Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
Top Headlines »
Open DEMAT Account in 24 hrs
 You could lose section 80C tax benefit on EPF contribution; here's why
 Income Tax Return Filing: Why you should wait until June 15 to file ITR for FY 2023-24
 Section 43B of Income Tax Act: Expenses businesses can cover apart from payment to MSMEs
 Direct tax collections reflect disparities
 Dealing with income tax notices, intimations or letters? This new feature in ITR portal will make your life easier
 Income Tax Slabs FY 2023-24 & AY 2024-25 (New & Old Regime Tax Rates)
 How can Form 15G & Form 15H save TDS on interest income?
 How are e-filing and e-payment of taxes different? Know details here
 Income Tax return (ITR) filing 2024: What is Form 16, when is issue date and why is it crucial? Explained
 Step-by-Step Guide To File Income Tax Return FY 2023-24
 Income-tax filing: Should you file your returns in April or wait until July 31?

Govt introduces Constitution Amendment Bill in LS for GST
March, 23rd 2011

The govt on Tuesday introduced a Constitution Amendment Bill in the Lok Sabha to facilitate implementation of the Goods and Service Tax (GST), an indirect tax regime that would subsume levies like excise, service tax and sales tax.

The Bill, introduced by Finance Minister Pranab Mukherjee seeks to amend the constitution with a view to confer simultaneous powers on centre and states to levy taxes on goods and services.

"The GST would replace a number of indirect taxes presently being levied by the central government and the state governments and is intended to remove cascading of taxes and provide a common national market for goods and services", said the statement of objects and reasons of the Bill.

The Bill provides for creation of a GST Council to be headed by Union Finance Minister.

The Council will be empowered to recommend tax rates and exemption and threshold limits for good and services.

Besides, the bill proposed a GST Dispute Settlement Authority to deal with grievances of the centre and the state with regard to GST.

The GST, which is considered to be a major tax reform, has been pending for the last four years due to differences between centre and some states over the structure of the new tax regime.

It will facilitate implementation of a new tax regime that subsumes levies like excise, sales and service tax.

The GST, which is considered as a major tax reform, has been pending for the last four years due to differences between centre and some states over the structure of the new tax regime.

"The decision to table the bill is a positive development. The Finance Minister was committed to bring it in the current session and he is doing that," Ernst and Young Tax Partner Harishanker Subramaniam said.

The Finance Ministry has worked on the final draft Constitution Amendment Bill, the fourth since the discussions on the new tax regime commenced.

Earlier, the first three drafts prepared by the Centre were rejected by the states citing autonomy issues.

The fourth draft, a hybrid of the second and third draft, has proposed setting up of a modified GST council through a presidential order for taking decisions on all important matters.

In addition, the composition of the GST Dispute Resolution Authority, proposed to be a part of the Constitution Amendment, will be decided by Parliament.

Furthermore, petroleum, natural gas, diesel and ATF have been kept out of the GST ambit in the final draft.

Last year, a draft Constitution Bill proposed by the Centre to the states had suggested a council chaired by the Union Finance Minister, with states as members, to make changes in GST.

The states, especially NDA-ruled ones, had raised objections to the proposal, saying it would give veto power to the Union Finance Minister over state taxation issues.

The Centre subsequently provided another draft to states, suggesting that changes in GST could be made only if there was a consensus on those issues in the council.

However, some state finance ministers did not agree to even this suggestion.

Taking into consideration the states' concerns, the Finance Ministry had then floated a third draft on the GST Constitution Amendment Bill.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting