19 August 2010
Advantages of Implication of GST in India
It will boost up economic unification of India; it will assist in better conformity and revenue resilience; it will evade the cascading effect in Indirect tax regime.
In GST system, both Central and state taxes will be collected at the point of sale. Both components (the Central and state GST) will be charged on the manufacturing cost.
It will reduce the tax burden for consumers;
It will result in a simple, transparent and easy tax structure; merging all levies on goods and services into one GST.
It will bring uniformity in tax rates with only one or two tax rates across the supply chain;
It will result in a good administration of tax structure;
It may broaden the tax base;
It will increase tax collections due to wide coverage of goods and services.
It will result in cost competitiveness of goods and services in Global market.
It will reduce transaction costs for taxpayers through simplified tax compliance.
It will result in increased tax collections due to wider tax base and better conformity.
Dont mix GST with TDS GST is Indirect Tax whereas TDS is Direct Tax. No impact on TDS.
19 August 2010
And also the TDS could also be changed with the passing of the Direct Tax Code by the parliament which would be effective 01st April 2011.
CAclubindia
