Taxation
After president's nod, next steps ahead on GST
After the nod from President Pranab Mukherjee to the Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, and its Gazette notification, the process remains long in implementing the pan-India Goods and Services Tax (GST) regime:
 
- The parliament will once again have to take up three relevant bills -- one to permit the central government to levy a Central GST, another for an Integrated GST where more than one state is involved and then a model bill to facilitate states to levy their respective State GST.
 
- In tandem, the states will have to enact their own legislation for their respective State GSTs. This is because the GST regime will involve the imposition of both a Central and a State levy, both at preferably identical rates.
 
- Another main issue to be addressed is: What will be the GST rate? This remains a matter of hot debate and the various base rates recommended by experts and stakeholders vary from around 15.5 percent to as high as 26 percent.
 
- The rate has to be decided by the soon-to-be-formed GST Council, which will be chaired by the Union Finance Minister with all state finance ministers as members.
 
- The GST Council also has to put in place a dispute resolution mechanism. 
 
- The necessary IT infrastructure, too, has to be set up. Towards this, a non-government company was constituted in 2013 -- Goods and Services Tax Network. This company has mandated Infosys to provide the IT backbone. The progress in this regard, officials maintain, is as per schedule.
 
- The Goods and Services Tax Network has targeted October for the commencement of transferring all existing assessees to the new system, along with software and hardware tests.
 
- Training will also begin for some 100,000 officials at the central and state levels who are involved with indirect taxes.
 
- The coding of items and the rates of tax into the software is to commence in December, followed by beta runs from February.
 
- The system, officials said, is expected to be fully functional by mid-February for trials -- in time to meet the targeted roll-out date of April 1, 2017.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Passenger car sales up 10% in August: SIAM
Passenger cars sales increased by 9.53% in August to 177,829 units from 162,360 units sold during the corresponding month of last year, industry data showed on Thursday.
 
The utility vehicles' (UVs) off-take zoomed in the month under review by 47.38 per cent to 65,745 units, while van sales were up 2.52% to 15,148 units.
 
According to Society of Indian Automobile Manufacturers (SIAM), the total passenger vehicle sales, which includes cars, utility vehicles and vans, accelerated by 16.68% to 258,722 units last month.
 
Industry data for August revealed that sales of overall commercial vehicles inched up by 1.53%. The segment is a key indicator of economic activity.
 
The commercial vehicles segment's off-take for August 2016 stood at 52,996 units.
 
Three-wheelers sales, logged a healthy growth of 9.01% to 50,193 units last month.
 
Overall, sales of two-wheelers, which include scooters, motorcycles and mopeds, grew exponentially. The segment's sales rose by 26.32 per cent to 1,648,883 units.
 
Product-wise, scooter sales in the month under review grew by 32.92% to 567,782 units, whereas the motorcycle sub-segment sales, logged a growth of 22.19% to 1,005,666 units.
 
Besides, mopeds' off-take zoomed by 36.83% to 75,435 units.
 
However, overall exports across categories declined by 14.52% to 309,215 units which were shipped out during last month.
 
Total automobile sales in August were higher by 23.72% to 2,010,794 units.
 
According to Abdul Majeed, Partner-Price Waterhouse and an auto expert, OEMs (original equipment manufacturers) sales to dealers increased significantly to cater to consumer demand for passenger vehicles and two wheelers in the upcoming festival seasons over the next three months. 
 
"This is backed by many positive factors such as good monsoon, overall positive customer sentiment, better cash flows in the hand of the consumers and some new launches at attractive prices by few OEMs," Majeed said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Opposition wants railway fare hike rolled back
Opposition parties -- the Congress, the AAP and CPI-M -- on Thursday slammed the surge pricing in railway fares on premium trains and demanded its rollback.
 
The Congress termed the government decision as "Tughlaqi farmaan" and the Communist Party of India-Marxist said it showed the government's "pro-rich bias". 
 
Delhi Chief Minister Arvind Kejriwal also denounced the hike in railway fares on Durunto, Shatabdi and Rajdhani trains.
 
The government on Wednesday announced what it termed as "flexi fares", under which the base fares of the Durunto, Shatabdi and Rajdhani trains will go up by 10 per cent with every 10 per cent of berths sold, subject to a prescribed ceiling limit.
 
"Battling rising price of essential commodities and runaway food inflation, the decision by the Modi government to impose 'surge pricing' through 'flexi fare system' in Rajdhani, Duranto and Shatabdi trains is a rude shock for the ordinary people," Congress leader Randeep Surjewala said. 
 
He said the surge pricing was "an underhand tool to collect Rs 1,000 crore annually by burning pockets of honest middle class families" who still see the railways as the only cost effective option of long distance travel. 
 
Surjewala said the decision to implement surge pricing from September 9, ahead of the festival season of Dussehra, Diwali, Chhat Puja, Onam and Eid-ul-Azha, proves the "anti-people mindset" of the Modi government.
 
The CPI-M pointed out that the scheme excludes the highest class of travel, that is, AC I and Executive Chair, "reflecting the pro-rich bias of the government".
 
"This demand-driven scheme is a mask to cover a sharp hike in fares for 90 per cent of the passengers," the Left party said, as it "cautioned" that this could be a prelude to similar hike in other trains as well.
 
Kejriwal, who travelled by Shatabdi Express train to Ludhiana on Thursday, tweeted: "I am in Shatabdi right now. Spoke to several people. Everyone is against the Modi government's surge pricing.
 
"AAP strongly opposes surge pricing in railways and demands that it should be rolled back," he added. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Jadhwani

9 months ago

airline are owned privately - they may do such surge pricing
indian railways is property of nation and citizens - how they can rob us by this wrong pricing ?? already we paying hefty TATKAL fees to railway - not enough ???

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