Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Service Tax »
Open DEMAT Account in 24 hrs
 Income Tax SFT return filing due date extension: Facility to remain open for a couple of days Latest news
 Income tax filing: Waiting for your Form 16? Here is what you need to know
 Salaried? Rental tax calculation rules you should know before ITR filing in 2023
 What are new tax regime's slabs? Know its limits, benefits, and more
 How much additional tax do you need to pay? ITR filing last date for FY 2019-20
 Income Tax Return Filing: How to file ITR - step-by-step guide
 New Income Tax Slabs for Super Senior Citizens 2023-24: Which rate will apply for ITR now?
 Income Tax Return filing 2023 data: How many Indians aged 18-35 years file ITR?
 Make tax-saving a part of your overall investment plan
 Filing ITR? Maximize Your Tax Savings With These 7 Allowance Benefits
 Extension of time limit for compliance to be made for claiming any exemption under Section 54 to 54GB of the Income-tax Act, 1961 ('Act') in view of the then-Covid-19 pandemic

GST: Centralized assessment for service-oriented industries likely
March, 20th 2017

The goods and services tax (GST) council is considering setting up a centralized assessment interface for service-oriented industries such as banking, telecom, insurance and information technology, according to two officials familiar with the discussions in the GST council.

A common pool of officers drawn from the centre and the states could carry out the assessment for certain service sectors thereby ensuring a single interface for these sectors, according to the proposal being discussed in the council.

The move will potentially exempt taxpayers operating in these industries from having to register in every state they operate.

The current GST draft law has retained a provision that requires these service providers to register in every state they operate, despite opposition from industry which pointed out the sharp rise in compliance requirements for the services sector under GST as against the current existing regime. In the existing service tax regime, service providers need to register with the central indirect tax authorities.

Various service industries and government departments had made specific presentations to the council pushing for single registration.

However, the council did not accept the demand for single registration as states feared loss of revenues and excessive dependence on the centre for receiving taxes due to them. This means that companies operating in the services space pan India will need to obtain more than 30 separate registrations and file nearly 2,000 returns annually.

The common assessment proposal being discussed is aimed at making the compliance requirements of these businesses under the new indirect tax regime simpler. “There have been talks in the council if we could look at a common assessment for the services sector to ensure that one company does not have to deal with multiple tax authorities. However, no final mechanism has been worked out yet,” said one of the officials.

A single audit and assessment is helpful but does not take the sting out of the provision of needing to register in every state, said Rajan Mathews, director general of Cellular Operators Association of India. “A big problem for the telecom industry is that the licensed service area is spread across state lines. How do we settle the proceeds across state jurisdictions? There are also place of supply issues as a customer may buy a SIM card in one state but use it in another state,” he said.

A centralized audit and assessment interface being discussed by the GST council will provide some respite for the industry, said a member of the general insurance council, the representative body of general insurance companies.

“However, there are a number of issues that remain unresolved. For instance, what will be the representation of the producing and the consuming states in this body. Where will the audit happen—in states or in the place the head office is located? At the end of the day, the main concern for the industry is seamless availment of input tax credit,” said the member, who did not want to be identified since the details are yet to be made public.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting