AP decides to keep hopeless Center aside!

Central government calculating the political interests in both the Telugu states has remained placid and insensitive over several issues plaguing. One such issue for Andhra Pradesh is regarding Section 50, 51 and 56. These sections notify about the tax division between AP and Telangana.

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The pending commercial taxes before the bifurcation according to the act will go to the state government in which the businesses are present. Telangana is the biggest beneficiary here as majority of the businesses are present in Hyderabad . The most controversial clause is regarding the refunds of the Commercial Taxes.

When a refund is claimed for transactions before the bifurcation, both the states will have to pay them according to population ratio. AP will be paying 58% in such cases even to the income garnered by Telangana government. AP lost 3600 Crore due to this. With Center not at all reacting to the issue, AP government had decided to approach Supreme Court.