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 STANDARD :: empanelment :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: form 3cd :: articles on VAT and GST in India :: list of goods taxed at 4% :: VAT Audit :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES
 
 
News Headlines »
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act
 Have you got interest on your income tax refund?

GST to help remove cascading structures
November, 30th 2007
Pleas for tax incentives could be reduced to a great extent: Shome



Dr Parthasarathi Shome, Advisor to Union Finance Minister (File photo).

The proposed dual Goods and Service tax (GST) system would be designed in such a manner that the Central GST chain and the State GST chain would be independent of each other, a top Finance Ministry official has said.

This would imply that India Inc would not be able to use the input tax credit available under the Central GST chain in the State level GST chain. The Central GST chain is likely to integrate the existing excise duty and service taxes levied at the central level.

The State level GST chain is likely to integrate the current State-level VAT, other local levies and services tax on certain specific services on which States may get the powers to levy service tax.

There will be full input tax credit in the Central GST chain and also in the State level chain, But there would be no usability of Central GST into the State-level GST chain, Dr Parthasarathi Shome, Advisor to the Union Finance Minister, said at a PHDCCI meeting on indirect tax reforms.

Structure impact

Dr Shome said that the main goal of introducing GST was to remove the cascading effect in the respective chains (Central and State level GST chains). He highlighted that the pleas for tax incentives could be reduced to a great extent if the level of cascading structures were minimised.

Currently, under the goods chain, the Centre has the powers of taxation up to the manufacturing stage. After the manufacturing stage and up to the final point of sale, the States impose value added tax and other local levies. The State-level VAT is imposed on price base that include the excise duty, leading to some cascading of taxes.

Tax base

Dr Shome also made it clear that industry cannot look forward for low GST rate (say 14 per cent) until the issue of broadening of the tax base is addressed. There are about 60 lakh registered traders at the State level and 1 lakh registered assesses at the Central level.

Mr R. Sekar, Joint Secretary in the Finance Ministry, expressed confidence that GST would be rolled out by April 1, 2010, which is the proposed introduction date announced for this tax.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

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