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: VAT Audit :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: VAT RATES :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: empanelment :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: ACCOUNTING STANDARD
« News Headlines »
 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
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout

VAT panel concerned over Govt action on declared goods
June, 17th 2006


17th June, 2006

VAT panel concerned over Govt action on declared goods

`Consultation with State Finance Ministers panel is necessary'

The States are feeling the heat of the Centre's unilateral action on the `declared goods' front.

They have "strongly suggested" that consultation with the Empowered Committee of State Finance Ministers on VAT is "absolutely necessary" before the Centre takes any view on the matter of placing any goods in the list under the Central sales tax law.

Close on the heels of bringing LPG in the list, the Fertiliser Ministry has mooted a proposal to bring naphtha, natural gas, furnace oil and LSHS diesel - used as inputs in fertiliser manufacture - in the list.

Currently, naphtha attracts VAT rate of 12.5 per cent in most States.

Once the Centre places an item in the list, the States cannot levy a VAT/sales tax of more than four per cent for sales within the State.

VAT on inputs

While the Fertiliser Ministry appears to be pitching for uniform VAT rates across the country for inputs used in fertilisers, it is also keen that the VAT rate on inputs used in fertilisers does not exceed four per cent.

The sales tax element on inputs such as naphtha and natural gas are crucial as these are also items of costing for deciding the Centre's fertiliser subsidy.

The issue of placing inputs used in fertiliser in the list was taken up for some discussion by the VAT Panel at its meeting on Thursday, after the Centre had referred this issue to it.

A final view of the VAT panel on this matter is yet to emerge, official sources said.

The VAT Panel Chairman, Dr Asim Dasgupta, said that the Central Government had, without consulting the States, included LPG in the list in Budget 2006.

"This has resulted in lot of suffering and significant loss of revenues for the States. We want to express our strong displeasure on this move of the Centre."

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