BUSINESS

VAT panel to meet FM



Special Correspondent

NEW DELHI:The Empowered Committee of State Finance Ministers on Value Added Tax (VAT) is slated to meet the Union Finance Minister, P. Chidambaram, on Wednesday with a list of services which, according to it, should be transferred to the states for taxation purposes.

The committee held a meeting on Saturday with the states' commissioners of commercial taxes to deliberate on the services that in their view should be taxed by the States, so that they are compensated for the revenue loss owing to the proposed reduction in Central sales tax (CST) to two per cent from 2006-07 from four per cent and its total abolition from 2007-08.