VAT panel to meet FM; press for President nod

Ready with the "groundwork", the Empowered Committee on value-added tax is likely to press for President's nod on VAT Bills of at least nine states by May 25, for which it will meet Finance Minister Jaswant Singh on Tuesday to expedite the process.

"We are meeting the Finance Minister on Tuesday," the committee chairman Asim Dasgupta said in New Delhi on Monday, but declined to elaborate whether states would stick to June deadline for introducing VAT.

However, official sources told PTI that the "groundwork" has been done and the committee would press for President's assent to the VAT Bills of at least nine major states by May 25, so that they can go ahead with VAT by June.

"By May 25, at least nine states including the four southern states, Maharashtra, Gujarat and West Bengal, should get the President's assent for their VAT bills," they said after the day-long meeting.

Referring to the groundwork done by the VAT panel, they said "it was decided that at least 216 entries (category of goods) will be taxed at 12.5 per cent VAT rate while an exhaustive Residuary List of items has been drawn up under this revenue neutral rate."

Finance Ministry officials confirmed the development and said "it will take about 21 days for getting President's nod on VAT Bills. It has to be examined by the finance, home and law ministries."

Although the level of preparedness among states has been low, the VAT panel intends to implement the new tax system in at least nine states to start with, despite the Centre's opposition to a "patch-work" approach.