0001392876 Goods and Service Tax.pdf
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SAP Note Header Data Symptom This note contains information about the "Goods and Services Tax" that affects localization for India. The information is based on legislation and regulations made available by the authority. Not all necessary information might be approved completely by the release date of this note and therefore are still not binding. This note will be updated if required and is mainly for customers early information. These planned delivery dates can only be kept if the legislative procedure, including the rules and regulations, is available in time. As soon as this change could be made available this note will be updated and you will find an SAP note/list of SAP notes in section 'Related Notes'. Referred notes will provide further information on: - Release - SP-Level - Other preconditions Disclaimer This message outlines our general product direction and should not be relied on in making a purchase decision. This message is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this message or to develop or release any functionality mentioned in this message. This message and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. The information in this message is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this message, except if such damages were caused by SAP intentionally or grossly negligent. Other Terms Legal Change FY 2009/2010; India Reason and Prerequisites Legal change published by the authority in India Solution As we all are aware that our Finance Minister, Mr Pranab Mukherjee, had announced the implementation of GST with effect from April 1, 2010, in the Budget 2009. The implementation date later got readjusted to April 1, 2011. This new tax system is expected to replace most Indirect Taxes at central and state level including CENVAT, VAT and Service tax amongst other duties/taxes. Till very recently it looked that the empowered Group of State Finance Ministers had reached a consensus on the implementation of GST with effect from April 1, 2011. Very recently we realized that the government#s efforts to roll out GST have run into serious difficulty with many states refusing to back the constitutional amendments proposed by the Centre to facilitate the new tax. It seems that States# unwillingness to support Centre#s proposal will make it difficult for the government to introduce the constitution amendment bill in the monsoon session of Parliament, which concludes on August 25. The bill has to be passed by a two-third majority in the Parliament and also has to be ratified by at least 15 state assemblies, which makes a political consensus necessary. As of date (16th Aug 2010) , bieng held up in dispute for a long time over Centre-state tussles and political partisanship, the Goods and Services Tax (GST) Bill seems to be making headway. On the issue of the Centre retaining veto in the proposed GST Council, which will govern all indirect tax issues in the future, sources said Mr. Mukherjee had agreed to incorporate a clause that gives veto power to all states. Sources said the bill was likely to be put before the Union Cabinet on Thursday. The bill will then be moved in Parliament on August 26, a timeline fixed by Mukherjee late on Friday after making changes in the initial draft to the satisfaction of all states SAP is currently in touch with Industry Representatives and related entities and keeping a pulse check on the topic. Sap having done the initial impact analysis, will get into deeper details once the bill comes out and keep our customers updated. 1392876 - Goods and Services Tax Version 3 Validity: 16.08.2010 - active Language English Released On 19.08.2010 10:43:20 Release Status Released for Customer Component XX-CSC-IN India Priority Correction with high priority Category Announcement of Legal Change
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Transcript of 0001392876 Goods and Service Tax.pdf
SAP Note
Header Data
Symptom
This note contains information about the "Goods and Services Tax" that affects localization for India. The information is based on legislation and regulations made available by the authority. Not all necessary information might be approved completely by the release date of this note and therefore are still not binding. This note will be updated if required and is mainly for customers early information. These planned delivery dates can only be kept if the legislative procedure, including the rules and regulations, is available in time. As soon as this change could be made available this note will be updated and you will find an SAP note/list of SAP notes in section 'Related Notes'. Referred notes will provide further information on: - Release - SP-Level - Other preconditions Disclaimer This message outlines our general product direction and should not be relied on in making a purchase decision. This message is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this message or to develop or release any functionality mentioned in this message. This message and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. The information in this message is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this message, except if such damages were caused by SAP intentionally or grossly negligent.
Other Terms
Legal Change FY 2009/2010; India
Reason and Prerequisites
Legal change published by the authority in India
Solution
As we all are aware that our Finance Minister, Mr Pranab Mukherjee, had announced the implementation of GST with effect from April 1, 2010, in the Budget 2009. The implementation date later got readjusted to April 1, 2011. This new tax system is expected to replace most Indirect Taxes at central and state level including CENVAT, VAT and Service tax amongst other duties/taxes. Till very recently it looked that the empowered Group of State Finance Ministers had reached a consensus on the implementation of GST with effect from April 1, 2011. Very recently we realized that the government#s efforts to roll out GST have run into serious difficulty with many states refusing to back the constitutional amendments proposed by the Centre to facilitate the new tax. It seems that States# unwillingness to support Centre#s proposal will make it difficult for the government to introduce the constitution amendment bill in the monsoon session of Parliament, which concludes on August 25. The bill has to be passed by a two-third majority in the Parliament and also has to be ratified by at least 15 state assemblies, which makes a political consensus necessary. As of date (16th Aug 2010) , bieng held up in dispute for a long time over Centre-state tussles and political partisanship, the Goods and Services Tax (GST) Bill seems to be making headway. On the issue of the Centre retaining veto in the proposed GST Council, which will govern all indirect tax issues in the future, sources said Mr. Mukherjee had agreed to incorporate a clause that gives veto power to all states. Sources said the bill was likely to be put before the Union Cabinet on Thursday. The bill will then be moved in Parliament on August 26, a timeline fixed by Mukherjee late on Friday after making changes in the initial draft to the satisfaction of all states SAP is currently in touch with Industry Representatives and related entities and keeping a pulse check on the topic. Sap having done the initial impact analysis, will get into deeper details once the bill comes out and keep our customers updated.
1392876 - Goods and Services Tax
Version 3 Validity: 16.08.2010 - active Language English
Released On 19.08.2010 10:43:20
Release Status Released for Customer
Component XX-CSC-IN India
Priority Correction with high priority
Category Announcement of Legal Change
Look out for updates on this Note for details on GST as soon as they are out and SAP strategy with respect to GST system incorporation.
Validity
This document is not restricted to a software component or software component version
