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: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: empanelment :: articles on VAT and GST in India :: cpt :: VAT Audit :: TDS :: ACCOUNTING STANDARD :: VAT RATES :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company
 
 
« Service Tax »
 GST base looks set to be at least 25% wider than earlier tax regime
 Businesses struggle with multiple tax rates, returns
 Common use items exempt from e-way bill provision under GST
 Goods And Services Tax Sends Taxes Racing
 How GST lesson can unleash untapped potential of education sector in India
 Services sector PMI falls most in 4 years on GST
 Missing column in GSTR 3B form leaves input claims a shaky edifice
  Communication to the Central Excise/Service Tax Taxpayers on migration to GST
 GST not easy to implement but tax base expansion will benefit all
 Goods and Services Tax was not an easy reform to implement
 GST to expand tax base, bring down weighted average tax rate:

Centre not to compensate states against CST loss
February, 15th 2012

The Government of India has decided to phase out compensation given to states against Central Sales Tax (CST) loss from 2011-12, a move that is perceived to queer the pitch for roll out of the proposed Goods and Service Tax (GST).

The overall compensation for all state governments was worked out at Rs 15,000 crore for 2011-12. With economic growth projections on the downside amid global macroeconomic uncertainties, the Centre is not keen on straining its resources by doling out compensation to states.

The Union finance secretary has informed Sushil Modi, the chairman of the empowered committee of finance ministers on GST that from 2011-12 onwards, the Centre will not be compensating states against CST loss. This is going to set a wrong signal to all states that have been vehemently demanding full compensation against CST loss. In a way, it is set to pose a huge bottleneck for GST roll out as there was consensus among all states that the Centre would offset CST loss fully till the Integral GST Mechanism is well established, a senior state government official told Business Standard.
Of the total CST loss to the tune of Rs 12,000 crore incurred by all states, the Centre has disbursed only Rs 6,394 crore. It has also categorically stated that the matter is settled for 2010-11 and the left over loss of states that have not raised base VAT (value added tax) from four to five per cent will not be compensated.

For 2009-10, the Government of India (GoI) had decided to compensate 68 per cent of the loss. The GoI's reluctance to offer full compensation is understood to have caused much heartburn among the states.

The Orissa government is also peeved over pending Rs 260 crore loss against CST for 2010-11 which the Centre was supposed to compensate.

The latest communication from the Centre implies that this loss will no longer be compensated. This is unjustified. The state government had urged the Centre for providing full compensation against CST loss in the last meeting of the empowered committee of state finance ministers held in Bhopal last month, added the official. Orissa had claimed Rs 380.17 crore as compensation towards loss on account of CST reduction for 2007-08 of which the GOI had sanctioned Rs 137.02 crore. Similarly, for 2008-09, the GoI had sanctioned Rs 425.40 crore as against a compensation claim of Rs 483.29 crore by the state government.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

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