Assocham seeks to waive 4% VAT on ice
In a memorandum submitted to the Empowered Committee of State Finance Ministers, the Associated Chamber of Commerce and Industry of India (Assocham) has sought waiver of four per cent levy of value-added tax (VAT) on ice arguing that it has put a large number of exporters of frozen products into undue hardships, rendering their export transactions non-competitive in international market.
Ice has always been exempted under the Central Excise Tariff and Sales Tax Acts of various States. The chamber also pointed out that States such as Bihar, Orissa, West Bengal, Kerala and Karnataka continue to exclude levy of VAT on coconut oil while other VAT executing States do levy the tax on coconut oil at the rate of four per cent. This non-uniformity has lead to diversion of trade as a result of which consumers across the country get coconut oil at different prices, says the chamber asking the empowered committee to take necessary corrective measures in this regard.
Source: sify.com