The owners of India Inc (as per NSE):
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Day: April 10, 2012
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The coming service tax tsunami
The service sector accounts for 57% of India’s GDP (Source: GoI)
The Govt of India is all set to tax the living daylights of this sector.
In the last budget, Service Tax regime changed in a dramatic fashion-from a positive list it changed to a negative list.So now all services (other than those in the negative list) will be taxed.
The Service Tax was also hiked from 10% to 12%- a hike of 20%
The govt intends to introduce the Goods & Services Tax (GST) soon in the next 12-18 months.Once the GST comes to force, the service tax will be hiked up to 16% (see here)
So effectively, in a span of two years, the service tax will be hiked from 10% to 16% an increase of 60%
From an investment perspective, this implies a high inflation regime and a negative outlook for the service sector such as hospitality, housing etc
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Linkfest: April 10, 2012
Some stuff I am reading this morning:
Loop Telecom to shut down, seeks 750 M$ damages from the government (Mint)
Harshad Mehta like scam at NCDEX (SuchetaDalal)
China faces timebomb of ageing population (Guardian)
The Warren Buffett Cult Vs The Gold Cult (DailyReckoning)
Why a 1$ CEO costs much more than 1$ (Footnoted)
Grandfather wills property to grandkids, enraged father kills them (FinancialExpress)