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: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: cpt :: due date for vat payment :: ACCOUNTING STANDARDS :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: articles on VAT and GST in India :: TDS :: form 3cd :: empanelment
 
 
« Service Tax »
 India’s E-Service Tax Will Add To Foreign Content Providers’ Woes
 GST Council to discuss model laws, tax jurisdiction today
 Tax Invoice Under GST
 Insurance may fall under 12% tax slab in GST, from 14% service tax currently
 GST draft makes it must for companies to pass tax benefit to consumers
 To speed passage, Government plans GST Bills as money Bills
 No service tax on train tickets booked through IRCTC till December 31
 GST Council meet postponed to December
 Banks integrating systems with RBI, GST Network to collect tax: Arun Jaitleya
 Service tax waived for online train ticket booking till Dec 31
 Key challenges in implementation of Goods and Services Tax

Good & Service Tax : Get states on board
November, 11th 2009

It is welcome that the first formal document to herald an efficient system of indirect taxes harmonising the interests of producers, consumers and the government, both at the Centre and in the states, has finally been released. It is, however, the first such document, indicating that more might follow.

The White Paper comes just five months before the proposed deadline for commencement of GST: April 1, 2010. The constitutional amendment and changes to tax laws that are required to implement the tax are unlikely to be completed before that deadline.

Further, as an article on the edit page in this edition points out, huge gaps remain in the White Paper, particularly on the taxation of services whose provision span several states.

It is important that all loose ends be tied up, to mobilise the wholehearted support of the states to the project. It is welcome that the Empowered Committee of State Finance Ministers has released the White Paper, and not the Centre. This gives the states greater ownership of the proposed tax. Without their cooperation, the proposed changes cannot take place.

Major gaps in the tax chain have been created to win over their support: neither petroleum fuels nor liquor will come under GST and thus bear a low rate of tax. Both kinds of goods will continue to be taxed as they are at present. GST can boost indirect tax revenues, with its in-built incentives to stop avoidance, obviously enough.

It can also boost direct tax revenues, provided the direct and indirect tax authorities share their databases.

If a company pays so much of central GST, it cannot show a disproportionate level of income. As taxation brings larger and larger areas of value creation in the economy under its scope, the rate of tax can be lowered, both when the common tax base of GDP is taxed, whether as income or as goods and services consumed.

So, ideally, no exemptions should be allowed. If the cause of simplicity of implementation calls for exemption of activity below a threshold, that threshold should be kept low. This would raise some compliance costs for small operators, producers as well as traders. Governments should help them with these costs, rather than make them an excuse for widening the scope of exemption.

Implementing GST would call for considerable political will. Transporters, for example, have routinely resisted all attempts to tax their services. Partisan one-upmanship might persuade Opposition parties to champion such resistance. The government and its leaders should call all-party meetings and build consensus among them on GST.

And to help parties make up their mind, the government should educate the public and appeal for their support, to help modernise the economys system of taxation and speed up economic growth.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Web Application Development Web based Software Solution Web Application Deployment Web Application Solutions Web Application Software Development Web Application Deployment Web Application Programming Web Application Design and Development

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