VAT rise in Punjab…

Punjab, the land of wheat in India is shockingly increasing its VAT for wheat and with this all traders take a turn to its peers Rajasthan and Uttar Pradesh….

So this needs some more explanation. The tax we total should possibly constitute branched minor taxes…. The traders basically pays 14.5 % which could be divided into 5 % VAT, 2 % of it moving to the rural development fund, 3% cess and 2 % commission to the agents.. In Punjab flour millers have to pay 10.5 % percent taxes…

Things are different in Punjab’s neighbors… It’s high enough if the trader pays just a 4.6% to buy wheat from the state of Rajasthan with a minimum support price… In Uttar Pradesh, traders need to pay 8 % to get wheat and this is comparatively lower to what Punjab charges... flour mill owners don’t have to pay higher taxes and they are…

Rajasthan announced that the state offers an exemption to all the private millers and so all can come over to their place to buy wheat… This is great news to all wheat sellers with Rajasthan charging costlier taxes… So all agricultural operative domains and private wheat trading will stream to Rajasthan…

Many flour millers feel Punjab is higher in VAT and with the same quality wheat could be got in other states with a full exemption… If Punjab has to sell well, then all it has to do is to bring down the VAT to that of the peers…

Punjab has always had a higher rate on VAT for wheat… However quality is typical in all the three states with no further differences… Though Agricultural corporate concerns choose Punjab for wheat, private buyers go for the other two states…

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Indirect taxes and India…

As what RBI says, taxation in India is becoming unmanageable with possibly less credible features… The indirect tax needs to be put end else then things would go far worse…. The current income measures more than what it shouldn’t be over the current expenditure… So this can be a pivoting factor for higher indirect taxation…

The previous financial year was good at indirect taxes showing a neater sweep…. The collection number was estimated to Rs. 3.42 trillion with a significant growth of 40%... There were fair exemptions that year…

The hiking price of the fuel makes it to considerably lower the indirect tax and what is direct is that if price increases the stress to lower taxes on fuel could eventually come up… However taxes are reduced, enabling them in other ways is really easy…

Fuel tops the central excise tax collection with a 48-61 % and this would potentially continue this year if prices keep rising with no limit…

If prices of fuel go up, all it would push is the necessity and the importance of itself in the share markets… furthermore with a larger increase in the indirect taxes like customs and duty, people never fathom the mounting hike… With added inflation, another stronger feasibility crops to promote the price hike… India is on the top with high indirect taxes on a comparative basis with Nepal, 18%; and Sri Lanka, 9% and Pakistan 24 %...

All the government needs to do is a makeover and break off to the three taxes… It should significantly consider replacing these with the GST or the Goods and Service Tax that could eliminate indirect and unfair levying… If the three taxes continue to exist, then all India should be doing is to face an endangering situation and a weaker economy…

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Gold in India- The current scenario

Gold in India is becoming costlier yet the demand hasn’t come down yet… This is a 25 % to a 400 % which is a great increase both in demands and price… Also the World Gold council came out with the news that India is the only country that is in need of vaster amounts of gold as to what other countries are… The need for gold in India climbed up the ladder to about 30 percent which is reasonably a steep rise… The World Gold Council also says India’s demand over gold will keep increasing over the years and betting higher in 2020 with 1200 tonnes costing 2.5 billion rupees...

India shows real growth in the levels of gold with a patterned increase of 3 % per annum… This turns to be a good move with a finer credibility in demand and buying… In 2010, all it reached was 963 tonnes and this clearly shows sale price of gold depends only on demand and not on the increase in price… However India has been marketing gold considerably with good profit and ever existing demands…

Gold trading in India cannot be really compared to other countries… Indian women have a great affinity towards gold and ornaments... Studies show that India houses 32 % of Gold in the whole world… so what of it would account to no lesser than18,000 tonnes.. India’s annual GDP will continue to possibly grow to in and around 10 % no father than 2015, nevertheless it might also turn topsy turvy to an 8.5% percent in the farther few years..

Gold demand in India can also be attributed to the rising people, growth of GDP, stronger fund generation and inflation.. Many researchers also say that the high end selling of end is also due to the rising price of gold wherein demand is a lot higher than what one could usually expect…

A era based study done clearly accounts all the information on Gold trading like interest rate, the exchange rate, personal income tax… However the buying of gold stays reasonably high on a rising price rate…

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No Tax Exemptions for ICC

The ICC and the tax exemption, a serious topic now… The Indian government announced that the ICC cannot have a tax exemption and further explanations include a lot more than taxation… The government made sure that the tax has to be paid and sports are not exceptions when it comes to paying taxes furthermore making it clear that Sports are latent businesses that prosper and make good money… Even if there is going to be some kind of neutering over the tax rules, regulations in levying will remain the same…

Exempting sports from taxation, predominantly cricket shouldn’t be right where the ICC has proved itself flourishing to become a business channel in the past few years generating much more revenue and popularity… The Cricket Council has a lot of sponsorships and media partners and this makes it more considerable when it comes to paying taxes…

In Income tax rules, there were options for nullifying taxes for ICC champion’s trophy in the near past… The ICC must be paying taxes from the Income that it gets from the World cup winning…

Many a time, it was the Government granting offers for the world level organizations setting up sport events in India wherein it would significantly exempt taxations … It is all done on a common basis with a good political backing….

All these need to be removed with the Indian Government setting up a neater rule for levying in sports...

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Tax on Foreign Exchange trading…

The service tax on the foreign exchange trading and operation get to be deduced to Rs.50000. Creating a wave of happiness amongst foreign exchange traders this is enjoyably inviting. If not into actions things may change into higher service taxes on the FOREX area however the announcement is finally made…

The taxes for the FOREX are basically manipulated upon the money got from the transaction with a 0.1% of gross amount of currency exchanged… The amount can range until 1 lakh and the minimal tax should be around Rs.25…If it is a 10 lakh then the tax must amount to Rs.100 with a 0.5 % Gross amount exchanged…

If transactions go above 10 lakhs , then the tax should be Rs. 550 for 0.01% of currency exchange…. However the maximum service tax here should go to just Rs.5000…

In the past banks levied a 12.36 % on the FOREX transactions where the service fee would be around Rs.100 totally amounting to Rs.112.36 for each transaction….

As of now things are not the same….. The budget changed the rules with different rules applied…

The Government now has announced two ways to calculate the service tax to foreign exchange transactions… In the first procedure, the service tax that is calculated would be from 0.1% of the gross amount exchanged…. The second parametric method would be that service tax must result from 1% percent difference of the trading rate and the RBI reference rate of the current day with all parameters included for calculation…

There are mixed opinions resulting to this situation… Nevertheless things have to go on a smoother way to ensure that the service tax does come down sensibly…