news round up - Taxmann

2010] Comments of DoR on First Discussion Paper on GST 133
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tax, with information sharing between the
Centre and the States.
16. 3.4 On application of the principle, it is recommended
that the following Central Taxes
should be, to begin with, subsumed under the
Goods and Services Tax :
(i) Central Excise Duty
(ii) Additional Excise Duties
(iii) The Excise Duty levied under the Medicinal
and Toiletries Preparation Act
(iv) Service Tax
(v) Additional customs duty, commonly
known as countervailing duty (CVD)
(vi) Special Additional Duty of Customs -
4% (SAD)
(vii) Surcharges, and
(viii) Cesses.
Following State taxes and levies should be, to
begin with, subsumed under GST :
(i) VAT/Sales tax.
(ii) Entertainment tax (unless it is levied by
the local bodies).
(iii) Luxury tax.
(iv) Taxes on lottery, betting and gambling.
(v) State Cesses and Surcharges insofar
as they relate to supply of goods and
services.
(vi) Entry tax not in lieu of octroi.
Purchase tax : Some of the States felt that they
are getting substantial revenue from Purchase
Tax and, therefore, it should not be
subsumed under GST while majority of the
States were of the view that no such exemptions
should be given. The difficulties of the
food grain producing States and certain other
desirable that any dispute
between a taxpayer
and either of
the tax administrations
is settled in a
uniform manner. The
possibility of setting
up a harmonised system
for scrutiny, audit
and dispute settlement
may be developed.
Agreed.
Electricity duty,
Octroi, purchase tax
and taxes levied by
local bodies should
also be subsumed
under GST.
Purchase tax is nothing
but sales tax
where the responsibility
for collection of
tax is with the purchaser
(and not with
the seller as in the
GOODS & SERVICES TAX CASES ❑ JANUARY 20 - FEBRUARY 4, 2010 ◆ 15