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: VAT Audit :: form 3cd :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: empanelment :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: cpt :: due date for vat payment :: VAT RATES
 
 
News Headlines »
 Seven things you must do before 31st March
 Income Tax saving investments: Top 5 options available for high-income individuals
 How to use zero tax rule on long term capital gains on stocks
 GST Returns - Furnishing details of inward supplies
 5 ways to maximise you income tax return
 Income-tax (2nd Amendment) Rules, 2017
 Soon, Faster PAN, An App For Filing Tax Returns
 Changes in income tax return filing process
 New Income Tax Rates And Deductions Applicable From April 1, 2017
 Tax and transparencya
 No decision yet on imposing tax on cash transactions

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