GST set to reduce the burden of Indirect Taxes on people.

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The Finance Ministry maintained that the net burden of indirect taxes on the people would reduce by 25-30% when the proposed Goods and Services Tax (GST) is introduced from April 1, 2010.

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However, it is said that real estate would also be brought under the GST scanner and deliberations in this regard between the Centre and the States were almost conclusive.

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The draft legislation on GST had been referred to legal experts and would be finalized in order to facilitate the government to achieve target of implementation of Goods and Services Tax as has been promised by April, 1, 2010.

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Meanwhile, it is said that there were divergent views expressed by the Empowered Committee of State Finance Ministers    and the Thirteenth Finance Commission (TFC) on certain issues relating to GST,  but noted that these were on the verge of finding a solution.

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On the other hand, according to the implementation programme,

the government plans to introduce the GST regime from the new fiscal to replace excise duty and service tax at the Central level

and the VAT at the State level, apart from others levies like cess, surcharges and local taxes as currently applicable on good and services.

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INDEX – The Measuring Barometer

Hello Friends here we come up with another write up on “SMC Gyan Series”.

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INDEX - The Measuring Barometer

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Topic is  INDEX – The Measuring Barometer.

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Here, we would read that what is MCX Comdex and what are the advantages of Index.

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MCX COMDEX captures diversified sectors encompassing futures contracts drawn on metals, energy and agricultural commodities that are traded on MCX.

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It is the significant barometer for the performance of commodities market and would be an ideal investment tool in commodities market over a period of time.

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The MCX COMDEX futures give users the ability to efficiently hedge commodity and inflation exposure and lay off residual risk.

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Protection can be established regardless of overall market direction.

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MCX COMDEX, India’s first composite commodity futures index was launched on June 7, 2005.

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Advantage:

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Investors who own stocks of companies having exposure to primary commodities

could use the COMDEX as a guide to hedge their risk in the commodity exchange,

thereby bringing stability to the financial markets and strengthening linkages.

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Weight age (%) of Commodities in MCX COMDEX:

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On the MCX-COMDEX, Agricultural sub-group carries 20% weighting.

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It includes ref. soy oil, potato, chana, crude palm oil, kapaskhali & mentha oil.

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Metals also carry 40% weighting and comprise gold, silver, copper, zinc, aluminium, nickel & lead.

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The energy sub-group consists of crude oil & natural gas and carries 40% weighting.

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Weight age (%) of Commodities in MCX COMDEX:

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Performance 2009:

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The chart above depicts that with the bull-run in commodities,

this index has outperformed throughout in the year 2009,

as compared to other years, where they had shown a sideways movement.

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Also Group Indices for MCX AGRI, MCX METAL & MCX ENERGY on commodity futures prices have been developed

to represent different commodity segments as traded on the exchange.

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Performance 2009

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here

Agri industry incurring Rs 76,500 cr annual loss

Hello Friends here we come up with the Latest Agri Commodities updates from various parts of the country.

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Agri industry incurring Rs 76,500 cr annual loss

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Agri industry incurring Rs 76,500 cr annual loss:

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Faced with an annual loss of Rs 76,500 crore, the Indian agriculture industry needs to gear up infrastructure facilities as also the allied food processing industry on a war footing.

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A top official of National Dairy Research Institute Deemed University, Karnal has said so, on Monday.

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Out of the loss of Rs 76,500 crore, equivalent to the annual budget of three big states,

Rs 52,400 crore accounts for perishable fruits, vegetables and poultry products.

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The huge loss, despite annual agriculture production of 149 million tons, was mainly due to

an inefficient supply chain, very low food processing and huge post harvest loss, he said.

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In Other major Commodities Updates, we can read that Oil firms have agreed to pay Rs 27 a litre, or 25% higher from existing level, for buying ethanol from sugar mills for doping petrol.

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Oil firms agree to pay 25% more for ethanol:

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After years of wrangling between oil marketing companies and sugar millers over the price at which ethanol should be sold

for fulfilling the government’s commitment of 5% blending with petrol, a consensus on the price seems to have been arrived between both the parties.

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State-owned oil companies are believed to have agreed to pay Rs 27 a litre, or 25% higher from existing level, for buying ethanol from sugar mills for doping petrol.

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Indian Oil, Hindustan Petroleum and Bharat Petroleum have agreed to raise ethanol procurement price from Rs 21.50 a litre to Rs 27 per litre.

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The companies will not float any new tender but will buy any ethanol offered at these rates.

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Currently, oil marketing companies (OMCs)—

Indian Oil, Hindustan Petroleum and Bharat petroleum—pay Rs 21.50 to buy a litre of ethanol while the sugar millers were seeking a price up to Rs 31 a litre.

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The state-run oil firms had previously expressed willingness to pay Rs 26 a litre, a rate which was not acceptable to millers.

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Sources said a compromise was reached at Rs 27 a litre.

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here