(a) whether the State Government have demanded that
Centre should share with them the service tax on a 50:50
basis;
(b) if so, the details thereof;
(c) the issues discussed in the just concluded meeting
of State Finance Ministers with the Central Government; and
(d) the reaction of the Central Government on these
demands from the State Governments?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a), (b), (c) & (d): A meeting of Finance Ministers of
States/Union Territories to discuss the modalities of levy,
collection and distribution of the proceeds of the Service
Tax between the Centre and the States was held on 30.11.2004
in New Delhi. The State Governments, inter-alia, expressed
varying views on sharing of the proceeds of Service Tax
between the Centre and the States. Some of the State
Governments also expressed the view that the proceeds of
Service Tax be shared between Centre and States on 50:50
basis.