Andhra Pradesh - Visakhapatnam   

Call for rationalisation of tax structure

Special Correspondent

Plug loopholes in the system, says VPT Vice-Chairman

VISAKHAPATNAM: Visakhapatnam Port Trust Vice-Chairman M.S. Rao has called for rationalisation of various taxes, cenvat and service tax to ensure greater compliance and revenue.

Inaugurating a seminar on `cenvat, valuation and service tax' under the auspices of the Visakhapatnam chapter of the Institute of Cost and Works Accountants of India (ICWAI) here, he said the taxation should be used to stimulate economic growth.

To make things easier for assesses, loopholes in the system should be plugged and cascading effect avoided. Double taxation would ultimately increase the burden on the common man and adversely affect the quality of his life, he said.

Service tax

Referring to the service tax which is generating considerable revenue to the Centre, he pointed out that VPT was one of the highest payers in this sector.

Advocate and tax consultant G. Prabhakara Sastry said the share of services sector in the real Gross Domestic Product (GDP) in India had gone far above the GDP of agriculture and industry at a relatively faster pace as compared to other industrialised nations.

Vital services

Though Central excise duties on the goods manufactured/produced in India and customs duties on imported goods constitute the two major sources of indirect taxes in India, the revenue receipts from customs and excise were on the decline due to WTO commitments and rationalisation of commodity duties.

He said services constitute a larger proportion of the consumption of the rich rather than of the poor as the demand for services was income-elastic.

Customs and Central Excise Superintendents F.A. Cooper and K. Jagan Mohan, VPT financial advisor K.V. Gupta, ICWAI Vizag chapter Chairman S. Satyananda Rao, Secretary D. Ramana Murthy and chartered accountant A. Chandrasekhar participated.

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