Business & Economy

Centre agrees on 3-tier VAT
compensation for states 

What is India News Service, Wednesday, 3 November 2004, 2000 hrs IST


The Centre on Tuesday agreed on a three-tier system of compensation package for states for any loss of revenue after switching over to VAT regime with effect from April 1, 2005. 

\93In consultation with the Empowered Committee on VAT we have agreed upon a compensation package for states for any loss of revenue after introduction of the new tax system, Finance Minister P Chidambaram told newspersons.

Earlier in the day Mr Chidambaram had a lengthy meeting with the State Finance Ministers as well as the Empowered Committee to resolve issues related to VAT. \93As per the compensation package, states would get 100 per cent compensation for revenue loss in the first year, 75 per cent in the second year and 50 per cent in the third year,\94 he said. Asked about revenue implications for the Centre for compensating states, Mr Chidambaram said \93there may not be any revenue outgo. In our assessment we expect a surplus revenue to states with implementation of VAT. We strongly feel that there may not be any requirement for compensation.

Goa Cong threatens legal action against IFFI multiplex contract: The Congress Party says it wants bids to be called for running the new multiplex that is being constructed specially for the International Film Festival of India (IFFI) in Goa.Punjab.

NAI launches India operations: Bullish on the real estate boom in India, global construction consultancy major NAI of the US is eyeing for the lucrative pie.

IOC to invest in Iran gas field: State-run oil refining and marketing company Indian Oil Corporation today said the total cost of developing the South Pars gas field in Iran and setting up an LNG liquefaction plant would be $3 billion, and not IOC\92s share. 

Oil down, sensex up: Stocks scored impressive gains for second straight day lifting the sensex by another 51 points at close in lacklustre activity on Bombay Stock Exchange on Tuesday on fresh buying support prompted by a plunge in crude prices in Asian trade

Options open on airline stake: Civil aviation minister Praful Patel today said the policy of forbidding foreign carriers from picking up stakes in local carriers could be reviewed once the domestic airlines are strong enough.

Mediclaim cost of firms likely to go up: National Insurance Company will soon raise the premia for its corporate medical insurance policies.

IIM L celebrates 20 years of existence: Indian Institute of Management, Lucknow, has launched what it calls a \93one of its kind initiative\94 to attract students.

Hindi SMS from Nokia: With the metro mobile markets nearing saturation points, Nokia has now trained its sights at Level B towns and cities of India, It launched its hindi SMS (Saral Mobile Sandesh) localisation drive on Tuesday.

Su-Kam ties up with GE Power: Su-Kam Communication System has entered into a marketing tie-up with GE power for the sale of their uninterrupted power supply (UPS) systems across the country. 

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