2011 Will Be The Crucial One....

By Author: Atul Dadwal
Total Articles: 1
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Our Finance Minister, Mr Pranab Mukherjee is now looking forward to roll out the Goods and Services tax simultaneously with the Direct Taxes Code (DTC) from April 1, 2012. But one thing which he himself knows very well is that the path ahead is not easy and the current year i.e. 2011 will be the most crucial one as all the developments needs to be made in this year only in order to reach closer to this new vision.
The original plan of the Finance Ministry for the Goods and Service Tax was to bring the Constitution Amendment Bill in the monsoon session of the Parliament and from there it would have been referred to the standing committee. After all the comments from the parliamentary panel, the bill could have been placed in the winter session. If it passed in that session, GST legislation could have been tabled in the Budget Session. This plan becomes the thing of the past and now our Government is looking forward for a new plan that might help in the successful rolling out of the Goods and Services Tax. However, the entire procedure will remain the same and the only change will be to make such a plan that provides a ...
... Consensus between the State Governments and the Centre.
Even when some of the key issues, which are still unsolved and also creating a hurdle in the rolling out of the Goods and Services Tax , some States and Sectors are looking forward for some personal favour from the Finance Ministry. Recently, Orissa came out with a demand to keep coal royalty out of the purview of the Goods and Service Tax (GST). The example which has been put forward by the Orissa for such a demand is that of natural gas.
Since natural gas, which was included in the VAT (Value Added Tax) list, has been kept out of GST on the ground that it is used for generation of power, Orissa had argued that coal must also be kept out of GST. The state had pointed out that GST on coal would have a direct effect on cost of power.
At present, four per cent VAT is levied on coal. If it is included in the GST list, the effective rate would be 12 per cent, as both state GST and Central GST would be levied at six per cent each on coal.
Now the biggest challenge in front of the Finance Ministry is to take care of the personal demands of the states and finding out of the solutions of the core area of disputes between the Centre and the State Governments.
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