Wednesday, March 30 2005 10:14 Hrs (IST) - World Time -

Mumbai: The much-publicised Value Added Tax (VAT) will finally come into force in Maharashtra from April 1 after the Legislative Assembly passed an amendment in this regard yesterday (Mar 29, 2005).

Seeking permission of the House to clear amendment in the date of the implementation of VAT, Finance Minister Jayant Patil said that without incorporating the present amendment, the Act would come into effect from April 1, 2003.

This would have had wide ramifications on the trade and hence the date of implementation has been postponed till April 2005, he said.

Patil reiterated his faith in the uniform VAT system saying that it would bring uniform tax system in the entire country.

He admitted that major States like Uttar Pradesh, Rajasthan, Madhya Pradesh and others had not subscribed to VAT system. But they have own reservations about some areas and not the entire tax system, he said.

Patil said that 21 States have already decided to implement the system from April 1, while the rest may join by July. The empowered committee consisting of Finance Ministers of various States recently met the Uttar Pradesh Chief Minister to enjoin him to the tax system, Patil said.

Commenting on the apprehensions expressed by the trading community that sufficient time was not given to examine VAT, Patil said that the VAT Act was passed by the legislature in 2003 and there was enough time for people to know about it.

Yet, when each time its implementation was delayed, people thought it would not come into effect, he said.