<img class="gwt-Image" src="/photo/51109851.cms" style="width: 800px; height: 600px;" /> In the second major case involving a foreign company under its probe, the Central Vigilance Commission (<keyword id="47883" type="ORGANIZATION" weightage="100" keywordseo="CVC">CVC</keyword>) is investigating alleged <keyword id="741257" type="UNKNOWN" weightage="100" keywordseo="Excise-duty-evasion">excise duty evasion</keyword> to the tune of about Rs 580 crore by confectionery giant Mondelez, maker of <keyword id="6399124" type="CITY" weightage="100" keywordseo="Cadbury">Cadbury</keyword> chocolates. 
 
CVC sources said today the anti-corruption watchdog is also looking into the role of central and state government officials who might have facilitated the alleged evasion. 
 
An investigation has been started by the Commission in the case, they said, adding some documents have also been sought from the company. 
 There are allegations that certain government officials might have helped the company in allegedly evading the <keyword id="6356916" type="UNKNOWN" weightage="100" keywordseo="excise-duty">excise duty</keyword>, the sources said. 
 
It is the second big case being probed by the CVC involving a foreign private company. US-retail giant Wal-Mart has come under the scanner of the CVC amid allegations that it gave bribes to government officials to get customs clearances and and obtain permits to set up stores in India. 
 
A Mondelez India spokesperson said today they will cooperate with all the authorities concerned. 
 
"A compliant and ethical corporate culture, which includes adhering to laws and industry regulations in all jurisdictions in which we do business, is integral to our success. We firmly believe that the decision to claim excise tax benefit is valid and that our executives acted in good faith and within the law in the decision to claim decision to claim excise tax benefit is valid and that our executives acted in good faith and within the law in the decision to claim excise benefit in respect of our plant in Baddi. 
 
"We will cooperate with all authorities to address this matter through the administrative and judicial process. It would be inappropriate for us to comment at this time since the matter is in the legal domain," it said in response to a query sent by PTI. 
 
A demand of about Rs 580 crore was raised last year against Mondelez India Foods Pvt Ltd, erstwhile Cadbury India Ltd, for allegedly evading excise duty by fraudulently taking exemption for one of its 'ghost' production units in Himachal Pradesh's Baddi area. 
 
Image credit: Indiainsider

Uh-oh! Now, CVC probes Cadbury for Rs 580 crore alleged tax evasion

<img class="gwt-Image" src="/photo/50416859.cms" style="width: 800px; height: 600px;" /> The next budget session is going to be extremely important. Finance Minister <keyword id="42575" type="PERSON" weightage="100" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> expressed positive signs that the much awaited <keyword id="6354679" type="ORGANIZATION" weightage="100" keywordseo="GST">GST</keyword> Bill will be passed in the next session as numbers in the Rajya Sabha will tilt in favour of the new indirect tax regime. 

	“Half way through the next session, the numbers of the Upper House are also going to change. So I am reasonably optimistic, as far as the next session is concerned, that we may be able to push it through," Jaitley said.
 

	Parliament's Budget session will start in last week of February.
 

	Addressing the officer trainees of the Indian Revenue Service, he said there is virtually a consensus for GST among political parties and "everybody supports it".
 

	"...Parliamentary obstructionism has prevented it from happening in the last two sessions". 
 The Goods and <keyword id="645517" type="COMPANY" weightage="100" keywordseo="services-tax">Services Tax</keyword> (GST) that will subsume all indirect taxes like <keyword id="6356916" type="UNKNOWN" weightage="100" keywordseo="excise-duty">excise duty</keyword>, <keyword id="6355686" type="COMPANY" weightage="100" keywordseo="Service-tax">service tax</keyword> and sales tax into one uniform rate, is stuck in Rajya Sabha where main opposition Congress wants three changes. 

	Congress stalled the passage of the Constitution Amendment Bill in last two sessions, derailing government's plan to roll out GST from April 1, 2016.
 

	Jaitley said the concept of GST was first conceived in 2006 and the Constitution Amendment Bill was first introduced in 2011, but the UPA government could not build a consensus with the states. 
 

	"The GST is already delayed. Ideally it should have come much earlier," he said, adding that the tax regime will render India into one big market, make tax evasion difficult, ensure seamless movement of goods and services and push up GDP.
 

	Jaitley said the NDA Government after coming to power built broad consensus among the states and following that brought the Constitution Amendment Bill again in Parliament.
 

	"I continue to discuss with the states and with all political groups, so that we can ensure its safe passage in the Upper House," he said.
 

	The idea of GST was born in the earlier part of the last decade, he said. "Though people have been discussing this since the 1990s, radical idea of this kind takes time before a consensus can develop".
 

	He said after the Constitution Amendment Bill is passed in Parliament, there are three more legislations - Central GST (CGST), State GST (SGST) and Integrated GST (IGST) - which are required to be passed.
 

	"And those have been worked out. We are in the stage of readiness as far as those legislations are concerned which will have to be passed then by the Central Government and by the State governments," he said. 

	 
	 
	(Image credits: indiatimes)

Arun Jaitley confident of GST Bill in Budget 2016

Bhopal, Jun 22 () GST intelligence officials have detected tax evasion of Rs 105 crore by a cigarette manufacturing firm in Indore in the last one year, according to an official statement issued on Monday. The officials of the Directorate General of GST Intelligence (DGGI) here had conducted searches at the firm's premises last week that revealed that a secret exit had been set up on the rear side of the factory through which unaccounted raw materials were brought in and finished goods cleared, it said explaining the modus operandi. It was also found that the generator sets used for operating machines were manipulated to suppress production, the probe agency said. "Investigations conducted by the DGGI has unearthed a major tax/ duty/ cess evasion estimated to be about Rs 105 crore only for the period since April, 2019 till May, 2020," said the statement issued by the Additional Director General, DGGI Bhopal. Similar evasion is suspected to have been resorted to by the unit during remainder of GST and erstwhile central excise periods also, it said. "Hence the total revenue evasion, which would be clear only after completion of investigation, is suspected to be multiple times higher," the DGGI said. The financial investigations into the dealings of the mastermind, who was recently arrested by the DGGI in another case, has indicated that he had opened a media house in which he declared his circulation of newspaper copies at 1.2-1.5 lakh per day while actually circulation was only 4,000-6,000 per day, it said. "Thus, the mastermind of this fraud laundered huge amounts of illicit wealth (in cash) earned from illicit pan masala/ cigarettes business by declaring fraudulent sale of newspapers and also booked fictitious advertising incomes," the statement said. The DGGI said that, from the interrogation of the factory supervisor, accountant and other staff, it is estimated that less than five per cent of the production was accounted for since last many years. "Even for the accounted production, the major buyers (of these five per cent sale) have been found to be fictitious," it said. On June 19, the DGGI officials were also successful in locating one of the clandestine and unregistered godown used by the tax evaders to conceal the packing material containing specific brands of cigarettes such as K10 and A 10, the statement said. "Investigations have revealed that the seized packing material is sufficient to pack 5000 cartons (each carton containing 12,000 cigarettes) with estimated printed MRP of Rs 27 crore," it said. However, it is suspected that there may be a large number of other such clandestine and undeclared godowns in and around Indore which DGGI officials are attempting to locate, the statement said. The supplier of these two brands of packing materials has confirmed the unaccounted supply of about 1,500 cartons per month, it added. As part of 'Operation Kark', the DGGI Bhopal officials had conducted searches in the premises of over a number of pan masala/ tobacco dealers and distributors from June 9 to 12th, leading to huge seizures of clandestinely stocked non-GST paid pan masala/tobacco and detection of estimated Goods and Services Tax (GST) evasion of Rs 400 crore. The operation has been named 'Kark' -- considering the high Goods and Services Tax (Kar in Hindi) loss and the reported adverse effects of consuming illicit tobacco not subject to food and safety standards leading to high prevalence of oral cancer (Kark) in India. One of the masterminds and financial beneficiaries in this case was arrested from Mumbai on June 15. Further investigations revealed that he was involved in manufacture and supply of cigarettes from a unit in Indore. Data analysis by the DGGI officials indicated that this unit had paid a GST of only Rs 2.09 crore and Rs 1.46 crore in last two financial years, respectively. Based on further analysis and information collected, searches were conducted at five premises connected with this unit last week, the statement said. "The tax evasion syndicate in this case involves directors of the company, transporters, supporting manufacturers and raw material suppliers. Number of these persons are presently absconding and have not joined DGGI investigations," it said. AKV SMN

GST intelligence officials detect Rs 105 crore tax evasion by Indore-based cigarette manufacturer

<img class="gwt-Image" src="/photo/51190298.cms" />While presenting his third budget, Finance Minister Arun Jaitley did not change the tax slabs to bring more and more people under the tax net. 
 
Jaitley said the role of tax payers was important in nation building and each rupee contributed to sectors such as infrastructure, rural and social well being. 
 
The net revenue gain of Rs 19,610 crore was due to surplus from indirect taxes. 
 
He also announced a little relief for professionals and people staying in rented accommodations. 
 
He categorised taxation under 9 disciplines 
 
1. Tax relief to small tax payers: 
 
Jaitley announced relied for people staying in rented accommodation. The compensation in rent increased from Rs 24, 000 to Rs 60, 000 per anuum 
Presumptive income tax scheme to be extended to all professionals with income of Rs 50 lakh with presumption of 50% profit 
2.Boost employment and growth: 
 
Deduction in taxes under Skill Development by 2020 10% extra DDT on dividend recipients earning above Rs 10 lakh per annum, says FM in <keyword id="2783177" type="UNKNOWN" weightage="20" keywordseo="Budget-2016">Budget 2016</keyword> 
100% tax deductions for new startups for first 3 years 
More asset reconstruction companies 
Residency of foreign companies deferred by one year 
Exempt service tax on general insurance service under Nirmaya scheme 
Basic custom duty hiked 5%-6% 
3.Incentivise domestic value and make in India: 
 
4. Pension society: 
EPF: 40% corpus to be tax free 
Annuity income will be non-taxable 
Monetary limit 1.5 lakh per annum 
Government to introduce bill to amend Companies Act for ease of doing business; to enable registration of companies in a day 
 
Affordable housing: PM Awas Yojana to be strengthened 
100% deduction for undertaking flat of 30 sq metre, however, MAT will apply 
First home buyers: deduction for add 50,000 per annum to 35 lakh loans during next fiscal under Rs 50 lakh 
Investment in real estate: 
Exempt service tax on affordable housing 60 sq meet 
 
Add resource to more on farm, clean: 
 
Tax 10% at gross amount of dividend will be apd 10lkh/annum 
Raise surcharge 12% to 15% 
Purchase of luxury cars 
Levy infrastructure cess 1% LPG 2.5 diesel, 4% on high engine capacity and SUVs 
Branded excise duty above Rs 1, 000 goes up 6%-12.5% 
Hike in excise duty by 10-15% tobacco other than bidis 
Krishi Kalyan Cess of 0.5% on all taxable services: FM 
Clean Energy Cess to renamed as Clean Environment Cess 
 
Reducing litigation 
Tax evasion to be strengthened 
Jaitley came down heavily on black money 
3 lakh tax cases pending amounting to Rs 5.5 lakh crore. New dispute resolution scheme to settle case by paying disputed case interest. 
Levy of heavy penalty for non payment of tax has led to high litigation. Proposal to modify scheme for penalties 
 
Simplified taxation 
 
To reduce multiplicity of taxes and cascading - 13 taxes with collection less than Rs. 50 Crores a year abolished. 
Use of technology for accountability 
Income tax dept. will expand e-sahyog to assist small taxpayers 
Plan to use technology in Taxation department in a big way

Great news for the common man, no change in tax slabs but cess and excise duty hiked on several products

New Delhi, Nov 27 () The DRI has arrested a promoter of a Kolkata-based firm for allegedly evading customs duty of Rs 4.5 crore on import of Chinese-origin mobile phones and laptops, an official statement issued on Wednesday said.
"The modus operandi adopted by the unscrupulous importer was to suppress the actual retail sale price (RSP) of the imported laptops and mobile phones, and evade payment of appropriate countervailing duty," the Directorate of Revenue Intelligence (DRI) said in the statement.
It said Sunil Kumar Patwari, director of Reach Infocom Technology Pvt Ltd, Kolkata, was arrested on Tuesday in connection with an ongoing investigation into alleged evasion of customs duty amounting to Rs 4.5 crore, leviable on the imported Chinese-origin mobile phones and laptops.
He has been remanded to judicial custody till December 10, 2019, the DRI said.
An email sent to the firm did not elicit any response. 
"M/s Reach Infocom Technology Pvt Ltd is one of the group companies of Kolkata-based Rashmi Group, owned by Sajjan Kumar Patwari and his son Sunil Kumar Patwari. Rashmi Group companies have been investigated in the past by the Directorate General of Central Excise Intelligence (now DGGI) for alleged evasion of central excise duty by resorting to clandestine clearance of iron and steel products," the probe agency said.
The group is also under investigation by the CBI for alleged evasion of railway freight on iron ore, it added. AKV IJT

DRI arrests promoter of Kolkata-based group for allegedly evading customs duty of Rs 4.5 cr

<img class="gwt-Image" src="/photo/50220694.cms" /> 
The <a href="http://www.businessinsider.in/searchresult.cms?query=Finance+Ministry">Finance Ministry</a> said on Thursday that the <a href="http://www.businessinsider.in/searchresult.cms?query=Department+of+Revenue">Department of Revenue</a> has launched many initiatives to boost revenue collection. 
 
The government has hiked basic <a href="http://www.businessinsider.in/searchresult.cms?query=Customs+duty">Customs duty</a> on sugar to 40% from the earlier 15% in two installments. The basic <keyword id="6360804" type="UNKNOWN" weightage="80" keywordseo="Customs-duty">Customs duty</keyword> on wheat was hiked to 25% up to March 31st, 2016 from 10% earlier. 
 
Stating that the Directorate General of Central Excise Intelligence (DGCEI) and Commissionerates have booked 4,945 cases involving a duty of Rs 1,545.11 crore in April-October 2015, the ministry said an additional Rs 226.38 crore has been mobilised from anti-evasion operations in the said period. 
 
Image credit: Indiatimes

Finance
Ministry says govt. took steps to boost revenue

New Delhi, Mar 11 () The GST Council is likely to rationalise tax rates on five sectors, including mobile phones, footwear and textiles, and defer implementation of the new return filing system and e-invoicing in its meeting on March 14. The Council, chaired by Finance Minister Nirmala Sitharaman, would also discuss operational glitches on the GST Network portal and seek a resolution plan from Infosys, which has won the contract for managing back-end for GSTN in 2015, officials said. Further, ways to augment revenue collection would also be discussed as the Centre has made it clear to the states that it does not have money in compensation funds to pay off the states for loss in revenue due to the goods and services tax (GST) implementation. The Council would also discuss the integration of the GST e-way bill system with the NHAI's FASTag mechanism from April to help track movement of goods and check GST evasion, while also discuss preparedness for Aadhaar-based authentication of GST-registered taxpayers. The planned lottery scheme under GST, which is proposed to be launched from April 1, would also be discussed in the meeting, officials said. "The Council would discuss rationalisation of GST rate in sectors which see duty inversion, leading to high input credit refund claims," an official told . Currently, cellular mobile phones attract 12 per cent duty, while GST on some of its inputs are 18 per cent. With regard to footwear, the Council, in June last year, had lowered GST rate to 5 per cent on items worth up to Rs 1,000, while those above this value attract 18 per cent duty. However, inputs used by the sector attract GST rate in the range of 5-18 per cent. The textiles sector currently has a differential GST rate of 5, 12 and 18 per cent. This leads to difficulty in issuing and claiming of refunds by exporters. GST rate on chemical fertilisers is currently at 5 per cent, while inputs are taxed at 12 per cent. The committee of officers set up to suggest ways to augment revenue had earlier suggested several measures to remove anomalies such as inverted duty structure, which causes an annual revenue loss of Rs 20,000 crore. According to the panel, manufactured goods like fertilisers, mobile phones, footwear, renewable energy equipment, and man-made yarns attract GST of 5-12 per cent, thereby leading to an inverted duty structure, where GST on finished goods is less compared to the duty on inputs. The official further said that in view of Infosys failing to stabilise the GSTN software even after 30 months of its launch, the Council is likely to defer the new return filing system from the earlier envisaged date of April 1. Also, mandatory generation of e-invoice for business-to-business (B2B) transactions for businesses with a turnover of over Rs 100 crore is likely to be deferred by three months till July 1. Also, the Council will decide on lottery offers under GST from April 1 by conducting lucky draws every month for invoices of all business-to-customer (B2C) transactions. Launched on July 1, 2017, GST has subsumed over a dozen indirect taxes, like excise and service tax. However, revenues under the new indirect tax regime has not picked up as per expectations mainly on account of evasion. JD HRS

GST on cellphones, footwear, textiles to be rationalised on March 14

<ul><li><keyword id="61430" type="PERSON" weightage="20" keywordseo="fuel-prices">Fuel prices</keyword> in India reached an all-time high again today partly owing to the continued depreciation of the rupee. </li><li>Rather than cutting taxes on fuel, the government is instead trying to stem the slide in rupee by selling rupee-denominated bonds to foreigners and NRIs. </li><li>A cut in fuel duties runs the risk of increasing the <keyword id="6365485" type="DEFINITION" weightage="20" keywordseo="Fiscal-Deficit">fiscal deficit</keyword> further, which will, in turn, lead to the rupee’s depreciation. </li></ul>Fuel prices in India reached an all-time high again today as <keyword id="6367091" type="UNKNOWN" weightage="20" keywordseo="petrol">petrol</keyword> was being sold for ₹80.87 a litre in Delhi and ₹88.26 a litre in Mumbai while <keyword id="6356109" type="UNKNOWN" weightage="20" keywordseo="diesel">diesel</keyword> hit ₹72.97 a litre in Delhi and ₹77.47 a litre in Mumbai. The backlash has been resounding. In addition to political mudslinging, The Congress and other Opposition parties staged a “Bharat Bandh” or series of peaceful protests around India. Some schools and government offices were shut. Truck drivers also staged demonstrations. The central government, led by the BJP, has ruled out a cut in duties on fuel. In addition to a customs duty of 2.5%, the excise duty on fuel is currently ₹19.48 per litre while it is ₹15.33 per litre for diesel. The rates have been raised nine times and decreased only once since the BJP government came to power in May 2014. The rising price of fuel is mainly due to the fact that India imports most of its oil and the rupee is currently at an all-time low against the dollar. Rather than cutting taxes on fuel, the government is instead focusing on trying to stem the slide in rupee by selling rupee-denominated bonds to foreigners and NRIs, which will make the rupee appreciate. Why is the government refusing to cut fuel prices? While protests from the Opposition indicate that the central government has a choice in the matter of fuel duties, which it does in principle, the actual reality is that it is lodged between a rock and a hard place. A affects B which affects C which affects A The government is currently dealing with a large, and growing, fiscal deficit - which occurs when its expenses outweigh its revenues. It is able to keep this deficit in check (within the range of 3% of GDP) partly owing to the duties it imposes on fuel and fuel products. However, if the government were to cut fuel duties and risk a widening of its fiscal deficit, the rate of yield on its rupee-denominated bonds would be higher in light of the increased risk associated with them. This, in turn, would make them less attractive to investors, potentially leading to further depreciation of the rupee. Hence, in order to cut fuel prices, the government would find itself in a position where the rupee was worse off than it was before, which would counteract the effects of the initial reduction in fuel duties. However, this does not mean that the government will never be able to cut taxes on fuel. Once it is able to increase revenues from duties and taxes on non-oil products, which will follow heightened GST compliance and the continued crackdown on tax evasion, then its fiscal deficit will be able to bear the brunt of a reduction in fuel duties. Countries which feature a high rate of tax compliance usually have much lower duties on fuel, relative to India. Rates can also be cut at the state level, wherein <keyword id="463828" type="PERSON" weightage="20" keywordseo="value-added-tax">value-added tax</keyword> (VAT) is imposed on fuel products. Once again, though, this depends on the state’s financial situation. Some states like Andhra Pradesh and Rajasthan, which are in better financial health, have been able to cut the VAT rate on fuel products. However, for most states like Maharashtra and Bihar, which run a deficit, a cut would be hard to stomach. Banking on RBI intervention The Indian government has asked the RBI to intervene in capital markets and prevent the rupee from depreciating further. The central bank has been withdrawing funds from its foreign exchange reserves to prop up the rupee and prevent volatility in recent months, however this hasn’t proved an adequate solution. It will likely raise interest rates for the third successive time to keep inflation and check and to prevent capital outflows.

Here’s why the Indian government is not being able to cut fuel prices

<div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5d1342cbe3ecba21cb2c8f73-1779/gettyimages-1144063021.jpg" border="0" alt="Elizabeth Warren" data-mce-source="MANDEL NGAN/AFP/Getty Images" data-mce-caption="Democratic presidential candidate Elizabeth Warren gestures as she speaks during a campaign stop at George Mason University in Fairfax, Virginia on May 16, 2019." /></div></div></div><ul class="summary-list"><li style="font-weight: 400;">A <a href="https://www.businessinsider.com/category/wealth-tax">wealth tax</a> would make ultra-wealthy Americans pay the federal government a small percentage of their <a href="https://www.businessinsider.com/category/net-worth">net worth</a> each year.</li><li style="font-weight: 400;">Presidential candidates, tax experts, and <a href="https://www.businessinsider.com/category/billionaire">billionaires</a> alike have said the revenue from a wealth tax could be used to fight climate change and repair the country's infrastructure - if the <a href="https://www.businessinsider.com/category/irs">IRS</a> can find a way to enforce it.</li><li style="font-weight: 400;">Despite popular support, a wealth tax bill would have to overcome opposition in both Houses of Congress, the White House, and the <a href="https://www.businessinsider.com/category/supreme-court">Supreme Court</a> before becoming law.</li><li style="font-weight: 400;"><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories.</a></li></ul>Income inequality in America <a href="https://www.businessinsider.com/bottom-half-of-americans-negative-net-worth-2019-5">is a serious problem</a>, and all indications say it's only getting worse.Since 1989, the wealthiest 1% of Americans have added $21 trillion to their combined net worths, while the poorest 50% of Americans have seen their combined net worths drop $900 billion, an analysis of Fed data reported in <a href="http://nymag.com/intelligencer/2019/06/the-fed-just-released-a-damning-indictment-of-capitalism.html">New York Magazine</a> found.A federal wealth tax is one potential solution that has been touted by presidential candidates and hedge fund billionaires alike. And the idea has support among Americans: An INSIDER poll shows that more than half of Americans support Senator Elizabeth Warren's wealth tax proposal.However, the revenue raised by the proposed wealth tax would likely be much lower than its advocates expect, former Department of Justice tax attorney James Mann, who is now a tax partner at law firm Greenspoon Marder, told Business Insider. <h2>What is a wealth tax?</h2>Today, ultra-wealthy Americans pay taxes on things like superyachts and fine art when they purchase them - but not after. A wealth tax would change that, making them pay taxes on their wealth every year.One of the most frequently cited proposals, <a href="https://www.businessinsider.com/who-is-elizabeth-warren-bio-age-family-key-positions-2019-3">Elizabeth Warren</a>'s "<a href="https://elizabethwarren.com/ultra-millionaire-tax/">Ultra-Millionaire Tax</a>," calls for a 2% annual tax on households with a net worth between $50 million and $1 billion and a 3% annual tax on households with a net worth over $1 billion.The US has never had a wealth tax, but other countries have implemented them with mixed success. France introduced a wealth tax in 1988 that resulted in a massive capital flight, prompting President Emmanuel Macron to replace the wealth tax in 2017. The tax's repeal was unpopular and helped spark the country's yellow jacket protests, according to the <a href="https://www.washingtonpost.com/business/wealth-tax/2019/06/24/e7f0e54c-96be-11e9-9a16-dc551ea5a43b_story.html?utm_term=.e10a79d80b47">Washington Post</a>.<div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5d181141a17d6c44615cb6c2-2400/big.jpg" border="0" alt="White Rabbit yacht" data-mce-source="Mark Stothard / Truenorth Mark / Boat International Media" data-link="http://www.boatint.com/bda-winners-2019" /></div></div></div><h2>What would the benefits of a wealth tax in the US be?</h2>Introducing a wealth tax is one of the few issues that a majority of Americans agree on.An INSIDER <a href="https://www.businessinsider.com/majority-americans-approve-elizabeth-warren-wealth-tax-plan-2019-1">poll</a> from February shows that 54% of Americans support Warren's plan, while only 19% disapprove of it. Warren's wealth tax even has the support of some of the billionaires who would be paying it. That includes George Soros, Abigail Disney, and members of the Pritzker and Gund families, who signed an open letter on June 24 outlining their request. Real estate magnate <a href="https://www.businessinsider.com/eli-broad-wealth-tax-billionaires-wealth-gap-fortune-500-2019-6">Eli Broad</a> had also separately spoken up in favor of a wealth tax.Read more: <a href="https://www.businessinsider.com/majority-americans-approve-elizabeth-warren-wealth-tax-plan-2019-1">A majority of Americans approve of Elizabeth Warren's new tax on the wealthy, according to a new poll</a>The June 24 <a href="https://www.businessinsider.com/wealth-tax-ultra-rich-americans-sign-letter-presidential-candidates-2019-6">letter</a> was signed by 19 ultra-wealthy Americans who noted that the revenue raised by the tax could be used to fund environmental initiatives, fuel economic investment, and reduce the cost of health care. Elizabeth Warren <a href="https://elizabethwarren.com/ultra-millionaire-tax/">has said</a> that the wealth tax could generate $2.75 trillion in revenue in a decade. She claims that a wealth tax could also help limit growing economic inequality by funding programs that would benefit the poorest Americans, but doesn't say by how much it will reduce inequality - or how quickly.<div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5d168f10a17d6c268814c014-2400/ap130322113064.jpg" border="0" alt="irs internal revenue service" data-mce-source="Susan Walsh/AP" /></div></div></div><h2>What are the drawbacks?</h2>The biggest problem with a wealth tax would be figuring out how to enforce it, Deutsche Bank Managing Director of Wealth Management Blanche Lark Christerson told Business Insider. It's easy for the IRS to figure how much to tax a billionaire's investment portfolios, Christerson said, but the value of other assets like yachts and fine art are up for interpretation.Appraising is more of an art than a science, Christerson said, and the IRS would have to verify those appraisals. Neither Christerson nor Mann believes that the IRS is currently equipped to do that.To make matters worse, ultra-wealthy Americans are so good at finding ways to reduce their tax bill that they would likely be able to find a way around any anti-evasion measures, Eric Hananel, a tax consultant at UHY Advisors focusing on high net worth individuals, said. Hananel also said that billionaires might be motivated to move their money outside the country to avoid the tax, hurting the economy in the process. Read more: <a href="https://www.businessinsider.com/the-irs-pursues-fewer-cases-of-tax-evasion-than-it-did-10-years-ago-2018-10">The IRS pursues fewer cases of tax evasion than it did 10 years ago - and experts fear more people will get away with tax fraud</a>Mann, Christerson, and Hananel agree that it's unlikely that a wealth tax would raise as much revenue as its proponents hope, though they did not specify an alternate estimate as to how much it would actually raise. Mann, for his part, noted that it's impossible to estimate exactly how successful a wealth tax would be without more data."These are the people who obviously have access to the most sophisticated financial planners and lawyers and accountants," Mann said about the ultra-wealthy people who the wealth tax would target, "and I think it's naive to think that they wouldn't plan to minimize their wealth tax burden.""It's just when you look at the practical application of how would this really work, it's hard to imagine that it would work successfully," Christerson said.<div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5d16869aa17d6c285d6ec8a3-2400/56043781.jpg" border="0" alt="tax forms" data-mce-source="Scott Olson/Getty" /></div></div></div><h2>How would a wealth tax change my taxes?</h2>Warren <a href="https://elizabethwarren.com/ultra-millionaire-tax/">estimates</a> that her "Ultra-Millionaire Tax" would only affect the wealthiest 75,000 households in the US. For those families, even figuring out how much they owe will be a massive headache, according to Christerson.Multi-millionaires and billionaires would need to enlist the help of appraisers to put a price on hard-to-value assets like yachts and jewelry, and then file separate documents with the IRS to pay the tax on them. The whole process would be independent of the current income tax system and likely run on a different schedule, Mann said."It would really be like filing an annual estate tax return," Christerson said. This could pose a problem for Americans who have inherited most of their wealth. Many heirs and heiress inherit their fortunes in the form of real estate and fine art, not liquid assets like cash or stocks, according to Christerson. A new tax bill could force them to liquidate.Little would change in the tax bills for Americans who fall in or below the middle class, Christerson said.<h2>When could we see a wealth tax?</h2>A "pretty seismic change in the political landscape" would be required to add a wealth tax to the tax code, Christerson said. Progressive Democrats would have to gain control of both Houses of Congress and the White House. The constitutionality of such a tax would likely end up debated in front of the Supreme Court as well, according to Mann. Alongside her proposal, Warren released a letter from professors at leading law schools arguing that a wealth tax is constitutional based on a clause in <a href="https://www.archives.gov/founding-docs/constitution-transcript">Article I Section 8</a> of the Constitution that allows the federal government to "collect taxes, duties, imposts and excises" as long as they are "uniform throughout the United States." However, <a href="https://www.archives.gov/founding-docs/constitution-transcript">Article I Section 9</a> prohibits a "capitation, or other direct tax ... unless in proportion to the census or enumeration herein before directed to be taken."Constitutional scholars disagree about which clause a wealth tax would fall under, Mann said. To Mann, Warren's plan has one major fault: The letter fails to mention the Supreme Court's most recent discussion of which taxes are constitutional."They talk a lot about Supreme Court cases from 100 years ago. They don't talk about the most recent one," Mann said, referencing the 2012 <a href="https://www.supremecourt.gov/opinions/11pdf/11-393c3a2.pdf">case</a> that briefly upheld Obamacare by classifying it as a tax. However, that decision still doesn't define how the Supreme Court decides whether or not a tax is constitutional. Ultimately, Mann and Christerson agree: The chances of a wealth tax before 2025 are essentially zero.

Wealth tax explainer: Why Elizabeth Warren and billionaires like George Soros alike are calling for a specialized tax on the ultra-wealthy

GST is a long-term vision and process but a step in the right direction. It is one of the biggest tax reforms that the country has seen since independence. The decision of ‘one country one tax’ is always beneficial for any country. For an economy where the volume of transactions is increasing through the digital mode, this move will certainly result in the increase of the GDP of the country. Although, debatable at this point, the inflation rate is also anticipated to decrease. However, if the inflation rate increases at this point, it will directly affect the consumer electronics industry of the country. Slow down Over the last half year, the consumer electronic industry has slowed down significantly due to demonization and will experience a further slow down due to GST. Not just the consumer electronics sector, this slow down just cost India the tag of the ‘fastest growing economy’. The March end growth figures are the lowest since the December quarter 2014. In June 2017, there has been a major slowdown in the manufacturing sector, where output generated is as low as 50%-60%. Most of the manufactures have closed down their plants on 27 June, only to re-open them, post the introduction of GST and attaining clarity on the working of the same. After-effects The price of television sets is set go up by 5-6 % from 1st July, with the GST council recommending a 28% tax on the same. Some players in the market have decided to wholeheartedly support their trade partners in this respect, as there will be an excise duty loss that will be faced by dealers/ distributors across the country. A heavy impact on sales for the first few months post GST is expected, but we are optimistic that once the festive season arrives, sales will pick up again. Government deferring filing of returns Delaying the filing of returns until September under the GST regime is a smart move, as this will give manufacturers time to settle down into the new format. These two months will be a teething period for everyone so that return filling and other nuances can be understood and are aligned in the system. On the other hand, there are less than a few hours to go before the GST rollout and the government is still clarifying details and working out the implementation as well as deciding on tax rates. Recently, the government announced deferment of filling to August and September, which raises a concern amongst businesses about the capability of the tax department of handling the implementation and the coordination of the smooth running of the system. Are you ready? While all revisions are underway, we feel that the vendors and suppliers are ready for GST. There is certainly a positive attitude towards the implementation in the trade, which is a good sign for the economy. The finance minister has confirmed on 21st of June that GST will roll out on July 1 which puts a rest to the speculation that there could be further delay and we are all geared up and focused for towards the change. The major concerns are for small scale businesses that may have to recruit people specially for GST. This will not be an easy task since to hire people, one must ensure that they are well versed with the system. Another concern is that from filing a return quarterly, the system will change to filling returns every month which will also amount to extra work as everyone is accustomed to a quarter closing in the country. Heavy Discount Currently, there is a lot of panic regarding GST as retailers are hoping to avoid building inventory that they will have to carry forward after 30th June. Bigger companies and brands are offering discounts, some to the tune of 40%, to liquidate their inventory as soon as possible, which poses great difficulty for affordable category brands, like ours. India has a phenomenally large rural market, where there is noticeable fear related to GST and where there is substantial speculation, therefore we have started educating our trade partners about the processes and roll out of GST and the consequences that retail and consumer electronics will face. Grey market and Tax evasion If we talk about LED TV’s in the affordable category, the most significant challenges being faced by them are fake products, grey or cash market. We may not discuss it openly, but this is certainly terminating our economy. There is a tax revenue loss of Rs.1500 to 2000 on each 32” set. This parallel market has been generating revenue to the tune of $1.5 billion and is growing at the rate of 25% per annum. As a result, many TV brands have had to shut down their operations in the past. These TV’s are declared at an erroneous rate of duty or at 50% under invoicing, due to the various loopholes in our system. If strict measures are not taken while implementing the GST, it could very well turn around to be the biggest tax loss to the country instead of the biggest tax to reform it. However, ‘One country one tax’ will lead to single taxation for supply of goods. The opportunity to conduct business will increase as there will be more accessibility to different parts of the country. Due to the multifaceted tax structure, small and middle scale businesses used to hesitate in conducting business deals with big houses or those located outside their immediate periphery. (This article has been contributed by Avneet Singh Marwah, Director and CEO of Super Plastronics, which is the Kodak TV Brand licensee partner in India)

This is what the consumer electronics sector is thinking about GST

<img class="gwt-Image" src="/photo/46443417.cms" /> <keyword id="2549811" type="UNKNOWN" weightage="20" keywordseo="Budget-2015">Budget 2015</keyword> has laid out a message of implementation by bringing in a slew of reforms to kickstart India's economic growth and move towards a non-adversarial tax system. Given the same, proposals in Budget 2015 may best be described as ‘pro-growth’. Some of the noteworthy measures from an <keyword id="6354678" type="PERSON" weightage="20" keywordseo="Indirect-tax">Indirect tax</keyword> perspective are listed below. 
 
Hits of Budget 2015 
 · Goods and <keyword id="6355686" type="COMPANY" weightage="20" keywordseo="Service-tax">Service tax</keyword> (‘<keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword>’) is expected to play a transformative role in the way the <keyword id="6356076" type="UNKNOWN" weightage="20" keywordseo="indian-economy">Indian economy</keyword> functions. GST will add buoyancy to the economy by reducing the cascading effect on the cost of goods and services. The budget has re-affirmed the Government’s intent in moving towards implementing a GST regime in India from April 1, 2016. 
 
· In Budget 2014, the scheme of Advance Ruling was extended to Resident Private Limited Companies. The budget further extends this benefit to resident firms (i.e. partnership firms, sole proprietors and one person company). This would go a long way in reducing unnecessary litigation for businesses. 
 
· Although the effective rate of customs duty has been increased from 28.85% to 29.44%, proposals have been made for rationalization of the inverted duty structure in line with the agreement of the Government with the World Trade Organisation. For the Information Technology industry, the budget has brought in goods news with the abolition of Special Additional Duty in lieu of VAT on all goods (except populated printed circuit boards) for manufacture of ITA bound items. 
 
· Penalty provisions have been rationalized across the Customs, Excise and Service tax; thereby, reducing penalties on bonafide errors and making them more stringent in cases of tax evasion. The same may help in reducing litigation. 
 
· Cenvat credit of service tax paid under a partial reverse charge may now be taken on payment of service tax. This would reduce the time lag in availment of Cenvat credit as credit availment need not be delayed till payment of invoice value. 
 
· The increase in the time limit for availing Cenvat credit from 6 months to 1 year is a welcome step. This would ensure there is no credit leakage on account of delay in availing credit. 
 
Misses of the Budget 2015 
Although the Finance Minister managed to please the industry in certain sector, there were certain misses as well, such as: 
 · The <keyword id="6360189" type="COMPANY" weightage="20" keywordseo="Union-Budget">Union Budget</keyword> 2014 (w.e.f October 1, 2014) has substantially increased the <keyword id="6371181" type="UNKNOWN" weightage="20" keywordseo="interest-rates">interest rates</keyword> for delay in payment of service tax (for a delay for a period beyond 6 months and upto 1 year) to 24% and to 30% (for a period beyond 1 year). Much was expected that Finance Minister in present Budget would consider lowering such penal interest rates so as to reduce the cost burden on an assessee. However, no announcements have been made in this regard by the Finance Minister. 
 
· Double taxation of certain transactions like taxation of intellectual property rights, supply of software, works contracts, etc. have been plaguing the industry for long. The Budget has failed to provide any clarity in this regard. 
· Further, it was also expected to clarify the position regarding levy of service tax on amount recovered by employer from employee during the course of employment. 
 
· The industry was widely expecting that given the time consuming process for obtaining refunds, specific guidelines would be issued by the Government for procuring of refund claim within specific time frame. However, no guidelines have been issued in this regard in the budget. 
 
· Last but not the least, the media industry was hoping for a slew of reforms and the same may be a matter of discussion at the macro level within the corridors of power. However, not much was done. The industry is now hoping for measures at a micro-level for the common man to cherish with family. 
 
Broadly the regulatory measures along-with issues of inverted duty structure, time limit of availing credit etc. are steps in the right direction. A favorable amendment in form of reduction in penalties to encourage compliance and early dispute resolution are measures and signals to facilitate ease of doing business in India. 
 
(About the author: This article has been contributed by Nitish Sharma, Executive Director and Tanushree Roy, Manager, Nangia &amp; Co.)

Indirect Tax: Hits and misses of Budget 2015

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/559d1fdbdd0895a3348b4665-3056-2292/rtx1jitk.jpg" alt="Britain's Chancellor of the Exchequer, George Osborne, holds up his budget case for the cameras as he stands outside number 11 Downing Street, before delivering his budget to the House of Commons, in London, Britain July 8, 2015." data-mce-source="REUTERS/Paul Hackett" data-mce-caption="Britain's Chancellor of the Exchequer, George Osborne, holds up his budget case for the cameras as he stands outside number 11 Downing Street, before delivering his budget to the House of Commons, in London, Britain July 8, 2015." />REUTERS/Paul HackettBritain's Chancellor of the Exchequer, George Osborne, holds up his budget case for the cameras as he stands outside number 11 Downing Street, before delivering his budget to the House of Commons, in London, Britain July 8, 2015.</div></div></div>Chancellor George Osborne delivered the first Conservative Party Budget in 18 years on Wednesday, after his party's <a href="http://uk.businessinsider.com/general-election-results-live-coverage-2015-5">surprise election victory in May</a>.The big takeaways are a new national living wage of £7.20 an hour starting next April; a reduction in corporation tax to 18% by 2020; an increase in the tax free allowance; and £12 billion worth of benefit cuts.Here are all the key points from the Summer Budget: <h3>Tax </h3><ul><li>Tax free allowance raised to £11,000. Threshold for top rate of tax raised to £43,000.</li><li>Reduction of tax relief for buy-to-let landlords.</li><li>Inheritance tax threshold raised to £1 million. </li></ul><h3>Tax avoidance</h3><ul><li>Extra £250 million funding for HMRC to crack down on avoidance and evasion.</li><li>Permanent non-dom status abolished - those who've been living for more than 15 of the last 20 years in the <keyword id="6354868" type="COUNTRY" weightage="60" keywordseo="UK">UK</keyword> subject to full UK tax.</li></ul><h3>Welfare</h3><ul><li>Benefits for 18-21 year olds scrapped, replaced by "Youth Obligation" to "Earn or Learn."</li><li>Freeze on working age benefits for 4 years.</li><li>Social housing rents reduced by 1% a year for the next 4 years, to be funded by councils.</li><li>Benefits cap lowered from £26,000 to £23,000 in London and £20,000 outside of London.</li><li>Child tax credits limited to first 2 children.</li></ul><h3>Education</h3><ul><li>Apprenticeship levy charged to all big companies to encourage them to set up training schemes.</li><li>Plans for 3 million new apprenticeships.</li><li>University maintenance grants scrapped, replaced by loans.</li></ul><h3>Public sector</h3><ul><li>1% pay rise a year over next four years.</li><li>Additional £8 billion of NHS funding this year.</li></ul><h3>Business</h3><ul><li>Bank levy phased out over the next 6 years, replaced by 8% surcharge on bank profits.</li><li>Corporation tax cut from 20% to 19% in 2017 and 18% by 2020.</li><li>R&amp;D allowance of £200,000 a year for businesses.</li></ul><h3>Devolution</h3><ul><li>Additional powers devolved to Manchester's new Mayor over fire service, land commission, children services and employment.</li><li>Plans for devolution and elected Mayors in Sheffield, Leeds and West Yorkshire.</li><li>£30 million funding for Transport for North to create "Oyster-style" joined up transport system.</li><li>New Enterprise Zones across England.</li><li>Elected Mayors to have powers to set Sunday trading hours for shops.</li></ul><h3>Transport</h3><ul><li>Overhaul of car taxes to include all new vehicles, scrapping allowances for green cars.</li><li>£140 a year new vehicle excise duty.</li><li>Paid directly into new "Roads Fund", spent on maintaining roads.</li></ul><h3>Defence</h3><ul><li>2% of national income to be spent on defence budget, in line with NATO recommendations.</li><li>New Join Security Fund of £1.5 billion to be created by the end of Parliament.</li></ul><h3>Economy</h3><ul><li>Fiscal charter announced that commits governments to running a budget surplus - spending less than it collects in taxes.</li><li>Government forecast to hit budget surplus by 2020, not 2017/18 as previously promised.</li><li>UK's growth in 2014 revised up to 3% from 2.6% by Office for Budget Responsibility.</li><li>OBR forecasts 2.4% growth this year, 2.3% in 2016, and 2.4% in 2017, revised up from 2.3%.</li><li>OBR forecast 1 million more jobs over the next 5 years. Conservatives want 2 million more.</li></ul><h3>Other</h3><ul><li>National living wage of £7.20 an hour, starting next April. Paid to all workers over 25, rising to £9 an hour by 2020.</li><li>BBC to fund free TV licenses for over 75.</li></ul> <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/prevent-blisters-jogging-running-shoes-sneakers-athletic-shoelace-hole-2015-5">Someone figured out the purpose of the extra shoelace hole on your running shoes - and it will blow your mind</a></h3> <div> <div> <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="lyNnMwdToPHeoBdqEnriXIBVrqyIR6er" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> <script> if (typeof RunFunctions === 'undefined') { var RunFunctions = []; } RunFunctions.push(function() { var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'lyNnMwdToPHeoBdqEnriXIBVrqyIR6er',{ autoplay: 'false' }); }); </script> <noscript><div>Please enable Javascript to watch this video</div></noscript></div> </div> <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script> </div>

You Searched For "Excise duty evasion" and got 12 results

Uh-oh! Now, CVC probes Cadbury for Rs 580 crore alleged tax evasion

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GST intelligence officials detect Rs 105 crore tax evasion by Indore-based cigarette manufacturer

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Great news for the common man, no change in tax slabs but cess and excise duty hiked on several products

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DRI arrests promoter of Kolkata-based group for allegedly evading customs duty of Rs 4.5 cr

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Finance Ministry says govt. took steps to boost revenue

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GST on cellphones, footwear, textiles to be rationalised on March 14

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Here’s why the Indian government is not being able to cut fuel prices

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Wealth tax explainer: Why Elizabeth Warren and billionaires like George Soros alike are calling for a specialized tax on the ultra-wealthy

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This is what the consumer electronics sector is thinking about GST

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Indirect Tax: Hits and misses of Budget 2015

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