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: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: VAT RATES :: VAT Audit :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: ACCOUNTING STANDARDS :: TDS :: articles on VAT and GST in India
 
 
Service Tax »
 GST rollout uncertainty hits Budget 2017 calculations
 GST now set for July 1 roll-out, dual control hurdle finally over
 Grant of Registration under DVAT and CST
 Do not raise service tax, says Chamber
 Excise, service taxpayers to migrate to GST portal by Jan 31
 Centre, state governments work on formula for 'GST on high seas'
 What is service tax?
 Tax to bring transparency, benefit companies operating in state, says Gujarat CM Vijay Rupani
 PAN a must for excise, service taxpayers for GST registration
  Service Tax for Internet Based Services in India from December 2016
 Way ahead for GST with certain provisions

State firm on compensation from Centre
November, 17th 2012

Karnataka is in agreement with the Union government on the introduction of tax reforms, including the Goods and Services Tax (GST), provided the compensation due to it is paid and there is no interference in the financial autonomy of the State.

Karnataka has pressed for the continuation of the compensation approved in lieu of the proposed total abolition of the Central Sales Tax (it has been reduced over the last five years from 4 per cent to 2 per cent) which will pave the way for the introduction of the GST. This will mean that the GST will subsume a wide range of State taxes value added tax (VAT), luxury tax, entertainment tax and the betting tax.

The demand of Karnataka is also that the GST should have a band (a minimum and a maximum) and not a fixed tax. The VAT here now ranges between 5 per cent and 14.5 per cent.
Centres dues

Sources in the State government told The Hindu that it had been categorically conveyed to the Union Finance Ministry recently that the Centre should pay up nearly Rs. 1,200 crore due to Karnataka in the financial year 201011.

Further there had no been indication of the compensation that would be paid for the current year and the last year, and this should also be clarified. Of the compensation of Rs. 1,862 crore approved in 2010, the State had so far received just about a third of it, Rs. 609 crore.

It has, however, assured the Centre that it is in favour of tax reforms propounded by the Union government, particularly the proposal of Finance Minister P. Chidambaram, who is keen on introduction of GST which is pending Parliament approval.

Incidentally, Mr. Chidambaram will be in Bangalore on Tuesday to preside over a meeting of the Chief Ministers of southern States in matters relating to finance and banking.

The Union government has been keen on introducing GST, the next step in tax reforms after the introduction of VAT in 2005 and had even conveyed to the States that it will be effective from April 1, 2010. Tamil Nadu, in principle, is also stated to have agreed to tax reforms with similar conditions as that made by Karnataka.

A recent meeting on the preparations for GST was held in New Delhi, and Karnataka was represented by Additional Chief Secretary L.V. Nagarajan, who is also Principal Secretary (Finance).

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 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