GST Update on 22-07-2010

Govt pegs GST at 20% in year one, single rate at 16% by 2014

New Delhi July 22, 2010

Three-year road map to kick off in April next year with three rates.

Finance Minister Pranab Mukherjee today unveiled a three-year plan for moving to a single-rate goods and services tax (GST) regime of 16 per cent for the Centre as well as the states.

To begin with, next year, he suggested, the Centre will adopt a three-rate formula. While Mukherjee proposed that the rate of taxation for services be fixed at 8 per cent, a dual-rate regime for goods was recommended at the meeting of the empowered committee of state finance ministers. The Centre plans to keep a lower rate of 6 per cent for certain goods and maintain a standard rate of 10 per cent in the first year.

 

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Overview of proposed GST

The overview of proposed GST is summarised as follows – GST will be on supply of goods and supply of services. Concept of ‘sale of goods’, ‘manufacture’  and ‘provision of services’ will disappear. There will be duel GST – State GST (SGST) and Central GST (CGST). In case of inter-state sale or stock transfer, Inter…

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Basic Scheme of the CST Act

Basic Scheme of the CST Act The objects of the Act, as stated in preamble of the CST Act are – To formulate principles for determining (a) when a sale or purchase takes place in the course of inter-state trade or commerce (b) When a sale or purchase takes place outside a State (c) When…

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SUMMARY – UNION BUDGET 2009-10

UNION BUDGET 2009-10

The Budget seeks to address the three challenges facing the economy – to lead the economy back to the high GDP growth rate of 9 per cent per annum at the earliest, to deepen and broaden the agenda for inclusive development, and to energize government and improve delivery mechanism.

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MVAT Act 2002 Important Rules & Provisions

MAHARASHTRA VALUE ADDED TAX ACT, 2002 (Updated for FY 2009-10)

INTRODUCTION

WHAT IS VALUE ADDED TAX (VAT) ?

VAT (Value Added Tax) is a multistage tax system for collection of sales tax. The system envisages levy of tax on the sale at each stage and contemplates allowing of set off of tax paid on purchases. Thus, tax is getting paid on the value addition in the hands of each intermediatory vendor. The process covers whole chain of distribution i.e. from manufacturers till retailers.

 

Prior to 1-4-2005, the system for levy of tax in Maharashtra was, in general, single point tax system. As a consequence to national consensus for introduction VAT, the earlier Bombay Sales Tax Act, 1959 is replaced by Maharashtra Value Added Tax Act, 2002. The Act has come into force with effect from 1-4-2005. Thus, from 1-4-2005, sales tax is being collected under VAT system in Maharashtra. Salient features of this Act are mentioned hereunder:

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Changes in Service Tax from 01-07-2010


Changes in service tax in June 2010

 

1. Budget 2010 provisions relating to service tax made effective on 1-7-2010

Finance Act, 2010 was passed on 8-5-2010 itself. As per past experience, it was expected that the provisions of service tax would be made effective from 1st June. However, after a long wait, all the provisions relating to service tax contained in Finance Act, 2010 have been made finally made effective from 1-7-2010.

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