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: ACCOUNTING STANDARD :: articles on VAT and GST in India :: TDS :: VAT Audit :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: form 3cd :: VAT RATES :: due date for vat payment
« News Headlines »
 CBDT releases Income Tax Return statistics for last two fiscals
 CBDT issues second round of Certificates of Appreciation to tax payers for their contribution towards Nation building
 FinMin looks at cut in corporation tax
 Draft Rules for prescribing the method of valuation of fair market value in respect of the trust or the institution-Chapter XII-EB of the Income-tax Act, 1961- reg.
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers

States rule out VAT rate hike for now
April, 09th 2008
Reach point of convergence with Centre on CST

Dr Asim Dasgupta

Our Bureau

New Delhi, April 8 States have ruled out any hike in value added tax (VAT) rates from 4 to 5 per cent for now. The Centre was keen that States explore the possibility of increasing VAT rates and count the additional revenues from this move as part of the compensation for proposed reduction in Central sales tax rate (CST) rate from 3 to 2 per cent.

We are not going in for any rate hike now. There is no need to raise VAT rate (from 4 to 5 per cent) at all, Dr Asim Dasgupta, Chairman of the Empowered Committee of State Finance Ministers on VAT, told presspersons after an hour-long meeting with the Union Finance Minister, Mr P. Chidambaram, at North Block on Tuesday.

Dr Dasgupta said that the Centre and the States had reached a point of convergence at the meeting relating to the compensation for loss to the States on account of the proposed reduction of CST.

Dr Dasgupta further expressed confidence that the CST rate cut from 3 to 2 per cent would soon be notified. He, however, said that the rate cut is likely to only be on a prospective basis and not on a retrospective basis, from April 1 this year. The VAT Panel is likely to meet again on April 16 to discuss the CST rate cut issue.

We found that the methodology that was being adopted for compensating the States should be improved upon. So the calculation for estimating the loss will have to be re-done. It can come close to what the empowered committee was thinking. The loss may not be very high. I will not go beyond that, Dr Dasgupta said.

On budgetary support, the VAT Panel Chairman said that there would be some budgetary support from the Centre as part of the CST compensation package. Budgetary support will be there. The exact amount of budgetary support will depend on how we work the loss. It need not be very high, he said.

The methodology used currently is projection method. There are different elements in the methodology and the States are of the view that some of them require a re-look.

Meanwhile, the VAT Panel on Tuesday finalised the model of goods and service tax (GST) that may be adopted in the country from April 1, 2010. It also decided on the roadmap for introduction of GST.

We will submit our recommendations on the GST model (which will be dual GST) as well as the roadmap for GST introduction to the Finance Ministry this month itself, Dr Dasgupta said.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

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