The Finance Ministry has set up a Technical Experts Committee which will work closely with State Governments for smooth implementation of VAT with effect from April 1, 2005. The Committee will consist of the following Members:
Dr. Govinda Rao, Director, National Institute of Public Finance & Policy.
Mr. P.V. Rajaraman, Ex-Finance Secretary, Government of Tamil Nadu.
Mr. Ramesh Chandra, Member Secretary, Empowered Committee of State Finance Ministers.
Dr. Renuka Vishwanathan, Adviser, Planning Commission.
Mr. C.M. Bachhawat, Commissioner Commercial Taxes, Government of West Bengal.
Mr. M.N. Joshi, Addl. Secretary, Finance, Government of Gujarat; and
Ms. R. Kavita Rao, Fellow, National Institute of Public Finance & Policy
The Director, State Taxes, Ministry of Finance shall be the Convenor of the Committee.
The terms of reference of the Committee will include:
Steps to ensure that VAT is revenue enhancing.
Principles and levels of compensation to be paid to States for revenue loss, if any, because of the implementation of VAT.
Strategy required for education, training and publicity for implementation of VAT.
Transitional issues which will emerge in the context of switchover to VAT (administrative and legal issues).
Modalities for phasing out Central Sales Tax.
In addition, the Committee could take up any other issue referred to it by the Ministry of Finance or the Empowered Committee of State Finance Ministers through the Ministry of Finance.
The Committee is initially appointed upto June 30, 2005 and its period could be further extended thereafter on the basis of the requirements of the State Governments.
It may be recalled that at the meeting of the Empowered Committee of State Finance Ministers on June 18, 2004, it was resolved to introduce VAT at the State level from April 1, 2005. VAT being a State subject, the Central Government has been acting as a facilitator for its successful launching and implementation. In this role, it is felt desirable that, wherever necessary, the Central Government should step in to provide technical expertise, resources and training so that VAT can be successfully introduced on the scheduled date. The setting up of this Technical Experts Committee is a step in this direction.