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% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: cpt :: empanelment :: due date for vat payment :: articles on VAT and GST in India :: VAT RATES :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: list of goods taxed at 4% :: TDS
 
 
Sales Tax »
 Insurance Agency Mergers and Acquisitions in Q1 "Explode," OPTIS Partners' Report Reveals
 Sales tax sleuths raid spare parts shops in Meerut's infamous Sotiganj market
 Income Tax: How offshore income could be taxed twice
 India finalises bills to launch new sales tax in July
 NMC to implement new tax system from Apr 1a
 13 per cent sales tax boost post demonetisationa
 Arun Jaitley May Lower Corporate And Income Tax Rates But Hike The Service Tax Rate
 Tax on high seas sales becomes dispute area
  State extends GST enrolment deadline
 State extends GST enrolment deadline
 To protect its status, state forms panel to draft legislation on GST

Finanace ministers meet over sales tax losses
January, 25th 2013

The Empowered Committee of State Finance Ministers, headed by Bihar's FM SushilModi, would discuss about the Centre not compensating states suffering losses due to reduction in central sales tax (CST) rates and delay in introduction of the proposed Goods and Services Tax (GST) tax at its next meeting slated here for January 28 and 29, official sources said on Thursday.

Official sources said the Union government brought down the rate of CST from 4 to 3% in April, 2007, and reduced it further to 2% in June, 2008, with a view to gradually phasing out CST (which is not compatible with value added tax) and introducing (GST) from April, 2010.

The Centre had agreed to compensate the states for CST loss and did the same from 2007-08 to 2009-10. It also compensated for 2010-11 but after deducting notional gain calculated on the basis of hike in VAT rate from 4 to 5%, stopped it in 2011-12.

"Because of the Centre's policies and failure to roll out GST, Odisha had suffered an estimated loss of Rs 184.03 crore in 2007-08, Rs 483.29 crore in 2008-09, Rs 554.07 crore in 2009-10 and Rs 664.39 crore in 2010-11. Against these, the Union government sanctioned compensation of Rs 137.02 crore in 2007-08, Rs 425.40 crore in 2008-09, Rs 484.49 crore in 2009-10 and Rs 256.17 crore in 2010-11," a finance department officer said.

The state government has been demanding the Centre to pay compensation since 2011-12 and also disapproved the Union government compensating for losses in 2010-11 after subtracting notional gain calculated on the basis of 1% increase in VAT.

In April, 2012, chief minister Naveen Patnaik had written a letter to Prime Minister Manmohan Singh, seeking his personal intervention in the matter. "Reduction of CST is a recurring loss. Hence, the central government should continue to compensate for the loss on account of CST reduction till GST is introduced," he had said. He further said the Union government took a "unilateral decision" not to compensate the states in disregard of the states' concerns and decisions of the Empowered Committee of State Finance Ministers.

"Such unilateral decisions create a trust deficit between the Union government and the state governments which may lead to a logjam in the introduction of GST," he added.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Experience

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