sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« GST - Goods and Services Tax »
 Here's how govt can still meet fiscal deficit target despite GST shortfall
 GST a monumental reform, hit growth only for 2 quarters
  Mechanism of Audit by Tax Authorities under GST Laws
 How GST and demonetisation impacted govt finances
 GST Council meet today to consider simplified tax returns
 GST annual return forms for FY18 notified
 Haryana tax dept issues circular, asks officers to block input GST credit
 Commerce Ministry to take up exporters’ complaints on GST refund with FinMin
 Evaders beware! Tax sleuths on the prowl as GST revenue shortfall looms
  Recent advance rulings under the GST Law
  CBIC to focus on behavioural patterns of taxpayers to improve GST compliance

GST brings down cost of Delhi Metro expansion
December, 05th 2017

The goods and services tax (GST) has reduced the cost of Delhi Metro’s Phase-IV project by more than Rs2,500 crore, but the deadline for the new 104km network was delayed by a year because of lack of consensus between the Centre and Delhi government.

The additional six new lines to boost connectivity on the city’s outskirts, the airport and south Delhi was estimated to cost Rs55,208 crore, according to the detailed project report (DPR) drafted in 2014.

A revised report submitted to the Delhi government this May put the cost at Rs52,625 crore, after accounting for GST rates that the finance ministry had given to Delhi Metro before the new taxation system was rolled out in July. But the post-GST funding pattern has affected the deadline for completion of the project as it has to be sent to the Delhi cabinet again for approval.

The delay prompted Metro authorities to postpone the commissioning of the project to March 31, 2023. The previous target was March 31, 2022.

Documents accessed by HT indicate the Delhi government’s share has increased by 11.14% after the project’s estimate was revised. It was to pay Rs11,334 crore, but will have to shell out Rs12,597 crore now.

“The Delhi government had already approved Phase-IV in January, but GST happened and the entire funding pattern had to be relooked. I am yet to get the revised estimates,” said Delhi transport minister Kailash Gahlot.

A letter by Delhi Metro chief Mangu Singh this September to the city’s transport commissioner explains the increase in Delhi’s share of the cost. He wrote the ministry of housing and urban affairs “has desired that sharing of taxes in new regime (GST) should be agreed by GNCTD in the ratio of 1:2 between GOI and GNCTD respectively.”

GNCTD stands for government of national capital territory of Delhi.

Metro authorities can begin work only after approval from the Aam Aadmi Party government in Delhi and the Centre.

Delhi Metro refused to divulge details, saying the new estimate was based on a fresh study of the project in a GST environment.

“Since Phase-IV has not yet been approved, we would not like to comment on its costs or funding pattern,” a Metro spokesperson said.

Besides GST, a revised cost escalation rate from 7.5% to 5% also reflected in the reduced budget for the project, according to sources.

The project is expected to add 850,000 riders each day to the network. The new lines IV are Rithala-Narela, Inderlok-Indraprastha, Tughlakabad-Aerocity, Lajpat Nagar-Saket G Block, Janakpuri (West)-RK Ashram and Mukundpur-Maujpur.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions