GOVERNMENT OF NCT OF DELHI FINANCE (T&E) DEPARTMENT
Subject: Amendments in the Delhi Value Added Tax Rules, 2005
Notification No. F.3(10)/Fin.(T&E)/2008-2009/JS/Fin/351
Date: 24 July 2008
Notification
Whereas, the Lt. Governor of the National Capital Territory of Delhi is of the opinion that it is expedient in the interest of general public so to do. Now, therefore, in exercise of the powers conferred by Section 102 of the Delhi Value Added Tax Act, 2004 (Delhi Act 3 of 2005), the Lt. Governor of the National Capital Territory of Delhi, hereby, makes the following rules to further amend the Delhi Value Added Tax Rules, 2005, namely:-
RULES
1. Short title and commencement- (1) These rules may be called the Delhi Value Added Tax (Amendment) Rules, 2008.
(2) They shall come into force with effect from 1st June, 2008.
2. Amendment of Rule 7.- In the Delhi Value Added Tax Rules, 2005 (hereinafter referred to as "the principal Rules"), in rule 7,-
(i) for sub-rule (1), the following shall be substituted, namely,- "(1) For the purposes of sub-section (6) of Section 9 and sub-section (3) of Section 10, the tax credit shall be reduced by the following prescribed percentages:
(a) in the case of goods specified in the Second Schedule -100 per cent
(b) in the case of goods specified in the Third Schedule -50 per cent
(c) in the case of goods specified in the Fourth Schedule -10 per cent
(d) in the case of any other goods specified in clause of sub-section (1) of Section 4 -16 per cent"
(ii) for the word and figure "3 per cent" occurring at the end of sub-rule (4) the word and figure "2 per cent" shall be substituted.
By Order and in the Name of the Lt. Governor of the National Capital Territory of Delhi,
(Ajay Kumar Garg)
Joint Secretary
Wednesday, August 6, 2008
Saturday, July 19, 2008
Extension of time limit for furnishing of reconciliation return in Form DVAT 51
GOVERNMENT OF NCT OF DELHI
DEPARTMENT OF TRADE & TAXES
Circular No: F.3(33)/P-II/VAT/Misc./2006/145
Date: 27th June 2008
In exercise of the powers conferred under rule 49A of the Delhi Value Added Tax Rules, 2005, sub-section (2) of section 9 of the Central Sales Tax Act, 1956, and sub- rule (7) of rule 12 of the Central Sales Tax (Registration and Turnover) Rules, 1957, 1, Archna Arora, Commissioner, Value Added Tax, Government of National Capital Territory of Delhi, do hereby, extend the time limit prescribed in-
(a) sub-rule (1) of rule 67 of the Delhi Value Added Tax Rules, 2005 and rule 4 of the Central Sales Tax (Delhi) Rules, 2005 for furnishing of reconciliation return in Form DVAT 51, up to 18 August 2008 for the first & second quarters of the year 2007-08 and up to 20 December 2008 for the fourth quarter of the year 2007-08.
(b) sub-rule (5) of rule 5, clause (a) of sub-rule (3) of rule 6, clause (a) of sub-rule (5) of rule 7, sub-rule (2) of rule 9, rule 6B and sub-rule (2) of rule 6A of the Central Sales Tax (Delhi) Rules, 2005 and sub-rule (10) of rule 12 of the Central Sales Tax (Registration and Turnover) Rules, 1957 for furnishing of the portion marked 'original' of the Declaration Forms 'C', 'E-l' or 'E-ll', 'F', '1', 'J' and 'H' respectively, up to 18 August 2008 for the first & second quarters of the year 2007-08 and up to 20th December 2008 for the fourth quarter of the year 2007-08 in respect of the Declaration Forms which relate to the fourth quarter of the year 2007-08.
(Archna Arora)
Commissioner, Value Added Tax
DEPARTMENT OF TRADE & TAXES
Circular No: F.3(33)/P-II/VAT/Misc./2006/145
Date: 27th June 2008
In exercise of the powers conferred under rule 49A of the Delhi Value Added Tax Rules, 2005, sub-section (2) of section 9 of the Central Sales Tax Act, 1956, and sub- rule (7) of rule 12 of the Central Sales Tax (Registration and Turnover) Rules, 1957, 1, Archna Arora, Commissioner, Value Added Tax, Government of National Capital Territory of Delhi, do hereby, extend the time limit prescribed in-
(a) sub-rule (1) of rule 67 of the Delhi Value Added Tax Rules, 2005 and rule 4 of the Central Sales Tax (Delhi) Rules, 2005 for furnishing of reconciliation return in Form DVAT 51, up to 18 August 2008 for the first & second quarters of the year 2007-08 and up to 20 December 2008 for the fourth quarter of the year 2007-08.
(b) sub-rule (5) of rule 5, clause (a) of sub-rule (3) of rule 6, clause (a) of sub-rule (5) of rule 7, sub-rule (2) of rule 9, rule 6B and sub-rule (2) of rule 6A of the Central Sales Tax (Delhi) Rules, 2005 and sub-rule (10) of rule 12 of the Central Sales Tax (Registration and Turnover) Rules, 1957 for furnishing of the portion marked 'original' of the Declaration Forms 'C', 'E-l' or 'E-ll', 'F', '1', 'J' and 'H' respectively, up to 18 August 2008 for the first & second quarters of the year 2007-08 and up to 20th December 2008 for the fourth quarter of the year 2007-08 in respect of the Declaration Forms which relate to the fourth quarter of the year 2007-08.
(Archna Arora)
Commissioner, Value Added Tax
New Intangibles in the list of Intangible goods to be taxed @ 4% under Andhra Pradesh VAT.
GOVERNMENT OF ANDHRA PRADESH
REVENUE (CT-II) DEPARTMENT
G.O.Ms.No.818
Dated: 30-06-2008
Read the following: Act No5 of 2005
NOTIFICATION
In exercise of the powers conferred by sub-section (1) of section 79 of Andhra Pradesh Value Added Tax Act, 2005 (Act No.5 of 2005), the Government hereby makes the following amendments to the First Schedule and Fourth Schedule appended to the said Act.
2. The amendments made to Schedule-I and IV under items-I (2) and II(1) shall be deemed to have come into force on and with effect from 01-04-2005. All other amendments shall be deemed to have come into force on and with effect from 01-07-2008.
AMENDMENTS
In the said Act,
I. In Schedule-I,
1. For the entry at Sl.No.1,the following shall be substituted, namely;
“1. Agricultural implements manually operated or animal driven, hand operated sprayers including knapsack/backpack power sprayers (powered up to 35 cc engines developing 0.8 to 1.4 HP), dusters and parts thereof.”
2. For the entry at Sl.No.44, the following shall be substituted, namely:-
“44. Seeds for sowing and gardening purpose including the seed or grain, corresponding to the seed, sold to the nodal agencies, namely, Andhra Pradesh State Seeds Development Corporation (APSSDC), Andhra Pradesh State C0-Operative Marketing Federation (Andhra Pradesh Markfed), AP State Co-operative Oilseeds Growers Federation (OILFED), The Hyderabad Agricultural Co-operative Association Ltd.(HACA), National Seeds Corporation Ltd., and also including the seed or grain procured by the seed companies, duly following the Seed Certification or Labeling Procedure”.
II. In Schedule-IV,
(1) For the Entry at Sl.No.2, the following shall be substituted, namely:-
“2. Goods of intangible or incorporeal nature as may be notified from time to time by the State Government, and including;
Patents
Trade marks
Import licenses including exim scrips, special import licenses and duty free advance licenses.
Export Permit or license or quota
Software packages
Credit of Duty Entitlement Pass Book
Technical know-how
Goodwill
Copyright
Designs registered under the Designs Act, 1911.
SIM Cards used in Mobile Phones
Franchise, that is to say, an agreement by which the franchisee is granted representational right to sell or manufacture goods or to provide service or undertake any process identified or associated with the franchisor, whether or not a trade mark, service mark, trade name or logo or any symbol, as the case may be, is involved.
(2) for Entry at Sl.No.45, the following shall be substituted, namely;
“45. Pipes of all varieties including G.I.,C.I., PVC and Ductile pipes and fittings thereof but excluding RCC and PCC pipes and their fittings.”
(3) for Entry at Sl.No.46, the following shall be substituted, namely;
“46. Moulded Plastic footwear and Hawai Chappals and straps thereof.
(4) for Entry at Sl.No.47, the following shall be substituted, namely;
“47. Diary Calendar, Annual Reports, Application forms and similar printed materials.”
(5) in the entry at Sl.No.100,
(i) for the words, “industrial inputs, that is to say” the words “The following goods, when sold as industrial inputs:’ shall be substituted;
(ii) in the table after sub-entry 231, the following sub-entries shall be added, namely:-
“232. Yeast of all kinds and forms
233. Gel used for preparing bakery products and bread softener.”
(6) for Entry at Sl.No.107, the following shall be substituted, namely;
“107. (a) preserved fruits, vegetables, meat, poultry, sea foods and fish sold in sealed containers or in a frozen state.
(b) Fruit jams, jelly, fruit squash, fruit juices and fruit drinks but excluding aerated fruit drinks;
(c) Cottage cheese (paneer), pickles, sauces, porridge, marmalade, honey;
(7) for entry at Sl.No.117, the following shall be substituted, namely:-
“117. Ayurvedic and homeopathic products manufactured under license issued by the licensing authorities concerned under Drugs and Cosmetics Act, 1940.”
(8) after note (5), the following shall be added, namely;
“6. Note: in order to claim reduced rate of tax of 4% under the entry 100, the dealer shall be in possession of a declaration in the Form, as may be prescribed, and issued by the dealer purchasing such commodities for the purpose of using them as industrial inputs.”
G. SUDHIR
PRINCIPAL SECRETARY TO GOVERNMENT
REVENUE (CT-II) DEPARTMENT
G.O.Ms.No.818
Dated: 30-06-2008
Read the following: Act No5 of 2005
NOTIFICATION
In exercise of the powers conferred by sub-section (1) of section 79 of Andhra Pradesh Value Added Tax Act, 2005 (Act No.5 of 2005), the Government hereby makes the following amendments to the First Schedule and Fourth Schedule appended to the said Act.
2. The amendments made to Schedule-I and IV under items-I (2) and II(1) shall be deemed to have come into force on and with effect from 01-04-2005. All other amendments shall be deemed to have come into force on and with effect from 01-07-2008.
AMENDMENTS
In the said Act,
I. In Schedule-I,
1. For the entry at Sl.No.1,the following shall be substituted, namely;
“1. Agricultural implements manually operated or animal driven, hand operated sprayers including knapsack/backpack power sprayers (powered up to 35 cc engines developing 0.8 to 1.4 HP), dusters and parts thereof.”
2. For the entry at Sl.No.44, the following shall be substituted, namely:-
“44. Seeds for sowing and gardening purpose including the seed or grain, corresponding to the seed, sold to the nodal agencies, namely, Andhra Pradesh State Seeds Development Corporation (APSSDC), Andhra Pradesh State C0-Operative Marketing Federation (Andhra Pradesh Markfed), AP State Co-operative Oilseeds Growers Federation (OILFED), The Hyderabad Agricultural Co-operative Association Ltd.(HACA), National Seeds Corporation Ltd., and also including the seed or grain procured by the seed companies, duly following the Seed Certification or Labeling Procedure”.
II. In Schedule-IV,
(1) For the Entry at Sl.No.2, the following shall be substituted, namely:-
“2. Goods of intangible or incorporeal nature as may be notified from time to time by the State Government, and including;
Patents
Trade marks
Import licenses including exim scrips, special import licenses and duty free advance licenses.
Export Permit or license or quota
Software packages
Credit of Duty Entitlement Pass Book
Technical know-how
Goodwill
Copyright
Designs registered under the Designs Act, 1911.
SIM Cards used in Mobile Phones
Franchise, that is to say, an agreement by which the franchisee is granted representational right to sell or manufacture goods or to provide service or undertake any process identified or associated with the franchisor, whether or not a trade mark, service mark, trade name or logo or any symbol, as the case may be, is involved.
(2) for Entry at Sl.No.45, the following shall be substituted, namely;
“45. Pipes of all varieties including G.I.,C.I., PVC and Ductile pipes and fittings thereof but excluding RCC and PCC pipes and their fittings.”
(3) for Entry at Sl.No.46, the following shall be substituted, namely;
“46. Moulded Plastic footwear and Hawai Chappals and straps thereof.
(4) for Entry at Sl.No.47, the following shall be substituted, namely;
“47. Diary Calendar, Annual Reports, Application forms and similar printed materials.”
(5) in the entry at Sl.No.100,
(i) for the words, “industrial inputs, that is to say” the words “The following goods, when sold as industrial inputs:’ shall be substituted;
(ii) in the table after sub-entry 231, the following sub-entries shall be added, namely:-
“232. Yeast of all kinds and forms
233. Gel used for preparing bakery products and bread softener.”
(6) for Entry at Sl.No.107, the following shall be substituted, namely;
“107. (a) preserved fruits, vegetables, meat, poultry, sea foods and fish sold in sealed containers or in a frozen state.
(b) Fruit jams, jelly, fruit squash, fruit juices and fruit drinks but excluding aerated fruit drinks;
(c) Cottage cheese (paneer), pickles, sauces, porridge, marmalade, honey;
(7) for entry at Sl.No.117, the following shall be substituted, namely:-
“117. Ayurvedic and homeopathic products manufactured under license issued by the licensing authorities concerned under Drugs and Cosmetics Act, 1940.”
(8) after note (5), the following shall be added, namely;
“6. Note: in order to claim reduced rate of tax of 4% under the entry 100, the dealer shall be in possession of a declaration in the Form, as may be prescribed, and issued by the dealer purchasing such commodities for the purpose of using them as industrial inputs.”
G. SUDHIR
PRINCIPAL SECRETARY TO GOVERNMENT
Friday, June 13, 2008
Subsidy on LPG Cylinders for domestic use.
GOVERNMENT OF NCT OF DELHI DEPARTMENT OF TRADE & TAXES
Subject: Delhi Govt. gives subsidy of Rs.40/- per 14.2 kg. domestic cylinder of LPG or Rs.2.82/kg. for other packages for domestic use only
Date: 07 Jun 2008 Notification No.F.5(25)/Policy-II/VAT/Misc.Amend./2008/89-101
Notification
In exercise of the powers conferred under Sub-section (3) of Section 70 of the Delhi Value Added Tax Act, 2004, I, Archna Arora, Commissioner, Trade & Taxes, do hereby clarify that the subsidy of Rs.40/- per 14.2 kg. domestic cylinder of LPG or Rs.2.82/kg. for other packages for domestic use only by the Government of NCT of Delhi shall not form part of the sale price as this subsidy would be provided by the State Government and the entire benefit of such subsidy will pass on to the consumers and such subsidy would be reduced from the basic price and such reduced price would be construed as sale price for the purpose of calculation of Value Added Tax (VAT).
It is, further, clarified that while filing returns, the Oil Companies shall adjust the subsidy amount as mentioned above so calculated on their sales of domestic LPG in NCT of Delhi against the VAT payable to the Government on the sales of the company and the difference between tax payable by the company in accordance to the provisions of the Act and amount of tax paid by the company shall not be termed as tax deficiency due to adjustment of such subsidy since the subsidy amount shall be credited to the Department by the Food & Supplies Department, Government of NCT of Delhi.
This shall be effective with immediate effect.
(Archana Arora)
Commissioner, Value Added Tax
Subject: Delhi Govt. gives subsidy of Rs.40/- per 14.2 kg. domestic cylinder of LPG or Rs.2.82/kg. for other packages for domestic use only
Date: 07 Jun 2008 Notification No.F.5(25)/Policy-II/VAT/Misc.Amend./2008/89-101
Notification
In exercise of the powers conferred under Sub-section (3) of Section 70 of the Delhi Value Added Tax Act, 2004, I, Archna Arora, Commissioner, Trade & Taxes, do hereby clarify that the subsidy of Rs.40/- per 14.2 kg. domestic cylinder of LPG or Rs.2.82/kg. for other packages for domestic use only by the Government of NCT of Delhi shall not form part of the sale price as this subsidy would be provided by the State Government and the entire benefit of such subsidy will pass on to the consumers and such subsidy would be reduced from the basic price and such reduced price would be construed as sale price for the purpose of calculation of Value Added Tax (VAT).
It is, further, clarified that while filing returns, the Oil Companies shall adjust the subsidy amount as mentioned above so calculated on their sales of domestic LPG in NCT of Delhi against the VAT payable to the Government on the sales of the company and the difference between tax payable by the company in accordance to the provisions of the Act and amount of tax paid by the company shall not be termed as tax deficiency due to adjustment of such subsidy since the subsidy amount shall be credited to the Department by the Food & Supplies Department, Government of NCT of Delhi.
This shall be effective with immediate effect.
(Archana Arora)
Commissioner, Value Added Tax
Sunday, June 8, 2008
Amendments to third,fifth & sixth Schedule
(TO BE PUBLISHED IN PART IV OF THE DELHI GAZETTE EXTRAORDINARY)
GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI
FINANCE (TAXES & ESTABLISHMENT) DEPARTMENT
DELHI SACHIVALAYA, I.P.ESTATE: NEW DELHI-02
No.F. 3 (2)/Fin.(T&E)/2008-09/jsfin237 Dated: 03-6-2008
NOTIFICATION
No.F.3 (2)/Fin.(T&E)/2008-09 - WHEREAS the Lt. Governor of the National
Capital Territory of Delhi is of the opinion that it is expedient in the interest of general
public so to do.
Now, therefore, in exercise of the powers conferred by section 103 of the Delhi Value Added Tax Act, 2004 (Delhi Act 3 of 2005), the Lt. Governor of the National Capital Territory of Delhi, hereby, makes the following amendments in the Third Schedule appended to the said Act, namely:-
AMENDMENTS
In the Third Schedule appended to the said Act ,-
after the entry at Sl. No. 186, the following entry shall be inserted, namely :-
“187. Subject to the conditions specified in entry No. 1 of the Fifth Schedule to
the Delhi Value Added Tax Act, 2004, the following goods sold by Canteen Stores Department
(i) (a) All Goods made of glass including, glassware, but not including glass
and bangles, optical lenses, glass tumblers and mirrors.
(b) Utensils, kitchenware and tableware made of glass or china clay.
(c) Glazed earthenware.
(d) Chinaware including crockery.
(ii) Iron and steel safes and almirahs.
(iii) Cosmetics, perfumery and toilet goods including soaps, shampoos and
hair oil but not including tooth brushes, toothpaste, tooth powder and
kumkum.
(iv) Cushion and mattresses of foam, including foam sheets, pillows and other
articles made from foam rubber or plastic foam or other synthetic foam.
2 In the Sixth Schedule appended to the said Act, -
(i) In the entry at Sl. No. 1, in Part A, -
for the sub-entry at S.No. (60), the following sub-entry shall be substituted
namely:-
“(60) MAURITIUS (only for petrol and diesel).”;
(ii) In the entry at Sl. No. 1 , in Part B, -
after the sub-entry at Sl. No. (24) the following sub-entry shall be inserted:-
“(25) Commonwealth Education Media Centre for Asia (CEMCA).”
(iii) to entry at Sl. No. 2, the following proviso shall be inserted, namely:-
“Provided that the items mentioned at Sl. No. 11, 13, 15, 18, in the annexure above referred to, the Canteen Stores Department (CSD) shall claim the refund @ 8.5 paise per rupee of input tax for the said items”.
This notification shall come into force with immediate effect.
By order and in the name of
the Lt. Governor of the National
Capital Territory of Delhi,
Sd/-
(R.K.Verma)
Dy. Secretary Finance
No.F. 3 (2)/Fin.(T&E)/2008-09/jsfin237 Dated: 03-6-2008
GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI
FINANCE (TAXES & ESTABLISHMENT) DEPARTMENT
DELHI SACHIVALAYA, I.P.ESTATE: NEW DELHI-02
No.F. 3 (2)/Fin.(T&E)/2008-09/jsfin237 Dated: 03-6-2008
NOTIFICATION
No.F.3 (2)/Fin.(T&E)/2008-09 - WHEREAS the Lt. Governor of the National
Capital Territory of Delhi is of the opinion that it is expedient in the interest of general
public so to do.
Now, therefore, in exercise of the powers conferred by section 103 of the Delhi Value Added Tax Act, 2004 (Delhi Act 3 of 2005), the Lt. Governor of the National Capital Territory of Delhi, hereby, makes the following amendments in the Third Schedule appended to the said Act, namely:-
AMENDMENTS
In the Third Schedule appended to the said Act ,-
after the entry at Sl. No. 186, the following entry shall be inserted, namely :-
“187. Subject to the conditions specified in entry No. 1 of the Fifth Schedule to
the Delhi Value Added Tax Act, 2004, the following goods sold by Canteen Stores Department
(i) (a) All Goods made of glass including, glassware, but not including glass
and bangles, optical lenses, glass tumblers and mirrors.
(b) Utensils, kitchenware and tableware made of glass or china clay.
(c) Glazed earthenware.
(d) Chinaware including crockery.
(ii) Iron and steel safes and almirahs.
(iii) Cosmetics, perfumery and toilet goods including soaps, shampoos and
hair oil but not including tooth brushes, toothpaste, tooth powder and
kumkum.
(iv) Cushion and mattresses of foam, including foam sheets, pillows and other
articles made from foam rubber or plastic foam or other synthetic foam.
2 In the Sixth Schedule appended to the said Act, -
(i) In the entry at Sl. No. 1, in Part A, -
for the sub-entry at S.No. (60), the following sub-entry shall be substituted
namely:-
“(60) MAURITIUS (only for petrol and diesel).”;
(ii) In the entry at Sl. No. 1 , in Part B, -
after the sub-entry at Sl. No. (24) the following sub-entry shall be inserted:-
“(25) Commonwealth Education Media Centre for Asia (CEMCA).”
(iii) to entry at Sl. No. 2, the following proviso shall be inserted, namely:-
“Provided that the items mentioned at Sl. No. 11, 13, 15, 18, in the annexure above referred to, the Canteen Stores Department (CSD) shall claim the refund @ 8.5 paise per rupee of input tax for the said items”.
This notification shall come into force with immediate effect.
By order and in the name of
the Lt. Governor of the National
Capital Territory of Delhi,
Sd/-
(R.K.Verma)
Dy. Secretary Finance
No.F. 3 (2)/Fin.(T&E)/2008-09/jsfin237 Dated: 03-6-2008
Saturday, May 31, 2008
Notification reducing Central Sales Tax to 2%
After much confusion, the Government has finally issued the notification bringing into effect from June 1, 2008 the new reduced rate of CST of 2 per cent on inter-State sales of goods against C-Form. The copy of notification is attached herewith for your records.
Government of India
Ministry of Finance
(Department of Finance)
New Delhi,Dated: May 30,2008
NOTIFICATION
S.O...(E) In exercise of the powers of conferred by the proviso to the subsection (1) of section of the Central Sales Tax Act 1956 (74 of 1956), the Central Government herby reduced the rate of tax as specified in sub-section (1) of section 8 of the said Act from three per cent to two per cent with effect from 1st June, 2008.
[No.1/2008-CST-F.No.28/11/2007-ST]
(R.G.Chabbra)
Undersecretary to Government. of India
Finance Ministry Notification that was withdrawn
On the basis of the discussions between the Empowered Committee (EC) of State Finance Ministers and the Union Finance Minister regarding the compensation package, the Government of India, Ministry of Finance, Department of Revenue has issued a notification on 30th May, 2008 to bring into effect from 1st June, 2008 the new reduced rate of CST of 2 per cent on inter-State sales of goods. The notification of new CST rate of 2 per cent in place of earlier 3 per cent is in accordance with the announcement made by the Union Finance Minister in his budget speech in Parliament in February 2008 that the rate of Central Sales Tax would be reduced.
The rate of CST on inter-State sale of goods to registered dealers (against Form-C) shall now be the lower of 2 per cent and the rate of VAT or State Sales Tax applicable. This reduction forms a part of the roadmap for phasing out CST completely by 31st March, 2010 in preparation of introducing Goods & Services Tax (GST), the roadmap for which is being worked out by the EC of State Finance Ministers together with the Union Finance Ministry.
The Central Government and the Empowered Committee of State Finance Ministers have further agreed that the compensation for revenue loss to the States in any year arising from the lowering of CST will be limited to the proportionate loss based on the actual collection of CST in the relevant year.
BSC/vk/134/08
The rate of CST on inter-State sale of goods to registered dealers (against Form-C) shall now be the lower of 2 per cent and the rate of VAT or State Sales Tax applicable. This reduction forms a part of the roadmap for phasing out CST completely by 31st March, 2010 in preparation of introducing Goods & Services Tax (GST), the roadmap for which is being worked out by the EC of State Finance Ministers together with the Union Finance Ministry.
The Central Government and the Empowered Committee of State Finance Ministers have further agreed that the compensation for revenue loss to the States in any year arising from the lowering of CST will be limited to the proportionate loss based on the actual collection of CST in the relevant year.
BSC/vk/134/08
Friday, May 30, 2008
Government withdraws statement on CST cut to 2 per cent news
The government has withdrawn a statement about cut in central sales tax rate on inter-state sales from three per cent to two per cent, effective 1 June. The statement was withdrawn shortly after release.
"The press release on Central Sales Tax reduced to two per cent from June 1, 2008 is withdrawn. A revised press release would be issued shortly," an official communique said.
The finance ministry notification came after much bickering with states and the differences with the states persisted on how to compensate them for revenue loss of about Rs13,000 crore in 2008-09.
CST was cut to three per cent on 1 April 2007 from four per cent and it was to be reduced to two per cent on 1 April 2008, before being phased out by March 2010.
However, an agreement on reduction to two per cent got delayed after states refused to increase value added tax (VAT) rate from four per cent to five per cent and bring textiles under its ambit.
"The empowered committee of state finance ministers will make every effort to prevail upon the state governments to impose VAT on textiles as also to increase the general VAT rate from four per cent to five per cent within the financial year 2008-09 as per agreement reached earlier," finance ministry had said in a statement acknowledging the differences with states on compensation.
While states will get some revenue from certain services, VAT on tobacco and removal of Form D, there was a dispute how the remaining Rs9,600 crore will be paid to states.
Finance ministry sources said states are refusing to raise VAT from four per cent to five per cent sighting inflation and assembly elections. States are also demanding cash compensation for Rs9,600 crore from the central government.
With no immediate solution in sight, the central government decided to withdraw the notification. The empowered committee, which will meet in the last week of June, is expected to further discuss the issue.
source:http://domain-b.com/economy/general/20080530_withdraws.html
"The press release on Central Sales Tax reduced to two per cent from June 1, 2008 is withdrawn. A revised press release would be issued shortly," an official communique said.
The finance ministry notification came after much bickering with states and the differences with the states persisted on how to compensate them for revenue loss of about Rs13,000 crore in 2008-09.
CST was cut to three per cent on 1 April 2007 from four per cent and it was to be reduced to two per cent on 1 April 2008, before being phased out by March 2010.
However, an agreement on reduction to two per cent got delayed after states refused to increase value added tax (VAT) rate from four per cent to five per cent and bring textiles under its ambit.
"The empowered committee of state finance ministers will make every effort to prevail upon the state governments to impose VAT on textiles as also to increase the general VAT rate from four per cent to five per cent within the financial year 2008-09 as per agreement reached earlier," finance ministry had said in a statement acknowledging the differences with states on compensation.
While states will get some revenue from certain services, VAT on tobacco and removal of Form D, there was a dispute how the remaining Rs9,600 crore will be paid to states.
Finance ministry sources said states are refusing to raise VAT from four per cent to five per cent sighting inflation and assembly elections. States are also demanding cash compensation for Rs9,600 crore from the central government.
With no immediate solution in sight, the central government decided to withdraw the notification. The empowered committee, which will meet in the last week of June, is expected to further discuss the issue.
source:http://domain-b.com/economy/general/20080530_withdraws.html
Govt withdraws statement on CST cut
The government withdrew a statement on Friday about reducing the central sales tax (CST) rate to 2.0 percent on inter-state sale of goods from June 1.
Source:http://economictimes.indiatimes.com/News/Economy/Finance/articlelist/1286551815.cms
Source:http://economictimes.indiatimes.com/News/Economy/Finance/articlelist/1286551815.cms
Central Sales Tax Reduced to 2%
NEW DELHI: The government on Friday announced the reduction of the Central Sales Tax on inter-State sale of goods from 3 to 2 per cent with effect from June 1. A notification to this effect was issued by the Department of Revenue.
The notification was in accordance with the announcement made by Finance Minister P. Chidambaram in his budget speech, an official statement said.
Discussions
The downward revision follows discussions between the Empowered Committee of State Finance Ministers and Mr. Chidambaram on compensation package for States, it said.
The government issued a press statement earlier in the day but withdrew it and reissued the same after modifying the reference related to Value Added Tax (VAT) panel making efforts to persuade the States to increase the value added tax from 4 to 5 per cent.
The rate of CST on inter-State sale of goods to registered dealers (against Form-C) shall now be the lower of 2 per cent and the rate of VAT or State Sales Tax applicable.
This reduction forms part of a road map for phasing out CST by March 31, 2010 in preparation for introducing Goods & Services Tax (GST), the statement said.
Source:Date:31/05/2008 URL: http://www.thehindu.com/2008/05/31/stories/2008053160561000.htm
The notification was in accordance with the announcement made by Finance Minister P. Chidambaram in his budget speech, an official statement said.
Discussions
The downward revision follows discussions between the Empowered Committee of State Finance Ministers and Mr. Chidambaram on compensation package for States, it said.
The government issued a press statement earlier in the day but withdrew it and reissued the same after modifying the reference related to Value Added Tax (VAT) panel making efforts to persuade the States to increase the value added tax from 4 to 5 per cent.
The rate of CST on inter-State sale of goods to registered dealers (against Form-C) shall now be the lower of 2 per cent and the rate of VAT or State Sales Tax applicable.
This reduction forms part of a road map for phasing out CST by March 31, 2010 in preparation for introducing Goods & Services Tax (GST), the statement said.
Source:Date:31/05/2008 URL: http://www.thehindu.com/2008/05/31/stories/2008053160561000.htm
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