Thursday, August 11 2005 17:59 Hrs (IST) - World Time -

New Delhi: Empowered Committee of State Finance Ministers will meet on August 24 to discuss post-VAT implementation issues, including uniform floor rate (UFR) of tax on bullion.

"The committee will meet on August 24 to discuss the implementation issues that have come up after introduction of VAT," Empowered Committee Secretary Ramesh Chandra told sources in New Delhi.

When asked whether the complaint of the Delhi Government about shift in bullion trade to Rajasthan and Gujarat because of less tax rate in the two states would be taken up, he said all implementation issues, including this one, would be discussed at the meeting.

Delhi has complained to the VAT panel about less than UFR tax on bullion in Rajasthan and Gujarat because of which the trade on precious items is being shifted to the two states.

Considering the Delhi Government's complaint, the VAT panel at its meeting on July 9 had decided that all States would impose at least 1 per cent tax on bullion from August 1.

However, States missed the deadline because of which Delhi Finance Minister A K Walia took up the issue with Empowered Committee Chairman Asim Dasgupta who assured him of convening a meeting in the first week of this month.

The meeting, however, could not take place then.

Walia said he will wait for the next meeting before deciding on lowering the VAT rate on bullion.