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VAT claims from four States at Rs 521 cr
November, 13th 2006

The Centre has, till date, received compensation claims of Rs 521 crore from four States for the revenue losses incurred in the current fiscal on account of VAT implementation.

Official sources said that Maharashtra, Karnataka, Tripura and Madhya Pradesh are the four States that have made revenue loss compensation claims. The last to join is Madhya Pradesh, which has claimed about Rs 45 crore for the period April-August 2006.

Indications are that there would not be any outgo from the Centre to Madhya Pradesh towards this claim as the latter has made certain deviations from the decisions of the Empowered Committee of State Finance Ministers on VAT.

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