Andhra Pradesh and Telangana state governments were likely to collect quarterly tax from goods and passenger vehicles separately from April 1.
A division bench comprising Chief Justice Kalyan Jyoti Sengupta and Justice P.V. Sanjay Kumar of the Hyderabad High Court on Wednesday heard a petition seeking for retention of existing pattern till Hyderabad lasted as the joint capital of both the states.
However, the court directed both the government to identify and set up separate infrastructure for collection of taxes from private commercial vehicles. The bench was dealing with two petitions by owners of contract buses from Krishna and Kadapa districts.
The petitioners submitted that on June 1, 2014, during President Rule, Governor E.S.L. Narasimhan had issued a GO declaring that the quarterly tax being paid on goods and passenger vehicles shall be deemed to have been paid in both the states till March 31, 2015. They said that as the validity of the GO expires on March 31 they apprehended that the Telangana government will insist on payment of tax. They submitted representations to the transport department not to insist on payment of tax as long as Hyderabad remains combined capital.
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