Tepcon Banner

Home | About Jute | Jute Prices | Organisation | Directory | Technology | Statistics | Diversification | Jute Policy | Jute News | FAQ

Home>  Value added Tax VAT (Value Added Tax) 2013 (India) News                                            
               Vat  News 2011       Vat  News 2010    Vat  News 2009  
          Vat  News 2012         Vat  News Jan-Aug. 2009        

   Higher VAT may hit Bengal leather sector
Kolkata, March 14, 2013: Leather goods manufacturers expect a rise in their cost of production with the West Bengal Budget proposal to increase VAT by one per cent. According to Tapan Nandi, Regional Chairman, Council for Leather Exports (CLE), the Bengal Government’s proposal to introduce a higher VAT will have an impact on the working capital of the leather goods manufacturers in the State. “There are some issues over getting VAT refund in time as well,” Nandi said here on Wednesday after a press conference to announce the International Leather Goods Fair. 
  To be conducted by India Trade Promotion Organisation (ITPO) in collaboration with CLE and Indian Leather Products Association, the fair would be held in Kolkata from March 15 to 17. Nandi added that lack of proper quality testing labs for leather goods in India has been plaguing the industry. Source: The Hindubusinessline 

   VAT breather for hospitals and nursing homes 
New Delhi, March 8, 2013: The decision to collect Value Added Tax (VAT) from hospitals and nursing homes has been put on hold for the time being in Delhi. The Delhi government, in a half-page advertisement issued on February 24, had warned hospitals and nursing homes to pay VAT to avoid action. “We had a meeting with the finance department today (Wednesday) and asked them to think it through before coming to a decision. Hospitals do not provide all the medicines and most are bought by patients from private pharmacies that charge them the applicable taxes. In such a scenario, the notice needs to be analysed,” Delhi health minister AK Walia said.
  Walia said it was decided in one of the VAT meetings to exempt health and education sectors from these taxes. “We will have another meeting in on the matter to decide on the further course of action,” said Walia, who met members of the Delhi Medical Association (DMA) on Wednesday. The advertisement had said that “administering drugs, inserting implants, dental prosthetics and artificial limbs in patients’ tests and treatments are sales and taxable”.
  “The government labeled hospitals and nursing homes as ‘dealers’ in the notice which is highly deplorable. We provide medical services.
"Administration of drugs and implantation of devices is an inseparable part of the treatment. Nursing homes and hospitals are not selling
medicines for which there are chemist shops,” said Dr Harish Gupta, president, DMA. Source: Hindustan Times

   Farmers may get VAT subsidy on diesel: UP Govt
LUCKNOW, February 27, 2013: The state government on Tuesday refused to consider the demand of the opposition members in the state assembly to waive the VAT on diesel in UP. However, the government announced that it will rethink about giving some subsidy on VAT on diesel to the farmers as given to the industrial units. Institutional finance minister of state Farid Mahfooj Kidwai replying to a question of BJP member Upendra Tiwari said that due to financial crisis, the government was not considering to waive the VAT on diesel.
  '' VAT on diesel accounts for 13% of the total revenue of the state and it would not be advisable to give any subsidy,'' the minister stated. However, Tiwari said that in Bihar, poor farmers are given Rs 15 per litre subsidy in diesel. Another BJP member Radha Mohan Das Agarwal said that the previous BSP government had lowered the VAT on diesel used by the industrial units in 2009 then why it should not be done for the farmers. In UP the industrial units only pay 16 per cent VAT on diesel against the normal 21 per cent. Parliamentary affairs minister Mohammad Azam Khan intervening into the issue said that Samajwadi Party government was pro-farmer and it consider about the demand.

  IESA: rationalised indirect tax structure of 12% GST
BANGALORE, February 21, 2013: The India Electronics and Semiconductor Association (IESA), the trade body representing the electronic system design and manufacturing (ESDM) and semiconductor industry presented its recommendation to the union government prior to the Union Budget 2013-14. "For India to achieve self-sufficiency in electronics, the Government of India needs to focus on: policies that enable India to become self-sufficient in making globally competitive electronics products. Given the talent availability, I see no reason why India cannot become a global leader in electronics in the near future," said Satya Gupta, chairman of IESA.
  The ESDM industry presents a $400 billion opportunity by the year 2020. Semiconductor content is increasing in the Bill of Materials (BoM) of electronic products. India has emerged as one of the leading countries in the semiconductor design, with 23 of the top 25 MNCs having their design centres here. The semiconductor design industry generated revenues of $8.8 billion in the year 2011 and has witnessed a robust growth of 17.3% since the year 2009. ``Hence we urge the centre to take proactive steps to encourage this sunrise industry," said PVG Menon, President of IESA.
  The IESA recommendations are focused around the following areas: Make development of domestic electronics industry a key national agenda. The trade bought sought quick implementation a rationalised indirect tax structure of 12% GST (8% Excise + 4% VAT) on the electronics manufacturing value chain. It also recommended a total exemption of Service Tax for SEZ. Other proposals include creation of a special fund and introduction of special incentives for R&D, etc. Source: The Times of India

   Panel to frame model GST law; 3 committees to address issues
New Delhi, February 15, 2013 (PTI) : State finance ministers on Thursday decided to prepare model legislation and set up three committees to sort out various issues for smooth roll-out of the Goods and Services Tax (GST). "There was a broad consensus ... Three committees were notified today to go into the details ..," the Chairman of Empowered Committee of State Finance Ministers, Sushil Modi, said after the meeting with Union Finance Minister P Chidambaram here.
  The state finance ministers decided to set up panels to address issues such as Integrated GST (IGST) and VAT on imports. The committees would also consider dual control threshold and exemptions, and revenue neutral rate and place of supply rules, Modi said.
  "Besides, the Empowered Committee will draft a model legislation, as after the Constitution is amended we require a model bill which has to be passed by every state legislature," Modi said. On providing compensation to states for reducing central sales tax (CST)  rate, Modi said that Chidambaram will "make provisions in this budget for providing full compensation for 2010-11". "Out of total 2010-11 compensation, Rs 7,000 crore has already been paid so whatever is remaining Finance Minister will provide in the Budget," he said. However, there appeared to be differences among states on the issues of autonomy and CST compensation.
  On whether GST can be rolled out from April 1, 2014, Madhya Pradesh Finance Minister Raghavji said: "I don't think so. Autonomy is the main issue. By Constitution, sales tax has been assigned to the states. Sales tax should be levied by states.  "They (Centre) are not prepared to give 100 percent compensation but states insisted on 100 percent compensation".
  Gujarat Finance Minister Saurabh Patel said: "Many states asked for full compensation. (Compensation) Issue has not been resolved. It will resolve on February 28 ... When the budget comes .. What is the allocation made in the budget".
  West Bengal Finance Minister Amit Mitra said: "As far as CST compensation is concerned, it has to be there to a degree that position of states is recognised, and therefore autonomy and compensation, these are the two main issues".
  Last month, the states had agreed to a lower payment of Rs 34,000 crore for phasing out the Central Sales Tax (CST), a pre-condition for rollout of the GST. According to the resolution at the meeting in Bubaneshwar on CST issue, the Centre would bear 100 percent of the loss accrued to states in 2010-11 fiscal on account of lowering of CST. However, for 2011-12 and 2012-13 fiscal, the Centre would give 75 percent and 50 percent of the losses to states. CST, a tax imposed on the inter-state movement of goods, was reduced from 4 percent to 3 percent in 2007-08 and further to 2 percent in 2008-09 after the introduction of Value-Added Tax (VAT).

   No merger of local body tax with VAT, GST

   MUMBAI, February 6, 2013: While octroi will be abolished across the state by October, it will not end the woes of taxpayers. Goods and services are likely to be taxed at multiple levels under the new regime.While the civic body will replace octroi with the local body tax (LBT), value-added tax, another indirect tax collected by the state at different stages of sale, will continue. The state government has ruled out a merger of the two indirect taxes. A government-appointed panel for alternatives to octroi deliberated the merger in detail.While claiming that a single-point indirect tax system was ideal, the committee, in its report, has said the merger might not be "practical" due to financial considerations. The state could soon brace for a third indirect tax on goods in the form of Goods and Services Tax (GST), which is under active consideration of the Centre. The panel, headed by principal  secretary (finance) Sudhir Kumar Shrivastava, submitted its report to chief minister Prithviraj Chavan on January 28. Chavan has accepted the report in toto.
  The committee recommended replacement of octroi with LBT across the state. In light of the development, the Brihanmumbai Municipal
Corporation (BMC) has set an October 1 deadline to switch over from octroi to LBT. Other big cities, including Thane, Pune, Nagpur, Pimpri Chinchwad and Nashik, will adopt it from April 1.
  The decision of non-integration of VAT with LBT, or LBT with GST was taken after these municipal corporations stated that such a move would cause substantial loss of revenue. "It would be difficult to compensate the corporations for the losses," a panel member said. Meanwhile, the state government has decided to make it mandatory for  civic bodies to seek its approval for fixing or revising tax rates on goods under the LBT regime. The panel has recommended uniform tax rates be adopted across the state. It has suggested categorizing of goods into various tax bands, which should be common across the state. Following Chavan's approval, the state urban development department has now appointed a sub-committee comprising municipal commissioners of the six corporations to finalize tax rates. A separate list of tax-exempted items will be prepared, an official said. An official added the sub-committee has been asked to ensure that these rates are revenue-neutral and not too high. Source: The Times of India

[ About Jute] [Jute prices] [ Jute Organisation] [ Directory] [ Jute Technology] [ Diversification] [ Statistics ] [ Jute Policy ]
[ FAQ] [Railways] [ Airways] [ Weather] [ Contact Us ] [Advertise With Us] [ About Us] [Disclaimer

Site copyright ă 2002, Worldjute.com All Rights Reserved.