Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: VAT Audit :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: Central Excise rule to resale the machines to a new company :: empanelment :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: form 3cd :: due date for vat payment :: ACCOUNTING STANDARDS
 
 
VAT (Value Added Tax) »
 GST regime: VAT Commissioner and CBEC to work with businesses
 Amendments in the Second Schedule appended to the Act (Delhi Value Added Tax Act, 2004)
 Guidelines relating to downloading of Statutory Forms-Modification thereof
  Grant of Registration under DVAT & CST
 VAT on petroleum products to continue, to be decided by GST Council
 Government rolls out settlement scheme to clear VAT, CST dues
 Maharashtra government offers VAT benefit to realty buyers
 Govt should focus on income tax instead of VAT
 Amendments in the second Schedule received from Finance Deptt.
 VAT exemption stays in tax reform bill
 Income Tax Appellate Tribunal Bangalore Banches Bangalore 'A' Bench DB Case Causelist for The Week from 22-05-2017 To 25-05-2017

Falling revenue fuels VAT war between Andhra Pradesh and Telangana
April, 24th 2015

After the tussle over interstate vehicle tax, Andhra Pradesh and Telangana are set to lock horns over tax rates on petrol and diesel.

Losing out significant revenue to Telangana where fuel prices are cheaper, Andhra Pradesh is mulling a marginal reduction in Value Added Tax (VAT), by 4 per cent, on both petrol and diesel.

AP information minister Palle Raghunath Reddy said that the issue is likely to be taken up in the next cabinet meeting. "Tax rates on petrol and diesel were supposed be discussed in the cabinet meeting today. But it is likely to be deliberated in the next meeting," said Raghunath Reddy told TOI on Wednesday.

"The tax rates need to be competitive to ensure revenue growth. We are looking into all aspects including the sales tax rates on petrol and diesel," an official in the finance department said, adding that finance minister Y Ramakrishnudu would discuss the issue with officials in a review meeting on Friday.

Not to be left behind, Telangana has decided to follow suit. Sources in the commercial tax department said the tax rates on fuel in the state would be reduced if AP does so. "Our tax policy is not dependent on the rates of a neighbouring state, but we need to watch them in order to prevent trade diversion in border areas. We will take stock of the tax rates of all the neighbouring states and decide on a course correction if needed," Telangana commercial tax minister Talasani Srinivas Yadav told TOI.

Interestingly, both Telangana and AP had hiked VAT a few months ago. With the state losing revenue of Rs 20 crore a month due to the falling base prices of petrol and diesel, the Telangana government in January had hiked VAT at the rate of Rs 2 per liter (both petrol and diesel) in a bid to make up for the losses. Andhra Pradesh went a step ahead and hiked VAT by Rs 4 per liter in the hope that the step would fetch an additional revenue of Rs186 crore a year. But the hike had an opposite effect to what the two governments had hoped for, as both the states saw fall in revenue from automotive fuel sales.

Revenue records at the end of March showed both T and AP losing revenue. While over five lakh litres of diesel was sold in both the states, there was a dent of Rs 20 crore in AP's kitty and Telangana has lost Rs 10 crore.

Experts attribute this to trade diversion to the neighbouring states of Karnataka, Maharashtra and Tamil Nadu where fuel rates are cheaper. "Consumers close to the borders are bound to cross over to the next state to fill up their vehicles. With the borders of Telangana and AP becoming smaller after the bifurcation, the trade diversion does not come as a surprise," said Bhusahan Narang, an office bearer of All India Petrol Dealers' Association.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Sitemap

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