Revenue collection in Tamil Nadu has shown a growth of around 20 per cent to Rs 11,722 crore in the first four months of the current financial year as compared to the figures for corresponding period of previous year.
The state government has said that a compensation claim proposal for Rs 2,309.24 crore has been sent to them based on the guidelines adopted in the previous years.
In 2010-11, the revenue collection was Rs 31,117 crore, an increase of 25.37 per cent over 2009-10, said Agri S S Krishnamoorthy, minister for commercial taxes and registration, Tamil Nadu government.
While presenting the policy note of the department on Tuesday, the minister said the highest contributor was TNVAT, which contributed Rs 10,045 crore in 2011-12 (upto July). In 2009-10, for the whole year, it was Rs 26,389 crore as compared ot Rs 21,477 crore in 2009-10.
The minister said the re-introduction of Samadhan scheme for settling the old arrears under TNGST and connected Acts from October 1, 2011, to March 31, 2012, would mobilise Rs 83 crore. A Bill for this purpose would be introduced in this session of the Assembly.
On the compensation of revenue loss on account of introduction of VAT, the minister said the state was eligible to get compensation from the Centre at the rate of 75 per cent for the year 2007 and 50 per cent for 2008.
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For these two years, a total of Rs 4,011.80 crore has been claimed from the government as compensation, but only an amount of Rs 3361.36 crore has been received till date and balance amount of Rs 650.44 crore is still pending.
The issue is being followed up with the government of India, he said.
Recently, the government of Tamil Nadu brought the tobacco and tobacco products under non-VAT items (other than beedi and beedi tobacco which are taxed at 14.5% under VAT) and has imposed a levy of tax at the rate of 20 per cent.
He said a large amount of compensation is yet to be received from the Centre. The total shortfall for the last three years is Rs 1,610.80 crore.
The net amount payable by the Union government for the last years was Rs 4,188.38 crore, but the amount received was Rs 2,577.58 crore.
Even though Centre is yet to issue guidelines for disbursal of CST compensation for the year 2010-2011, a compensation claim proposal for Rs 2309.24 crore has been sent based on the guidelines adopted in the previous years, said the minister.
On the IT initiatives, the minister said the department has engaged Accenture Services Pvt Ltd as project consultant to create an end-to-end IT solution.
The implementation partner would be selected through a transparent bidding process and will be responsible for design, implementation and maintenance of the system for the duration of the contract.
The one-time cost of procurement, deployment and commissioning of IT infrastructure has been tentatively worked out as RS 78.73 crore and the recurring cost for the first year has been worked out as Rs 21.45 crore.