Tax sharing modality worked out
Source: The Sangai Express
Imphal, September 22 2017:
After the Goods and Services Tax (GST) has been enforced across the country, a modality of sharing taxes between the Central Government and State Governments has been worked .
As per the decisions taken in the 9th and 21st meeting of the GST Council held on January 16 this year and September 9 respectively, all administrative control over 90 per cent of the taxpayers whose annual turnover is below Rs 1.5 crore shall vest with the State tax administration and 10 per cent with the Central tax administration, informed a source .
All administrative control would be divided in the ratio of 50:50 between Central tax administration and State administration with respect to taxpayers whose annual turnover is above Rs 1.5 crore .
The decision of tax payers in each State would be done by computer at the State level based on stratified random sampling and could also take into account the geographical location and type of the tax payers as may be mutually agreed .
For tax payers registered only under VAT, the total annual State turnover under VAT (including inter-State sales, export and exempt goods) should be taken as the basis of division .
For tax payers registered under both VAT and Central Excise, the annual State turnover under VAT shall be taken as the basis for division as State-level Central Excise turnover is already included in it .
For tax payers registered only under Central Excise (and not under VAT), the total annual turnover declared in Central Excise returns shall be taken as the basis for division .
For tax payers registered only under Service Tax in a State on a stand-alone basis, the annual turnover of the Services declared in the Service Tax returns shall be taken as the basis of division .
For tax payers registered only under Service tax having centralised registration, the annual all-India turnover of the Services declared in the Service tax returns shall be taken as the basis for division .
For tax payers registered under both VAT and Service Tax, the total non-overlapping turnover (total of VAT and Service Tax, excluding any turnover which is included in both) shall be calculated and used as the basis for division, said the source .
State level committees comprising Chief Commissioner/Commissioner Commercial Taxes of respective States and jurisdictional Central Tax Chief Commissioners/Commissioners have been already formed for effective coordination between the Centre and States, added the source.