“Goods and Services Tax (GST) is expected to bring about a transition from origin-based tax to destination-based tax regime. Therefore, this will provide impetus to those States where consumption is more. This will alleviate the deficiency in the indirect tax regime that favours only those States that are good in manufacturing,” said Vinayak Pai, Chartered Accountant from Bengaluru, here.
He was speaking at Vikalpa, a finance conclave organised by the School of Management, a constituent of Manipal University, here recently.
Tax compliance
According to a press release issued here on Monday, Mr. Pai said that the system of allowing input tax credits would ensure that more number of businessmen became tax-compliant. Business transactions would get digitised. “Thus, GST is expected to lead to increased revenue as well as increased rate of GDP,” he said.
The conclave brought together industry practitioners and academics. The objective of the conclave was to make the students of business administration aware of the contemporary issues in the world of finance.
Black money
Ghanshyam, an independent business consultant based in Mumbai, analysed the issue of black money. He said that demonetisation might not be able to halt the process of creation of black money.
But it had provided an initial thrust to the task of halting the process of creation of black money.
Measures such as tackling benami property, a strong public resolution to reject any involvement in corrupt deals, transparency in political funding were required to counter the threat of black money and the resultant parallel economy, he said.
Varadaraya Pai, Director Finance at Manipal University, presided over the programme. Raveendranath Nayak, Director, School of Management, welcomed the gathering. Vatsal Kumar proposed a vote of thanks.
