| State finance ministers are meeting in the Capital on November 2. Officials said that the progress of the various states with regard to implementation of VAT would be discussed in the meeting. |
| The decision to grant financial assistance to the 13 states was taken up at a recent meeting convened by the empowered committee of state finance ministers for these states in Kolkata. |
| "The objective of the meeting was to review the progress made in these states and to them expedite the process to introduce the legislation for implementing of VAT. The money would be released to these states latest by November 15," an official told Business Standard. |
| Officials said that the financial assistance would be used for activities like computerisation, training and for hiring specialists to help draft the legislation for VAT. Delhi, Punjab, Haryana, West Bengal, Karnataka and Kerala have already asked ICICI Infotech to computerise their tax system. |
| Finance Minister P Chidambaram had held a meeting with state finance ministers on VAT in September where it was decided that VAT would be implemented as per schedule on April 1, 2005. "While 12 of the 28 states and two Union territories in the country, have already initiated efforts to bring in the legislation for VAT, there is delay in notifying these bills," an official said. |
| Rajasthan, for instance, has already passed the Bill but it has not been forwarded to the President for his assent. In the case of Assam, the legislation had been sent to the Home Ministry to obtain Presidential assent but it had been sent back by the ministry. |
| The home ministry is understood to have asked the state government to re-submit the file after three months. |
| Similarly, Gujarat, Karnataka, West Bengal, Kerala and Andhra Pradesh have sent their respective Vat Bills to the Centre. |
| Though the Finance Ministry has cleared the bills for all these states, the issue is pending with the Home Ministry. |
Top Section
Explore Business Standard