States Insist On Cash Compensation For Vat

The state governments have set the agenda for demanding a huge monetary compensation from the Centre for shifting over to the value added tax (VAT) regime from April 1, 2003. Of the 22 states that have estimated the notional revenue loss in case of migrating to the VAT regime, 20 have pegged the critical median VAT rate much above the 10.5-12 per cent range decided earlier.