AP and Telangana now fight over VAT dues!

The Bifurcation is also nearing completion but the scars of the division are just refusing to go away from both the Telugu states.Now the commercial taxes officials of both the states have locked horns over remittance of tax dues like recovery of tax arrears and refund of taxes collected in excess. Telangana officials claim that VAT paid by few traders online is going in to AP’s account.

Nearly 39 Crores have been added to AP’s account like that. The AP portal which was used in the United State is still permitting tax payments of Telangana traders which is the root cause of the confusion. Telangana revenue department has intimated their AP counterparts to take note of this issue and disable such payments. They are also urging to payback the 39 crore to Telangana treasury. However Andhra officials say some of the traders did not pay VAT before the appointed day and they will get a share in these late payment taxes.