TN urged to introduce VAT soon
The Tamil Nadu Chamber of Commerce and Industry has urged the State Government to introduce value added tax (VAT) ‘‘without any further delay’’ following in the BJP-ruled states’ footsteps.
Reports confirmed increased tax revenue of up to 30 percent in most of the 21 states, which switched over to VAT in April. This buoyancy in revenue had prompted the announcement that within two months, VAT would be implemented in all the five BJP-ruled states, said chamber president S Rethinavelu in a statement.
Pointing out that trade bodies in some states, which had opposed VAT, had now ‘‘fully grasped’’ its comparative beneficial aspect, Rethinavelu said, ‘‘It is pertinent to note that even leading trade and industrial associations have also been insisting on immediate implementation of VAT in the state. Now, there cannot be any reservation about VAT implementation from any quarters in Tamil Nadu.’’
He said non-implementation of VAT had ‘‘severely affected’’ trade in the state, and this had made it difficult to compete with VAT-implemented states, as the prices of their products were comparatively higher by about six percent.
Source: newindpress.com
8/24/2005
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
8/18/2005
VAT: Centre to compensate states
The Finance Minister, P Chidambaram, on Tuesday urged Uttar Pradesh and Gujarat to implement VAT and assured that any State suffering loss due to its imposition would be compensated by the Centre.
He said that though VAT is a State tax replacing the sales tax with the Centre acting just as a facilitator, the Union Government would compensate 100 per cent loss during first year, 75 per cent during second year and 50 per cent during the third year.
Trying to allay the apprehensions of people, he said that imposition of VAT has not resulted in more burden on consumers as indicated by the low rate of inflation since its imposition.
About the reluctance of Gujarat and Uttar Pradesh Chief Ministers to impose VAT, the Minister said that he was ready to meet them anywhere anytime to allay all their apprehensions regarding VAT, which he described as an “efficient revenue increasing and transparent system of tax collection".
More: sify.com
8/16/2005
Workshop for realtors on service tax, VAT
The Confederation of Real Estate Developers Associations of India (CREDAI) and its member association CREDAI NCR are jointly organising a workshop on service tax, value-added tax (VAT) and income tax for real estate developers, agents, construction companies, architects and interior decorators.
The workshop would be held in the Capital on August 20.
“This workshop will provide a platform to all concerned people of the industry to interact and participate in discussions with the experts on the current developments and issues relating to service tax, VAT and income tax implied to real estate,” Kumar Gera, Chairman, CREDAI, said in a statement.
More: sify.com
8/13/2005
“The committee will meet on August 24 to discuss the implementation issues that have come up after introduction of VAT,” Empowered Committee Secretary Ramesh Chandra told PTI. When asked whether the complaint of the Delhi Government about shift in bullion trade to Rajasthan and Gujarat because of less tax rate in the two states would be taken up, he said all implementation issues, including this one, would be discussed at the meeting. Delhi has complained to the VAT panel about less than UFR tax on bullion in Rajasthan and Gujarat because of which the trade on precious items is being shifted to the two states. Considering the Delhi Governments complaint, the VAT panel at its meeting on July 9 had decided that all states would impose at least 1 per cent tax on bullion from August 1. However, states missed the deadline because of which Delhi Finance Minister A K Walia took up the issue with Empowered Committee Chairman Asim Dasgupta who assured him of convening a meeting in the first week of this month.
Empowered Committee of state finance ministers will meet on August 24 to discuss post-VAT implementation issues, including uniform floor rate (UFR) of tax on bullion.
“The committee will meet on August 24 to discuss the implementation issues that have come up after introduction of VAT,” Empowered Committee Secretary Ramesh Chandra told PTI.
When asked whether the complaint of the Delhi Government about shift in bullion trade to Rajasthan and Gujarat because of less tax rate in the two states would be taken up, he said all implementation issues, including this one, would be discussed at the meeting.
Delhi has complained to the VAT panel about less than UFR tax on bullion in Rajasthan and Gujarat because of which the trade on precious items is being shifted to the two states.
Considering the Delhi Governments complaint, the VAT panel at its meeting on July 9 had decided that all states would impose at least 1 per cent tax on bullion from August 1.
However, states missed the deadline because of which Delhi Finance Minister A K Walia took up the issue with Empowered Committee Chairman Asim Dasgupta who assured him of convening a meeting in the first week of this month.
More: sify.com
8/9/2005
Tax on certain wood items to be brought down to 4 pc
The timber business at Kallai is likely to get a respite from the latest tribulation it has been subjected to undergo after the VAT has been introduced.
According to sources, Commissioner of Commercial Taxes V. Somasundram has assured the Kozhikode Timber Merchants Association to reduce the tax on two varieties of timbers, silver oak (kattadi) and terminilia-bellerica (thani), which form the main staple of the sawmills at this traditional business centre. Their tax will be brought down from 12.5 percent to 4 percent.
The timber business at Kallai used to subsist on silver oak and terminilia-bellerica procured from Kerala and other southern states. Traders used to despatch these timbers to Mumbai, Pune and other destinations.
Though timber tax had earlier been pegged at 12.5 percent under the VAT regime, later the Government reduced the tax on 48 items to 4 percent. However, much to the chagrin of the 2,000-odd businessmen in southern part of the city, the tax on thani and kattadi remained at 12.5 percent.
More: newindpress.com
8/8/2005
VAT rates not uniform across all items in states: ICRA
The design of value added tax, implemented by 21 states, suffers from major flaws that services are excluded from its purview and rates are not uniform across all items in states, credit rating agency ICRA has said.
“A grievous shortcoming of the base (of VAT) is non-inclusion of services,” ICRA said in an article in its latest bulletin on money and finance.
Whether the base of state VATs can be integrated fully with the tax on services eventually is not clear, the credit rating agency said.
Though VAT was expected to be fairly comprehensive, the number of commodities exempted from VAT in various states is not that small due to pressure from various quarters.
Certain categories of sellers of taxable commodities are being exempted such as the defence canteens run for army personnel, a practice that militates against VAT.
Even after the new state VAT laws were made operative, the states are not strictly adhering to the VAT lists.
More: newindpress.com
7/22/2005
ST on diesel may not be hiked in Delhi
Sales tax on diesel is not likely to be increased to 20 per cent in Delhi as VAT panel may exempt the fuel from the common minimum tax rate, which it plans to implement on items across all states by September.
All states were supposed to impose at least 20 per cent sales tax on diesel, but after resistance from Haryana, Punjab and Himachal Pradesh to raise the tax to that level, Empowered Committee had in April allowed Delhi also to lower the levy to 12.5 per cent from 20 per cent.
Earlier, Delhi had imposed 20 per cent tax on diesel as per common minimum floor rate principle, but its diesel trade started shifting to Haryana w continue if some states continue to oppose the minimum floor rate of 20 per cent, Empowered Committee Secretary Ramesh Chandra told PTI.
Delhi tax administration also said it could raise the tax on diesel to 20 per cent only if Haryana agrees to do so.
More: sify.com
7/18/2005
Karnataka to exempt farm implements from VAT
The Karnataka government is in the process of exempting all agricultural implements from VAT, Deputy Chief Minister and Finance Minister Siddaramaiah announced in the state Assembly yesterday.
Several agricultural implements listed under the VAT schedule enjoyed zero per cent tax now and those unlisted attracted 12.5 per cent tax, he said while intervening during a reply on the demands for grants pertaining to the agriculture department.
Siddaramaiah said while oilseeds used for sowing operations have been exempted from tax, the seeds used for extraction of oil is charged four per cent tax.
More: chennaionline.com
7/16/2005
Karnataka plans to exempt farm implements from VAT
Karnataka Government is in the process of exempting all agricultural implements from VAT, Deputy Chief Minister and Finance Minister Siddaramaiah announced in the State Assembly today.
Several agricultural implements listed under the VAT schedule enjoyed zero per cent tax now and those unlisted attracted 12.5 per cent tax, he said while intervening during a reply on the demands for grants pertaining to the agriculture department.
Siddaramaiah said while oilseeds used for sowing operations have been exempted from tax, the seeds used for extraction of oil is charged four per cent tax.
More: hindu.com
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