Source:The New Indian Express
VISAKHAPATNAM: The government is committed to providing a stable and predictable taxation regime by moving towards a lower tax regime with non-litigious approach, said principal commissioner of income tax BG Reddy.
He further added that measures like refund proposals for the individuals and for the corporates in a time bound manner besides bank guarantee for the provisional attachment of the property, will improve cash flows and liquidity.
Speaking at a seminar on ‘Budget Implications of Direct and Indirect Taxes on Trade and Industry’ organised by the AP Chamber of Commerce and Industry Federation (APCCIF) here Wednesday, Reddy said that as per the Central Board of Direct Taxes, 85 per cent of the disputed demand can be kept in abeyance till the disposal of the first appeal if the assesse pays 15 per cent of the disputed demand. In Vizag alone, tax collected up till February end this fiscal, is Rs 3,439 crore against target of ` 3,867 crore.
An expert on indirect taxation, Ramakrishna Sangu felt that the imposition of central excise duty of one per cent without Cenvat Credit facility, will result in an increase in prices of jewelry. He further stated that withdrawl of exemption on goods import, will result in an additional cost on account of ocean freight. “Service tax would have a significant impact on all the business entities with more than 10 lakh turnover where even services received from the government would be taxable under reverse charge mechanism,” he explained.