VAT news tagged as "Service Tax"


India GST negotiation battles

November 21st, 2016

In the run-up to the 2017 implementation of a Goods and Services Tax in India, the Centre government and States continue to fail to conclude key administrative terms. Currently, negotiations has stalled around whether the Centre or State administers the assessees, the taxable person responsible for paying the GST.  The States are looking to remain …


India GST progress

August 1st, 2016

Further progress has been made in India on the negotiations around the last contentious issues blocking the new Goods & Services Tax (‘GST’). It is anticipated that the new tax will be finally approved this week after 16 years of discussion. The implementation bill will be presented to Parliament (Rajya Sabha) this week (Wednesday) and …


India GST launch opposition

June 4th, 2016

India’s opposition, the Congress party, continues to block the passage of the Goods and Services Tax (GST) bill. GST will replace a range of indirect taxes, including: CENVAT; VAT; Professional Tax; and Service Tax. Many of these taxes overlap, are complex and expensive to comply with and result in double taxation on the movement of …


India deadlock on GST rate

April 2nd, 2016

Negotiations for the implementation of the new Goods & Services regime in India remain in deadlock. The opposition Congress party remains adamant that the ruling BJP party must commit to a headline GST rate of below 20%. The reform of the existing plethora of VAT, Service Tax, CENVAT and other indirect taxes is seen as …


Indian Service Tax rise

March 1st, 2016

The latest Indian Budget, issued on 29 February, contained a number of amendments to the VAT regime. This included an new tax, Krishi Kalyan Cess, at 0.5% on all taxable services to contribute towards agriculture projects. This will increase Indian Service Tax to 15% from 1 June 2016.  It was last raised to 14.5% (including Swachh …


India likely to miss 2016 GST deadline

January 10th, 2016

Ongoing political differences means that India is almost certain to miss its target implementation of a Goods & Services Tax in 2016. The opposition Congress Party is contending that compromises made by the ruling BJP government render the new tax too inefficient. In particular, there is still no agreement on the final, standard rate. It …


India GST at 18%

December 1st, 2015

Whilst there remains uncertainty as to the exact date of the implementation of India’s new Goods and Services Tax regime, there appears to be agreement that headline rate for the consumption tax will be 18%. India may also propose a reduced GST rate for some essential services. GST implementation delays The last deadline for the introduction …


India GST reform threat

November 14th, 2015

Growing political uncertainty looks set to undermine the progress of the implementation of the new Indian Goods & Services Tax to replace the antiquated VAT regime. This will undermine India’s ambitions to match China’s rise as a manufacturing superpower. Prime Minster Modi’s BJP party has suffered a series of local election defeats which means it …


India discusses new GST law

October 20th, 2015

Whilst doubts remain about the implementation date of the new Indian Goods & Services Tax (GST), the state finance ministers have begun to review a draft new law covering compliance and returns. Delayed GST implementation Indian GST will replace the antiquated VAT and Service Tax which had proved restrictive to developing an internal manufacturing sector. …


India GST implementation delay to 2017

September 11th, 2015

The Indian ruling Modi government has now effectively withdrawn the legislation to overhaul the existing, antiquated Indian VAT system with a new Goods & Services Tax (GST). This means that the planned April 2016 implementation date will likely be missed, and may not be introduced until 2017 or even later. The GST reforms had hit …