1. Do you think that deferment in Direct Tax Code (DTC) is the right move?

Direct Tax Code (DTC) is a kind of reform to deal with current tax regime. Hence the continuous postponement of DTC is a reason of worry. However as the Tax Experts of the Industry quoted, postponement of DTC may be because of the late receipt of the report of Parliamentary Standing committee. I hope study and analysis of the report of Parliamentary Standing committee will pave the way for introduction of DTC in quick succession.

2. What is the implication of rise in Service tax (10% to 12%)?

Considering the present economic slowdown rise in Excise duty and Service Tax from 10% to 12% is a bit disappointing from the industry point of view. Increase in excise duty and service tax will have a cascading effect on prices. The suggestion to tax more services along with increase in excise duty and service tax rates is not in favour of industry and Public. Further rise in service tax rates by 2% would definitely result into higher prices for goods and services across the country for common man. However, the move has positive implications for government revenues in the years to come as far as dealing with Fiscal deficit is concerned.

3. Are you satisfied with the new tax slabs?

No. I really found introduction of new tax slabs disappointing. The reason may be high expectation and increase in service tax rates. Increase of 20,000 in the income tax slab is quite low. My expectation was to see the exemption limit around 2,50,000 to 2,80,000. Also there was nothing for female taxpayers and budget put them at par with male taxpayers. Again it was a bit disappointing. Further increase in service tax from 10% to 12% will take away everything from the hands of taxpayers.

4. Is this the right time to make GST operational?

Again I would say Goods and Services Tax (GST) is a kind of reform to deal with current tax regime. As per FM Mr. Pranab Mukharjee we are going to see the applicability of Goods and Services Tax (GST) very soon in August 2012. However statements are statements and it is just another statement from Mr. Mukherjee. Still taking a step closer to the preferred GST is a very positive sign for the economy. Well let’s hope for the best.

5. Are you satisfied with Budget 2012 ? Any other views do you have.

On the whole it is a balanced budget. Not much for the common man for sure. However the spirit and intentions of FM were high, but in India main problem is in execution of policies. Steps should be taken to rectify the same. Budget 2012 has some good and bad sides. Some of the positive sides are marginal increase in Income Tax exemption Limits, the decisions to pin down subsidies, FDI considerations, tax free infrastructure bonds. On the other hand negative sides are the Increase in Excise Duty and service Tax rates, Postponement of DTC, Lack of proper roadmap for introduction of GST and probability of Increase in petrol prices sometime during the year.

Regards

CS Ankur Garg