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Maharashtra makes VAT claim of Rs 389 crore
September, 25th 2006
Maharashtra has made a compensation claim of Rs 389 crore to the Centre for the shortfall in tax revenues recorded by the State in April-July 2006 on account of implementation of Value Added Tax (VAT). In fiscal 2005-06, which was the first year of VAT implementation, Maharashtra had made a total VAT compensation claim of about Rs 3,550 crore. Of this claimed amount, the Centre has so far disbursed about Rs 1,400 crore to the State. Meanwhile, sources said that the tax revenues of the State registered a 30 per cent growth in the first five months of the current fiscal.
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