Financial Daily from THE HINDU group of publications
Sunday, May 21, 2006

Cross Currency

Group Sites

Home Page - States
Industry & Economy - Taxation

TN, UP may introduce VAT soon: Shome

Our Bureau

CST, GST merger under review


Mumbai , May 20

Tamil Nadu, Uttar Pradesh and Pondicherry are expected to introduce value-added tax (VAT) soon, Dr Parthasarathi Shome, Advisor to Union Finance Minister, said here on Saturday.

Addressing a seminar on VAT and Service Tax, Dr Shome said the "newly elected Governments of Tamil Nadu and Pondicherry had declared their intention to fall in line with the rest of the States soon."

He said adoption of VAT by all States would be completed soon. "Even Uttar Pradesh Government has recently said that it is not opposed to VAT, but it would adopt VAT after consultation with the trading community in the State," Dr Shome was quoted saying in a press release issued by the Indian Merchant Chamber, which organised the seminar.

He said only States such as Maharashtra and Karnataka with strong manufacturing base were expected to suffer losses on account of VAT. These States would be compensated by the Centre, he said.

A majority of other States, which are involved in distribution activities, have gained higher revenues after switching over to VAT and hence would not be compensated, Dr Shome, said. The experience gained in the first year with VAT, has encouraged the Government to study the merging of Central Sales Tax with Goods and Services Tax (GST).

"The Empowered Committee of States is co-ordinating the preparations and was making recommendations to the government, in respect of merger of service tax with GST," he added.

Related Stories:
VAT-implementing States' tax revenues up 13.8 pc
CII-TN to push for shift to VAT
`For CST phase-out, all States should adopt VAT'

More Stories on : States | Taxation

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Models show monsoon breaking in early

Bandra-Worli sea link to be ready by 2008
`Infrastructure gap affecting GDP growth'
Power distributing cos in Delhi stem losses
TN, UP may introduce VAT soon: Shome
Mukand to focus on speciality steel
No plan to re-introduce long-term capital gains tax
Indian pharma industry may turn into global sourcing base
Pump in more funds into steel sector: PM

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line