G.O.Ms.No.24, Chennai Metro Rail Project, Release of Grant Towards Reimbursement of Tamil Nadu Value Added Tax
The Government of Tamil Nadu, Planning, Development and Special Initiatives (Special Initiatives) Department, issued G.O.Ms.No.24 dated 27 February 2015, sanctioning Rs.82,51,29,038 as a grant to Chennai Metro Rail Limited. The grant reimburses Tamil Nadu Value Added Tax incurred by Chennai Metro Rail Limited from its inception to 31 March 2014 and is to be credited to its Public Deposit Account rather than paid in cash.
What the order does
G.O.Ms.No.24 dated 27 February 2015, issued by the Government of Tamil Nadu, Planning, Development and Special Initiatives (Special Initiatives) Department, provides financial support to Chennai Metro Rail Limited. It sanctions Rs.82,51,29,038 as reimbursement of Tamil Nadu Value Added Tax incurred from the company's inception to 31 March 2014.
The sanction was based on 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. Chennai Metro Rail Limited submitted a detailed reimbursement proposal with an audit certificate from chartered accountants.
Who is affected
G.O.Ms.No.24 directly concerns Chennai Metro Rail Limited and the government finance, accounts, treasury and administrative authorities responsible for recording and transferring the grant.
For property buyers, owners and land professionals, the document does not set out land acquisition, compensation, ownership, planning permission or property tax provisions. Its stated purpose is limited to reimbursement of Tamil Nadu Value Added Tax connected with the Chennai Metro Rail Project.
Key financial provisions
G.O.Ms.No.24 contains the following directions:
- Rs.82,51,29,038 is sanctioned as a grant to Chennai Metro Rail Limited.
- The grant covers Tamil Nadu Value Added Tax incurred from inception to 31 March 2014.
- The expenditure is assigned to a newly opened head of account under Demand No.26.
- The Special Officer or Deputy Secretary to Government in the Planning, Development and Special Initiatives Department is the estimating, reconciling and controlling authority for that account.
- The Pay and Accounts Officer or Treasury Officer must open the new head of account in their books.
- Necessary funds are to be provided in the Budget Estimate 2015-16.
How the grant is transferred
G.O.Ms.No.24 directs that the sanctioned amount must not be paid in cash. It must instead be credited to the Public Deposit Account of Chennai Metro Rail Limited.
The Section Officer in the Planning, Development and Special Initiatives (Bills) Department is authorised to draw the grant and transfer it by cheque to Chennai Metro Rail Limited's specified Public Deposit Account. The Finance Department concurred with the sanction through its communication dated 24 February 2015.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does G.O.Ms.No.24 change my land ownership or property rights?
The document contains no provisions changing land ownership or property rights. It sanctions a tax reimbursement grant to Chennai Metro Rail Limited.
How much was sanctioned to Chennai Metro Rail Limited?
The Government sanctioned Rs.82,51,29,038 as reimbursement of Tamil Nadu Value Added Tax incurred from inception to 31 March 2014.
Will Chennai Metro Rail Limited receive the grant in cash?
No. G.O.Ms.No.24 directs that the grant be credited to Chennai Metro Rail Limited's Public Deposit Account rather than paid in cash.
Why did the Government approve the reimbursement?
The approval was based on 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, together with Chennai Metro Rail Limited's detailed proposal and audit certificate.
