Saturday, June 27, 2009

Govt Can Increase Remove Repair Tax Rates In Budget - June 27, 2009

According to the expectations of the Deloitte, the Indian government will increase excise duty and service tax in the upcoming Budget to harmonise them with the proposed Goods and Services tax, which is scheduled to be introduced from next fiscal. Deloitte is an international accounting and consulting firm.

The Government has slashed excise duty rates by six per cent and service tax by two per cent in three stimulus packages, which Deloitte expects to be partially rolled back.

"The Government may cut back indirect taxes reductions made as part of fiscal stimulus packages in December-February, as the Finance Minister is expected to discuss the roll out of GST and lay down a framework plan for the introduction of the tax in the country," Deloitte Touche Tohmatsu India Senior Director (Indirect Tax) M S Mani said.

He said the government is expected to give some directional clarity on the GST and service tax and excise duty rates could be increased to help transition to the proposed GST regime.

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