AP to consider legal recourse to get tax arrears from TS

Hyderabad: The Andhra Pradesh government is contemplating to move either the High Court or Supreme Court for recovery of its share in the revenue from commercial taxes earned during the pre-bifurcation period.
Senior officials of Commercial Taxes Departments were asked by the government to consult senior advocates of Supreme Court on the contentious issue. It may be mentioned here that several industries were extended incentives as part of the promoting industries in the united Andhra Pradesh.
Several of these industries, including those located in Ranga Reddy, Hyderabad and other areas in united AP were yet to pay huge amounts in terms of taxes to the government, prior to the bifurcation of the State. According to estimates, the outstanding tax revenues stand at Rs 3,600 crore. The Andhra Pradesh Re-organisation Act, 201,4 provides for sharing of such pending revenues, on population ratio of 58:42 per cent, between Andhra Pradesh and Telangana States, respectively.
At the same time, it also has an overriding provision stating that the revenues from the entities located in a geographical area should go to that State where they were located. Following this, the Telangana State, claimed that since all these establishments are in the Telangana, the income belongs to TS and hence they need not share it with AP.
Speaking to The Hans India, a senior official from the AP Commercial Taxes Department said, sharing of revenue should be done as per the 58-42 formula. As per this formula, the AP would get around Rs 2,000 crore in the outstanding commercial taxes of the united AP. But, if geographical location criterion is applied, it could literally get nothing. On top of it, it will have to shell out from its exchequer to meet the obligation under the Act.
He said that the AP government had sought the intervention of the Centre in the matter but so far there has been no response from it. So, they were now contemplating to seek judicial intervention in the matter.