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 STANDARDS :: VAT Audit :: form 3cd :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: due date for vat payment :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: empanelment :: TDS
VAT (Value Added Tax) »
 Cenvat Credit Of Additional Duties Of Customs [Cvd] On Imported Coal
 Excise Dept puts VAT refund on fast track
 Consumer fora receive 18 VAT plaints
 Appointment of Assistant VATO - F.3(14)/Fin(Rev-I)2012-13/DSVI/334
 Bio-diesel body seeks VAT relaxation
 HC seeks Delhi, centre reply on restaurants charging excess VAT, service tax
 Shakti Autos booked for evading VAT, bogus sales
 VAT sops to IOCL Paradip refinery hits Odisha revenue growth
 Government to announce new VAT rates in October
 World Wide Gst, Vat, Sales Tax Rate
 Article on Transition Process of Registrations under VAT / Service Tax Laws to GST Law

GST roll-out may face fresh delays
May, 28th 2013

Differences in the levels of computerization among state administrations may force the Union government to drop its plan of migrating the existing value-added tax (VAT) regime to the information technology (IT) network being put in place to serve as the backbone of the goods and services tax (GST).
The initial plan was to migrate VAT to the network to test preparedness before the eventual roll-out of GST, aimed at removing barriers to the movement of goods and services across states and creating a unified market.

Given the low levels of computerization in some states, the GST network (GSTN) will now focus first on developing a database of dealers based on the permanent account numbers (PAN) issued by the income-tax department. With this migration timetable delayed, the actual roll-out of GST may take longer than anticipated.
GSTN, set up last month as a special purpose vehicle, aims to connect the databases of the states and the Centre, and will be used to implement a PAN-based registration system for taxpayers, a common tax return filing system and a common payment processing system. A robust IT network is considered crucial for implementation of GST, which would be a landmark tax reform.

“Some states like Kerala, Gujarat and Maharashtra have advanced levels of computerization while some other states lag behind. The focus of the GSTN will be to ensure that the data-sharing architecture is in place to enable information exchange between the central and the state government,” said a senior government official, who did not want to be identified.

GSTN will look to work individually with states to see how they can integrate with the technology backbone, said another official closely involved with the network. “Some of the state taxes departments are fully computerized, while in some everything is still done manually. One approach cannot be used uniformly for all,” he said.
The official said it will take some time to encourage traders to completely migrate to a PAN-based registration system. “Different states have different systems for assigning each ID. Till the traders do not get used to a PAN-based system, they will have to be allowed to use their old IDs along with the PAN-based system. This will ensure that in the national database, a PAN-based system is followed,” the official said.

According to government estimates, there are 3-4 million VAT-registered dealers, with the PAN coverage being around 60%.
Though initially reluctant, states agreed to a common PAN-based registration system after a pilot by the Maharashtra government showed how large-scale tax evasion was taking place because of a lack of information-sharing between the Centre and the states.

With GSTN, states will be able to access information such as excise and service tax levies maintained by the Union government and cross-check this with VAT paid by a particular trader to look for tax evasion.

GSTN, set up as a not-for-profit company under section 25 of the Companies Act, has the Union and state governments holding a stake of 24.5% each, and private firms such as ICICI Bank Ltd, National Stock?Exchange of India Ltd and Housing Development Finance Corp. Ltd the remaining 51%.
In a section 25 company, profit and any other income are applied only to promote the objectives of the company and no dividend is paid to its members.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Company Overview

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