COIMBATORE: Coimbatore leads in implementing the Automation of Central Excise and Service Tax (ACES), according to Chief Commissioner of Customs, Central Excise and Service Tax, Kochi and Coimbatore Zones, Vineet Ohri.

Inaugurating the Central Excise Day celebrations here recently, Mr. Ohri said Coimbatore had 98 per cent e-filing of returns and e-payment of Central Excise.

According to Reserve Bank of India estimates, Rs. 1.68 lakh crore was pumped into the economy as stimulus measures. Of this, the taxation benefits related to Customs, Central Excise and Service Tax worked out to about Rs. 42,000 crore. The economy was on the growth path now.

When the Goods and Services Tax (GST) is implemented the Gross Domestic Product (GDP) would increase by 1.5 per cent to two per cent.

It would bring phased changes, lower the tax rate and broaden the tax base.

Principal Secretary of the Department of Industries, Government of Tamil Nadu, Rajeev Ranjan, said GST was an important measure. As economy developed the percentage of tax collection through indirect taxes declined and collection of revenue from direct taxes went up.

In advanced countries such as the U.S. and the Western Europe, the indirect tax ratio to the GDP was not high. The value added tax came in as a major reform in the country. The GST was the next stage of reform and would be comprehensive.

Aravind Pinto, Chief Commissioner of Income Tax, Coimbatore, said the GST would require sharing of information between Commercial Tax and Central Excise Departments.

Automation would help free flow of information. The Direct Tax Code that was expected to be implemented from April 1, 2011 would replace the Income Tax Act of 1961.

It would be a complete code that would be easy to understand even for the common man. It would be flexible and would lead to stability of rates, he said.

Mahendra Ramdas, president of Indian Chamber of Commerce and Industry, Coimbatore, said the GST should subsume some of the other taxes.

The GST should cover petroleum and natural gas and the goods exempted from the State GST should be exempted from central GST too.

C. Rajendiran, Commissioner of Customs, Central Excise and Service Tax, Coimbatore, said Coimbatore Zone had five commissionerates. Automation of Central Excise was launched in 104 commissionerates in the country.

Regarding Customs, he said in three months export documents were likely to be processed online.

The zone registered about Rs. 800 crore revenue in Central Excise till January 2010 this fiscal.

Courtesy - The Hindu