New Delhi, Dec. 7
DELHI'S value added tax (VAT) revenues during April-November 2005 stood at Rs 4,288 crore. This represents a 30 per cent growth over the sales tax collections in the same period of last year, according to the Delhi VAT Commissioner, Mr R.K. Verma.
On the issue of notifying the reduction in VAT rate on bullion to 0.1 per cent, Mr Verma told Business Line that it would be issued soon
Apprehending the flight of bullion trade to Uttar Pradesh and Rajasthan, the Delhi Government had recently decided to lower the VAT rate on bullion to 0.1 per cent. This move of the Delhi Government does not have the concurrence of the VAT panel, as it was violation of the uniform floor rate (UFR) of one per cent on precious States agreed to by all the States.
Delhi's Finance Minister, Mr A.K.Walia, however, said that the Delhi Government would be prepared to raise the VAT rate on bullion to one per cent if the other States that had deviated from the UFR decide to raise their VAT rates on precious items to 1 per cent.
The VAT panel wants the States (about 4-5 States) that are violating the UFR principle to correct the deviations.