WINNING STROKES: THINK DIFFERENT:

Morning call on Cals Ltd hits the buyer freeze in the opening trade. The stock has long back given a break out and should be moving towards the next target. 

Hindalco Ltd recommended today at Rs.181.60, with the news that the environment ministry has recommended clearance for the coal mine project in Sambalpur, Orissa, for doubling capacity in 3 years time frame, moved to Rs.182.60. 
Meanwhile, the Union Finance Ministry is planning to include more professions in the service sector under the tax regime as very few services are taxed under the present service tax regime. Government is also drafting a negative list of services under which, all services which are not mentioned in the negative list, would be taxed under the proposed Goods and Services Tax (GST).

Speaking at conference organized by the Associated Chamber of Commerce (Assocham) Joint Secretary Union Ministry of Finance V K Garg said more areas in the services sector need to be brought under service tax. In India, this is tougher to do, because goods are sometimes classified as services and vice versa. The Centre has shown commitment to implement the Goods And Service Tax (GST), which will subsume most of the indirect taxes like excise duty and service tax at the central level, as well as VAT on the state front, besides local levies.

'Very soon, there will be an announcement by the Union Finance Minister on a negative list of taxation. We have drawn up a negative list of taxation about what we do not and should not tax. Once we are sure of this, everything else, which is not included in this list, can be brought under the tax net,' he added.

V K Garg said the taxation is important for any country, and if taxation fails, it leads to deficits and inflation - which is the worst kind of taxation. By adding further he said that if taxes are improper, the economic activity would end up getting distorted. Similarly, if import duties are high, then local businessmen would enjoy protection and monopoly, which will result in customers suffering.

On the issue of defining services goods for negative list, V K Garg said that, in India, even defining certain economic activities as a service is not easy, because the constitution does not recognize several such activities as service. So, there is a challenge even at the definition level.  'Currently, only a limited number of services are under the tax net. The government proposes to tax most of the services under the GST regime. A constitution amendment bill is pending in the Parliament, which seeks to pave the way for the introduction of GST. The idea is to implement the GST regime by the year 2013,' V K Garg added.