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 :: cpt :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: VAT RATES :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: empanelment :: VAT Audit
 
 
« Sales Tax »
 Sales tax staff protest against goods service tax council
 Income tax survey on city jeweller
 Service tax levy to weigh on upstream companies’ earnings
 5 pc tax on online sales awaits Cabinet approval
 Amendment to Additional Sales Tax Act unconstitutional: High Court
 Maharashtra will soon achieve Rs one lakh cr sales tax : CM Devendra Fadnavis
 CBEC chief bats for minimal exemptions for India Inc under GST
 Issuance of Free Sale & Commerce Certificate to Merchant Exporters
 Why model GST law does not give confidence to exporting community
 State governments tighten their grip on sales tax holidays
 Income tax dept charts plan to broaden national taxpayer base

GST compensation: Bihar for Constitutional amendment
September, 11th 2014

Bihar government today demanded a Constitutional amendment to compensate the revenue loss to states likely to be caused once the Centre implements proposed GST.

Addressing a meeting of Finance Ministers of states organized by the 14th Finance Commission, Bihar Finance Minister Vijendra Prasad Yadav said consequent upon the implementation of Goods and Services Tax (GST), major changes in the condition and direction of indirect taxes cannot be ruled out.

This system is bound to have a far-reaching impact on the most important source of revenue of the States, he added.

"The Commission is well aware of the financial condition of various states and their dependence on the Centre and in the given situation any reform, howsoever progressive it may sound, cannot be adopted by the states until and unless they are convinced that this will not have any adverse impact on their revenue.

"There is fear of loss of revenue to the states due to implementation of the proposed GST," he said.

In view of present system of compensating the central sales tax, the Minister said, there is a compulsion of not accepting anything less than a constitutional solution in the matter of definite loss to the states due to GST.

Yadav demanded that the Commission place a proposal of amendment to the Constitution in conformity with the recommendations of Parliamentary Standing Committee to compensate the loss likely to be caused to the States.

It is relevant that a visible growth in the resources of the states during the recent years, Yadav said, has come at a time when the pace of economic development has been by and large better while the rate of inflation had been comparatively higher during the last few years.

"If the better condition of States' internal resources is seen in this context, it would not be fair to give the major credit for this improvement to the VAT system. It was difficult to assess the condition of the economy and inflation at the time of implementation of GST and as such it is also unpredictable as to what extent this system would affect the revenue of various states," he said.

He felt that after implementation of GST while states would not receive the central sales tax available to them, even the tax realized in the seller state on the input involved in inter-state sales would have to be transferred to purchaser state and they will have to sustain loss of revenue.

 
 
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 developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

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