Home Business

State FMs may decide on GST rate on Jan 7

State finance ministers are likely to finalise rates for the goods and services tax (GST) at a meeting of the empowered committee scheduled for January 7, said Jammu and Kashmir Finance Minister Abdul Rahim Rather here today. - Expect moderate returns in 2010 - GST rollout date may be announced on Jan 8 - Govt may miss GST deadline: FM - GST will reduce tax burden by 25-30%: FinMin - Centre to implement direct taxes code with suitable amendments: Pranab - PM panel for one GST slab at central level “Rates may be decided...We are working on the revenue neutral rate and it would be discussed on January 7,” said Rather, who is a member of the Empowered Group of State Finance Ministers on GST. While the GST committee set up by the 13th Finance Commission has suggested a rate of 12 per cent to be split between the states and Centre at 7 per cent and 5 per cent, respectively, several states want it to be at least 15 per cent. The empowered committee will take a final call on the GST rate, which will subsume levies like excise, VAT and service tax, at its January meeting. The GST rate, Rather said, needs to be revenue-neutral and should not result in any loss to the states. “The states should not suffer revenue loss and if there are some losses then the Centre has said that they would compensate us,” he added. GST is aimed at doing away with most of the indirect tax levies by the Centre, like excise and service tax and others levied by the states like VAT and octroi. The new tax regime also has a scheduled deadline for implementation by April 1, 2010. However, implementation could be delayed by almost a year, as the required Constitutional amendments are yet to be done and also the draft amendment Bill could not be tabled in the Winter session of Parliament. The Finance Commission’s task force has recommended a six-month delay for the GST introduction, while many tax experts and Bihar finance minister Sushil Modi called for one-year delay. The proposed GST regime is aimed at making the tax structure simpler and reduce the indirect tax burden on the consumer by about 25 per cent.


Add your comment:
Name:
Site address: http://
Your message:
Enter today\\\\'s date, 2 digits
(spam protection):

Categories
Business Ideas
Business Opportunities
Corporate
Home Business
International Business
Management
Online Business
Public Company
Public Relations
Small Business
News of the day
Nature's curse affects farm sector
India faced the curse of drought and floods in 2009 that saw consumers paying towering prices for vegetables, pulses, sugar and foodgrains, and the shortage of supplies punctured the euphoria over the return of the Congress-led government in May.
Popular Articles
payday loans

No profit from excess carbon credits: ArcelorMittal
ArcelorMittal today said it has not made any money from its excess carbon credits, bulk of which was purchases during the global economic crisis.

BSNL's rise and fall
A couple of decades ago, when more good people were leaving India Today magazine than joining it, Aroon Purie asked a departing colleague, who’d just given him the usual spiel you give while resigning, “If I’m the best boss around, why is everyone leaving?” Much the same question comes to mind while reading Connecting India — if BSNL and the Department of Telecommunications are indeed full of as many good people as the author will have us believe, how come the country’s top telecom PSU hasn’t made any profits from its operations in the last two-to-three years? Indeed, if you take the thousands of crore the PSU got by way of an Access-Deficit-Charge tax levied on rival telcos’ incoming calls, BSNL’s unprofitable years increase even more.

© Copyright 2009