Kalpesh Kirti & Associates

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Gujarat Budget 2015-16 :
Changes in Value Added Tax (VAT)

* From the existing five per cent, VAT on Imitation Jewellery has been reduced to one per cent to maintain the employment as well as to sustain the industry

* Exempt the isabgul processing industry from the present five per cent to retain the foreign exchange and the agro processing activities involved in the industry

* In order to encourage use of khadi (hand-woven cloth) and to avoid the tax burden on purchase of cotton roving, which is used to manufacture khadi cloth, the state government has proposed refund of the tax paid on the existing five per cent tax on cotton roving.

* The state government has proposed to reduce the tax on Aviation Turbine Fuel (ATF) from the current 30 per cent (for duty paid ATF) and 38 per cent (for bonded ATF) to five per cent when sold from cities other than Ahmedabad and Vadodara for scheduled commercial airlines service flights.

https://in.finance.yahoo.com/news/keep-papers-order-103624356.html
Keep your papers in order
in.finance.yahoo.com

Keep your papers in order While preparing your returns, back-up documentation is necessary as it supports subsequent tax assessment.

Overwhelming Response to e-Filing of Income Tax Return:

123.03 Lakh Returns e-Filed till 5th August, 2013 Which is 68.3%
Higher than the Returns e-Filed in the Corresponding Period During Last Year: 6.92 Lakh Returns e-Filed on 5th August, 2013 Itself

Income Tax reminders on way to 12 lakh assessees for not filing returns

Tightening its noose on those who do not pay taxes, the Income Tax Department has started sending letters around 12 lakh assessees who are high spenders but do not file returns, a top finance ministry official said.

“The l-T department has started follow up of around 12 lakh assessees who have not filed their returns
despite being high spenders,” the official told PTI.

The department had earlier issued letters to 1.75 lakh high priority assessees for not filing tax returns.
Finance Minister P Chidambaram had met top l-T officials yesterday to discuss ways to augment revenue
collection and widen the tax base.

The tax department has prepared a list of non-filers based on their information records.
ne department has set up a compliance management cell to monitor return filing and tax payment of the target segment.

The 1.75 lakh letters which were sent earlier, contained the summary of the information of financial transaction(s) along with a customised response sheet The finance ministry officials had verified the record of annual information return (AIR), Central Information Branch (CIB) and TDS/TCS returns.
Besides, they had also verified data available with the Financial Intelligence Unit (FlU).
These letters were a part of the exercise to augment revenue undertaken by Chidambaram after he assumed charge of the Finance Ministry in August last year. Many assessees have started filing returns after receiving letters from the tax department. The government plans to collect over Rs 6.68 lakh crore from direct taxes in the current fiscal, up from Rs 5.65 lakh crore in the previous fiscal. (PTI)

CUT in REPO Rate By RBI
In its mid quarter (Jan-March) monetary policy review the Reserve Bank of India (RBI) today cut the repo rate by 25 basis points to 7.50%. Consequently, the reverse repo came down to 6.50%.

Repo is the rate at which banks borrow short-term money from the central bank. Banks park excess money with RBI through reverse repo window.