The Firm

Show Timings:

Friday: 10.30 pm, Saturday: 11.30 am

Sunday: 9:30am & 11.00pm

CNBC TV18
Network18

Budget 2014: Indirect Tax Changes & Impact

Published on Thu, Jul 10,2014 | 22:17, Updated at Thu, Jul 10 at 22:17Source : Moneycontrol.com 

By: Dharmesh Panchal, Executive Director – Indirect Tax, PwC India

The Union Budget 2014-15, touted to be a historical one, is independent India’s first budget of a majority non-congress Government.  

The much-awaited, debated and needed GST reforms appear to have come back on track with the promise from the FM that actions during the year would be taken to resolve various issues. The FM has introduced measures for tax certainty by extending Advance Ruling to resident private companies and proposing a High Level Committee to interact with industry for providing clarifications within two months.

With respect to the traditional budgetary amendments, steps have been taken to address inverted duty structure for specified sectors, rationalize indirect tax duty rates, provide concessions for renewable sources of energy and restrict negative list/exemptions for services such as online/mobile advertising, radio taxis, technical testing services of newly developed drugs & air-conditioned contract carriages. On the Excise duty front, the adoption of transaction value when goods are sold below the manufacturing cost is a welcome change and will address industry concerns.

The provisions of mandatory fixed pre-deposit of 7.5%/10% in case of first stage appeal/second stage appeal, availment of CENVAT credit within six months of the invoice date and exorbitant interest rates for delayed payment of tax beyond one year, appear to be harsh.

Nevertheless, the Budget reiterates the Government’s commitment for tax reforms and clarity in tax legislation. Beyond doubt, it is a commendable effort from a Government which has been in power for less than two months!

(With inputs from Abhishek Rastogi & Rashmi Deshpande)

 
Twitter


 
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.