CA Loan Bajaj Finserv
CA Final Online Classes
CA Classes

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

A Talk with CA Sudhir Halakhandi on Expectations From Budget-2010

Guest 
on 24 February 2010

LinkedIn


SUDHIR HALAKHANDI ON BUDGET -2010

A TALK WITH GST EXPERT AND TAX COLUMNIST CA SUDHIR HALAKHANDI ON EXPECTATIONS FROM BUDGET -2010

There are two options for the Finance Minister and if he chooses the platform to accelerate the process of introduction of DTC and GST then this budget will be a landmark because through this Budget he can declare lot of policy decisions with respect to these two. The second option is to deal only current year in the Budget then it will be a normal Budget. The importance of the Budget -2010 depends upon the choice of Finance Minister. - ca Sudhir Halakhandi

CAclubindia -

Good Morning Mr. Sudhir! So the 26th Feb is very near and the Finance Minister Mr. Pranab Mukharjee is presenting the Budget -2010 and we have invited you for a talk on Budget -2010 with our members.

Ca Sudhir Halakhandi -

Thanks!

CAclubindia -

Let us start with your favorite subject –GST. Now When GST is not going to be introduced from 1st. April then what is the relevance of Budget -2010 with respect to GST.

Ca Sudhir Halakhandi -

Yes it is the known fact that GST is not going to be introduced from 1st. April 2010 but this fact alone can not undermine the importance of Budget – 2010 with respect to GST. There are some important matter like Rate of tax, exemption list, single or dual rate of tax and threshold limit under CGST etc. on which the Finance Minister should give his concrete view in Budget -2010 to decide the future of GST in the country.

CAclubindia -

At one place you have taken the matter of infrastructure with the Central Government to deal with the increased number of dealers under CGST and now what do you expect from the FM on this subject?

Ca Sudhir Halakhandi -

Yes, my point is that if the central Government sticks to the threshold limit of Rs. 10 Lakhs then the number of dealers to be registered under the CGST will be very large because they will increase manifold. See at present only 5% or less VAT dealers are registered with the Central excise department and if the threshold of CGST remains Rs. 10 Lakhs then almost all the VAT dealers will be required to get registration under the CGST and my question is that how this volume will be handled by the central excise department with existing infrastructure ? If Government is not seriously thinking about it then it is a clear question mark on the seriousness of the efforts of the lawmakers about GST. The FM should clearly define the process of restructuring of the department in his Budget speech.

CAclubindia -

Do you think the Finance Minister will declare any date for introduction of GST?

Ca Sudhir Halakhandi -

Though some of the important matters are resolved between the centre and the states but to accelerate the process of discussion probably he will declare 1st. April 2011 as the date of final introduction of GST.

CAclubindia -

Now we are coming to Direct taxes and the General opinion is that when DTC will replace the existing law then Finance Minister will do very less in the Budget -2010 .

Ca Sudhir Halakhandi -

There are some controversial matters in DTC like MAT, EET etc on which trade and industry have already registered it’s reservations but if the DTC is the symbol of simplification and tax reforms then some it’s provisions should be introduced in Budget -2010 itself.

CAclubindia -

On rates of Income tax? .

Ca Sudhir Halakhandi -

The tax payers deserve some relief and income limit liable to tax should be increased and the tax rate should also be revised. In my opinion this should be the standard tax rate structure for personal taxation:-

Up to Rs. 3 Lakhs Nil
Over Rs. 3 Lakhs to Rs. 5 Lakhs 10%
Over Rs. 5 Lakhs to Rs. 7.50 Lakhs 20%
Over Rs. 7.50 Lakhs 30%
Similar upward revision should be made in case of Lady assesses and the senior citizens and further the age limit for the senior citizens should be reduced to 60 years instead of existing 65 years.

CAclubindia -

There is growing demand that Government should withdraw stimulus since the economy is showing the upward trend.

Ca Sudhir Halakhandi -

See these news reports and demands are coming from the Government sector and since these are coming from the government sector hence it is sure that FM will consider upward revision of central excise and service tax though trade and industry are not supporting this view. Further the FM has the burden of financial deficit also hence stimulus in their existing forms will not continue but in my opinion phase wise withdrawal will be a more practical solution.

CAclubindia -

And what about CST?

Ca Sudhir Halakhandi -

It should be reduced to One percent as per the promise of the Government and it is already one year late but in my opinion that the existing 2% rate will prevail and we have to wait for final abolition of CST till the introduction of Goods and Service Tax.

CAclubindia -

How do you rate the importance of Budget-2010?

Ca Sudhir Halakhandi -

There are two options for the Finance Minister and if he chooses the platform to accelerate the process of introduction of DTC and GST then this budget will be a landmark because through this Budget he can declare lot of policy decisions with respect to these two. The second option is to deal only current year in the Budget then it will be a normal Budget. The importance of the Budget -2010 depends upon the choice of Finance Minister.

CAclubindia -

What are the indications?

Ca Sudhir Halakhandi -

Not very clear. The platform is available and properly set and the respective parties have already given their views so it will be a Good occasion for the FM to set the trend and declare the policies.

CAclubindia -

Thanks Mr. Sudhir for sharing so much about Budget -2010 with us.

Ca Sudhir Halakhandi -

Thanks.




Category Income Tax
Other Articles by -
Guest 

Report Abuse

LinkedIn



Comments


update