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VAT to be implemented from June 1
By siliconindia
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Tuesday, 08 April 2003, 19:30 IST
NEW DELHI: The contentious issue of value added tax (VAT) was resolved on Tuesday with state finance ministers deciding to implement from June 1 the new tax system in place of sales tax.
The decision to implement VAT was taken at the meeting of the Empowered Committee of state Finance Ministers, chaired by West Bengal's Asim Das Gupta.
Immediately after the meeting, finance ministers from Kerala, Maharashtra, Andhra Pradesh and Orissa confirmed the implementation of VAT from June 1.
VAT was to come into affect from April 1, 2003 but the implementation was deferred following protests from some states and trading community.
Union Revenue Secretary CS Rao was among those present during the meeting, and later told reporters that Centre would compensate for the loss of revenue, if any, during the first year of the implementation of VAT.