In a major step towards introduction of Value-added Tax from April 2005, states on Wednesday endorsed a 'white paper' on the new tax regime, which would be formally issued on January 17.
The Empowered Committee of State Finance Ministers has been asked to sort out some of the contentious issues on the value-added tax including the refunds on credit and exemption for exports.
Sushil Kumar Modi tells Business Standard the spirit of collective federalism needs to be heeded by all sides if the key reform is to become a reality.
Officials said Mukherjee had proposed the name of Modi for the post, as an experienced person like him could have helped convince BJP-ruled states to move ahead on the Goods & Services Tax (GST).
Finance Minister Jaswant Singh has called off the meeting with empowered committee on value-added tax, scheduled for Tuesday.
Addressing the Lok Sabha on Wednesday, Finance Minister Pranab Mukherjee called for the inclusion of petroleum products in proposed goods and services tax so that sharp domestic price movements can be checked.
The empowered committee of state finance ministers for implementation of value added tax would meet in first half of January 2004, to decide on the implementation of the new tax system.
They will hold discussions on the requirement of a constitution amendment bill for rolling out the proposed GST, which is all set to miss even the revised deadline of April one, 2011.
Panel also demanded power to go for additional market borrowing than stipulated.
The empowered committee of state finance ministers on Monday said the Value-added Tax will be implemented from April 1, 2005, even if Uttar Pradesh does not fall in line.
The empowered committee on value-added tax will meet the finance minister in mid-July to discuss the 'roadmap' for the introduction of the new tax regime, after which it will be taken up with political parties for a national consensus.
The empowered committee of state finance ministers has virtually trashed the Thirteenth Finance Commission taskforce's Goods and Services Tax report.
Quibbling between the Centre and the states on who should provide more relief to consumers on fuel prices intensified with the latter asking the Union Government to give an account of accruals to it from the latest hike in petrol and diesel prices.
The Madhya Pradesh government on Monday presented an alternative model of the GST but some states immediately raised objections to it.
Ready with the "groundwork", the Empowered Committee on value-added tax is likely to press for President's nod on VAT Bills of at least nine states by May 25
He's the hero for forging consensus on GST, popular in the Left Front and among his students, but industrialists are less than enamoured.
With 21 states agreeing to switch over to value added tax from April 1, finance minister P Chidambaram on Thursday asked the remaining states, including Uttar Pradesh and BJP-ruled states, to implement it and add a historic dimension to centre-state
After 17 tumultuous years, a nationwide Goods and Services Tax (GST) will rollout from midnight of June 30, overhauling India's convoluted indirect taxation system and unifying the $2 trillion economy with 1.3 billion people into a single market.
The contentious issue of value added tax was resolved on Tuesday with the state finance ministers deciding to implement from June 1 the new tax system in place of the sales tax.
The GST Constitutional Amendment Bill is with the standing committee.
The crucial meeting of the empowered committee of state finance ministers on value-added tax began in New Delhi on Wednesday to resolve all pending issues to ensure smooth implementation of the new tax regime from June 1 this year.
The empowered committee delegation, including state finance ministers participated in two round table conferences sponsored by the Indo-Canada Chamber of Commerce and the Canada-India Business Council. Tax experts from Couzon Taylor, Brian Wurts, HST Consulting etc, made presentations at the Canadian Imperial Bank of Commerce event.
Prime Minister Manmohan Singh seems to be sitting on the proposal, while requests continue to flow in from states to add more names to the delegation.
Civil servants, armed forces and paramilitary personnel will get to rejoice this Independence Day with the government all set to approve the Sixth Pay Commission report in its Cabinet meeting on Thursday.
The Centre on Friday said it will persuade states to reach a consensus on the Goods and Services Tax so that it can be implemented from April 1 next year.
Wants all services included in tax, with a negative list.
If states are to levy service tax, a combined GST will become a nightmare since a host of tax departments in each state will also have to be dealt with.
The empowered committee of state finance ministers has approved the position paper of the Centre on the information technology network for the proposed indirect tax regime.
Delhi and Maharashtra may lower value added tax on bullion to 0.25 per cent as consensus on introducing uniform floor rate for precious metals seemed difficult to emerge at the empowered committee's meeting on Wednesday
Will have to pay 12% tax besides 3% education cess.
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