« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  A costing standard that rescued a chocolate case... New a/c norm for staff benefit provisions spooks banks... » Govt rejects States' demand for greater service tax share August, 19th 2006 The Finance Ministry has formally turned down the States' request for 50 per cent devolution of service tax collections as part of the compensation package for proposed Central sales tax (CST) phase-out. The States currently get 30.5 per cent of all Central tax collections, including service tax. Sources in the Government said that the suggestions involving additional cash outgo from the Centre had been turned down. However, the Ministry has in principle agreed to allow the States to collect and retain 100 per cent of collections on 77 services of intra-State nature as part of the package. It is also understood that States have been asked to consider increasing the VAT rate of four per cent to five per cent and then six per cent over the next two years. The compensation package for CST phase-out is likely to come up for discussion at the meeting of the Empowered Committee of State Finance Ministers on VAT on August 24 in the Capital. Higher devolution of service tax collections, powers to levy and collect service tax on about 124 services (intra-State nature), entire proceeds of VAT on imports and powers to levy VAT on three additional excise duty (AED) items formed part of the compensation package that States had sought from the Centre for CST phase-out. Of the 124 services proposed, the Ministry has approved 68 services.