| The committee on value added tax (VAT) has decided to set up a joint working group to prepare a roadmap for introduction of a uniform goods and services tax (GST) in the country from April 1, 2010.
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| The group will be co-chaired by Parthasarthi Shome, adviser to the finance minister and Satish Chandra, secretary of the empowered committee of state finance ministers on VAT.
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| The joint working group (JWG), also comprising other finance ministry officials and chief secretaries, would submit its report to the committee in four months, the committee's chairman and West Bengal Finance Minister Asim Dasgupta told reporters here.
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| The terms of reference of the group would include making the proposed GST a superior and better tax system than the state-level VAT. “The idea is to reduce tax load on goods and services. At the same time, it should be structured in such a manner that revenues of Union government and each state increases,” Dasgupta said.
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| There are parallel systems of indirect taxation at the central and state levels at the moment.
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| All states, except Uttar Pradesh, have introduced VAT, while the central sales tax (CST), which comes in the way of GST, is being phased out starting this fiscal. However, the Centre is yet to merge the rates of service tax and Cenvat.
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| Dasgupta said he knew of seven existing models on GST, and hoped that the JWG would work out a model that suited Indian conditions.
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| Meanwhile, VAT implementing states have witnessed a 24 per cent increase in tax revenue to Rs 86,249 crore in 2006-07, compared with Rs 69,691 crore in the previous year.
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| Dasgupta said a committee of state VAT commissioners had come out with “very good” suggestions for common return forms for dealers and audit firms. The forms would be finalised after consultations with trade bodies, he said, adding that the states would be free to add local features in these forms. |
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