Posts Tagged ‘VAT’

Rajasthan Exempts VAT on Sugar

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

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Rajasthan exempts VAT on sugar

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Rajasthan exempts VAT on Sugar:

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Now sugar would be cheaper by Rs 2 in Rajasthan.

Rajasthan government has decided to exempt VAT on imported sugar in the state till June 30.

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This will help in reining the spiralling sugar prices in a week’s time.

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“The state imposes 4% VAT on sugar. With this exemption, the prices will go down by Rs 160 per quintal,’ says a government official.

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According to Indian Sugar Mills Association, the world sugar economy is facing significant gap between world consumption and production for the second consecutive year.

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The first revision of the world sugar balance for October 2009 to September 2010 puts world production at 159.887 million tonnes, raw value, up by 6.911 million tonnes or 4.5% from the last season.

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The global use of sugar is expected to reach 167.134 mn tonnes.

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Therefore, the world statistical deficit is expected to reach 7.247 million tonnes as against 8.404 million tonnes projected in September 2009.

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Sugar Trade Association of Rajasthan secretary Ballabh Kabra said that this decision can make way for sugar mills to buy imported sugar. “This is the first step to cool down the prices.

We are waiting for government’s nod for importing sugar on our own.

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Sugar prices in Rajasthan are hovering around Rs 41- 43 a kg.

Apart from 4% VAT, sugar attracts mandi tax of 1.6% and an entry tax of 0.25% in Rajasthan,” he said.

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In Other major Commodities Update, we have news about the easing of food prices in coming days as signaled by the Food and Agriculture Minister Sharad Pawar.

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Food prices to ease next fiscal: Pawar

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Food prices are expected to decline in the next fiscal on the back of higher farm output and the only worry then for the government would be on storage, Food and Agriculture Minister Sharad Pawar has said.

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He, however, said that the country would remain import dependent when it came to pulses and edible oils for the next 10 years.

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On the possibility of prices coming down in the next financial year beginning April one, Pawar told in an interview to a news channel: “100 per cent”.

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In 2011-12 the problem which the government of India will have to worry about (is) what to do and where to store”.

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Food inflation touched 17.40 per cent for the week ended January 16 on account of high prices of vegetables and pulses.

On controlling prices of pulses, the minister said.

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GST Introduction in April to Reduce Indirect Tax Burden

GST Introduction to Reduce Indirect Tax Burden

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

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.


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.

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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🙂

Gold prices fall on weak global cues

Due to fresh off-loading by speculators in sync with a weakening global trend, gold futures prices declined by 1.43%.

However, gold for far-month June contract tumbled by 1.43% to Rs 17,320 per ten gram in one lot.

Meanwhile, the metal for delivery in April also declined by 1.08% to 17,282 per ten gram in 186 lots, while February by 1.13% to Rs 17,236 per ten gram in business volume of 6,201 lots.

On the other hand, it is said that fresh off-loading by speculators on account of weakening trend in global markets decreased gold prices at futures market.

Further, gold tumbled by 29.30 dollar to 1128.30 dollar an ounce in New York last night.

PM asks states to work for GST implementation

PM Manmohan Singh has asked the states to work towards speedy execution of the new indirect tax system

PM Manmohan Singh has asked the states to work towards speedy execution of the new indirect tax system

Prime Minister Manmohan Singh asked the states to work towards speedy execution of the new indirect tax system as the deadline of April 1, 2010, for introduction of proposed goods and services tax is nearer.

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However, the Centre and states have not yet reached an agreement for goods and services to be included in the GST regime.

Moreover, the decision on a lower charge on food products and exemption to some of them is still to be taken.

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Further, GST will do away with most of central indirect taxes like excise and service tax level and VAT as well as subsume local levies like octroi and purchase tax at the state level.

On the other hand, the Empowered Group of State Finance Ministers decided about the levy having a dual structure, one at the Centre and the other at the state level.

States also decided to have 2 main rates for GST along with a special rate for precious metals but the Centre is yet to take a call on it.

However, many states are not willing to subsume the local levy and also have a fear of losing financial autonomy.

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