Delhi fails to implement new VAT rate for bullion from April 1
New Delhi, Apr 2 (UNI) In the absence of timely approval from the Lieutenant Governor of Delhi, the new rate of Value Added Tax (VAT) on bullion trading from one per cent to 0.1 per cent could not be implemented from the commencement of new financial year from April 1, 2006.
The proposal for reducing the VAT on bullion from 1 per cent to 0.1 per cent has been sent to Lt Governor B L Joshi for approval, according to Delhi Finance Minister Dr A K Walia.
Dr Walia yesterday said that as and when the approval would be received from the Lt. Governor, a notification to that regard would be issued forthwith.
Delhi Government had proposed to reduce the VAT rates on bullion trade to 0.1 per cent in its Budget for 2006-07 as the VAT rates were very less in the neighbouring states of Rajasthan and Uttar Pradesh compared to Delhi, which resulted in shifting of bullion trade from Delhi to other States.
However, Rajasthan has implemented the VAT system in the State from April 1, but it was not clear when Uttar Pradesh would adopt the same.
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