New Delhi, Apr 01: The nationwide implementation of
Value Added Tax regime missed the deadline today with only one
state clearing the legislation and six others sending it for
presidential assent till date, even as the "Bharat bandh"
paralysed trading activities for the second consecutive day.
Some of the states deferred Vat due to political reasons
while traders across the nation kept their shutters down
yesterday and today in protest of the new tax system.
Although the empowered committee on Vat has decided to
fix the next deadline at its meeting slated on April 8,
indications are that it would not be held before May one.
Of the 28 states, only Madhya Pradesh has obtained the
presidential nod while Karnataka and Andhra Pradesh sent their
Vat Bills to the Centre as late as today evening, a finance
ministry official told a news agency here.
West Bengal and Gujarat had sent their bills on Saturday
while Maharashtra and Kerala sent it yesterday.
After the vat bills are approved by the state assemblies,
it is reviewed by the Union Finance Ministry and then sent for
presidential assent. It takes at least 1-2 days to clear a
bill, the official said.
"It is upto the empowered committee to fix the next date
for Vat implementation," the official said referring to the
lack of preparedness on behalf of states.
Till date, over 20 states are not ready with their Vat
legislations or have not presented them for presidential nod.
"Without passage of the Vat legislation, the new tax
cannot be imposed," the Finance Ministry official said.
The delay in Vat implementation is taking place despite
the Centre's promise to fully compensate states which suffer
revenue loss due to the new tax regime.
Bureau Report
