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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
News Headlines »
 Govt extends deadline for filing GST TDS returns for Oct-Dec to Jan 2019
 Tax changes in 2018 that have affected your personal finances
 Extension of the last date of filing of Form NFRA-1
 You have to invest in Section 54EC bonds within 6 months of sale of property Income Tax
 All you need to know about gift tax this wedding season
 3rd instalment of advance tax due on 15 December
 Tax on your gold and real estate investments
 Securities and Exchange Board of India (Mutual Funds) (Third Amendment) Regulations, 2018
 Have you filed your income tax? Remember these deadline nears; know from TDS, TCS to challan, forms
 Notification No. 96/2018 -Central Board Of Indirect Taxes And Customs
 Here’s how you can check your ITR refund status online

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 2018 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