India’s success in making firms such as Samsung, Xiaomi, and Micromax to locally produce phones could become a cropper, once the Goods and Services Tax (GST) comes into effect, as the new expats taxation regime could neutralise the cost benefits to make these phones in India in taxation services for expatriates
“There is a near 10% tax arbitrage for manufacturing mobile phones in India in the current tax regime. However, once GST is implemented, it will be different. We hope that the Government will try and protect the arbitrage in some manner,” said Prateek Jain, Partner and National Leader – Indirect Tax at PwC India.
A IIMB Counterpoint report released in November 2016 estimates that 180 million mobile phones to be manufactured in India in 2016, which is nearly a 125% growth over the year-ago period. This has also helped in creating nearly 50000 jobs in expatriates taxation.
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Even as the contours of the GST remain fluid, the Delhi government has eased the procedure for grant of registration to fresh applications to encourage more traders to contribute towards its kitty of Value Added Tax (VAT).
In circular issued on Friday, The department of trade and taxes said that applicant dealers would be granted company formation in india within a day of applying through a mobile platform, even as it eased guidelines around the provision of bank details for the purpose. The provision of providing bank account details at the time of applying for registration under the DVAT and CST act has been made optional which will encourage more traders to register.
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Chartered accountants in India will have huge opportunities and challenges when the goods and services Tax(GST) is implemented.
Addressing the ICAI international Conference Jnana Yagna here, the urban development minister said chartered accountants should play a vital role addressing issues such as curbing black money.
Introduction of GST (goods and services tax), which is round the corner (Goods and services tax), which is round the corner is one of the pioneering and game changing transformative initiatives taking shape In our country GST introduction is a huge challenge and opportunity for the chartered accountants and you need to get ready for enabling this change in a smooth and seamless manner. Venkaiah added.
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After being subject to months of haggling and histrionics, the goods & services tax GST finally had its historic day in the rajya sabha with the passage of the bill to amend the constitution paving the way for what is popularly referred to as the concept of one nation one tax.
Barring the AIADMK which staged a walkout on the plea that it violated federalism all others, including congress voted for the bill.
Led by the former finance minister P. Chidambaram. The congress supported by members of some parties made a valiant effort to extract an assurance from finance minister Arun jaitely that as and when he would introduce the subsequent legislation to operationalize the GST it would be as finance rather than money bills. This was to ensure that they would also be voted in the rajya sabha.
The constitutional amendment will enable both centre and the states to simultaneously levy the GST, which will subsume all indirect taxes currently levied including excise duties and service tax. It will be levied on consumption rather than production.