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VAT waiver to defence canteens if Centre reimburses loss: CM

Written by: Staff

Hyderabad, June 7 (UNI) Even as Defence personnel in Andhra Pradesh pleaded for waiver of the Value-Added Tax(VAT) to armed forces canteen,Chief Minister Y S Rajasekhara Reddy passed on the Buck to the Centre on the issue.

''The State Government will be able to consider the demand if the loss in revenue is reimbursed by the Centre'', Dr Reddy, who earlier laid the foundation stone for the ''Sainik Institute'' for personnel below officer rank at the Military College of Electronics and Mechanical Engineeering(MCEME) in the presence of Union Minister of State for Defence M M Pallam Raju, told reporters.

Earlier, MCEME Commandant Lt. Gen. Arvind Mahajan urged Dr Reddy to provided exemption from VAT to goods sold in Armed Forces canteens in 32 major Army units, four air force stations and the Eastern Naval Command in the state, taking a cue from some progressive states which had provided similar waiver.

It may be noted that Tamil Nadu, Uttar Pradesh and Gujarat were among the states which had given such an exemption, providing relief to armed forces personnel who have been getting all goods at a concessional rate prior to introduction of VAT.

The dignitaries, including State Home Minister K Jana Reddy, later paid homage to the gallant men of the EME, who laid down their lives in the various campaigns from World War II, 1962, 1965, 1971 operations and various other conflictions upto the recent Kargil war.

UNI SM VV 1451

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