Date:30/05/2004 URL: http://www.thehindubusinessline.com/2004/05/30/stories/2004053000680500.htm

Back Implement VAT in all States: PHDCCI

Our Bureau

New Delhi , May 29

THE PHD Chamber of Commerce and Industry (PHDCCI) has said value added tax (VAT) must be implemented simultaneously in all 28 States and seven Union Territories without any exception.

In a statement, the chamber has held that many businesses have multiple units operating in different States and that it would not be possible for the trade and industry to manage such businesses well unless VAT is implemented simultaneously.

PHDCCI has also suggested that all draft bills should be vetted by the Centre to ensure that States do not have any enabling provision in the VAT legislation for increasing the revenue neutral rate (RNR) beyond 12.5 per cent.

Highlighting Karnataka and West Bengal draft bills in which RNR has been fixed at 25 per cent and 30 per cent respectively, the chamber has said it is inconsistent with the consensus of all States that RNR be capped at a maximum 12.5 per cent.