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: TDS :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: articles on VAT and GST in India :: form 3cd :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: cpt :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: VAT Audit :: due date for vat payment
 
 
« VAT (Value Added Tax) »
 Is it a modified Value Added Tax?
 GST regime: VAT Commissioner and CBEC to work with businesses
 Amendments in the Second Schedule appended to the Act (Delhi Value Added Tax Act, 2004)
 Guidelines relating to downloading of Statutory Forms-Modification thereof
  Grant of Registration under DVAT & CST
 VAT on petroleum products to continue, to be decided by GST Council
 Government rolls out settlement scheme to clear VAT, CST dues
 Maharashtra government offers VAT benefit to realty buyers
 Govt should focus on income tax instead of VAT
 Amendments in the second Schedule received from Finance Deptt.
 VAT exemption stays in tax reform bill

Indecision on GST leaves MP's VAT plan in limbo
April, 02nd 2012

Confusion among members of an Empowered Committee of State Finance Minister on Goods and Services Tax has torpedoed state finance minister Raghavjis proposal to levy value-added tax (VAT) on sugar, cloth and power distribution system.

When the Bihar deputy chief minister and the chairman of the committee did not propose the VAT on these commodities, why should only Madhya Pradesh trigger public ire over the issue, a well-placed government source told Business Standard.

Stung over revenue losses due to the Union governments refusal to compensate the states over a slash on the Central Sales Tax from four per cent to two per cent, the committee had earlier decided to levy VAT on sugar, cloth and power distribution system across all states.
If one state skips and other levies VAT on these commodities, it would trigger intra-state sales, tax evasion and other unscrupulous business practices, besides protests by traders, the source added. In a state like Madhya Pradesh where the size of the Budget is ~80,000 crore, a revenue expectation of ~130 crore is negligible. Hence, the state decided to skip VAT on sugar and cloth.

The Budget session is already over in all states, but this rift between states through empowered committee has created a little dent in solidarity of those states that were opposing Goods and Service Tax.

Traders community and the main Opposition (Congress) took undue credit of abolishment of new proposals as they proposed a state-wide bandh and lobbied against the VAT proposals under the aegis of Federation of Madhya Pradesh Chambers of Commerce and Industry.

Since the Union government had removed additional excise duty on sugar and had refused to pay central sales tax compensation, the state finance minister had proposed a VAT at the rate of five per cent on power distribution system.

Also, a five per cent VAT has been proposed on sugar and cloth. The proposal of VAT on the power distribution system was actually targeted at attracting investment from power equipment manufacturers as the government had also made provisions of input tax rebate on power equipment.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

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