"There
would be a central tax and then the states would have their
own taxes, laying a double incidence of tax on the
business," said Advocate and tax expert J K Mittal at the
PHD Chamber here.
The
empowered group of state finance ministers has recommended
dual structure of GST to the Centre, which is scheduled to be
introduced from April 1, 2010. Under this scheme, there would
be two chains of taxes - one at the central level and the
other at the state level. The exact GST rate is, however, yet
to be specified.
Earlier,
certain quarters had expected that the Centre and states would
impose GST on mutually exclusive list of goods and services,
or the Centre would collect GST on behalf of states and then
give it to them.
The
finance ministry officials R Sekar and Vivek Johri were also
present at the workshop organised by the chamber on Indirect
Tax proposals put forth in the Budget 2008-09.
"The
complex nature of the indirect taxes causes a lot of
misconceptions about it", said Sekar adding "we are
trying to make the indirect tax structure simpler so that it
becomes more understandable like direct taxes".
Misconceptions
also lead to a lot of litigations which need to reduced, he
added.
"We
are also in dialogue with Nasscom to find all kind of
solutions to minimise litigations in the IT industry",
Sekar said.
Meanwhile,
the industry also raised concerns that getting tax refund from
the department was very difficult, to which Vivek Johri also
agreed.
So