« Top Headlines » Open DEMAT Account in 24 hrs  Income Tax Calculator FY 2023-24: How To Know Your Tax Liability Online On IT Dept's Portal?  BackBack Income Tax Act amendment on cards on tax treatment of MSME dues  ITR-1, ITR-2, ITR-4 forms for FY 2023-24 available for e-filing. Check details here  Income tax slabs FY 2024-25: Experts share these 8 benefits for taxpayers in new income tax regime  How To File ITR Online - Step by Step Guide to Efile Income Tax Return, FY 2023-24 (AY 2024-25)  Old or new tax regime for TDS on salary? This post-election 2024 event will impact your tax planning  What Are 5 Heads Of Income Tax?  Income Tax Dept releases interim action plan for FY25 on tax collection, refund approvals   Income Tax Return: 5 lesser-known tax-saving tips from Section 80  Income Tax Return: 5 lesser-known tax-saving tips from Section 80  Why you need not rush to file your ITR immediately «  Recodified Companies Bill in winter session... Auto hubs to lay hands on fiscal sops... » Decision on central sales tax phaseout next week September, 08th 2006 The empowered committee of state finance ministers will take a final call next week on phasing out central sales tax (CST) from October 1. With both the Centre and states failing to find a common ground on the compensation package for states, the reduction of CST from 4% to 3% from October 1 looks set to become a casualty. While states want devolution of 50% of revenues collected by way of service tax to them, the Centre has baulked at the suggestion. At present states get 29.5% of proceeds of all central taxes including service tax. States also want to impose value added tax (VAT) on imports besides the right to collect service tax on financial and telecom services. While the Centre is agreeable to services like legal and medicine, it is not ready to give away financial or telecom services. Telecom accounts for more than 40% of the total service tax collection. The Centre has asked states to hike VAT rate from 4% to 6%. States impose 4% VAT on industrial intermediates. This suggestion has also not found favour with states as they feel any decision to change the rates is their prerogative. States have claimed they would lose Rs 2,500 crore in revenue this fiscal, if the CST is brought down from 4% to 3%. The loss on account of further 1% reduction is pegged at Rs 12,000 crore. As per the roadmap, states are supposed to cut CST by 1% from April 1, 07 to 2%. The matter is being sorted out by a committee comprising the adviser to finance Minister Parthasarathi Shome and joint secretary to empowered committee Satish Chandra. The committee was set up in August this year to iron out differences and work out a future roadmap. Finance minister P Chidambaram had said last week that certain differences were still there and another meeting would be required to sort them out.