The value-added tax (VAT) regime, that is scheduled for implementation across the country by April 1, 2003, is likely to find newly created states such as Uttaranchal under-prepared to make the transition, while for Maharashtra, Madhya Pradesh and Gujarat it would be an easy transition.
The industry would have to be specifically geared to cope with the continuing central sales tax (CST) regime along with VAT for two years before it is phased out, Naishadh I Parikh, deputy chairman of the Confederation of Indian Industry (CII) (western region), said at the sidelines of a CII-organised seminar in Mumbai on Thursday.
Parikh pointed out eventually state-levied VAT and centrally administered VAT need to be merged to achieve a single VAT rate structure as is prevalent in other countries.
