ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Mahesh C PurohitSubscribe to Mahesh C Purohit

Issues in the Introduction of Goods and Services Tax

This article proposes a road map for administrative changes in the implementation of the goods and services tax, keeping in mind taxpayer convenience and the need to have the least possible compliance cost. It makes a case for assigning specific tasks to the centre and the states, and for constituting a statutory body such as a GST Council of India.

Mobilising Non-Tax Revenue: An Empirical Analysis of Trends in States

This paper analyses the structure of non-tax sources of the states. The major thrust is on presenting a detailed analysis of six select services drawn from social and economic services. While education, sports, arts and culture; medical and public health; and water supply and sanitation have been selected from social services, major and medium irrigation; minor irrigation; and roads and bridges have been chosen from economic services. The analysis of user charges at the disaggregated level for each of the services provided in different states is based on the data drawn from the state budget documents. A comparative analysis of the recovery rate over time is based on the results for two points of time, i e, 1993-94 to 1995-96 and 2001-02 to 2003-04.

Tax Efforts and Taxable Capacity of Central and State Governments

The objective of this study is to compare relative tax effort and taxable capacity of the central government in India with the average tax effort of other similar countries. The study also compares the tax effort and taxable capacity of the state governments with the average tax effort of all the states in India. Various determinants of tax bases have been selected to estimate the average rate and taxable effort as well as the taxable capacity of the states. The results indicate that during the period 2000 to 2003 Gujarat ranked first in this regard, with West Bengal and Andhra Pradesh in the second and third places respectively.

National and Sub-National VATs

India's unique indirect tax system with the central government imposing a broad spectrum of excise duties on production and manufacture, and the states assigned the power to levy sales tax on consumption and on services has meant that the adoption of a European-style VAT has been slow in India. This paper examines the problems and prospects of introducing VAT taking account of the experience of states' experiments in adopting VAT in some form or other.

Value Added Tax in a Federal Structure-A Case Study of Brazil

Brazil has the distinction of being the only federal country in the world with independent value added taxes (VATs) at the federal and state levels. This paper seeks to present the salient features of the structure of the VATs in Brazil and to discuss issues related to the management of the state VATs in that country.

Structural Changes and Tax Reforms

Structural Changes and Tax Reforms Mahesh C Purohit Economic Policy and Tax Reform ill India edited by K Puttaswamaiah; Indus Publishing Company, New Delhi, 1994; pp 237, Rs 300.

Reform of Union Excise Duties

Mahesh C Purohit While the last budget, primarily aimed at reforms, extended MODVAT considerably by including petroleum products, capital goods and the yarn component of the textile sector within its purview, the 1995-96 Budget proposes to mop up resources by increasing the tax rate of two select commodities, cigarettes and cement. This article attempts to look at the likely implications of the budget proposals, by focusing on the tobacco sector.

Improving Sales Tax Management in India

Mahesh C Purohit Proper management determines the effectiveness of a tax system. Failure to properly administer the tax defeats its purpose and threatens the canon of equity. It increases evasion of tax and creates a parallel economy. Over the years there is an increasing realisation that in practice administration is law.

Tax Reforms for Textile Sector

The budget follows the policy of high fiscal deficit to boost the economy. It may be worth the risk provided the supply side responds adequately. The budget has based this assertion on the claim that it has taken a leap forward towards a rational tax policy: This paper challenges this claim and presents an analysis of reforms in the union excise duties for textile sector as a case study. It delves into the priorities as well as the pace of reforms. The paper puts forth proposals for reforms essential to provide an environment conducive to a proper response from the supply side.

Adoption of Value Added Tax in India-Problems and Prospects

The adoption of the Value Added Tax (VAT) by a rapidly growing number of countries has been one of the most remarkable events in the evolution of commodity taxation in this century. This paper examines the general trends in the structure of VAT

Shifting Fiscal Frontiers of the Central Sales Tax-An Approach towards Equity

The Forty-Sixth Constitutional Amendment Act has authorised the central government to levy tax on consignment transfers. This would mean that whereas hitherto the CST was levied on about approximately 10 per cent of the transactions, it would now cover all interstate transactions. It is, therefore, necessary that in the interest of the greater degree of autonomy for the states, and for a unified common federal market in the country, the fiscal frontiers of the CST should be shifted from exporting borders to the consuming outlets. This would imply that the basis of the CST would be shifted from origin to destination. What is the rationale of such a shift?

Estimating Cumulative Rates of Excise and Sales Taxes in India

and Sales Taxes in India Mahesh C Purohit Along with the increase in the fiscal importance of excise duties and sales taxes, these taxes have come to reveal the complex nature of the system of indirect taxation that has evolved in this country. The overlapping co-existence of the two generalised systems of levy has not only led to a complicated structure of taxation, but, with each compounding the effects of the other through interaction, has given rise to uncontrolled and unintended incidence on particular commodities.

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