The Hindu : National : `No change in VAT deadline'

Online edition of India's National Newspaper
Tuesday, Mar 22, 2005

National

National

`No change in VAT deadline'

By Our Special Correspondent

NEW DELHI, MARCH 21. Even if some States do not go along, there is going to be no change in the date for implementation of the Value Added Tax (VAT) in lieu of sales tax. The new tax regime will come into effect from April 1 as was decided by the Empowered Committee on VAT headed by the West Bengal Finance Minister, Asim Dasgupta.

Taking a firm stand on the issue in the wake of the five BJP-ruled States opting out of the new tax dispensation at the last minute, the Secretary of the Empowered Committee on VAT, Ramesh Chandra, declared: "Even if some States don't join, there will be no problem in implementing VAT in other States from April. There will be no repercussions in these States."

Speaking on the sidelines of a conference here on Monday, Mr. Chandra pointed out that if certain States had a problem in implementation and were reluctant to fall in line by the appointed date, they could do so later. "There is no constitutional bar. They can join anytime. But we want them to join from the beginning for their own and the country's interest," he said.

Late last week, following a meeting with their party leaders, the BJP-ruled States, namely, Rajasthan, Madhya Pradesh, Gujarat, Jharkhand and Chhattisgarh, decided against the implementation of VAT as it was viewed to be against the interests of the trading community.

Mr. Chandra said the Centre had already announced a roadmap which made it clear that while the CST would be at four per cent in the first year of implementation of VAT, it would be scaled down to two per cent in the second year.

Printer friendly page
Send this article to Friends by E-Mail

National