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: due date for vat payment :: Central Excise rule to resale the machines to a new company :: empanelment :: form 3cd :: articles on VAT and GST in India :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: ACCOUNTING STANDARDS :: TDS :: VAT RATES :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt
 
 
ę VAT (Value Added Tax) »
 Haryana govt exempts solar equipment from VAT
 AP to push for same benefits under GST for VAT exempted goods
 Andhra Pradesh to push for same benefits under GST for VAT exempted goods
 Petrol prices set to rise in Goa with increase in VAT
 Payment systems to remain open on all days from March 25, 2017 to April 1, 2017
 Delhi cuts VAT on ATF to 1% for regional flights; other states to announce the same soon a
 Shops cannot charge VAT on discounted items: Consumer forum
 Delhiites have to pay lowest taxes as AAP govt announces cuts on VAT on various items
 Tamil Nadu minister justifies VAT hike on fuel
 State Government urged to withdraw hike in VAT on petrol, diese
 High VAT may encourage illegal trading

States consider VAT hike
May, 13th 2013

GST panel says no to placing mobiles in declared goods list

State governments, which had increased value added tax (VAT) rates by one to two percentage points beginning 2009, and have hence reported higher revenue growth than the Centre, are considering another round of hike in this tax, their principle revenue source.

In what reflects the inability of the Centre to convince the states to stick to the principle of lower tax rates and broader taxpayer base to accelerate revenue growth, the empowered committee (EC) of state finance ministers, which met for two days here, seriously weighed the option of raising the VAT rate for merit goods to 6% from 5%.
State VAT rates were originally fixed at 4% (for merit goods) and 12.5% (the residual rate applicable for most items) when this system was introduced in April 2005. These rates were hiked to 5% and up to 14.5%, respectively, by some states in 2009 and others subsequently.

While the merit rate is applicable to a lesser number of goods — healthcare, information technology goods, industrial inputs etc — the residual rate is applicable to a larger number of goods. In terms of revenue potential, however, merit goods have a significant role.

The once-aborted plan to levy VAT on sugar and textiles is also under active consideration, with the EC asking a sub-committee to look at the pros and cons of such a move. Until 2006, the Centre used to impose additional excise duty in lieu of sales tax (the rate was originally

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

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