News of the Week :-
The GST, which was hammered out after series of meetings with the states, is a "win-win" for both Centre and States and will provide for levy of 1 per cent additional tax by states for inter-state transfer of goods for two years.
"GST will ensure seamless transfer of goods and services, absence of Inspector Raj and no tax on tax," Jaitley told reporters soon after tabling the 122nd Constitution Amendment Bill in the Lok Sabha.
What is Goods and Services Tax (GST)?
It is an inclusive value added tax levied on the manufacture, sale and consumption of goods and services at national level. There is no difference between taxable goods and taxable services, and they are imposed at a uniform rate in a supply chain of goods and services until they reach the end consumer. There are various advantages of GST both for the industry and for the end consumer which can be summarized in the following points:
· When introduced, it would abolish multiple taxes on goods and services; hence prices of goods and services could be simplified and justified. This will also result in reduction of effective tax rates to one or two flat rates.
· It is easy to understand, easy to administer and spread uniformity across the country. GST removes distortion in the economy from the cascading effect of tax system. It also would result in reduction of compliance cost and increase of voluntary compliance.
· It improves efficiency in manufacturing and distribution, reduces the cost of production of goods and services, while at the same time increasing demand and production of goods and services.
· Due to its neutral business procedure, organizational structure, business models, geographic location and the product substitutes, GST helps promote economic efficiency and sustainable long term growth.
· GST improves exports capability of a country and gives an edge in overseas market for goods and services produced in India.
· It reduces corruption, harassment and litigation which are some of the burning issues, besides, it also widens the tax base and increment in revenue of State and Central Government. Last but not the least; it reduces the administrative cost of the Government.
A single rate GST will replace central excise, state VAT, entertainment tax, octroi, entry tax, luxury tax and purchase tax on goods and services to ensure seamless transfer and end of "inspector raj" as well as "tax on tax," he said. "It will be single most tax reform after 1947."
While liquor has been completely kept out of the GST, petroleum products like petrol and diesel will be part of the new regime from a date to be decided at a future date by the GST Council, which will have two-third of its members from states. All decisions in the Council will require 75 per cent votes.
Also the states where goods originate can levy 1 per cent additional tax over GST to make up for any revenue loss for the first two years.
As regards the compensation to the states on account of any possible loss of revenue following implementation of the GST, Jaitley said there will be 100 per cent compensation in first three years, 75 per cent in the fourth year and 50 per cent in the fifth year.
The Bill will be considered for passing in the Budget session of Parliament beginning February, the Minister said, adding he did not feel the necessity of the legislation being referred again to a Standing Committee.
>>> Nifty - Weekly Chart - As Posted Last Weekly Review <<<
>>> Click the chart to see on full screen <<<Wrote last week - 8180 and 15 week MA as support. See what Happened.
>>> Nifty - Weekly Chart - Happened and Yet to <<<
>>> Click the chart to see on full screen <<<RSI still looking side ways. A green coloured Hanging man - closed inside the channel and managed to hold 15 & 25 Week MA shows Bulls still breath.
>>> Nifty - Daily Chart <<<
>>> Click the chart to see on full screen <<<As given on chart - Two alternatives discussed.
>>> Nifty - Hourly Chart <<<
>>> Click the chart to see on full screen <<<If the current rally is for Wave B, then it may find resistance at 8294 and 8372. Unable to cross above the given resistance may trigger selling once again. Else, if crosses above, then expect a good short covering.
>>> Bank Nifty -Daily Chart - As Posted Last Weekly Review <<<
>>> Click the chart to see on full screen <<<Wrote 18818 - as end of 50% retrace or a possible 5th wave top. See what happened.
>>> Bank Nifty - Daily Chart - Happened and Yet to <<<
>>> Click the chart to see on full screen <<<As wrote last week - Bank Nifty started falling, But took support @ 38.2% retrace or on the channel as shown on chart. Looks like one more last leg of upmove is pending. Lets See in detail on Hourly Chart.
>>> Bank Nifty - Hourly Chart - As posted Last Weekly Review <<<
>>> Click the chart to see on full screen <<<Wrote Last week - Trend line as a support. See what happened.
>>> Bank Nifty - Hourly Chart <<<
>>> Click the chart to see on full screen <<<Took support Exactly at the trend line - We market it as sub wave (4) or 38.2% retrace. Now if able to cross 18580 or 78.6% retrace - let hope to see a new high.
>>> Charts of the Week <<<
>>> Click the chart to see on full screen <<<Stock traded on red, even on a bullish friday - due to RIL Buzz to announce their 4G roll out early next year, which may trigger a price war between these two telecom giants. But as per chart - it looks like a Bullish break out on RSI and Price. So lets wait for next move.
>>> NTPC - As posted on 18th Dec, 2014 <<<
>>> Click the chart to see on full screen <<<Wrote on 18th dec, 2014 to Buy NTPC for a good UPmove. See what happened ?
>>> NTPC - Happened and Yet to <<<
>>> Click the chart to see on full screen <<<We booked part Profit Rs.10,000. RSI on a fresh break out. Get ready for more rally.
>>> INDIACEM <<<
>>> Click the chart to see on full screen <<<Hope India Cement on the last leg of a correction as 1-5. As per chart above it looks like 1-5 got completed and if this chart is not wrong - get ready for a rally.
>>> HDIL <<<
>>> Click the chart to see on full screen <<<Stock on FnO Ban Period. As per above chart - 3-3-3 Correction got completed @ 58.60. If the chart is not wrong - get ready for a good rally soon.
>>> Performance <<<
>>> Click the image to see on full screen <<<For details - send email to firstname.lastname@example.org
>>> COMMODITY <<<
>>> Gold - As Posted on 16th Dec, 2014 <<<
>>> Click the chart to see on full screen <<<Said - 27800 as a Resistance - if unable to cross - then Fall. See what happened.
>>> Gold - As Posted on 19th Dec, 2014 <<<