G.O. Ms. No. 107, Reimbursement of TNVAT to Chennai Metro Rail Limited, 2019
The Planning, Development and Special Initiatives (S.I) Department issued G.O. Ms. No. 107 on 26 September 2019, approving reimbursement of Rs.57.64 crore in Tamil Nadu Value Added Tax incurred by Chennai Metro Rail Limited during 2017-18 and part of 2018-19. The amount must be credited to the Public Deposit Account of Chennai Metro Rail Limited rather than paid in cash.
What the government order does
G.O. Ms. No. 107 of the Planning, Development and Special Initiatives (S.I) Department authorises a grant of Rs.57,64,00,000 to Chennai Metro Rail Limited. The grant reimburses Tamil Nadu Value Added Tax incurred during the financial year 2017-18 and part of 2018-19.
The approval followed proposals from the Director (Finance) and the Joint General Manager, Finance, of Chennai Metro Rail Limited. The reimbursement was requested under the Memorandum of Understanding entered into by the Government of India, the Government of Tamil Nadu and Chennai Metro Rail Limited on 15 February 2011.
Financial background
G.O. Ms. No. 107 records the following figures:
- Chennai Metro Rail Limited had incurred Rs.390.38 crore in Tamil Nadu Value Added Tax up to 2018-19.
- The Government of Tamil Nadu had already reimbursed Rs.255.43 crore under earlier government orders.
- A further Rs.57.64 crore was approved through this government order.
The expenditure is classified as a grant to Chennai Metro Rail Limited for reimbursement of taxes and duties levied by the State.
How the grant must be transferred
The Planning, Development and Special Initiatives (S.I) Department directed that the Rs.57.64 crore grant must not be paid in cash. It must instead be credited to the Public Deposit Account maintained for Chennai Metro Rail Limited.
The Section Officer of the Planning, Development and Special Initiatives (Bills) Department must draw an account payee cheque in favour of the Public Deposit Account of Chennai Metro Rail Limited. The Managing Director of Chennai Metro Rail Limited must collect and deposit it under the specified civil deposit account.
The Finance Department (Housing) concurred with the approval on 25 September 2019.
Who is affected
G.O. Ms. No. 107 directly concerns Chennai Metro Rail Limited and the government officers responsible for drawing, accounting for and depositing the grant. It contains no provision changing land ownership, land classification, planning permission, property registration or obligations of private property buyers and owners.
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Common questions
Does G.O. Ms. No. 107 change any land or property rules?
No land or property rule is stated in the document. It deals with reimbursement of Tamil Nadu Value Added Tax to Chennai Metro Rail Limited.
How much reimbursement was approved for Chennai Metro Rail Limited?
The Planning, Development and Special Initiatives (S.I) Department approved Rs.57.64 crore for Tamil Nadu Value Added Tax incurred during 2017-18 and part of 2018-19.
Will Chennai Metro Rail Limited receive the grant in cash?
No. G.O. Ms. No. 107 directs that the grant be credited to the Public Deposit Account of Chennai Metro Rail Limited rather than paid in cash.
Had the Government of Tamil Nadu made earlier TNVAT reimbursements?
Yes. The document records that Rs.255.43 crore had already been reimbursed under earlier government orders.
