PC as FM: His achievements in 5 budgets

Hi Every one.

The UPA has come back to power. The ex-FM has been declared won under dubious declartion. At 3pm he accepted a probable defeat and left the counting center as he was trailing since beginning. But suddenly with an hour or so he was declared elected. GOD BLESS this highly Democratic country.

Well if he becomes FM then he sure will enter the gunnies book of records. As it is he must be a serious contender for introducing many innovative taxes in the Indian economy in the last 5 budgets as under:

1->Freight Tonnage tax for shipping companies. Refer Chapter XIIG. This is a DEEMED Income.

2-> STT. IT that was .15% when introduced and subsequently raised to .25%

3-> CTT tax at .1%. [This has been temporarily withdrawn for election funding.]

4-> Education cess 2% across the board. [This is tax on tax [surcharge] on tax]

5-> Higher education cess 1% across the board. [This also is tax on tax [surcharge] on tax]

6-> An expenditure direct tax called FBT a DEEMED dis allowance of expenditure.

7-> Service Tax was raised from 8% to 12% [How ever for election purpose it was brought down to 10% by his successor]

8-> MAT introduced for sec.10AA exempted companies.

10->Divided Tax raised from 10% to 15%

11> Covered a huge chunk of items under Service tax. Like Service tax on cheque leaves issued by bank, and interest charged etc.

Further a new levy called folio charges [Rs. 100 per quarter that is 400 per year] by banks on all accounts except Saving Bank account. It is the Business of the any business man to keep accounts of his customer. Then why should they charge the customer, I do no understand. If I say that I do not want the bank to keep my folio, will the bank accept my statement and charge interest as per my statement? They do not render any service in maintaining my account to charge me for the same. Over and above this, Service tax + edn cess + higher edn cess are also charged.

What you got? The share market [I would call it a gambling] income got taxed at lower percentage of 10% [now 15%] much lower than an income earned by toiling night and day.

Now if he becomes FM again you can expect the following:

a-> In hindi they ask “App kahan service karte hain?” and reply comes as “Main xx company may service karta hoon.”

That means an employement is a service rendered. Naturally it will attract Service tax ++ to be paid by the employer. Any case the employer can get input credit.

b-> One gives money to his/ her spouse for running the house which again is a service. This will attract service tax.

c-> A new cess at 2% will be levied as Agriculture development cess for recovering 60000 crores agri loans written off.

This article is given by Vishwanathan from ITAXUSERS group.