Thanks Basantji/Kulmanji.

"The government is actively considering to announce a financial package, estimated at Rs30,000 crore, for debt-ridden agriculture sector"
Finance Minister P Chidambaram will start pre-budget consultations with representatives of various sectors, starting with those from the agriculture on 7 January.
An official source said Chidambaram has invited “suggestions on inclusive growth, investment in infrastructure sector apart from restructuring the food and fertiliser subsidy without hurting the poor people.”
He has also invited captains of the industry, economists and trade union leaders next week, before giving final touches to the last full-fledged budget of the UPA regime.
The term of the present government will expire in May 2009.
His decision to start consultations with the farm sector representatives assumes importance as the government is actively considering to announce a financial package, estimated at Rs30,000 crore, for debt-ridden agriculture.
In this regard, Vaidyanathan Committee has also submitted its report to the government.
India Inc is also expected to raise the issue of adverse impact of rupee appreciation against dollar, besides seeking cuts in excise duties, corporate tax. It is also likely to urge the government to delay the proposed cut in customs duties on manufacturing items.
The industry bodies like CII have sought abolition of surcharge on corporate tax, dividend distribution tax and minimum alternative tax (MAT).
Meanwhile, trade union leaders and economists may raise the issue of enhancing income tax exemptions, hike in interest rate on provident fund and effective measures to arrest rising prices of essential commodities.

source : Livemint.com dated Friday,Jan 04,2008

January 09, 2008 02:32 IST
Source Rediff.com

Industry representatives have called for a reduction in corporation as well as personal income tax rates in the forthcoming Budget.

At a meeting with Finance Minister P Chidambaram on Tuesday, the Federation of Indian Chambers of Commerce and Industry and Associated Chambers of Commerce and Industry of India recommended that the basic annual exemption limit for individuals should be raised to Rs 1,50,000 from Rs 1,10,000 and the peak income tax rate be cut to 25 per cent, from 30 per cent at present.

While Assocham sought removal of 10 per cent surcharge on corporation tax, Ficci was in favour of bringing corporation tax rate to 25 per cent from 30 per cent. Both Ficci and Assocham sought a tax rate of 20 per cent on income up to Rs 5,00,000 and 25 per cent over Rs 5,00,000.

The Confederation of Indian Industry has also sought a moderation in personal and corporation tax rates, in order to maintain buoyancy in tax collections and compliance, CII president and Bharti Enterprises Chairman Sunil Mittal said.

"Incentives should be given to capital goods industry," Mittal said, adding that skill development should also be promoted.

Ficci President Habil Khorakiwala said: "Research and Development (R&D) and innovation in all sectors should be promoted by giving incentives."

He also sought infrastructure industry status for hospitality and renewable energy. The association has also sought additional deduction limit of Rs 1,00,000 for long-term investments such as life insurance premium, pension and annuities.

Ranbaxy's [Get Quote] Malvinder Singh and Nicholas Piramal's [Get Quote] Swati A Piramal demanded tax benefit to standalone R&D companies in the pharmaceutical sector.

Other demands from the industry include cut in excise duty rate from 16 per cent to 14 per cent, infrastructure status for cold-chains, basic food items made tax free, extension of tax benefit for IT and software beyond 2009, removal of dividend distribution tax, lower tax rate for repatriated profits and gains from overseas.

They also suggested reforms in agriculture, strengthening manufacturing and infrastructure sectors, encouraging savings and investments, and widening the tax base to sustain the buoyancy in the economy.

12 new services to be in tax net

RUN UP TO THE BUDGET 2008-09

Prashant K Sahu / New Delhi January 18, 2008



Lower inflation may prompt a rates rise too.

About a dozen new services are likely to be brought under the service tax net from fiscal 2008-09, even as the rate could be increased from 12 per cent.

Last year, the government had considered raising the rate to 14 per cent but the move was shelved on account of fears of inflation, which was ruling at 6.5 per cent in January 2007.
TAXING TIMES


All unaided non-government schools and colleges, unaided non-government hospitals and amusement parks will be brought under the service tax net
To tax all these services, the Finance Act 1994 is expected to be amended in the coming Budget session.
An increase in the service tax ambit and possibly the rate is seen as a precursor to the introduction of a dual Goods and Service Tax (GST) from April 2010 onwards.



For the week ended December 29, the inflation rate stood at 3.5 per cent, raising the possibility that service tax rates will increase.

The new services likely to be included in the service tax net are legal draft writing and stamp paper vending, all unaided non-government schools and colleges, unaided non-government hospitals, amusement parks and similar attractions, coin-operated amusement machines and other recreation and amusement services.

These six new services have been recommended for inclusion in the list of taxable service by the Empowered Committee of State Finance Ministers from 2007-08 onwards.

Several other services are also likely to be brought under the service tax net, which now covers 100 services.

To tax all these services, the Finance Act 1994 is expected to be amended in the coming Budget session.

A constitutional amendment may also be needed to insert an enabling provision giving state governments powers to levy service tax, a key demand of the states.

"States are already allowed to collect and appropriate service tax. However, they do not have the powers to levy the tax," a government official explained.

An increase in the service tax ambit and possibly the rate is seen as a precursor to the introduction of a dual Goods and Service Tax (GST) — at the state and central levels — from April 2010 onwards.

Besides getting a 30.5 per cent share from 67 services, states receive the entire revenue from 33 services from 2007-08 as part of a compensation package to phase out central sales tax by 2010.

The central government has also agreed to transfer 44 new services to the states for taxation.

http://www.ibnlive.com/budget08/mastermkt.php

seems idea borrowed from TED.