Press Information Bureau

Government of India

Ministry of Home Affairs

29-November-2011 15:30 IST

The Central Para-Military Forces (CPMF) have sought VAT exemption on canteen sales. Chairman, Welfare And Rehabilitation Board (WARB) has written to the Chief Ministers of all the States and to the Union Territories for seeking exemption of Value Added Tax (VAT) to Central Police Canteen (CPC).

Hon’ble Minister of State for Home Affairs and Home Secretary have also written to all the State Governments and Union Territory Administrations vide letter dated 30/09/2011 and 02/06/2008 for exemption of Value Added Tax (VAT) to Central Police Canteen (CPC). Till date, 12 States/UTs viz. Bihar, Chhattisgarh, Uttarakhand, Manipur, Meghalaya, Haryana, Rajasthan, Jharkhand, Tamilnadu, Orissa, Kerala & Chandigarh have agreed for exemption of VAT on sales of Central Police Canteens.

This was stated by Shri Jitendra Singh, Minister of State of Home Affairs in written reply in the Lok Sabha today.

IJ/PT/Tax exemption

VAT exemption sought for central police canteens; several states have granted exemptions following central requests. Seeking exemption from state-level Value Added Tax (VAT) on Central Police Canteen (CPC) sales is the operative issue. The Welfare And Rehabilitation Board and senior central officials have requested State and Union Territory governments to exempt VAT on CPC sales, and several States/UTs have agreed to exempt such sales, reflecting partial intergovernmental acceptance of the administrative tax-relief request.