Kiran Chaudhry asks PC to release withheld CST compnsation

by Haryananewswire

CHANDIGARH, NOV 9

Mrs Kiran Chaudhry, Haryana Excise and Taxation Minister, has asked the Union Finance Minister, Mr P Chidambaram , to intervene and get released the withheld portion of the CST compensation due to Haryana for the period 2007-08 to 2010-11. Against the total claim of Rs 6,639.91 crore made by the state for these years, Haryana got only Rs 4,105.18 crore.

In a demi-official letter written to the  Union Finance Minister on Friday, Mrs Chaudhary pointed out that reduction in the compensation claim had been made primarily on three accounts. Two of these, arbitrary assumption of revenue gain to the states on account of abolition of form ‘D’, and revenue gain assumed on account of the increase in lower rate of VAT from 4% to 5%--are common to all states. But the third issue of concessional CST rate of 1% allowed by Haryana to Maruti Suzuki India Ltd. is applicable only to the state of Haryana.

       “Let me bring it to your kind attention that the claim made by Haryana has already taken into account the concessional rate allowed to Maruti Suzuki India Ltd. Accordingly, the Finance Ministry has dealt a double blow to the state by making deduction on this account. I may request you to direct the concerned officers to settle our claim, at least with regard to Maruti Udyog Ltd, at the earliest”, the minister pleaded.

      “I shall be grateful for your kind intervention in this regard. If any additional information is required, I can ask the Principal Secretary, Excise and Taxation Department, Haryana, to visit officers in the Finance Ministry and explain the position in person”, she offered.