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: list of goods taxed at 4% :: due date for vat payment :: empanelment :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: VAT RATES :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit
 
 
News Headlines »
 Notification regarding extension of last date w.r.t submission of closing stock by dealer.
 Integrated Goods and Services Tax (IGST) Rules, 2017 (As on 15.11.2017)
 Central Goods and Services Tax (CGST) Rules,2017 (As on 15.11.2017)
  101st Constitution Amendment Act, 2016
 Pr. Commissioner Of Income Tax-6 Vs. Mccain Foods India Pvt. Ltd.
 Section 10 of the Income-tax Act, 1961
 Income tax returns filing: No tax on gift received from relatives in form of cash
 Income tax returns (ITR): Here is why you need to pay higher tax on other incomes
 GST Update On Issuance Of Debit Notes And Credit Notes
 How Mutual Fund Investments Can Help Save Income Tax
 Income tax returns (ITR) filing: Why small service providers need to get this benefit

LS passes CST phase-out legislation
March, 20th 2007
Bill provides for lowering the CST rate to 3% from April 1

The Lok Sabha, on Monday, passed the Taxation Laws (Amendment) Bill, 2007, paving the way for reduction in the Central Sales Tax (CST) rate from four per cent to three per cent with effect from April 1.

The Bill basically amends the CST Act, 1956 to enable a phased abolition of the levy by April 1, 2010, which will also be the date for introduction of a nationwide Goods and Service Tax.

The CST is an origin-based tax on inter-State sale of goods. Since the tax levied by the State from where the goods originate is not provided refund credit by the consuming State, it militates against the principle of value added tax (VAT), where set-offs are given against taxes paid on inputs and other previous purchases. Once the CST is done away with, it would be possible to usher in a genuine national-level, destination-based VAT covering both goods and services.

The Bill provides for lowering the CST rate to three per cent from April 1, besides conferring the Centre enabling powers to carry out further reductions through notification in the gazette, according to the Finance Minister, Mr P. Chidambaram.

Revenues from CST are budgeted at Rs 19,345.08 crore during the current fiscal, up from Rs 14,284.10 crore during 2004-05. Given the huge financial implications from abolition of this levy, the Bill (which has to now be passed by the Rajya Sabha as well) has also proposed to drop tobacco (including cigarettes) from the list of `declared goods' under Section 14 of the CST Act.

States are currently not allowed to levy VAT at more than four per cent on `declared goods'. Removing tobacco from this list would enable them to tax cigarettes at a higher rate, which will help recoup some of the revenue losses from scrapping CST.

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

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