{"id":1660,"date":"2018-08-10T11:51:40","date_gmt":"2018-08-10T11:51:40","guid":{"rendered":"http:\/\/www.beachminerals.org\/?p=1351"},"modified":"2021-09-23T15:08:33","modified_gmt":"2021-09-23T09:38:33","slug":"india-makes-tentative-moves-towards-single-tax-rate-for-mining-sector","status":"publish","type":"post","link":"https:\/\/beachmineral.com\/ta\/india-makes-tentative-moves-towards-single-tax-rate-for-mining-sector\/","title":{"rendered":"India makes tentative moves towards single tax rate for mining sector"},"content":{"rendered":"

\u00a0India<\/a>\u2019s\u00a0Steel<\/a>\u00a0Ministry has made the first tentative move towards achieving a single unified tax for the\u00a0mining<\/a>\u00a0industry, subsuming the plethora of taxes currently payable by miners.<\/p>\n

Ministry officials acknowledged that the goal of having a single rate of tax for the\u00a0mining<\/a>\u00a0industry would be protracted, considering that several of the levies, including royalties, accrued to the kitty of state governments and that all mineral-rich states would have to be brought on board if a single rate of tax on minerals was to be evolved under the Goods and\u00a0Service<\/a>\u00a0Tax (GST), the unified indirect tax regime introduced across the country last year.<\/p>\n

However, the official said that the plan to move towards a single tax rate could start with\u00a0iron-ore mining<\/a>, wherein\u00a0iron-ore<\/a>\u00a0was taxed at 5% and finished\u00a0steel<\/a>\u00a0at 18%. The option could be explored in related\u00a0mining<\/a>\u00a0taxes, like royalties subsumed in the GST rate, and enable the entire chain from raw material to finished\u00a0steel<\/a>\u00a0to claim input credit at every stage of value addition.<\/p>\n

The\u00a0Steel<\/a>\u00a0Ministry will prepare the draft proposal to be submitted to the department of revenue under the\u00a0Finance\u00a0<\/a>Ministry, but the final decision would rest with the GST Council, the apex body of federal and state government representatives governing the GST regime.<\/p>\n

The challenge before such a reform for the\u00a0mining<\/a>\u00a0sector would be that, while the total tax incidence on the\u00a0mining<\/a>industry might not be lowered, the adjusting multiple taxes into a single rate and shift of accruals from the state government to the federal government could lead to a loss or revenue for state governments. The federal government would have to make provisions to compensate state governments for such a loss, officials said.<\/p>\n

The net effective rate on\u00a0mining<\/a>, which amounted to about 64% in the case of mines allocated prior to 2015 through preferential allotment and 60% for mines allocated through the auction route thereafter, comprised royalties, contributions to District Mineral Fund (DMF) and\u00a0National Mineral Exploration Trust<\/a>\u00a0besides the GST rate as applicable, making Indian\u00a0mining<\/a>\u00a0industry one of the highest taxed in the world.<\/p>\n

Officials said that while the aim of a single rate of tax on\u00a0mining<\/a>\u00a0would not be to bring down the net effective rate of tax, a single rate would ensure lower compliance costs for miners and offer the option of claiming input tax credit from their buyers across the\u00a0production chain<\/a>.<\/p>\n

Source :\u00a0http:\/\/www.miningweekly.com\/article\/india-makes-tentative-moves-towards-single-tax-rate-for-mining-sector-2018-07-27<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a0India\u2019s\u00a0Steel\u00a0Ministry has made the first tentative move towards achieving a single unified tax for the\u00a0mining\u00a0industry, subsuming the plethora of taxes currently payable by miners. Ministry officials acknowledged that the goal of having a single rate of tax for the\u00a0mining\u00a0industry would be protracted, considering that several of the levies, including royalties, accrued to the kitty of … Continue reading “India makes tentative moves towards single tax rate for mining sector”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1,53],"tags":[],"class_list":["post-1660","post","type-post","status-publish","format-standard","hentry","category-blog","category-media-news"],"translation":{"provider":"WPGlobus","version":"3.0.3","language":"ta","enabled_languages":["en","ta"],"languages":{"en":{"title":true,"content":true,"excerpt":false},"ta":{"title":false,"content":false,"excerpt":false}}},"acf":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/beachmineral.com\/ta\/wp-json\/wp\/v2\/posts\/1660","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/beachmineral.com\/ta\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/beachmineral.com\/ta\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/beachmineral.com\/ta\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/beachmineral.com\/ta\/wp-json\/wp\/v2\/comments?post=1660"}],"version-history":[{"count":1,"href":"https:\/\/beachmineral.com\/ta\/wp-json\/wp\/v2\/posts\/1660\/revisions"}],"predecessor-version":[{"id":1911,"href":"https:\/\/beachmineral.com\/ta\/wp-json\/wp\/v2\/posts\/1660\/revisions\/1911"}],"wp:attachment":[{"href":"https:\/\/beachmineral.com\/ta\/wp-json\/wp\/v2\/media?parent=1660"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/beachmineral.com\/ta\/wp-json\/wp\/v2\/categories?post=1660"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/beachmineral.com\/ta\/wp-json\/wp\/v2\/tags?post=1660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}