|
PROFESSIONAL NEWS
|
ACCOUNTS
|
CORPORATE LAW
|
FEMA
|
ICAI
|
INCOME TAX
|
MISCELLANEOUS
MISCELLANEOUS
- States to Introduce VAT from April 1, 2003
The VAT seems to be a certainity after April 1, 2003. In this direction the Centre has agreed to compensate the States upto 100% for any revenue loss. The Centre has agreed to the States' demand for 100 per cent compensation of revenue loss in the first year (2003-04), 75 per cent in the second year and 50 per cent in the third year. This compensation package would take into account the additional revenues to States from tax on services as well as on sugar, textiles and tobacco. The major developments in this direction are :
· The VAT legislation of the state to have common provisions in respect of all important matters.
· A simple VAT law will replace the existing plethora of State laws such as those on sales tax, turnover tax, purchase tax, entry tax, and the like.
· Two basic rates of 10 per cent and 12.5 per cent, which would be revenue neutral rates for most items. Four more rates with ‘nil’ for defence and strategic items, 1% for precious metals, 4% for essential agricultural items and 20% for demerit goods such as alcohol and tobacco.
· Over time, the VAT rates would be merged into one uniform rate.
· Phase out Central State Tax (CST) within three years.
· A Constitutional Amendment Bill permitting States and Union Territories to collect and appropriate tax on some services will be introduced. Three lists would be drawn up - one where the Centre would collect service tax, second where States would appropriate the tax and third negative list to ensure that the Government and social services are not subject to service tax. However, the rates of service tax would be fixed by the Centre.
· The Additional Duties of Excise (Goods of Special Importance) Act to be amended to empower the States to levy sales tax or VAT on sugar, textiles and tobacco with the ceiling rate of 4 per cent with effect from June 1 this year.
- National Savings Certificate Subscriptions:
The Central Government has notified that the balances at the credit of the subscribers of the National Savings Scheme, on or after the 1st day of March, 2003 shall bear interest at the rate of seven-and-a-half per cent per annum. Notification No. G.S.R. 177(E), dated 1-3-2003.
- Post Office (Monthly Income Account)
The Central Government hereby (makes the following rules further to amend the Post Office (Monthly income Account) Rules, 1987, namely:-
1. (1) These rules may be called the Post Office (Monthly Income Account) Amendment Rules, 2003.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Post Office (Monthly Income Account) Rules 1987, in rule 8, in sub-rule (1),
(i) in clause (g),for the words, figures and letters “the 1st day of March, 2002”, but before the 1st day of March, 2003” shall be substituted.
(ii) after clause (g), the following clause shall be inserted, namely :- “(h) 8 percent per annum in respect of deposits made on or after the 1st day of March, 2003 “. Notification No. G.S.R.176(E), dated 1-3-2003.
- National Savings Certificates
The Central Government hereby notices that the balances at the credit of the subscribers of the National Savings Scheme, on or after the 1st day of March, 2003, shall bear interest at the rate of seven-and-a half per cent per annum. Notification No. G.S.R. 177(E), dated 1-3-2003.
- Kisan Vikas Patra
Kisan Vikas Patra (Amendment) Rules, 2003: The Central Government hereby makes the following rules further to amend the Kisan Vikas Patra Rules, 1988, namely:-
1.(1) These rules may be called the Kisan Vikas Patra (Amendment) Rules, 2003.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Kisan Vikas Patra Rules, 1988 (hereinafter referred to as the said rules), in rule 12,-
(i) in sub-rule (8), for the figures words and letters “the 1st day of March, 2002”, the figures, words and letters “ the 1st day of March, 2002 but before the 1st day of March, 2003” shall be substituted.
(ii) after sub-rule (8), the following sub- rule shall be inserted, namely:-
(9) Notwithstanding anything contained in sub-rules (1) to (8), the maturity period of a certificate purchased on or after the 1st day of March, 2003, shall be eight years and seven months commencing on the date of issue of the certificate. The amount, inclusive of interest, payable on encashment of the certificate at any time after the expiry of its maturity period shall be Rs. 2,000 for a denomination of Rs. 1,000 and at proportionate rate for any other denomination.”
3. In rule 13 of the said rules,-
(i) In sub-rule (11), for the words, figures and letters “on or after the 1st day of March, 2002, the words, figures and letters” on or after the 1st day of March, 2002 but before the 1st day of the March, 2003” shall be substituted.
(ii) after sub-rule (11), for the Table relating thereto, the following sub rule and the Table shall be inserted, namely:-
(12) Notwithstanding any thing contained in rule 12, if a certificate issued on or after the 1st day of March 2003, is en-cashed at any time after the expiry of two years and six months from the date of issue of the certificate, the amount payable inclusive of interest shall be as specified in the Table given below for certificate of the denomination of Rs. 1,000 and at proportionate rate for any other denomination, namely.
|
|
