Just a moment...

Report
ReportReport
Welcome to TaxTMI

We're migrating from taxmanagementindia.com to taxtmi.com and wish to make this transition convenient for you. We welcome your feedback and suggestions. Please report any errors you encounter so we can address them promptly.

Bars
Logo TaxTMI
>
×

By creating an account you can:

Report an Error
Type of Error :
Please tell us about the error :
Min 15 characters0/2000
TMI Blog
Home /

CST phaseout to miss deadline of 1st April 2008

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ST phaseout to miss deadline of 1st April 2008 <br>News and Press Release<br>Dated:- 1-4-2008<br><BR>NEW DELHI: The Central Sales Tax phaseout plan will miss a crucial deadline on Tuesday with both Centre and state governments failing to converge on the compensation package. As per the plan, CST which was reduced from 4% to 3% on April 1, 2007, is to be slashed by 1% further to 2% from Tuesday. St....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ate finance ministers are scheduled to hold discussions with Union finance minister P Chidambaram on April 8. With the reduction in CST rate from 3% to 2%, the states would lose about 12,000-13,000 crore in revenues. The states want the Centre to compensate this loss in full. While the Centre is agreeable in-principle to this, differences have cropped between the two on the mechanism. The differ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ences have also sprung up on account of the state governments demanding some tweaking-in in the already agreed formula at the time of deal on the CST phase out in early 2007. State finance ministers will now meet Union finance minister P Chidambaram to strike a common ground on the compensation formula. Sources said missing the April 1 date was not of much consequence and the reduction to 2% cou....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ld be carried out later, with retrospective effect. The levy is to be brought down to 2% from April 2008 and 1% in 2009, before being eventually abolished on March 31, 2010 to pave the way for roll-out of unified goods and service tax from April 1, 2010. The compensation package for phasing out CST which began from April 1, 2007 includes transfer of power to levy service tax on some services, re....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....moval of additional excise duty on tobacco products and textiles, VAT on imports, abolition of Form D, budgetary support and hike in floor rate of VAT. The Centre has removed additional excise duty from tobacco, provided for budgetary support and has already begun transfer of revenues from 33 existing services to states. However, it is yet to bring the 44 new services under tax net. (Source: Econ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....omic Times)<BR> News - Press release - PIB....