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: empanelment :: VAT Audit :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: cpt :: ACCOUNTING STANDARDS :: due date for vat payment :: TDS :: ACCOUNTING STANDARD
 
 
News Headlines »
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 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

Centre, States agree on CST compensation package
January, 24th 2007
Asim Dasgupta meets Chidambaram


Elimination
CST phaseout would begin from April 1, with a one per cent cut from 4 to 3 per cent. Then in a step-by-step manner taking it down to zero through a 1 per cent reduction every year.
The entire CST would get eliminated by April 1, 2010.

The Centre and the States on Tuesday converged on the elements of the compensation package for the Central sales tax (CST) phaseout from April 1 this year.

This is a progress to the earlier meeting of January 3 between the Union Finance Minister, Mr P. Chidambaram, and the VAT Panel Chairman, Dr Asim Dasgupta, when only a "broad consensus" was reached on the phasing out of CST.

"I had a meeting with the Union Finance Minister this morning followed by a detailed discussion with the empowered committee. The CST compensation package has been agreed upon (between the Centre and the States) and we have reached convergence", Dr Dasgupta told reporters here today.

Package details

The compensation package would among other things, comprise Central budgetary support as well as States eventually getting additional powers of collection of service taxes. Citing budget confidentiality, Dr Dasgupta declined to go into the details of the package.

CST phaseout

He, however, highlighted that the CST phaseout would begin from April 1, with a one per cent cut from 4 to 3 per cent and then in a step-by-step manner taking it down to zero through a 1 per cent reduction every year.

This would imply that the entire CST would get eliminated by April 1, 2010. The proposed CST phaseout roadmap is in variance with the demands of industry, which had sought reduction in CST from 4 to 2 per cent in April 1, and its elimination in April 2008.

CST collections in 2007-08 are estimated to be Rs 25,300 crore.

Currently, the States collect and retain the entire CST, which is an origin-based tax on inter-State sale of goods, The presence of CST in a destination-based value added tax (VAT) regime creates distortion and, therefore, the need for doing away with this tax.

Meanwhile, sources said that some of the States had at today's VAT Panel meeting expressed some reservations over levy of service tax on certain services such as education services.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Custom Software Development Outsourcing Custom Software Development Offshore Cus

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