« 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 «  Sometimes, a comma can cut you both ways... Retail investors turn to FMPs... » Meet on VAT compensation package soon August, 25th 2006 Keen to sort out difference of opinion The Centre and the States appear to have come a step closer towards agreeing on a compensation package for the proposed phaseout of Central sales tax (CST) beginning October 1 even as differences persist on the components of the package. "Within the next seven days, the officials from the Centre including Dr Parthasarathi Shome, Advisor to the Finance Minister and the Empowered Committee officials would try to work out a solution. We are trying hard on both sides to converge on an agreed compensation package," Dr Asim Dasgupta, Chairman of the Empowered Committee of State Finance Ministers on VAT, told presspersons after meeting the Union Finance Minister, Mr P. Chidambaram, today. Package The VAT panel met here earlier in the day to discuss CST compensation package. Both Dr Dasgupta and Mr Chidambaram are likely to meet after a week on the issue of CST compensation package. "We need to have another meeting," Mr Chidambaram said when asked about the outcome of his meeting with the VAT panel chairman on Thursday. Dr Dasgupta admitted that there was "some difference of opinion" between the Centre and the States on the elements of the compensation package. He, however, expressed optimism that the differences could be ironed out well ahead of the proposed October 1 date for CST reduction. CST Collections Asked whether there was any estimate of losses that States would incur on account of proposed CST phaseout roadmap, the VAT panel chairman said that it was estimated that States would lose about Rs 2,500 crore in the six months beginning October 1 this fiscal. "For the next fiscal, we expect the loss to be about Rs 12,000 crore for the entire year," Dr Dasgupta said. Annual CST collections during 2005-06 stood at Rs 18,000 crore, growing at about 18 per cent every year. Dr Shome said that the Centre was keen to continue with VAT reforms, of which CST reduction was an integral part. Informed sources, however, said that the States continued to stick to their earlier position of wanting a higher devolution of service tax collections of the Centre (50 per cent) apart from budgetary support as part of the compensation package. The States are also understood to have taken a position that the Centre's suggestion to hike VAT rates from 4 to 5 per cent and then to 6 per cent in the next two years should not be counted towards the CST compensation package as States are already empowered to hike VAT rates under the aegis of the VAT panel.