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Services spared from extra tax during GST transition

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Delhi: The government on Tuesday said that the services sector will not be charged extra tax levied during the transitional period of the implementation of the goods and services tax (GST).
According to Rashmi Varma, special secretary, revenue, in the finance ministry, the one percent additional tax which is proposed to be levied during the transitional period of GST for two years will not impact services sector.

Verma, who was addressing the CII (Confederation of Indian Industry) Big Picture summit held here, elaborated that the additional levy will only be charged on the manufacturing sector.

The special secretary assured the media and entertainment (M&E) industry that the soon-to-be-implemented GST will be a game changer for the sector.

“Multiplicity of tax will go in one stroke. Entertainment, services and goods tax both at the Centre and states will be built into one — making compliance hassle free.”

However, the entertainment tax levied by local authorities like panchayats and municipalities will remain, she clarified.

“But, the share of such taxes to the total tax collected would be insignificant. Close to 99 percent of the taxes levied under the Centre and state dispensation would be merged with GST,” Verma said.

She assured the industry that under the GST regime, goods and services would be taxed uniformly.

The industry had voiced concerns over the lack of definitional clarity between goods and services, tangible and intangible goods.

Verma said all industries would be eligible to take credit under GST to set off against other tax liabilities.

“We are working on the transition roadmap, so that the change-over hiccups will be minimal and if there are any concerns remaining, the GST Council, which will be set up after the constitutional amendment, will look into it and take corrective actions,” she said.

Besides the ongoing process, the top finance ministry official mentioned that a fourth draft proposal on returns will be put in public domain to seek the views of all stakeholders.

The ministry plans to place a model legislation in public domain by mid-November. It also plans to hold regional workshops to elicit the views of the industry associations at the apex and state levels.

Verma said there would not be any concessions or incentives schemes under the GST regime.

“The states which want to continue with the fiscal concessions for specified sectors could do so, setting apart resources from their own kitty,” she said.

She added that no final decision has been taken on GST rate.

“The slabs under the GST would be minimal – one low and the other high and in between a standard slab – to keep the cascading effect to the minimal and easy to comply.”

“It is not in the sinful list, I can assure you that,” Verma added

(IANS)

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Indian Companies Invested Over $4 Billion in South Africa, says CII

According to the report, leading Indian companies such as Wipro, state-run Coal India, Cipla, Jindal Steel and Power, Mahindra and Mahindra have recently made investments in South Africa.

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PwC Chief Executive (Southern Africa) Dion Shango said:
Companies, representational image, Pixabay

Indian companies have invested over $4 billion in South Africa and created 18,000 direct jobs in the continent’s biggest economy, the Confederation of Indian Industry (CII) said on Sunday

According to a new CII report “Indian Industry’s Inclusive Footprint in South Africa – Doing business, doing good”, prepared jointly with British advisory multinational Pricewaterhouse Coopers (PwC), there are 140 Indian companies operating in South Africa whose contributions go beyond foreign direct investment (FDI) in the country, and include key CSR and skill development initiatives.

“Indian companies operating in South Africa are not just investing funds and creating jobs, but are actively contributing to the upliftment of the communities in which they operate,” a CII release said here.

According to the report, leading Indian companies such as Wipro, state-run Coal India, Cipla, Jindal Steel and Power, Mahindra and Mahindra have recently made investments in South Africa.

According to the report, leading Indian companies such as Wipro, state-run Coal India, Cipla, Jindal Steel and Power, Mahindra and Mahindra have recently made investments in South Africa.
Indian companies invest in South Africa, pixabay

“In the healthcare sector, the entry of Indian pharma companies Ranbaxy and Cipla brought in drastic reduction in the cost of anti-retroviral drugs in South Africa, saving thousands of lives. Indian companies are taking steps to transfer skills to South Africans, particularly in the IT sector,” it said.

Also Read: Over 10 Lakh Bankers to go on Strike, Wants IBA to Improve Offer

In a statement, CII Director General Chandrajit Banerjee said: “The report highlights the journey of the historic and economic relationship between India and South Africa, looking at the key sectors where Indian companies are thriving.”

PwC Chief Executive (Southern Africa) Dion Shango said: “Indian companies are demonstrating their commitment to sustainable development in South Africa across education and healthcare schemes to job creation, agricultural projects and empowering women.”

A focus on ethical business practice comes through in the report, as this is of critical importance for Indian companies operating in South Africa, the statement added. (IANS)

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