New Delhi: The states have rejected the Centre's proposal to include petroleum products in the ambit of goods and services tax (GST) sought to be implemented from the next fiscal, even as the union government said it would help check volatility in fuel prices, reports PTI.
"Petroleum products will be out of the GST," Empowered Committee of State Finance Ministers Chairman Asim Dasgupta said here.
Addressing the Lok Sabha yesterday, finance minister Pranab Mukherjee had called for the inclusion of petroleum products in proposed goods and services tax (GST) so that sharp domestic price movements can be checked.
"If we receive cooperation from all houses concerned and introduce GST and bring within its purview petrol and other petroleum products, and with your support introduce it from April 2011, I do feel the type of variations in petroleum prices can be taken care of," Mr Mukherjee had said.
Mr Mukherjee repeated the request in the Rajya Sabha today.
In fact, even some of the Congress states are also in favour of keeping oil products out the GST regime.
Recently, Delhi finance minister AK Walia had said he would request the empowered panel and the Centre to keep diesel, petrol, and compressed natural gas (CNG) out of the new indirect tax regime, saying keeping oil products and CNG under GST will result in financial losses to the city government that is already facing fund crunch due to the huge spend on the Commonwealth Games.
In fact, a discussion paper floated by the empowered committee also talked about keeping the petroleum products out of the purview of the GST.
"As far as petroleum products are concerned, it was decided that the basket of petroleum products, crude, motor spirit (including ATF) and HSD (high speed diesel) would be kept outside GST," the paper said. In fact, petroleum products are outside even the state-level value added tax (VAT).
The discussion paper had said that "sales tax could continue to be levied by the states on these products with prevailing floor rate. Similarly, the Centre could also continue its levies."
It also said a final view whether natural gas should be kept outside the GST ambit will be taken after further deliberations.
The empowered committee's decision is yet another blow to the Centre's plans over the proposed GST. Yesterday, the states had rejected the draft constitutional bill to roll out GST, a opposing the veto power of the Union finance minister over state taxation issues.
The Centre has proposed a three tier-rate structure for GST-20% and 12% for goods and 16% for services. GST is slated to be introduced from next fiscal, after the earlier deadline of implementing it from this fiscal was missed.
In order to ensure updated public dissemination of shareholding pattern, the market regulator has mandated for companies to file revised shareholding pattern, if there is any change of over 2% in its shareholding
Market regulator Securities and Exchange Board of India (SEBI) has asked companies to file information if there is a change of 2% in the shareholding pattern, post a corporate event.
SEBI said in such cases, the companies would have to file revised shareholding pattern with the stock exchanges within 10 days from the date of such change in the capital structure.
The market regulator in its Board meeting also decided to make it mandatory for new companies to file their shareholding pattern as per Clause 35 one day prior to the date of listing and it should be uploaded on the website of exchanges before commencement of trading.
The Board further decided that in the quarterly shareholding pattern, the disclosure of shares held by custodians, against which depository receipts have been issued, shall be classified as 'promoter and promoter group' and 'non-promoter'.
New Delhi: Finance minister Pranab Mukherjee today said the Reserve Bank of India (RBI) is keeping a watch on demand factors that fuel inflation and it will make adjustments, if necessary, reports PTI.
"It (RBI) is keeping a watch on the demand side and if it is found that demand side needs to be taken care of and if it is necessary then adjustments will have to be made," Mr Mukherjee said in his reply to a debate on inflation in the Rajya Sabha.
He said RBI is framing its monetary stance in coherence with the Centre's fiscal policies.
"RBI has assured that it does not want to frame monetary policy which is discordant with fiscal policy. That is why, it is making changes in doses," the finance minister said.
He appreciated the RBI's role in smooth conduct of the government's huge borrowing plan, which did not leave resources dry for the private sector.
The government is slated to borrow over Rs4.5 lakh crore from markets this fiscal.
In order to control high inflation, RBI in its monetary review on 27th July raised short-term borrowing (reverse repo) rate by 50 basis points and lending (repo) rate by 25 basis points.
It, however, kept cash reserve ratio, a requirement for banks to keep portion of their deposits with the central bank in cash, unchanged due to difficult liquidity position in the markets.
The liquidity was hit due to over Rs1 lakh crore outgo to the government for payment of third generation (3G) and broadband wireless access spectrum by telecom companies.