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: list of goods taxed at 4% :: VAT RATES :: empanelment :: form 3cd :: TDS :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: ACCOUNTING STANDARD :: VAT Audit :: ACCOUNTING STANDARDS
« Service Tax »
 Service tax officials transferred for favouring realtor
 GST, a challenge and opportunity for accounting professionals’
 Service Tax On Hotels And Restaurants – Recent Delhi High Court Judgment
 GST Council discusses 4-tier tax rate, cess on demerit goods
 Why you shouldn’t miss these three simple tax saving options beyond Section 80C
 Determination of value for transactions between the Related parties under GST Laws.
 Higher collections can offset GST losses
 GST to subsume over a dozen Central, State taxes
 Incidence of indirect taxes won't go up under GST
 Advanced Budget date: Absence of a GST rate may present estimation challenges
  Tax queries answered by Dilip Lakhani, Senior Chartered Accountant

After Europe, state FMs to visit Canada for GST lessons
May, 02nd 2012

After a 10-day Europe trip last September, the Empowered Committee of State Finance Ministers is now planning a 15-day visit to Canada in August to study the Goods & Services Tax (GST) model in that country. The committee may also have a short stopover in a European city, possibly Amsterdam or Frankfurt, to learn more from their experiences about an indirect tax system.

Ironically, in its last few meetings on GST implementation in India, the main issue of the proposed taxs structure had been put on the back seat due to substantial differences between the Centre and some states on various issues. Instead, the the EC discussed Central Sales Tax compensation, a negative list for taxation of services and the GST-N information technology platform. It is expected that the commitment to roll out a GST might gather momentum after the proposed trip.

Canada also has a federal system. They faced similar problems while introducing a GST. We can learn a lot from them and resolve our differences, said an EC member.
The catch, however, is like the Europe trip last year, the states may return from Canada convinced that their demands with regard to the GST structure are valid and the Centre should relent if the GST talks are to move forward.

People familiar with the development said the proposal for a trip to Canada was mooted in the last meeting of the EC on April 18. States governments felt before making a switch to a GST, they should study the Canadian model, due to its federal structure.

The idea was discussed, but it is in the preliminary stages at the moment. We are yet to work out details, EC chairman Sushil Modi, also the deputy chief minister of Bihar, told Business Standard.

By August, Parliaments standing committee on finance is likely to give its report on the Constitution Amendment Bill for a GST. The Bill may be taken up for Parliament approval in the winter session, after which it should go to state legislatures for ratification, aimed to be done by April 2013.

Last year, representatives from about 20 states, including strong opponents of the GST such as Madhya Pradesh, visited Paris, Spain, Brussels and Luxembourg to study their GST model. The trip added to their understanding on the GST, but didnt break the ice between Centre and states. Today, too, on most contentious issues, things are where they were a year before.

After studying the European model, states did understand that GST was the way to go forward, but they also became firm that a rate band, instead of fixed and uniform rates of taxes, should be adopted.

Canada introduced a GST in 1991 and has effectively brought down the taxation rate to five per cent.

It was discussed as a travel option last year, too, but the EC later decided in favour of Europe. It has also travelled to Australia and Brazil, while finance ministry officials keep flying to various places, including New Zealand, the UK and Europe, to get a wider perspective on GST.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Article Management Solutions System Article Management Software S

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