Jewelers went on an indefinite strike over the government’s decision to charge 1 percent excise duty. The strike started at the beginning of March 2016 and was called off on March 19th by national level trade bodies of jewelers and dealers. However the strike was continued by various regional jewelers associations. With the arrival of wedding season and an increase in purchase the strike was called off in April.Though the shops were shut down in various parts, the gold work was carried out in underground to meet the high demand wedding season. The government stays firm on its taxation and no plans to roll back the decision. The union Finance Minister Arun Jaitley has stated that a luxury item like gold jewelry cannot remain out of tax for companies registering in first three years http://uptra.in/company-registration-services/
The decision to levy excise duty was introduced by the previous UPA government too. The then Finance Minister Pranab Mukherjee decided to levy excise duty tax in 2012, only to roll back after a 21 day strike by various associations.The 1 percent tax will not generate huge revenue for the government but will bring the jewelers transaction under the government’s tax radar. It is a well known fact that next to Real Estate gold market is where black money is circulated. According to the gold jewelers filing for excise is duty is gruesome ordeal and excise duty authorities will exploit them with continuous raids. The government has assured that jewelers will not be harassed by the excise duty authorities. The jewelers are also opposing the mandatory PAN details of customers for transactions above 2 lakh. PAN details will help government to track any exchange of black money.
Goods and services tax the biggest reform of tax regime in India after Independence. The tax structure is expected to boost the economy of the nation. Unfortunately the bill is stuck in political issues. The ruling government NDA is unable to get the bill passed in the upper house of parliament, the Rajya Sabha.The bill was cleared in Lok Sabha, lower house of parliament, consisting of the elected representatives. Economists believe GST as the game changer for Indian Economy. The bill will simplify the complex indirect tax structure and replaces a long list of taxes such as VAT, service tax, excise etc.This will reduce the double taxation burden on industries and will bring down the production cost of goods.
Further boosts the export of goods from India.GST brings transparency in tax payment and will let the government know about the net income of any source of tax payer. This will increase the tax paying population of the nation. At present the country has only 5 percent of the population paying taxes. The desirable range is at 20 percent to make up for the fiscal deficit in the economy.The GST bill is expected to be clear the Rajya Sabha once the ruling government manages to get majority after the state elections. This process requires another year, which means the bill will be on hold till April 2017.However passing the bill is just the beginning, implementing and to sense the changes will definitely require a period of one to two years
Starting and registering a company in India is no small deal, lengthy procedure and red tape in Administration make it tough. According to World Bank’s “ease of business doing” report it takes 2 to seven days to register a name of the company and another week to complete the formalities. The Ministry of Corporate Affairs has decided to make this simpler. The ministry has launched a system to speed-up the process and completes the registration within a day. To achieve this, the entire system is automated and is less time consuming than a manual process. The department is now re-engineered to and the number of steps is reduced to 26 from the previous 39. All this process is done at the central registration center (CRC)Within a month 14,000 applications were processed of which 70 percent was done in a single day.
The remaining 30 percent of registrations were delayed due to issues of names being unacceptable. Moving ahead the government will also crunch the name selection and incorporation into one day by mid 2016. The project is first of its kind and is currently operating in New Delhi. The process will be extended to other centers in the country in the next few weeks. These steps by the government were announced during the “make in India” initiative held by the Prime Minister Narendra Modi.The process aims to bring India into top 50 countries in the “ease of doing business” category. At present India is ranked at 134 among 189 countries, lower than its neighbors Pakistan (110) and China (96)
The Mumbai tax department has recorded a rise in the tax collected in the year 2016 compared to 2015. The total amount collected as of the end of February summed up to 58,801 crore. The amount collected in the previous year was 46,753 crore. The rise in the amount is around 25.8 percent.The tax department of Mumbai zone has set a target of 69,600 crore for the entire year. The department is positive on reaching the goal.Mumbai contributes 33 percent to the nation’s overall service tax according to previous year data. The entire collection in Mumbai stood at 56,455 crore and the country’s overall tax collection was 1.67 lakh crore.
Even on a national scale the government has seen an increase in tax collection. The government has crossed its own target of 7.04 lakh crore target for the year 2015-16.The highest amount of service tax payer in Mumbai is Life insurance Corporation (LIC). The organization has paid a total of 2,801 crore. The telecom giant idea paid 2,098 crore as service tax. Idea has shelled out an additional 35.2 percent of service tax compared to the previous year.State of bank of India another major contribute to Mumbai’s service tax paid 1,305 crore. The bank paid an additional 75 percent compared to last year. Other major banks who contribute to Mumbai’s service tax are HDFC, new India assurance Co and Axis bank. Relaince Infratel paid 900 crore -an increase of 25 percent
Associate editor and Chief economic commentator, Martin Wolf has written several books on financial and economic problems. In an interview with Praveena Sharma he spoke about the Indian government conference and International Monetary fund. Arvind Subramanian the chief economic advisor said that the India’s growth depends on its export, but on verifying the export contract for 15 months, Praveena asked Wolf whether the economics advisor is misreading the global market. Wolf replied that, in case of India the GDP’s growth is 10-12% in one year. He said that the trade ratio should increase to gain success in development, thus the ratio should remain at 12% in one year. If India manages to trade in the local economy, it would be difficult to succeed. Having a tough fiscal policy weakens the monetary policy, thus the exchange drops due to decrease in the interest rate.
Wolf also said that it is necessary for India to form different schemes to improve the infrastructure. He concludes stating that, India has to face the difficulties to meet faster growth.The interviewer asked whether India has to depend on the investment-led growth due to lack of help from the global market. Wolf said that, India is in need of a more investment rate, with 35% GDP. He said that if the export rate of India increases, it will make for more imports, higher consumption, competition and more opportunities.Wolf spoke about his views on India’s budget, which focuses on agriculture. He said that since India is an agricultural country, we can export the crops on high value. And since it is an industry where the employment rate is more, emphasizing on agriculture leads to the economic growth of the country.
Finance Minister, Arun Jaitley proposed the Union Budget on February 9th , 2016. There are no changes in the income tax slab, but the small tax payers provided with some relief.The income tax slab for the year 2016-17 is like to that of the previous year’s income tax slab. For individual’s whose amount is less than Rs.5 lakh, government provides a relief amount three thousand rupees per year, and one crore income taxpayers are going to enjoy this fund.To benefit the people living in the rented house, the Ministry of Finance detects the rent payment from twenty thousand to sixty thousand. For houses that are less than 60 square meters, exemption of service tax on the housing construction. They have increased the ceiling tax from two thousand rupees to five thousand rupees for the income tax payers with five lakh as their annual income. The government plans to pay the Employees Provident Fund (EPF) of 8.33 contribution for all the startups for the first three years.
They offer employees with allowance to House rent allowances to meet the cost of their rent house. To pay the House rent allowance, the Income tax act allows detection. Yet the complete house rent tax not deductible. The employee has to pay the rent, and he cannot own the rented premises. And if the employee is staying at his own place, the HRA cannot be deductible and he has to pay the tax.You have to select your filing status, to estimate your taxation using the tax calculator. After that select the exemptions for your dependants on your list, spouse and for yourself, after you enter the income details fill in the tax credits and the tax deductions.You can then track the tax refund, which is on the top right corner of the calculator. The tax calculator 2016 will display the tax refund of the previous year, and the refund for the current year. They update tax calculator often.
The Organization for Economic Cooperation Development (OECD) is a forum in which the government works together to promote policies that will improve the economic and social welfare of the people. The Indian tax system faces many international inspections over data privacy and other preventive issues set by the government, even before the revenue department could handle the crucial information about universal operations of multinational companies.The United States and the global forum that works under the OECD, approved the data privacy proposed by India. It would subside the organization’s concern on the confidentialities they provide to the tax department under the BEPS project of the OECD.
The BEPS is Base erosion and profit shifting, which refers to the negative effect of the MNC’s tax avoidance plans on national tax bases.The country-by-country reporting, transferring pricing documentation rules are present in this year’s annual budget, reporting supplies to the companies in India with a revenue of seven fifty million euro. These companies should provide its operations, and subsidiaries that are outside India. This alarmed the companies, that they should share their data secrecy with the tax department. Hence the government has taken measures to maintain confidentiality of the companies.
Officials from Foreign Account Tax Compliance Act (FATCA) examined the Indian system, and reported that the system is enough for data privacy and exchange of information in the global forum. Thus, the Central Board of Direct Tax formed a committee with a head and a chief information security officer, and a sensitized staff member. In a recent review by the OECD, India was one among the few countries that received compliance rating. Hence the Government of India should ensure that the confidential information provided by the companies is well maintained.
Chandrakant Khaire, Minister of Parliament appealed to remove the compensation received by the land owners abiding the Land Acquisition Act 2013.The Land Acquisition Act, is an Act of the Indian Parliament that regulates the land acquisition, and lay down the procedure and protocols for resettlement and rehabilitation , granting compensation. This Act has the right to compensate the people who lost their lands, provide rehabilitation for the people who havelost their belongings, transparency in sale of land to construct building, infrastructural projects and factories.The Shiva Sena leader, Chandrakant Khaire submitted a memo to Jayant Sinha, the state of finance highlighting the Land Acquisition Act and stated that, they should not impose the income tax fee on the acquisitions provided by the Act. He stated that the Income Tax department, claims tax on the compensation sum.
The Minister of Parliament, Khaire was eager on the State Budget proposed soon after his meetings with the ministry of finance and the ministry of rural development to solve the major issue. But to his disappointment, the budget did not have any resolution to his memo.Former member of the Maharashtra Development Board, and civic activist Vijay Diwan has condemned the taxation of compensation of the land. Diwan said that the government is buying the lands in the name of compensation from the owners for a cheap or market rate, and they use many other laws to make the issue a complex one. He added that, the money used for buying the land is public’s money, and is unfair to detect this amount from the income tax.