Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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
 
 
 
 
Popular Search: ACCOUNTING STANDARDS :: cpt :: TDS :: VAT RATES :: form 3cd :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: VAT Audit :: list of goods taxed at 4%
 
 
Service Tax »
 Govt asks taxpayers to file GST return for July by Tuesday
 FAQ On Government Services Under GST
 Income Tax Appellate Tribunal, Visakhapatnam Bench List Of Division Bench Cases Posted Before During The Period From 03rd Octombar To 13th October , 2017.
 Facility of LUT extended to all exporters / registered persons subject to conditions
 GST implementation – Hasty turns out nasty
 What is Goods and Services Tax Network (GSTN)?
 Best tax saving mutual funds or ELSS to invest in 2017
 GST: Centre, states to divide taxpayer base
 A 5-Point Guide For Buyers To Understand The Effect Of GST On Real Estate
 Stalled unsorted diamond imports to resume after GST rate revision
 TDS, TCS deductors can apply for GST registration from 18 September

Move fast on GST, federal tax powers will change
January, 13th 2012

The progress on transiting to a goods and services tax (GST) implicit in the agreement on a negative list of services that would allow all other services to be taxed is more apparent than real. States want services including construction, meals in air-conditioned hotels and entertainment to be exempt from central taxation. This would only enlarge the negative list and defeat the goal of comprehensive coverage of services.

However, states cannot be blamed for attempting to protect their turf when there is an overlap in taxation at two levels. In construction, for instance, the Constitution empowers states to tax the goods portion of works contracts, while the Centre charges service tax on the balance.

The turf war is due to the archaic division of taxation powers under the Constitution. This leads to disputes and raises both tax and compliance burden for taxpayers.

However, the turf war will end once the Constitution is amended to empower both the Centre and the states to levy GST concurrently on all services. The government should, therefore, move fast on GST and implement it in the coming fiscal.

States should also agree to subsuming all local indirect taxes and duties under GST. Revenue losses, if any, due to transition to GST can be compensated, just as it was done after India moved to the value-added tax system. GST will cut out a cascade of multiple taxes that most items bear today and lower retail prices. The GST will also dump the existing division of items of taxation between the Centre and the states.

So, it would be futile for the Centre and the states to waste their energies on protecting a states' turf that should ideally have a very limited life left. However, the BJP should not play politics with this most vital reform.

The Bill to amend the Constitution to let states tax services, and the Centre goods up to the retail stage, is pending before a parliamentary committee chaired by BJP leader and former finance minister Yashwant Sinha. On this matter, there should be bipartisan cooperation and the country should move fast on instituting a countrywide GST.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software 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