• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Anil Sasi
K.R. Srivats

New Delhi , June 24

AFTER arriving at a broad consensus last week on implementing the value added tax (VAT) regime from April 1, 2005, State Governments are to meet here on Saturday to discuss the finer aspects relating to the transition to a VAT regime that would replace the sales tax.

Primary issues that are likely to be discussed at the Empowered Committee of State Finance Ministers on VAT include the compensation on possible losses, if any, from implementation of VAT and the controversial draft services tax Bill piloted by the Centre.

With States opposing the draft services tax Bill in the present form and Centre agreeing last week to review the Bill, official sources said that the State Governments are likely to enter into detailed discussions with each other on the list of services that should come under their ambit for collection and appropriation.

The issue of services tax is crucial for States since tax mop up under this head would act as a cushion for States against any possible losses arising from the move to implement VAT.

Indications are that the States are likely to take a tough stance on the issues of compensation from the Centre as well as on the services that should be brought within their ambit for collection and appropriation, sources said.

Some of the States are even seeking powers to levy tax on services. Currently, the Centre alone has the powers to levy tax on services as it is a subject under the Union List of the Constitution.

More Stories on : Taxation

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Consumer body digs up dirt on detergents

Copyright © 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line