Babu to Drag Centre to Court?

chandra7

The Central government which is only bothered about the petty political interests in both the Telugu states has more or less remained unmoved and insensitive over several issues that have been plaguing the administration.There is now a big issue facing Andhra Pradesh regarding Section 50, 51 and 56 which notify the tax division between AP and Telangana. The pending commercial taxes pre-bifurcation according to the act will be going to the state government where the businesses are present.

Telangana has become the biggest beneficiary since majority of the businesses are actually present in Hyderabad . The most controversial clause pertains to the refund of the Commercial Taxes. Whenever a refund is claimed for the transactions before the bifurcation, both the states should pay them as per the population ratio.

AP will be paying about 58% in such cases even for the income gained by Telangana government. AP has reportedly lost 3600 Crore due to this clause. With Center remaining non reactive to the issue, the AP government had reportedly decided to approach Supreme Court.


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