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
Service Tax »
 What is the last date to file income tax return?
 Documents needed for filing Income Tax Returns in India
 Who all need to file their tax returns
 Higher taxes on the rich, but low returns for the Union government
 What is Goods and Services Tax (GST)?
 Central Goods and Services Tax (Fourth Amendment) Rules, 2019a
 How to avoid TDS deduction on fixed deposit interest
 Cross-country offices of companies to now come under GST
 Key changes in ITR forms for AY2019-20 that you need to know
 Government likely to increase income tax exemption limit to Rs 3 lakh Budget 2019
 How can you claim tax benefit on a multi-year health policy?

CST compensation pact clears path for Goods & Services Tax
January, 29th 2013

The UPA government may have crossed a major hurdle in the way of the proposed Goods and Services Tax (GST), with states agreeing to a compensation formula in lieu of the phased reduction of the Central Sales Tax.

The agreement on the compensation package, reached at a meeting here on Monday, clears the way for the proposed GST, leading to its roll-out possibly by 2014-15.

At the Empowered Group of state finance ministers meeting, besides full compensation for 2010-11, the Centre has also agreed to partly offset states' revenue loss for the subsequent two years arising from a reduction a few years ago in central sales tax from 4 per cent to 2 per cent.

Chairman of the Empowered Committee of State Finance Ministers, Sushil Kumar Modi said a sub-committee has given its recommendation for 100 per cent compensation to states for 2010-11, 75 per cent for 2011-12 and 50 per cent for 2012-13 respectively.

The Centre will have to spend Rs 34,000 crore as CST arrears over next few years, said Modi. The payout is likely to be done in a "staggered manner".

Though the Centre, in April this year, had decided against giving any compensation citing global macroeconomic uncertainties and also lower growth projections for domestic GDP growth, Modi said a provision for the same would be made in the 2013-14 Union Budget.

The sub-committee on GST design also submitted its report but no conclusion could be reached today. Though GST was originally scheduled for launch on April 1, 2010, it could not be implemented due to differences between the Centre and the states as the latter apprehended loss of revenue.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Enterprise Resource Planning Solutions ERP Solutions Enterprise Resource Planning Software Solutions ERP Software Solutions Supply Chain Management Solutions SCM Solutions Supply Chain Management Software Solutions SCM Software Solutions Enterprise Resource Planning Solutions India ERP Solutions India Enterprise Resource Planning Software Solutions India ERP Software Solutions India Supply Chain Management Solutions India SCM Solutions India Supply Chain Management Software Solutions India SCM Software Solutions India

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