Sales tax on aviation fuel, sponge iron to be capped at 4 per cent
New Delhi: The central government has decided to introduce the Central Sales Tax (Amendment) Bill 2000, renamed as the Central Sales Tax (Amendment) Bill 2001, which seeks to amend the Central Sales Tax Act 1956. The proposed amendment seeks to include Aviation Turbine Fuel (ATF) provided to "Turbo-prop Aircraft" and "sponge iron" as ‘declared goods.’ and the rate of sales tax on such declared goods will not exceed 4 per cent.

At present, sales tax is levied on ATF at different rates by states and union territories varying between 0 to 36 per cent. Sponge iron being no different from pig iron has also been included in the list of declared goods.
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Five-year tax waiver sought for online deals
New Delhi: The National Association of Software and Service Companies (Nasscom) has sought a five-year tax moratorium on e-commerce transactions and cheaper computers for schools and students in a 10-point pre-budget memorandum sent to the ministry of finance.

The Nasscom memorandum states: "The current need is to continue with the incentives, further simplify procedures, implement more economic reforms, reduce the cost of computerisation, and spend more towards setting up of IITs or IIITs and boost e-commerce activities".

Nasscom has recommended that computer software development and IT software services be kept outside the purview of service tax in the domestic market. The software association has also sought on-site services to be recognised as integral part of computer software exports under Section 10A/10B of Income Tax Act. This Section provides for an income tax holiday to units registered with 100% EOU, EPZ, STP.
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