Mr Tarun Bajaj (Revenue Secretary) has said that the Indian government will come up with new compliance for compounding offences under GST in an interview with Businessline.
When & How will GST Offences be Decriminalized?
We are working on the same and very shortly we shall release the document. We will proceed in the same direction as we proceeded to the custom side and direct taxes side. We do not have any interest in imprisoning people.
What we need is if we can compound, when there would have been a mistake on the portion of the enterprise or an individual, let them pay the money including a penalty, and proceed to compound the offence.
It is crucial and we are raising our compliance once you perform the same then you do the same which people recognize they could not get escape. People are needed to arrive cleanly.
What is the Term Preparation for Global Minimum Corporate Tax? Are we Correct?
We are on the correct path. The foremost thing that is revised is the legislation which we will accomplish once we have a more precise picture of its commencement.
For competence, we are the part of OECD team which is working on compliance and the method to compute between the country where the firm exists and the country in which they sell their products.
We just feel good indeed we specified to the global community, we will support the developing nation, rectifying their competence to execute the latest process.
How Does the New Regime Provide Lower Revenues to the Government?
A rough estimation has been made by us. We initiate with, we may be neutral for a particular time.
Our middle class is increasing. Our income is increasing. We shall consume more products from the same firms and in that case, the rate of growth of tax would get higher. Hence to initiate with we may be breaking even for a specified duration we would maintain getting much more money via the same procedure.
A Demand to do Away with the Windfall Gain Tax. What is Going on in the Finance Ministry?
There would be 2 taxes, one would be the domestically produced crude and the other is on diesel and aviation turbine fuel (ATF). Regarding domestic crude, we would impose a windfall tax as the cost of crude was very high. I know the cost would come down in the former 2 weeks and as per that, we shall draw down the taxes.
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We shall see if the cost comes even from the same level, there might be a requirement for the windfall tax will go away and no demand shall be there then a need to do away with the tax. Concerning the products, till the time the products would provide the abnormal profit before the same firms. We would be imposed with the taxes and they must be carried on till that duration.
Despite levying windfall gain taxes, we have left a lot on the table. Hence all the windfall gain would not get vanished from these firms, some shall be provided to them.
There is an advantage to the depreciation of the Indian currency viz-a-viz USD that we didn’t account for in our calculations. Hence the same will go an advantage to them.
Does the Ministry Envision Doing Away with the Windfall Gain Tax at any Certain Level of Crude Prices?
On average, the prices are still in the mid-90s, which requires us to draw down more, we perform with all the computations in which we perform some averaging which requires some effort. The same shall not be effective within my thinking to discuss the levels of 90, 85, or 80, however, we could do one thing that I mention here is amend the tax every two weeks and diminish the same.
The same must be provided confidence to the people as well as the corporate. We consider the international prices and windfall tax is again on windfall gain. thus, till the time windfall gain stays, we would carry on with windfall tax.
