Centre may revise VAT rules on imports
The official panel on Value Added Tax, which had suggested that states be allowed to tax imports, on Friday said the Centre was examining the constitutional position on the recommendation.
“We have suggested to the Centre that states be allowed to impose Vat on imports at not more than four per cent,” Empowered Committee Secretary Ramesh Chandra said, adding the Centre was examining the suggestion and constitutional provisions in this regard.
“Allowing states to impose Vat on imports requires clear guidelines as to which state will impose the tax and which will give the input credit if the commodity is imported by one state and sold in another,” he said at a conference organised by All India Management Association.