Financial Daily from THE HINDU group of publications
Saturday, Apr 22, 2006
Financial Daily from THE HINDU group of publications Saturday, Apr 22, 2006 |
|
|
|
|
|
|
|
Industry & Economy
-
Taxation VAT is price-neutral exercise: PwC Our Bureau
New Delhi , April 21 State-level value added tax (VAT) introduction has been largely price-neutral on an overall basis if one went by the findings of a PricewaterhouseCoopers' (PwC) survey on VAT implementation. As many as 57 per cent of the respondents did not perceive any change in prices due to VAT. Only 25 per cent of the respondents felt that the VAT has had a significant impact on their business models. The PwC survey covered more than 100 companies with all India operations.
`Smooth transition'
The overall experience of transitioning from the sales tax regime to the VAT regime was a smooth one for 84 per cent of the respondents, according to the survey. However, 76 per cent of the respondents felt that the States have not been successful in bringing about uniformity in the structure of VAT, which was one of the key objectives of VAT implementation. Only 18 per cent of the respondents felt that the State Governments were fully prepared for the switch over to VAT. "Non uniformity in the VAT rates across the States has adversely impacted companies with all India operations as they have to reckon with varying rates in different States," Mr S. Madhavan, leader of the indirect tax practice of PwC, said. The PwC VAT survey 2006 has assessed the experience of businesses and identifies their continuing concerns, on the completion of one year under the VAT regime. It documents the perception of businesses across various industrial sectors, on both the policy and operational aspects of the VAT.
More Stories on : Taxation | Consulting
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|