China needs to worry about effect of India industrial transfer on production chain

[Lil Mathew]

If a truck carries goods from A to B via C and D, how to divide revenue according to the new tax regime?


I know you have passed.

If trade is between States then tax is collected by our central govt.. If trade happens within a state ,state collects the tax.. That means if trade is between state a to state b, then tax will collected by central govt.. If a & b are places within a state, then state collects the sale tax no matter c and d ..

 

[AndrewJin]

If trade is between States then tax is collected by our central govt.. If trade happens within a state ,state collects the tax.. That means if trade is between state a to state b, then tax will collected by central govt.. If a & b are places within a state, then state collects the sale tax no matter c and d ..

So C and D will have no money?
How to divide tax revenue between A and B?

You are about one fifth of China's size today. Just shut up, Indian man!

Well...u should understand 2 trillion dollars in different times mean different.....
In 2007, China was busy preparing for Olympics and constructing huge number of expressways and HSRs and manufacturing electronics products....However, life expectancy of india today is only at China's 1970s-1980s level...

Vietnam's GDP today can be compared to Germany's GDP several decades ago....but it does not mean Vietnam has really reached Germany's development level at that time......

 

[Lil Mathew]

So C and D will have no money?
How to divide tax revenue between A and B?

Yes.. C&D will not get money..
For example..if raw material trade happened in state A means state A get that tax.. Then product manufacturing.. Value added tax or VAT collected by state A.. Then trade between company and whole saler.. If it is between state A and B, tax collected by central govt.. Next trade between whole saler and retailer .. Tax collected by state govt B.. And so on..

 

[AndrewJin]

Yes.. C&D will not get money..
For example..if raw material trade happened in state A means state A get that tax.. Then product manufacturing.. Value added tax or VAT collected by state A.. Then trade between company and whole saler.. If it is between state A and B, tax collected by central govt.. Next trade between whole saler and retailer .. Tax collected by state govt B.. And so on..

Let's see how indian government implements the policy in the future!

 

[ahojunk]

Just looking at the Indian posters in PDF, most of them are talking sh't. They are similar to the size of China's population but they are somewhat 1/5 of Chinese economy. And yet they are talking big....

You are about one fifth of China's size today. Just shut up, Indian man!

.
@Sanchez ,

Reminder to you to be more respectful and civil in your posts.

Also, not all Indian posters are talking big. Please don't make this unfair generalisation.

 

[endyashainin]

Why do u think so?

It's robbery because trucks are being taxed for simply passing through a state on its way to deliver goods. I understand the roads have to be paid for, but this is normally done through a gasoline or diesel tax in other countries.

 

[Rasengan]

I thought you were joking.....
Just searched......
http://thediplomat.com/2014/12/indian-states-need-a-free-trade-deal/

They probably need inter-state trade deals...
I can imagine how difficult it will be to divide the tax revenue between different states when their central government is such a loose organisation.....

Modi promised during the election that he would implement the goods and sales tax...yet the investment community has been waiting for more than two years. The DMIC and Make in India will ultimately fail because the opposition will block this move in Parliament. Do you know why? Because the BJP when in opposition did the same action for a number of years, so it's only natural for their political enemies to do the same.Trust me India has a long way to go before it can dream to compete with China.

 

[Kyle Sun]

This is not possible in India because most truck drivers are illiterate, and more importantly, trucks have to stop at the state borders to pay local duties and taxes before allowed to drive on. To travel from Guizhou to Shanghai, a Chinese driver can traverse 4 provinces without stopping. If and Indian drivers has to drive through 4 states to get to his destination, he would have to stop to pay taxes and duties 4 times, wasting at least one day at each stop. The system India has is insane.

Are. you telling me your. drivers need to pay not only the. high way. fee but also. somekind. of tax just because they pass through the province?

 

[endyashainin]

Are. you telling me your. drivers need to pay not only the. high way. fee but also. somekind. of tax just because they pass through the province?

I'm not Indian, but yes, this is the case with India. A tax or fee is levied on goods for just passing through a state.

 

[AndrewJin]

Modi promised during the election that he would implement the goods and sales tax...yet the investment community has been waiting for more than two years. The DMIC and Make in India will ultimately fail because the opposition will block this move in Parliament. Do you know why? Because the BJP when in opposition did the same action for a number of years, so it's only natural for their political enemies to do the same.Trust me India has a long way to go before it can dream to compete with China.

What's your prediction on the implementation of GST? Will they still install checkpoint not for tax but for other reasons?

I'm not Indian, but yes, this is the case with India. A tax or fee is levied on goods for just passing through a state.

In winter, beans from Hainan Island will be delivered to my city, and the price is cheap. I just can't imagine how expensive it will be if we want to have Hami melon from Xinjiang with roberry at each border!

 

[ohmrlobalobayeh]

What's your prediction on the implementation of GST? Will they still install checkpoint not for tax but for other reasons?


In winter, beans from Hainan Island will be delivered to my city, and the price is cheap. I just can't imagine how expensive it will be if we want to have Hami melon from Xinjiang with roberry at each border!

GST is jsut a fixed percentage of price levy on EVERYTHING.(7% in Singapore).

For example:

your restaurant bill is $1. there will be no 'service charge' or 'tip' added or expected(like in the US). Instead $1.07 will be your final bill.

A can of soft drink costs $1 from your local supermarket. $1.07 would be the price of that can of soft drink.

A LED monitor costs $100. $107 would be the price of the item on sale.

Your dentist's scaling and polishing fees is $80. U will be billed $85.6 and this change would appear on the receipt.

Hence it's a universal increase on the price of everything. hence, the name 'Goods and Services Tax

 

[AndrewJin]

GST is jsut a fixed percentage of price levy on EVERYTHING.(7% in Singapore).

For example:

your restaurant bill is $1. there will be no 'service charge' or 'tip' added or expected(like in the US). Instead $1.07 will be your final bill.

A can of soft drink costs $1 from your local supermarket. $1.07 would be the price of that can of soft drink.

A LED monitor costs $100. $107 would be the price of the item on sale.

The goal is good. But think about all those poor states that cannot share the checkpoint revenue!

 

[endyashainin]

GST is jsut a fixed percentage of price levy on EVERYTHING.(7% in Singapore).

For example:

your restaurant bill is $1. there will be no 'service charge' or 'tip' added or expected(like in the US). Instead $1.07 will be your final bill.

A can of soft drink costs $1 from your local supermarket. $1.07 would be the price of that can of soft drink.

A LED monitor costs $100. $107 would be the price of the item on sale.

This is pretty much how all functioning countries tax goods and services. I can't believe an aspiring superpower such as India didn't have this for seventy years... Just wow.

 

[ohmrlobalobayeh]

This is pretty much how all functioning countries tax goods and services. I can't believe an aspiring superpower such as India didn't have this for seventy years... Just wow.

I dun think the US implements it(correct me if im wrong). they are still liable to paying taxes. in Singapore, as we are using the GST system, all Singaporeans do not pay income taxes as that tax has been replaced by the GST we pay for in our expenses.

 

[AndrewJin]

I dun think the US implements it(correct me if im wrong). they are still liable to paying taxes. in Singapore, as we are using the GST system, all Singaporeans do not pay income taxes as that tax has been replaced by the GST we pay for in our expenses.

Some countries rely on GST, some on income tax, some combined.