Tax

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KPMG India’s Budget highlights

KPMG India has analysed the implications of the budget in two parts. The report that talks about the Budget Highlights says in a foreword it is reassured by the government’s stand reiterating a commitment to bring in GST by April 2010. It also talks about issues like the new direct tax code, setting up of an alternative dispute resolution mechanism and empowering the Central Board of Direct Taxes to formulate safe harbour rules for transfer pricing in international transactions.
 

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Tax on luxury cars will help no one, not even inflation

Last week, inflation touched 8.75% confirming that inflation has perhaps crossed 9% and if you factor in the June 4 petroleum product price hikes, it will cross 10%. Everyone seems to be predicting that by November’08, the base effect will kick in and reported inflation will come down. Still, if the direction in which prices are moving does not change, it does not bode well.
 

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