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: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: TDS :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: form 3cd :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: due date for vat payment
« Service Tax »
 Govt sources say cess is a better option than high tax rate
 Goods and Services Tax: There should not be more than three grades of rates, says Chidambaram
 Chidambaram says there cannot be multiple tax slabs in GST
 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

Goods and Service Tax fear haunts state tax officials
June, 20th 2014

With the Centre proposing to introduce the indirect Goods and Service Tax (GST) in the state replacing all existing Central and state taxes, the state Commercial Tax Department fears curtailment of its powers.

At the same time, the GST also plans to cover over 77 commercial services that has not been taxed so far.

“The GST will replace most other indirect taxes and harmonise the tax rates on manufactured goods and services. At present, the effective tax rate on services is 10.3 per cent, while that on manufactured goods works out to 20 per cent. Though the GST rate has not been decided it is likely to be around 15 per cent. So the tax on manufactured goods could go down while that on services could go up,” said Mr K.R. Suryana-rayan, the president of the All India Confederation of Commercial Taxes Assoc-iations (AICCTA). “As a result, commercial services like spa which costs Rs 10,000 or more, that are not being taxed at present, and airway services would be taxed once GST comes into force,” he added.

Though GST would simplify the taxation system and will benefit the corporate sector and traders, what the common man is likely to gain is still not known.

Tax expert Vijay Kumar said, “If manufacturers pass on benefits to consumers, the tax burden will come down.” He said that for consumers to benefit from the GST system, the government should set up a commission to protect the interests of consumers as it was done in Australia when it introduced GST in 2000. If tax rates go up, it ensured that consumers were not charged more than what is necessary. Meanwhile, the officers of the state commercial tax department said that GST will curtail the state’s power to take decisions.

The state which now has the right to take decisions on bringing changes and implementing VAT will lose its powers. Instead, a change needs to be okayed by the Committee of State Finance Ministers.

The AICCTA member met the Arun Jaitley on Friday to explain the possible curtailment of their existing power and functions in VAT regime, once the GST regime of indirect taxation is introduced.

The AICCTA sought division of jurisdiction between state VAT departments and Cenral Board of Excise Customs (CBEC) in a way that the new system should not prove disadvantageous to State TAX departments.

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

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