In Helping Mode ; Whether Gst Is Implemented in 2010 or Gets Delayed Further, the Momentum Seems to Be Building Irreversibly Towards Its Introduction. This Would Be by Far the Biggest Story On the Indirect Tax Front.

Summary

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Budget 2009 has left the peak rates of indirect taxes unchanged, highlighting its objective of continuity. The peak rates of customs duty, excise duty and service tax will remain at 10, 8 and 10 per cent (against 10, 14 and 12 per cent, respectively, in the corresponding period last year). Since most of the reduction in the rates was done by the government as part of the stimulus packages, it was felt that the lowered rates were at best temporary and would ultimately go back to their earlier levels. At least for now it seems that the government is convinced that the lowered tax rates are the way to go.

Moving towards the concept of a single rate of duty, the government has increased the central excise duty on various items that were subject to duty at the rate of 4-8 per cent. Although exceptions have been made for certain specified food items, pharmaceuticals, paper, footwear etc., still daily use items such as toothbrush, contact lenses, MP3 players and certain industrial chemicals will become dearer due to this change.

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Extract

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In Helping Mode ; Whether Gst Is Implemented in 2010 or Gets Delayed Further, the Momentum Seems to Be Building Irreversibly Towards Its Introduction. This Would Be by Far the Biggest Story On the Indirect Tax Front.

Another significant proposal is the introduction of service tax on transportation of goods by railway, coastal cargo and through inl...

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