Sources have stated that a row over commercial tax arrears has cropped up between Telangana and Andhra Pradesh with the AP government seeking an amendment to Sections 50, 51 and 56 of the AP Reorganization Act, 2014 and this however, is being strongly opposed by the Telangana government.
It is also said that the AP government has been seeking specific amendments in Parliament to rectify certain portions of the Reorganization Act on the ground that they favored Telangana at the cost of AP including sharing of assets and liabilities of common institutions listed under Schedules IX and X of the Act.
The AP Reorganization Act, 2014 has stated that traders will have to pay the arrears to the respective state government as per their territorial jurisdiction, but AP has argued that most traders who owe arrears are in Telangana, especially Hyderabad.
Meanwhile the AP government is specifically objecting to the three sections in the Act which state that if the governments in Undivided AP had collected excess commercial taxes in advance till the bifurcation of state on June 2, 2014, they should be distributed between AP and TS in the ratio of population (52:48).
