The Andhra Pradesh Government is seriously contemplating bringing the information technology sector into the tax net.
The Government has appointed a committee to study and suggest guidelines to tax the sector.
The committee, headed by the IT secretary, Ms K. Ratnaprabha, would interact with the IT sector before submitting a report to the Government.
According to Mr Konathala Ramakrishna, Minister for Commercial Taxes, the Government move to tax the sector was vindicated by a Supreme Court judgement.
Talking to reporters after a review meeting headed by the Chief Minister, Dr Y.S. Rajasekhara Reddy, here on Wednesday, Mr Ramakrishna said the phasing out of central sales tax had been deferred to April next.
He said the VAT collections in the State had gone up by 32.50 per cent in the first half over the same period last year.