates leading to greater levels of transparency and compliance," EY India senior partner Sudhir Kapadia said. Time has come to bite the bullet for reforms in direct taxes, he said, adding, there could be one simplified rate structure for businesses and for individuals, there could be one simple three-rate structure with low or moderate rates, no surcharges and cesses and no significant deductions. On GST, he said, a

GST Council to meet on Jun 22, may take up review of online gaming taxation

The GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet after a gap of eight months on June 22, and is likely to review the implementation of 28 per cent GST on the online gaming sector. "The 53rd meeting of the GST Council will be held on 22nd June, 2024 at New Delhi," the GST Council Secretariat said in a post on X. The 52nd meeting of the GST Council, which comprises finance ministers of all states and UTs, was held on October 7, 2023. The agenda for the 53rd meeting is yet to be circulated amongst the Council members. This would be the first Council meeting after Lok Sabha elections. Results of the elections were declared on June 4, and Sitharaman was sworn in as a Cabinet minister in the new Modi Government on June 9. The GST Council is likely to review the decision to levy 28 per cent GST on full value of bets for online gaming companies which came into effect from October 1, 2023. In its meetings in July and August, the GST Council had approved amendmen

Reforms in customs duties, GST, commerce to push India's growth: GTRI

Implementation of key strategic reforms such as simplification of customs duty structure, GST, and not incentivising low value-added electric vehicles would help India ensure its sustainable development and inclusive growth, GTRI said on Thursday. Economic think tank Global Trade Research Initiative (GTRI) also said that India is standing on the cusp of a transformative era and there is an urgent need for comprehensive economic reforms. "From simplifying the convoluted customs duty structure to pioneering regulatory sandboxes for cryptocurrencies, and from boosting the MSME sector through GST (Goods and Services Tax) reforms to fortifying our energy security, this agenda lays the foundation for a robust, resilient, and globally competitive India," it said. It said that the current basic customs duty structure, which affects USD 680 billion worth of imports, has not been reviewed in 20 years, leading to over 27 different duty rates and over 100 specific or mixed duty slabs. Currentl

Tax dispute intensifies over marketing and ad expenses of MNC subsidiaries

The tax authorities argue that these AMP expenses incurred by MNC subsidiaries enhance the value of trademarks or brands owned by the foreign parent entities

Increase taxes anymore and we leave: British American Tobacco to Pak govt

Multinational company warns country's leadership against increasing taxes on tobacco

India should impose tax on ultra-wealthy to tackle wealth inequality: Study

India needs to impose a 2 per cent tax on net wealth exceeding Rs 10 crore and a 33 per cent inheritance tax to deal with the problem of rising inequality in the country, a new research paper co-authored by economist Thomas Piketty has suggested. The paper titled 'Proposals For a Wealth Tax Package to Tackle Extreme Inequalities in India' propose a comprehensive tax package on the ultra-wealthy to tackle the massive concentration at the very top of the wealth distribution and create valuable fiscal space for crucial social sector investments. "Raise phenomenally large tax revenues while leaving 99.96 per cent of the adults unaffected by the tax. "In a baseline scenario, a 2 per cent annual tax on net wealth exceeding Rs 10 crore and a 33 per cent inheritance tax on estates exceeding Rs 10 crore in valuation would generate a massive 2.73 per cent of Gross Domestic Product (GDP) in revenues," the paper suggested. The paper said that the taxation proposal needs to be accompanied by ..

Govt may review inverted duty structures in washing machines, air purifiers

The government is likely to consider addressing the issue of inverted duty structure for certain products like paper, furniture, washing machines, solar glass, and air purifiers to promote domestic manufacturing, an official has said. Inverted duty structure refers to taxation on inputs at higher rates than finished products that result in the build-up of credits and cascading costs. The official said the Commerce and Industry Ministry has shared a list of products with the Finance Ministry to look at the inverted duty structure issues. The list was shared after holding detailed consultations with industry associations and export promotion councils. "We have already sent the list to the Finance Ministry. The list includes products such as paper, furniture, washing machines, solar glass, air purifiers, and some cases in apparel and jewellery also," the official said. Inverted duty structure impacts the domestic industry, as manufacturers have to pay a higher price for raw materials

Resolve inaccuracies in AIS promptly with real-time status update tool

Reconciling financial transactions with Annual Information Statement before filing return can prevent inquiries by taxman

GST dept developing registration system for shared warehouse for e-commerce

GST authorities are working out a mechanism to deal with the taxation and registration issues related to shared warehouses maintained by e-commerce companies, where multiple suppliers store their goods for the last mile delivery, an official said. The issue of taxation for warehouses has cropped up after multiple suppliers have geo-tagged the same warehouse as their 'additional place of business' under the Goods and Services Tax (GST) rules. "We are working to see whether a 'shared workplace' or 'coworking space' concept can be implemented for the warehouses maintained by e-commerce companies to store goods of multiple suppliers," the official told PTI. Under Goods and Services Tax (GST) law, suppliers to an e-commerce platform can store their goods at a common warehouse. However, the suppliers in their GST registration are required to show the warehouse as an additional place of business. The official said that when multiple taxpayers register at a single warehouse, the geo-tag ..

Why Indian HNIs invested in blank-cheque shell cos are facing tax scrutiny

Tax notices might be linked to information sharing between India and Bermuda, a popular jurisdiction for incorporating SPACs, similar to the Cayman Islands.

Chatroom: CBIC's clarificatory circulars have retrospective effect

TNC Rajagopalan answers SME queries related to GST, export and import matters

Corp tax collections as proportion to GDP yet to reach pre-tax cut levels

After surcharges and cesses, this tax comes to 17.01 per cent against 29.12 per cent if the companies don't opt for this tax

Taxpayers can now see if feedback is acted upon by reporting entities: Govt

CBDT releases new functionality in AIS for taxpayers to display status of information confirmation process in real time

Fake HRA claims: What is this tax controversy and how to protect yourself?

It appears that some taxpayers might have fabricated rent receipts from non-existent landlords to claim HRA.

HUF, LLP, infra bonds and more: Legal hacks used by the rich to save taxes

Limited Liability Partnerships (LLPs) have emerged as a favorite among HNIs. Unlike companies, where profits are taxed twice, LLPs offer a single layer of taxation.

What makes wealth and inheritance taxes bad for India's economic progress

Taxation of wealth and inheritance has been tried in India before. These ideas should not be resurrected

High base, change in product mix to weigh on life insurers' margin in Q4

In March 2023, there was a surge in the sale of high-value non-participating policies after the Union Government's revision in taxation norms

CGST Commissionerate busts syndicate involved in Rs 1,000 cr ITC fraud

Meerut CGST Commissionerate on Thursday busted a syndicate that fraudulently claimed Input Tax Credit of over Rs 1,000 crore through a network of 232 fake firms and arrested three persons. The Anti-Evasion branch of Central Goods and Services Tax (CGST) of Meerut Commissionerate started an investigation in October 2023 into a large syndicate that fraudulently claimed ITC by way of fake billing, an official statement said. The investigation conducted so far has revealed that a total number of 232 fake firms, with 91 firms registered on a single mobile number, are registered at various places across the country and have passed inadmissible ITC of around Rs 1,048 crore, it said. The total value of goods shown to be supplied through these firms is around Rs 5,842 crore, it said. Through the use of various analytical tools such as E-way Comprehensive Portal, Advait and Business Intelligence and Fraud Analytics (BIFA), the CGST Commissionerate carried out a deeper investigation, it ...

Rs 1 trillion at stake in mineral tax tussle between Centre and states

As Centre and states contest the issue of taxation rights in court, CAGR of revenue from coal stands at 13.8% during 2014-23