Haryana seeks release of CST compensation

 The Haryana government has sought finance minister P Chidambaram’s intervention to get released what it said was the withheld portion of the central sales tax (CST) compensation from 2007-08 due to the state.

Against the total claim of Rs 6,639.91 crore made by the state for these years, Haryana has got Rs 4,105.18 crore, the state said in its representation to finance minister.

The reduction in the compensation claim had been made primarily on three accounts, Haryana excise and taxation minister Kiran Chaudhary said in a letter to Chidambaram, an official release said here on Friday.

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 four to five per cent — are common to all states, she said.

Chaudhary, however, added the third issue of concessional CST rate of one per cent allowed by Haryana to Maruti Suzuki India 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 said.