Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: cpt :: empanelment :: VAT Audit :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: VAT RATES :: TDS
 
 
News Headlines »
 I-T Department may go into overdrive this quarter
 Ways to reduce the TDS deduction from your salary
 4 Tips for choosing who prepares your 2017 Tax Returns
 Processing of income-tax returns under section 143(1) of the Income-tax Act which were filed in Forms ITR-1 to 6 & applicability of section 143(1)(a)(vi)
 Price Waterhouse gets 2-year ban in Satyam case
 How to save income tax under section 80C
 These four expenditures can help you save tax under section 80C
 How to avoid excess deduction of TDS from salary income
 Income-tax deduction from salaries during the financial year 2017-18 under section 192 of the Income-tax Act, 1961
 Comparison of 10 tax-saving investments under Section 80C
 10 Income Tax-Saving Options Beyond Section 80C Limit

Govt depts to pay more tax on inter-State purchases
January, 06th 2007
Move to form part of CST compensation package

The Government departments at both the Central and State levels would in the coming days be required to pay more tax on their inter-State purchases of goods.

The Centre and the Empowered Committee of State Finance Ministers on Value Added Tax (VAT) have agreed to do away with the facility of concessional tax rate currently enjoyed by Government departments on such purchases.

As this move would bolster revenues for the States, this measure has been counted towards the compensation package to be offered to the States for the proposed central sales tax (CST) phase-out.

This would also bring Government departments at par with the private sector as they would be required to fork out VAT at normal rates instead of concessional rate of 4 per cent. Official sources said that abolition of Form D, which allows Government departments to make inter-State purchases at 4 per cent, would result in the central ministries and organisations such as the Railways paying up additional taxes of anywhere between Rs 1,500-Rs 3,000 crore annually to the States.

In 2007-08, States may face revenue loss of Rs 6,000-Rs 6,500 crore on account of reduction in CST from 4 to 3 per cent with effect from April 1 this year.

"The main benefit to the States is in terms of additional revenues flowing to them through the higher spending of the Central Government ministries from their budget allocations," sources said.

The proposed abolition of Form D would result in increased revenues to the State exchequer, as sales made to Government departments would attract higher rate of incidence of sales tax/VAT, Mr Aseem Chawla, Director-Taxation, Amarchand & Mangaldas, told Business Line.

He highlighted that the removal of Form D was one process towards the "big ticket" item of CST phase-out. The system of Form D was introduced in September 1958.

The doing away with Form D may also imply higher cost for provision of goods or services, depending on whether the incremental increase in incidence of taxes is passed on to the ultimate consumer or absorbed by the Government.

Meanwhile, official sources said that VAT on imports would not form part of the compensation package for CST phase-out although this issue was very much on the discussion table.

"As an issue, VAT on imports is very much alive," sources said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multi-level Marketing MLM India Affiliate Marketing Affiliate Marketing Software MLM Software MLM Solutions Multi level marketing solutions MLM Servi

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