Financial Daily from THE HINDU group of publications
Thursday, Sep 22, 2005
Financial Daily from THE HINDU group of publications Thursday, Sep 22, 2005 |
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Industry & Economy
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Taxation 4 States told to supply more details for VAT compensation Centre pays total of Rs 246 cr to AP, Bihar and Tripura Our Bureau
New Delhi , Sept 21 THE Centre has asked four States - Maharashtra, Kerala, Karnataka and Assam — to come up with more details in support of their claims for the shortfall in tax revenues on account of implementation of State-level Value Added Tax (VAT). Maharashtra, which accounted for nearly 20 per cent of the sales tax collections of the country, had submitted a compensation claim of Rs 259 crore for the first quarter. The State had claimed that its revenues from VAT items had fallen short of the projected Rs 2,710 crore, as it had collected only Rs 2,451 crore during the period. "We have asked Maharashtra and three other States (Kerala, Karnataka and Assam) to give us more details before their claims can be cleared," a senior Finance Ministry official told Business Line. The official, however, added that the compensation claims of Kerala, Karnataka, and Assam related to the April-July period. While Kerala had demanded Rs 243.09 crore, Karnataka's claim stood at Rs 394.39 crore. Assam had sought Rs 12.36 crore. Meanwhile, the Centre has settled and paid in total Rs 246 crore as compensation claims to Andhra Pradesh, Bihar, and Tripura. While Andhra Pradesh had requested Rs 193.8 crore, Bihar and Tripura had sought Rs 47.31 crore and Rs 4.89 crore respectively. On an overall basis, the VAT-implementing States had recorded a 15.3 per cent increase in revenues in the first quarter. Authorities overseeing State-level VAT implementation are confident that the compensation to States for the current fiscal would not exceed Rs 5,000 crore, which is the amount provided by the Centre in the current year's Budget.
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