Browsed by
Tag: KPMG

GST will further boost India’s ranking in ease of doing business, say bankers

GST will further boost India’s ranking in ease of doing business, say bankers

Comments 0 Comment

 

With the improvement in India’s ranking in the World Bank’s ‘ease of doing business’ report to 100th position, bankers and experts on Tuesday expressed hope that implementation of the goods and services tax (GST) will strengthen the country’s position in the future.

“Going forward, GST’s incorporation in next year’s assessment will provide another significant leap in doing- business rankings for India,” Yes Bank managing director Rana Kapoor said in a statement.

GST will further boost India’s ranking in ease of doing business, say bankers

It is to be noted that the latest ease of doing business report by the World Bank released Tuesday did not take into consideration the implementation of GST from 1 July.

Passage of the GST Bill was clearly a watershed moment for the economy but even otherwise there has been a sustained effort to simplify licencing and tax structures, thereby making India a much more investment friendly place to do business, said Axis Bank managing director Shikha Sharma.

According to KPMG, the next paradigm shift to top 50 is still a long way ahead and will require India to maintain a strong momentum. The GST reform that did not get considered this year will drive India’s improvement in next year’s assessment, but there is a need to continue to work on other areas including starting a businesses, trading across borders as well as land reforms, KPMG partner Nilaya Verma said.

The change in ranking reflects the outcome of a significant effort by central, state and city administrations, another consultancy firm PwC said. The improved investment climate will give an impetus to several economic corridors that are ready for investors, it added.


Ease Your GST Filing & Invoice with XaTTaX GST Software

Source :  Livemint
GST impact: Maharashtra may revise incentives plan

GST impact: Maharashtra may revise incentives plan

Comments 0 Comment

gst impact : psi

The Maharashtra government plans to revise the Package Scheme of Incentives (PSI) offered to attract investments in the state for industrial development, and to promote employment generation.

This is necessitated due to the launch of the Goods & Services Tax (GST), as beneficiaries from various sectors, including automobile, steel, cement, textiles and mirco, small and medium enterprises (MSMEs) may lose the permissible quantum of refund towards Value Added Tax (VAT) and central sales tax (CST) under the VAT regime. The state industries department has already launched an extensive review of the GST impact on various sectors. The department will then introduce a revised PSI. The present PSI, brought into effect in 2013, is applicable till March 2018.

An industries department official, on the condition of anonymity, said under the proposed revised PSI, industrial units will get interest and power tariff subsidies apart from the exemption in stamp duty, octroi duty and electricity duty. These benefits are generally granted as subsidies based on the quantum of payment of VAT and CST by companies to the state government according to their manufacturing activities over a specified time period. The state’s annual outgo towards refund paid to auto, cement, steel and other units is of the order of Rs 3,000 crore.

”Presently, industrial units get a VAT refund on 20 per cent of local sales (within Maharashtra) and a 2 per cent refund of CST on nearly 80 per cent of inter-state sales (outside the state). The CST is also paid to the state government (being the originating state) as it is calculated towards the incentive.


GST Compliance – Register Now To Get Free Demo

However, with the shift to the GST regime, the benefits will now be restricted to 20 per cent of local sales, with the units standing to lose out on a refund for 80 per cent of sales outside the state,” said the official. He added that various sectors made a strong case for the protection of their benefits during the GST regime, and called for an increase in its tenure beyond March 2018.

The officer said the textile sector has brought to the state government’s notice that it would have to bear an additional burden following a 5 per cent GST on cotton. Therefore, it has pleaded for a protection of benefits under the GST regime. Further, the small units, which are not entitled to benefits based on gross taxes paid, but on net taxes paid, have hinted that they would be hit badly.

KPMG, a leading auditing firm, in its recent analysis on the GST impact on PSI said the picture changes dramatically. There will be a two-fold impact on the quantum of incentives, therefore, inter-state sales will not contribute to the incentives under GST, and the effective tax rate could also be lower.


XaTTaX: Cloud and On-Premiss Based GST Filing Software For India

Source: http://www.dnaindia.com/india/report-dna-exclusive-gst-impact-maharashtra-may-revise-incentives-plan-2511675
GST rollout in India is a bonanza for global accounting firms

GST rollout in India is a bonanza for global accounting firms

Comments 0 Comment

KPMG India has a team of more than 1,100 people with skills across GST, IT and supply chain management to support about 400 clients from a wide range of industries transition to the new tax system.

KPMG India

What is taxing for some in India has become brisk business for others.

With seven weeks to go before the nationwide goods and services tax (GST) is implemented, Indian companies are rushing to bring in experts to help prepare the accounting and information technology systems for the tax-system overhaul. That’s created a windfall for international professional services firms, including Price water house Coopers LLP and KPMG LLP.

Providing advice on everything from taxation regulations to business finance will generate as much as Rs15,000 crore($2.3 billion) in extra consulting fees, according to a council member of India’s accounting regulator, the Institute of Chartered Accountants of India. PricewaterhouseCoopers said it’s pulled in a specialist from Australia to help bring Indian companies into compliance with the new taxation regime, which starts 1 July.

“We are helping our clients’ transition to GST in phases,” said Pratik Jain, a partner leading the firm’s indirect taxes arm in India, in a telephone interview. The firm has a team focused on GST-driven demand that’s drawing on advice from abroad “plus a pool of international experts when needed,” he said.

Representatives from Ernst & Young LLP and KPMG said they are also fielding calls for help from businesses struggling to assess the impact of the GST’s implementation and how best to implement computer-based systems to manage their supply chain, procurement and accounting processes.

KPMG India

KPMG India has a team of more than 1,100 people with skills across GST, IT and supply chain management to support about 400 clients from a wide range of industries transition to the new tax system, said Sachin Menon, a partner and the firm’s national head of indirect taxes. International experts have also been drawn in to help clients, he said.

The complex process of converting an economy with more than 1 billion consumers into a unified, common market has bolstered demand for enterprise resource planning, or ERP, said Ashish Mittal, co-founder of EasemyGST, an IT service provider in Gurugram near Delhi.

“We are in touch with 1,000 companies of which half have agreed to go with us,” Mittal said. About 200 inquiries were from medium to small businesses, he said.

Helping companies be fully compliant with the new system is difficult, as detailed guidelines aren’t yet available to provide the necessary clarity, PricewaterhouseCoopers’ Jain said.

“Corporate clients want more detailed guidelines and illustrations based on specific sectors,” he said. So far, clients have indicated that guidelines for getting credit for taxes paid are more restrictive, and lack of clarity on registration of taxpayers with multi-state operations is “a huge issue” under the new system.

More clarity

Rules and specific rates of taxation aren’t yet finalized, according to the council member of the Institute of Chartered Accountants of India, who asked not to be identified because only the institute’s president is authorized to speak to the media. Without more granular detail, it will be impossible for organized industries to comply from 1 July, let alone India’s 40 million small-scale enterprises, 70% of which are unorganized and haven’t started the process of readying their businesses, the member said.

India has about 300,000 sales-tax accounting practitioners who help mostly small businesses file returns and comply with tax laws. In addition, there are 150,000 chartered accountants employed in India of which 80,000 need to be trained, the member said.

Businesses with more than Rs1,000 crore in revenue typically spend Rs60 lakh-to-Rs1 crore on accounting services, representatives of two accounting firms said. This cost will probably double at least in the first year of the GST’s implementation, they said. Bloomberg

Source : http://www.livemint.com/Companies/YCF5EOCO8P8kkqR3E0LyhO/GST-rollout-in-India-is-a-bonanza-for-global-accounting-firm.html