VizagRocks Posted July 24, 2015 Report Posted July 24, 2015 y do state govts have to give up their share of the income? , they get what they are getting right now from the central govt , and all the excess % of the duties go to the central govt , atleast that's my understanding ... right now, the central govt gets only service tax from the states, and then reimburses state's share. but sales taxes or VAT rates are completely under the purview of the states. It is their biggest source of income. around 60-70%. what the GST does is, it takes the power to give tax concessions, set tax rates away from the states. and since it includes the service tax into the GST, the rate is set at 13-14% for the state, and the rest of the GST for the center. so now, the states cannot attract specific industries by giving concessions, because they'll have to forego the only income they get. Previously, they could charge VAT taxes from suppliers, even if the bigger industry had concessions. But with GST, suppliers don't even have to be from within the state. I haven't followed much of the discussion on GST, but I'm only making a commonsense argument about how much good states stand to lose. Industries don't gain much either, because of the overall tax rate is a huge burden on their margins. VAT was a perfectly good system for India.
donganaaK Posted July 24, 2015 Report Posted July 24, 2015 right now, the central govt gets only service tax from the states, and then reimburses state's share. but sales taxes or VAT rates are completely under the purview of the states. It is their biggest source of income. around 60-70%. what the GST does is, it takes the power to give tax concessions, set tax rates away from the states. and since it includes the service tax into the GST, the rate is set at 13-14% for the state, and the rest of the GST for the center. so now, the states cannot attract specific industries by giving concessions, because they'll have to forego the only income they get. Previously, they could charge VAT taxes from suppliers, even if the bigger industry had concessions. But with GST, suppliers don't even have to be from within the state. I haven't followed much of the discussion on GST, but I'm only making a commonsense argument about how much good states stand to lose. Industries don't gain much either, because of the overall tax rate is a huge burden on their margins. VAT was a perfectly good system for India. oh i get it , i dint read much about it too ... from what i see , gujarat lo unna chaala industries ki punch ... mainly pharma and chemical industries ...
VizagRocks Posted July 24, 2015 Report Posted July 24, 2015 oh i get it , i dint read much about it too ... from what i see , gujarat lo unna chaala industries ki punch ... mainly pharma and chemical industries ... I know well about tax systems in India because I started an industry in 2013, but dropped after 4 horrifying months of running for various clearances. In TamilNadu.
ballaladeva Posted July 24, 2015 Report Posted July 24, 2015 right now, the central govt gets only service tax from the states, and then reimburses state's share. but sales taxes or VAT rates are completely under the purview of the states. It is their biggest source of income. around 60-70%. what the GST does is, it takes the power to give tax concessions, set tax rates away from the states. and since it includes the service tax into the GST, the rate is set at 13-14% for the state, and the rest of the GST for the center. so now, the states cannot attract specific industries by giving concessions, because they'll have to forego the only income they get. Previously, they could charge VAT taxes from suppliers, even if the bigger industry had concessions. But with GST, suppliers don't even have to be from within the state. I haven't followed much of the discussion on GST, but I'm only making a commonsense argument about how much good states stand to lose. Industries don't gain much either, because of the overall tax rate is a huge burden on their margins. VAT was a perfectly good system for India. neelo chala matter vundi. but entha true ani judge chese knowledge naaku ledu.
SA77HI Posted July 24, 2015 Report Posted July 24, 2015 In 1991, when India faced severe economic crisis, PM P.V. Narasimha Rao appointed apolitical Manmohan Singh as Finance Minister. India's foreign reserves barely amounted to US$1 billion, enough to pay for a few weeks of imports.By 1994, when he presented his historic budget, the economy was well on its way to recovery. Yet he ploughed ahead instituting deep changes in the institutions of the country. During his speech in Parliament while presenting the Budget in 1994-95, he quoted Victor Hugo: "No power on earth can stop an idea whose time has come." His dream was that in a crisis India should undertake basic structural changes, which would lead to the emergence of a new country that would become a major global player in the world economy. Singh started the process of simplification and rationalisation of the tax system. Many controls and regulation on the industry were removed, which meant the death of the Permit Raj and a free rein to entrepreneurs. The result was that productivity in the Indian industry grew like never before.
ballaladeva Posted July 24, 2015 Report Posted July 24, 2015 oh i get it , i dint read much about it too ... from what i see , gujarat lo unna chaala industries ki punch ... mainly pharma and chemical industries ... nuvvu kejriwal fan ani vinna
donganaaK Posted July 24, 2015 Report Posted July 24, 2015 I know well about tax systems in India because I started an industry in 2013, but dropped after 4 horrifying months of running for various clearances. In TamilNadu. yeah problem is that we still follow age old british policies in giving out licenses or clearances ( they were directly imported in to our constitution and have rarely been changed or re written since then ) , the british system was made to discourage indians from venturing into money making businesses ( by vesting too much of power with the authorities who give out these permissions , most of these people used to be britishers during that period ) ... even today we follow a similar structure and u cant get clearances so easily unless u have a significant political clout and money , a lot of these laws have to be changed to encourage people to venture in to setting up industries
donganaaK Posted July 24, 2015 Report Posted July 24, 2015 nuvvu kejriwal fan ani vinna yeah man die hard fan :giggle:
VizagRocks Posted July 24, 2015 Report Posted July 24, 2015 neelo chala matter vundi. but entha true ani judge chese knowledge naaku ledu. deentlo matter em ledhu. nuvvu industry pettu India lo, within 1 month nuvvu oka pedda book ae raasthaavu.
siru Posted July 24, 2015 Report Posted July 24, 2015 neelo chala matter vundi. but entha true ani judge chese knowledge naaku ledu. Lol
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