Financial Daily from THE HINDU group of publications
Wednesday, Feb 08, 2006


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Industry & Economy - Taxation


Manufacturing council prefers national value-added tax to GST

K.R. Srivats

New Delhi , Feb. 7

HOLDING the view that the current constitutional framework would not facilitate an early move towards a comprehensive all-India level Goods and Services Tax (GST), the National Manufacturing Competitiveness Council (NMCC) has made a case for a national value-added tax (VAT) that would run in parallel at both the Central and State levels.

Such an approach has been suggested in the final draft of the paper on national manufacturing strategy prepared by the NMCC. The Council has said that this would achieve the same objectives of the GST.

This route was being preferred to the comprehensive tax on goods and services, which, according to the NMCC paper would be difficult to materialise quickly under the given Constitutional framework.

Stating that the broad shape of the indirect tax reform was clear, the NMCC has in the paper said that the indirect tax reforms would perhaps work only if all the exemptions - product specific exemptions, SSI-exemptions and location-based exemptions - are terminated over a period of time.

The NMCC paper has said that there should ideally be an all-India combined GST with service sector taxation integrated into the VAT framework, instead of being a tax on turnover. The Council has also said that whenever the comprehensive GST was accepted, this should be accompanied by a withdrawal of all other taxes.

More Stories on : Taxation

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
First batch graduates from GE Foundation


Global meet on renewable energy in Hyderabad
CSO pegs growth at 8.1 pc — Estimates surpass expectations of RBI, Finance Minister
Sikkim annual Plan size fixed at Rs 550 cr
Finance Ministry not for levying health cess
Oil Ministry urges Rangarajan panel to submit report soon
Oil fall will translate to higher stocks, lower bonds
Is oil equity stakes in politically volatile regions a risk?
AP seeks market regulator for upstream gas
Maharashtra not to ban all plastic carry bags
APERC to hold public hearing
MTNL to get huge tax refund — `Licence fee is biz expense'
FBT hits insurance cos' group business
MPs seek re-look at fringe benefit tax
Manufacturing council prefers national value-added tax to GST
Rise in metal prices hits medium, small units
`State council' mooted to protect SMEs
Pampa-Vaipar link project off Centre's priority list: Minister
IIT-M introduces integrated masters programme
Agri-business policy under review: Sahay
Dubai gold imports up at 522 tonnes in 2005
India concerned about data protection: DIPP
Pune Expo 2006 opens tomorrow
Print expo to showcase latest tech developments



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line