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Economic Legislation
– Any policy has two fundamental aspects-
• Formulation
• Implementation
– The bridge between the two is provided by
legislations.
– Planners, legislators and executors have act in
concert so as to make the policy discussions
must be followed by a few illustrative examples
of economic legislations, so that the analyst may
understand particularly the interaction between
the economic and politico-legal environment of a
country.
Monopolies and Restrictive Trade Practices Act
( MRTP) 1969
The MRTP Act enacted in December 1969 and
brought into force with effect from June 1 1970
Preamble
“ An act to provide that the operation of the
economic system does not result in the
concentration of economic power to the
detriment for the control of monopolies, for the
prohibition of monopolistic and restrictive trade
practices and matters connected there with or
incidental there to”
Objectives
B) Investigation
Section 15 empowers the govt. to cause an
investigation into an industrial undertaking on the
happening of –
Deterioration in the quality of product.
Rise in the price of article
Misutilisation of resources
Fall in production
1. Preventive Provisions
A) Development councils
Govt. can establish councils for any scheduled
industry or group of scheduled industries
consisting of members representing the interests
of owners, employees, consumers etc. and
persons having special knowledge of industries.
B) Levy and collection of cess
Section 9 of the act provides govt. to levy and
collect a cess for purpose of this act on all goods
and services of scheduled industry.
3. Creative Provisions
Objectives
To regulate certain payments
To regulate dealings in foreign exchange and
securities.
To regulate holding of immovable property of the
country.
To regulate employment of foreign nationals.
to regulate foreign companies.
Foreign Exchange Regulation Act 1973
Provisions
Regulation of dealings in foreign exchange
Restrictions on payments
restrictions on establishment of place of
business in India.
restrictions on Immovable property
restrictions on import and export of
currency.
Foreign Exchange Management Act 1999
1. Specific Duty
It is the duty payable on the basis of certain fixed
unit like weight, length, volume, etc.
2. Tariff Value
T.V. is a notional value fixed by the govt. under
the section3(2) of CEA for the purpose of
calculating the duty payable.
Govt. can fix different tariff values for different
classes of same excisable goods or Manufactured
by different producers or sold to different classes
of buyrers.
Basis of Levy Of Excise Duty
6. Levy of Slabs
Under this system the excise duty is levied on the
basis of different slabs based on various parameters
like turnover, production capacity etc.
SSI units are taxed on the basis of turnover
6. Compound levy Scheme
Meant for the small scale decentralized sector e.g.
embroidery, marble, stainless steel etc.
Duty for a specified period is fixed on the basis of
the number and type of machines.
Manufacturer has to observe day today excise
formalities regarding maintenance of account
Exemptions from Central Excise Duty
Women
Senior Citizen
Other Individuals
Surcharge
If total income exceeds Rs. 10,00,000 @10%
education cess.
On the amount of income tax surcharge Rs. 2%
Problems in Administration of
Income Tax in India
1. Large Non-Monetized Sector