GOVERNMENT OF ANDHRA PRADESH

ABSTRACT

Value Added Tax – Constitution of Cabinet Sub-Committee to resolve certain issues concerning the implementation of Value Added Tax – Orders – Issued.

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REVENUE (CT.II) DEPARTMENT

G.O.Ms.No.485 Dated:20-07-2004

Read the following:-

01. G.O.Ms.No.363, Revenue (CT.II) Department, Dt.22.06.2002.

02. Minutes of the Empowered Committee meeting held on 26.06.2004

at New Delhi.

03. From the Commissioner of Commercial Taxes, A.P., Hyderabad,

D.O.Lr.Dt.05.07.2004.

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ORDER:

During the Empowered Committee Meeting held on 26.06.2004, at New Delhi, it has been decided to implement Value Added Tax system from 01.04.2005. In this direction, important issues like the following issues require discussions and decision at the Government level and the decisions of the Government are to be conveyed to the Government of India for getting assent of the President of India to the Value Added Tax Act:

(1) Convergence in VAT Bills in all the States;

(2) Any additional VAT Rate (8%) to be incorporated so as to

maintain the existing sales tax rate framework in VAT regime

as well as correlate VAT with UFR rates;

(3) Whether 12.5% RNR can be made as a floor rate so that

States will have freedom to adopt a higher RNR;

(4) Input Tax Credit for Branch Transfers.

2) As the State Government is now prepared to implement the Value Added Tax as per the consensus reached at national level with effect from 01.04.2005, there is a need to constitute a Cabinet Sub-Committee to resolve the issues arising for implementation of Value Added Tax and to project the issues with reference to the requirements of the Andhra Pradesh State at national level.

3) The Government, therefore, hereby constitute a Cabinet Sub-Committee consisting of the following members:-

1) Minister for Finance .. Chairman

2) Minister for Commercial Taxes .. Member

3) Minister for Industries .. Member

4) The above Cabinet Sub-Committee shall meet from time to time to resolve the above issues concerning Value Added Tax and submit it’s recommendations to the Government.

[BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH]

N.S.HARIHARAN

SPECIAL CHIEF SECRETARY TO GOVERNMENT

To

The Minister for Finance.

The Minister for Commercial Taxes.

The Minister for Industries.

Copy to:-

The Commissioner of Commercial Taxes, Andhra Pradesh, Hyderabad.

The Spl. Secretary to Chief Minister.

The P.S. to Special Chief Secretary to Government. (Revenue)

Sf/sc

//FORWARDED BY ORDER//

SECTION OFFICER