New Delhi: The chairman of empowered committee on value added tax (VAT), Asim Dasgupta, on May 7 met Finance Minister Jaswant Singh to discuss ways of implementing the new tax regime at the earliest and asked Centre to expedite the clearances of state VAT legislations.

Finance Ministry sources said states have been advised to send their VAT Bills within this week, as it takes a minimum of 21 days to get the President's nod.

After getting approved in respective state assemblies, the VAT Bills would be first examined by Union Finance Ministry and then by Home and Law Ministries before going to the President.

Although eight to nine states have sent their VAT Bills to the Finance Ministry, the level of preparedness of other states is still low.

Sources said the VAT Bills of states differed from the model Bill circulated by the Centre and hence the delay in getting Presidential assent.

The meeting assumes significance, especially in the light of Singh's statement in Parliament that introduction of VAT in a "patch-work" basis could not be done.

The empowered committee, headed by West Bengal Finance Minister Asim Dasgupta, pressed for VAT introduction in at least 16 states by June.

States have demanded full revenue compensation in the first year after implementation of VAT, which would replace Central sales tax.

PTI