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: form 3cd :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: VAT RATES :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: VAT Audit :: cpt :: articles on VAT and GST in India :: empanelment :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: TAX RATES - GOODS TAXABLE @ 4%
 
 
« Service Tax »
 E-way Bill - movement of goods under GST
 How the GST rates will affect your money
 GST: The coming disruption in the wholesale trade
  Ways In Which GST Will Impact The Average Indian’s Wallet
 Goods done, GST Council seals tax rate on services
 Respite likely for businesses on e-way under GST
 Govt to strengthen agency under GST to check tax evasion
 1% tax at source under GST likely for online sellers
  Rules For Integrated Goods And Services Tax Act, 2017
 Interpretation Of Central Goods And Services Tax (CGST) Act (Part-5)
 Rules For Integrated Goods And Services Tax Act, 2017

Cabinet moves on GST Bill, infrastructure fund
July, 30th 2015

The Cabinet on Wednesday approved the amendments to the GST Constitutional Amendment Bill as vetted by a Rajya Sabha select committee, even as there was no definite signs of an end to the parliamentary logjam over the contours of the proposed tax.

The Cabinet on Wednesday approved the amendments to the GST Constitutional Amendment Bill as vetted by a Rajya Sabha select committee, even as there was no definite signs of an end to the parliamentary logjam over the contours of the proposed tax. While the Congress indicated its willingness to support the Bill if its demands were met, sources in the government said there were slim chances of its suggestions being accepted as these were of a substantive nature like capping the GST rate at 18% in the Constitution itself.

The Cabinet also approved two Budget proposals — one to allow all categories of foreign investment in alternative investment funds, a category of pooled-in investment vehicles for real estate, private equity and hedge funds, and the setting up of a National Investment and Infrastructure Fund that can be leveraged by infrastructure companies.

The finance ministry, which promised to keep the revenue-neutral GST rate way below the 27% discussed earlier, will take a view on it by the end of August once its chief economic adviser Arvind Subramanian gives his report on the subject, sources said.

Former Union minister and chairman of the parliamentary standing committee on finance, the Congress’ M Veerappa Moily, indicated that if the government “looked into” his party’s proposals in the dissent note, it could support the GST Bill. “We are supporting it (GST) actually, with the modifications suggested by us,” he said on the sidelines of a conference here.

The Bill needs the support of 164 members to get two-thirds majority in the 245-strong House, where BJP is in the minority (63 with allies). The Congress has 68 seats and the AIADMK 11, making the Bill’s passage a close call.

As per Wednesday’s Cabinet decision, the Constitution (122nd Amendment) Bill on Goods and Services Tax (GST) passed in the Lok Sabha in May and pending in the Rajya Sabha would be amended to incorporate a few changes that would make the tax reform more acceptable to states and to industry. The changes include providing for full five-year compensation to states for any revenue loss from GST adoption and exempting stock transfers within group companies from the 1% origin-based tax on interstate trade so that the GST’s chief trait of negating cascading of taxes is not neutralised.

Although the indirect tax reform was first mooted by the Congress, the controversial 1% origin-based tax proposal was not part of the version of the Bill that it tabled in Parliament in 2011. The Modi government incorporated it in the Bill tabled last year to get states on board as it is crucial to get 15 states to ratify the Constitution amendments.

The Rajya Sabha’s select panel suggested that the tax base has to be broad and the rate moderate so that the new tax regime does not become inflationary. It also quoted discussions with stakeholders saying that the standard rate applicable on most of the taxable supply of goods and services should not go beyond 20% and the same for a few select items called the merit rate not beyond 14%. The GST rate would eventually be decided by the GST Council comprising Union and state finance ministers.

The House panel did not accept any change in the voting pattern of the GST Council, a decision-making body to be set up as demanded by the Congress and AIADMK. Also, calls from parties for extra taxation rights for states on tobacco as well as the Congress’ demand for a dispute-settlement body were not accepted.

The panel also suggested that banking services should be kept out of GST or at least be charged a lower rate so that a sharp increase in the tax burden, if GST rate is way above the 14% now levied on services, would not add to the cost of doing business in India.

Moily said that GST has to be implemented along with the direct tax code the UPA was contemplating. “Both together will definitely have holistic approach for the tax

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

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