MP's move of 5% VAT on power

Madhya Pradesh government's move to impose 5% VAT on electricity produc-tion and distribution has evoked a mixed reactions. The government proposes to mobilise Rs 100 crore during 2012-13. Madhya Pradesh energy department official, who did not want to be identified, told Business Standard "It is a complicated issue. There will be clarity only after the notification is issued. As of now we at the department are not aware whether 5% VAT is on private generators or it will also apply to state-run companies. Besides, whether the trading will be taxed or not. It is very difficult to give our view at this juncture as the annou-ncement was made during the presentation of budget on February 28."