Industry & Economy
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Taxation
VAT panel chief meets Chidambaram
Our Bureau
New Delhi
,
Aug. 18
THE Chairman of the Empowered Committee of State Finance Ministers on Value-Added Tax (VAT), Dr Asim Dasgupta, on Wednesday met the Finance Minister, Mr P. Chidambaram, to apprise him about the state of preparedness of the States in implementing a VAT regime from April 1, 2005.
Mr Chidambaram had on June 18 assured the states that they would be compensated for losses, if any, for implementing VAT or phasing-out central sales tax. The Finance Ministry, in consultation with the Empowered Committee, is working out the principle, quantum and the period of compensation.
States have already expressed reservations over a draft services taxation Bill that had been piloted by the Finance Ministry. They have been arguing that the "right to taxation of services" should be given to them. Further, the states have also taken a position that they should be allowed to collect and appropriate service tax on "major services" to bolster their revenue base.
Mr Chidambaram, had assured the states that the draft services taxation bill would be reviewed and that they would be consulted in such an exercise.
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