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On
the taxation front, the Budget takes some definitive
measures which will have a deep and far reaching impact on
the economy.
Undisputedly,
the most far reaching tax measure is the time-bound
affirmation of the introduction of GST from April 1, 2010.
The scheduled introduction of GST, poses in equal measures
a challenge, both for the Government and industry.
It
should not be lost sight of that introduction of value
added tax, complex and challenging though it was, covered
only goods, while the introduction of GST has twice the
reach and complication of VAT, as it will cover both goods
and services.
While
VAT covered less than 50 per cent of our economic
activity, GST will ultimately embrace almost the entire
spectrum of our economic activities.
The
blue print for GST is likely to be made public in August
which leaves a transition period of 8 months. There is a
lot of running to be done by the Government and industry
to get to the milestone of GST.
Source :
The HinduBusinessLine,
India,
dated 12/07/2009
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