Skip to main content

Council decides manner to distribute assessees

Council decides manner to distribute assessees
After deciding the basic principle of division of assessess between central and state tax authorities, the goods and services tax (GST) council has stated how this would be done. Earlier, the GST council had decided a state would have control over 90 % of GST payer where turnover of businesses was up to Rs 1.5 crore a year. over that figure, the state and central officials were to have 50:50 control.The division to be done by computer at the state level,by random choice.
Now,it has been decided that for those registered under value-added tax(VAT) or both VAT and central excise, their state turnover,including interstate transactions, will be taken into account.for those registeresd only under central excise and not VAT,the annual turnover given in central excise returns will be taken into account.
Those registered under VAT and sevice tax will be considered on the turnover given  in the returns for both, the overlape being excluded . For those registered  in only service tax, their turnover in these returns will be taken service tax, their turnover in these returns will be taken for the division. Pratik Jain of consultants
PWC says large companies with a national presence,particularly in service sectors like banking and telecom, would like the centre to administer them , at least to begin with."However, one would expect consistency in appoarch  of central and state authorities in tax administration , as the central and state GST laws are almost similars," he says."
The Business Standard, New Delhi, 22th September 2017        


Popular posts from this blog

Shrinking footprints of foreign banks in India

Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…

New money laundering norms stump jewellery sector

New money laundering norms stump jewellery sector Dealers with turnover of Rs 2 crore and above covered; industry says threshold too low The central government has notified the money laundering rules for the gems and jewellery sector with immediate effect. Now, any entity deals in precious metals, precious stones, or other high-value goods and has a turnover of Rs 2 crore or more in a financial year will be covered under the Prevention of Money Laundering Act, 2002 (PMLA, 2002). The limit of Rs 2 crore would be calculated on the basis of the previous year’s turnover, said the notification. The directorate general of goods and service tax intelligence has been appointed under the Act. Sources said the government’s move to apply the PMLA to the jewellery sector was a fallout of income-tax raids on jewellers soon after demonetisation last November, when it was found that they sold gold and jewellery at a huge premium and accepted old currency notes as payment. The notification, issued on Augus…

Confusion over branded food GST

Confusion over branded food GST The GST Council's statement over the weekend on applying tax on branded food items has left most of the trade confused.

Even though the Council has not changed the rates on food -0 per cent on unbranded stuff and 5 per cent on brands -many small traders who didn't levy GST earlier said they could come under the 5 per cent slab after the clarification.

While they predicted some increase in consumer prices, large players said they can absorb GST in many ways and keep prices steady.

"Trade is confused and hence on behalf of our chamber, we have asked our members to go ahead and charge 5 per cent GST," said Sushil Sureka, general secretary of the Ahilya Chamber of Commerce and Industry in Indore.

The statement clarifying the application of GST came after some businesses were found deregistering their brands and selling under corporate brand name without paying tax, after the Council exempted unbranded food from the new all-encompassing indirec…