Financial Daily from THE HINDU group of publications
Thursday, Apr 06, 2006
Financial Daily from THE HINDU group of publications Thursday, Apr 06, 2006 |
|
|
|
|
|
|
|
Industry & Economy
-
Taxation Working group on CST compensation to meet on Apr 10 K.R. Srivats
New Delhi , April 5 The working group set up to work out the modalities of compensation for an appropriate phasing out of Central sales tax (CST) is to meet for the first time on April 10. The first draft of the working group's recommendations is expected by mid-April. The working group comprises senior officials from the Union Finance Ministry as well as VAT Commissioners of States. The States had asked the Centre to compensate them for the expected loss of revenue from CST phase-out. The Centre has proposed that the loss of revenue may be compensated through monetary and non-monetary measures which, taken together, would ensure that the States' revenues remain buoyant. The annual CST collections during 2005-06 are estimated at Rs 18,000 crore. The entire CST is collected and retained by the States. The Finance Minister, Mr P. Chidambaram, had in his Budget speech of 2006-07 said that he would return to Parliament with firm proposals, including legislative changes and a supplementary demand, as soon as the empowered committee and the Government reach an agreement. Apart from Budgetary support, the States are also expecting devolution of powers to levy tax on certain services, besides 50 per cent share of the Centre's services tax collections. A constitutional amendment would be required if the States are to be given the power to levy tax on services.
More Stories on : Taxation
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, 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
|