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: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: VAT RATES :: form 3cd :: due date for vat payment :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: TDS :: empanelment :: cpt :: Central Excise rule to resale the machines to a new company :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
VAT (Value Added Tax) »
 Understanding VAT refunds
  Note ban got Maharashtra govt an extra ?125cr from fuel VAT
 Note ban got Maharashtra govt an extra ?125cr from fuel VAT
 Higher tax mop up reflects no slowdown post demonetisation, says Arun Jaitley
 Traders transition from VAT to GST
 FM Arun Jaitley defends note ban with jump in tax numbers
 States record jump in VAT collections after note ban
 Migration from Value Added Tax to GST begins
 VAT is coming: a historic change and leap into the unknown
 Online sales clampdown nets VAT registrations
 Telangana House passes Bill to reduce VAT on cell phones

Sugar, garment prices to rise on VAT
October, 17th 2011

Prices of sugar and garments are set to go up with the empowered group of state finance ministers on Friday deciding to levy Value Added Tax (VAT) on these items from April 1, 2012. The levy will, however,not be applicable on handloom and khadi.

"There is a consensus among states to implement VAT on these items from April 1, 2012," empowered group chairman and Bihar FM and deputy CM Sushil Modi said.

Modi, however, said this will not add any further inflationary pressure on the two items and was meant to compensate for the duty loss that had occurred after the Centre gave up levying additional excise duty on these items. So far, VAT on these items was levied only in Andhra Pradesh and Delhi. While Delhi levied VAT on textiles, Andhra Pradesh imposed it on both sugar and textiles. Now, with the states deciding to levy VAT on them, the rates could vary anywhere between 4% and 5%.

"Since 1957, the Centre was levying additional excise duty and the revenue was shared with the states as per the devolution plan," Modi said. Last year, after the 13th Finance Commission asked the Centre to stop this tax, the additional duty was done away with but the loss to the states was not compensated , he added. The Centre's gain from additional duty on textiles was Rs 2,200 crore in 2005-06 and while that on the sugar it was Rs 1,220 crore.

The decision comes when the empowered committee met here to discuss pending issues on Goods and Services Tax (GST). This also indicated the states' increasing discontent with the Centre on the issue of compensation on loss due to phasing out of the Central Sales Tax (CST). Modi said states are upset that the Centre has not yet arrived at any formula on how to compensate the states on CST loss. The states are demanding full compensation. While the Centreallocated Rs 14,000 crore for 2010-11 , Rs 12,000 crore provision has been made for 2011-12 . The CST, a tax on inter-state movement of goods, was reduced from 4% to 3% in 2007-08 and further to 2% in 2008-09 after the introduction of VAT.
{Ad}

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Development Software Programming Software Engineering Custom Software Development Requirement Based Software Development Software Solutions Software Serv

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