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 STANDARD :: articles on VAT and GST in India :: form 3cd :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: empanelment :: due date for vat payment :: TDS :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt
 
 
News Headlines »
 How much income tax you should pay on investments in gold?
  Best ways to save tax in 2017
 8 unknown stocks that could yield huge returns
 Government may set threshold for probe into deposits to prevent harassment of taxpayers
 How to calculate capital gains tax
 April 1 still the target for GST: FM
 How to respond to CBDT’s tax compliance notice
 Goods & Services Tax (GST)(As On 01-01-2017)
 Excise, service taxpayers to migrate to GST portal by January 31
 Tax numbers belie slowdown: FM
 Income tax (1st Amendment) Rules, 2017

Centre's CST sweeteners fail to lure state ST chiefs
August, 14th 2006
The Union finance ministrys compensation package to states as a sweetener for the proposed reduction of central sales tax (CST) rate from October 1, has not been agreed to by the state sales tax commissioners. The commissioners have asked for transfer of 50% of the service tax proceeds to the states in perpetuity, sources said. This panel was set up by the empowered committee of state finance ministers to look into details of the Centres proposal. The commissioners said the Centre had more administrative powers to levy and collect service tax instead of the states. The proposal to transfer certain types of taxes to states to administer was not a preferred option. But the finance ministry is keen that the states should tax certain services. It is also not in favour of giving 50% of the proceeds from the levy, in perpetuity to them. From October 1, the rate on CST is proposed to be cut to 3% from the current 4%. Since the annual collection from the tax is about Rs 15,000 crore, which entirely accrue to the states, they are keen that a compensation formula should be worked out soon. The views of the sales tax committee would be forwarded to the empowered committee, which is likely to meet on August 19. Dr Asim Das Gupta who chairs thecommittee had said after the last meeting that the states could begin with reducing the CST from to 3% from October 1 if the compensation package is agreed upon between states and Centre. The issue of giving the states the right to collect service tax on selected services of intra-state nature is being discussed with the states in the context of working out a package for compensating the states for the revenue loss which will arise as a result of the proposed phasing out of the CST. The issue is only that of the transfer of right to collect and appropriate the service tax proceeds from certain services and not for transfer of right to levy the tax. The right to levy service tax continues to remain with the central government as per the constitutional provisions. The empowered committee of state finance ministers (EC) has proposed transfer of 124 services to the states (including 67 services presently being taxed by the central government) considered to be of intra-state nature by the EC. The proposal is only for transfer of selected services of intra-state nature to the States. The proposal is under consideration of the government.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multi-level Marketing MLM India Affiliate Marketing Affiliate Marketing Software MLM Software MLM Solutions Multi level marketing solutions MLM Servi

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