Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: cpt :: empanelment :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: due date for vat payment
 
 
News Headlines »
 Did you know? The tax exemption on your HRA
 Income Tax Department expands list of deposits, transactions under scrutiny
  Income-tax Act, 1961 read with Rule 114E of Income-tax Rules, 1962
 Master Directions on Access Criteria for Payment Systems
 RBI-Scheduled Bank's Statement of Position in India as on Friday, January 06, 2017 (Revised)
 3 Big Mistakes To Avoid This Tax Season
 The Top 5 Tax Stories Of 2017
 Are multiple service tax rates in the offing?
 All you need to know about claiming tax break on HRA
 How much income tax you should pay on investments in gold?
  Best ways to save tax in 2017

Exclude revenues post-Form D abolition from CST basket: States
October, 04th 2007
More is always welcome. States have now written to the Centre asking it to exclude revenues generated due to abolition of Form D while calculating the compensation for phasing out of central sales tax (CST).

All central and state government departments purchases were made under Form D, which provided for concessional rate of tax (4% CST). The Centre and empowered committee of state finance ministers agreed to imposition of value-added tax on such purchases.

This was counted towards the compensation package given to states for the phaseout of CST which began from this fiscal. The CST was reduced from 4% to 3%, marking a step forward to the introduction of a unified goods and service tax (GST) by April 1, 2010.

The CST is inconsistent with the VAT, which is a multi-point consumption tax on value addition, with an input tax credit facility. Under the CST Act, the tax is collected by the Centre and disbursed to states.

The abolition of Form D would lead to additional tax collection of Rs 1,500-3,000 crore annually to the states. The CST collections in 2005-06 stood at about Rs 16,000 crore. Collections in 2007-08 are estimated at Rs 25,000 crore which has been the basis for the compensation.

States are expected to face revenue loss of Rs 6,000-Rs 6,500 crore on account of reduction in CST. It may be noted that the centre had provided Rs 5,495 crore for compensation of losses, if any, on account of VAT and CST. The VAT collections of states have been growing by over 24%.

Besides, Form D, the compensation package includes budgetary support and transfer of revenues from certain services. The centre also allowed states to impose VAT on certain tobacco products which attract additional excise duty and imports. However, states can impose VAT on imports only after a constitutional amendment.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Internet Marketing Website Marketing Internet Promotion Internet Marketing India Website Marketing India Internet Promotion India Internet Marketing Consultancy Website Marketing Consulta

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions