Financial Daily from THE HINDU group of publications
Friday, Jun 25, 2004

Cross Currency

Group Sites

Industry & Economy - Taxation

State Finance Ministers meet on VAT tomorrow

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

BHEL sets up solar power plant in Bengal
Interior-exterior expo in Chennai
AP Govt to curb `unproductive' expenses to curtail Budget deficit
Reforms must create more jobs, benefit all people: PM
Rare surgery saves heart patient's life
Heritage offers elder care assistants programme
Nanguneri park may get new lease of life
New gas find off Orissa coast
ONGC threatens to cut off gas supply to Gail — Demands GSA with take-or-pay
OVL to invest $200 m in Sudan pipeline project
Dear gas
APGenco to implement MS Navision package
State Finance Ministers meet on VAT tomorrow
Timber importers in Karnataka strike against `heavy taxes'
Govt may raise threshold limit for SSI sector
NCL's coal price hike piques NTPC
Electrical industry seeks import duty sops on inputs
Final product norms for soft drinks being delayed: CSE
World of Food India 2004 fair in Hyderabad
FAPCCI against further waiver of power dues
Maditssia office-bearers
WTO chief to meet Commerce Minister today
Demand for HR personnel up
Seminar on exports
Serenading the media
Bangalore to host IIM seminar tomorrow
US to discontinue domestic visa service for 6 categories
Bank guarantees for visas: Malaysia assessing travel agents' views

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 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