G.O. Ms.No.6, Reimbursement of TNVAT to Chennai Metro Rail Limited, 2018
The Planning, Development and Special Initiatives (S.I) Department issued G.O. Ms.No.6 dated 10 January 2018, sanctioning Rs.57,64,00,000 to Chennai Metro Rail Limited as reimbursement of Tamil Nadu Value Added Tax incurred during 2015-2016 and part of 2016-2017. The amount is to be credited to Chennai Metro Rail Limited's Public Deposit Account rather than paid in cash, and the document does not change land ownership, property rights or land administration procedures.
What the document does
G.O. Ms.No.6 dated 10 January 2018, issued by the Planning, Development and Special Initiatives (S.I) Department, approves a Tamil Nadu Value Added Tax reimbursement of Rs.57,64,00,000 to Chennai Metro Rail Limited. The reimbursement covers tax incurred during the financial year 2015-2016 and part of 2016-2017.
Chennai Metro Rail Limited had reported total Tamil Nadu Value Added Tax expenditure of Rs.249,35,45,892 from 2013-2014 to 30 September 2017. It stated that the Government of Tamil Nadu had already reimbursed Rs.140,15,29,038 and requested release of the balance 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.
Key provisions
- The Government of Tamil Nadu accepts the proposal from the Director (Finance), Chennai Metro Rail Limited, to the extent of Rs.57,64,00,000.
- The sanctioned amount was provided in the 2017-2018 Budget Estimate.
- The expenditure is classified as a grant to Chennai Metro Rail Limited for reimbursement of taxes and duties levied by the State.
- The grant must not be paid in cash. It must 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 specified Public Deposit Account.
- The Managing Director of Chennai Metro Rail Limited must collect and deposit the cheque into the identified civil deposit account.
- The sanction was issued with the concurrence of the Finance (Housing) Department dated 2 January 2018.
Who is affected
G.O. Ms.No.6 dated 10 January 2018 directly concerns Chennai Metro Rail Limited and the government officers responsible for drawing, accounting for and depositing the sanctioned grant. It is an administrative and financial sanction for reimbursement of Tamil Nadu Value Added Tax.
Property buyers, owners and land professionals are not given any duties or benefits under the document. It contains no provision changing land classification, ownership, acquisition, registration, planning permission or property tax.
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Common questions
Does G.O. Ms.No.6 affect my land or property rights?
No land or property rights are changed in the document. It sanctions 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.57,64,00,000 for Tamil Nadu Value Added Tax incurred during 2015-2016 and part of 2016-2017.
Will the sanctioned amount be paid to Chennai Metro Rail Limited in cash?
No. The grant must be credited to the Public Deposit Account of Chennai Metro Rail Limited rather than paid in cash.
Why did Chennai Metro Rail Limited seek the reimbursement?
Chennai Metro Rail Limited requested reimbursement 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.
