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) 2012 (India) News                                            
               Vat  News 2011       Vat  News 2010    Vat  News 2009  
                                                         Vat  News Jan-Aug. 2009      Vat  News 2012       
 

   92.84% hike in earning through VAT on jewellery in Bihar
  
Patna, December 06, 2012 (PTI): Sale of gold and silver jewellery have risen manifold in Bihar as reflected from the fact that the state government witnessed 92.84 per cent rise in VAT it collected from sale of jewelleries in the current financial year. The state government has earned Rs 5.92 crore from VAT (value added tax) imposed on sale of gold and silver jewelleries till October in the financial year 2012-13, Deputy Chief Minister Sushil Kumar Modi told the assembly. The same was Rs 3.07 crore in 2011-12, Modi, who is also Finance Minister of the state, said.

   Andhra Pradesh government cuts VAT on textiles
  
HYDERABAD, November 9, 2012: The state government on Wednesday issued an ordinance reducing Value Added Tax (VAT) on textile goods from 5% to 1 %, but the reprieve for the traders came a bit late as it was cleared in-principle on April 20 this year, and they had to suffer harassment in the period besides bribing the corrupt officials. While the traders blame the chief minister N Kiran Kumar Reddy, who holds the commercial tax portfolio, for the inordinate delay, the chief minister's office (CMO) is sitting on similar issues such as tax waiver on pulses and VAT reduction on plastic furniture, leaving the traders in quandary.
  "The chief minister is not able to take out time for these issues and therefore they are stuck at the CMO even after an in-principle nod is given by the departments of revenue and finance. As a result, the corrupt officials are harassing the traders and making fast bucks taking advantage of the free-for-all situation prevailing apart from causing revenue loss to the exchequer," said Nitin Parekh, a commercial tax expert. Buying the traders' argument that it was unfair to tax the textile goods in the state when in the other states they are exempted from tax, the CM obliged to reduce the VAT burden on them from 5 % to 1 % on April 20 and said it would be applicable with a retrospective effect from April 1. But, his oral orders had no effect on the officials as the ordinance had not been promulgated to this effect. Source: The Times of India

   Seminar on VAT on October 16
  
Coimbatore, October. 11, 2012: A seminar on value-added tax (VAT) is being organised on October 16 by the Institute of Chartered Accountants of India (ICAI), Coimbatore branch and the Southern India Engineering Manufacturers’ Association,
Coimbatore. The seminar, to be held at ICAI Bhavan in Tudialur in the city, will be addressed by V.V. Sampathkumar, Chartered Accountant from Chennai and he would speak on ‘Tamil Nadu Value Added Tax-Audit’.

   Ministry to ask Karnataka to exempt VAT on chemicals, fertiliser
   
Chennai/ Coonoor (Tamil Nadu) October 8, 2012: The commerce ministry and the United Planters? Association of South
India (Upasi) are in talks with the Karnataka government to exempt value-added tax (VAT) levied on chemicals, fertiliser and nutrients used in plantations. "The ministry, along with various plantation bodies will persuade Karnataka to exempt VAT on chemicals, fertiliser and other nutrients used by planters as has been done by Tamil Nadu and Kerala,?"  Jyotiraditya Scindia, minister of state for commerce, said. Addressing the 119th annual conference of Upasi here on Friday, he said the exemption of VAT would help the plantation sector reduce its burden to some extent. 
  The Karnataka government has levied 5.5 per cent VAT on agriculture inputs like chemicals and fertilisers and 14.5 per cent for agriculture nutrients that are also used in the plantation sector. The cost of fertiliser and agricultural inputs have shot up more than 100 per cent over the last few years. Source: Business Standard

   Kerosene to be cheaper in state, cigarettes dearer
  
RANCHI, October 2, 2012: The Jharkhand government on Monday tried to provide some relief to the people by reducing the value added tax (VAT) on kerosene by three per cent. Around 25 lakh families, which are entitled to subsidized kerosene from public distribution shops, are expected to benefit largely from this price cut. They will now have to pay around 40 paisa less per litre. The state cabinet secretary, N N Pandey, said the council of ministers approved of the proposal. "It was decided that VAT on kerosene would be brought down from the existing five per cent to two per cent," said Pandey. On the contrary, the state has decided to increase VAT on tobacco products by six per cent. "Henceforth, the state will charge 20 per cent
   VAT on cigarette in place of the existing 14 per cent," said Pandey. However, the government was silent on the reduction of VAT on diesel and increasing the quota of LPG cylinders by adding three more to the capping of six by the Centre. At present, the state collects 18 per cent VAT from diesel and there is a demand for reducing it to four per cent. Source: Times of India

   CNG prices hiked in VAT rates in Uttar Pradesh
  
Noida, September 10, 2012: Indraprastha Gas Ltd today announced a marginal Rs. 0.20 per kg increase in price of CNG it sells in Uttar Pradesh on account of hike in VAT rates. "Due to increase in additional VAT by the government of Uttar Pradesh,IGL announces marginal correction of 20 paise per kg in the selling price of CNG being supplied by it in Noida, Greater Noida and Ghaziabad," the company said in a press statement.
   The new consumer price of Rs. 43.30 per kg in Noida, Greater Noida and Ghaziabad would be effective from 2200 hours tonight. The increase in CNG price in Noida, Greater Noida and Ghaziabad of Uttar Pradesh, where IGL is supplying CNG, is being done due to increase in additional VAT from 1 per cent to 1.5 per cent for items covered in Schedule V, thereby making effective rate of VAT on CNG at 14 per cent from 13.5 per cent, it said. "This minor correction will have negligible
impact on the running cost of the vehicles," IGL added. Source: NDTV 

   UP hikes VAT by 0.5 pc; ACs, mobiles costlier
  
Lucknow September 5, 2012 (PTI): The Uttar Pradesh government has hiked the value added tax (VAT) by 0.5 per cent, a move which will make ACs, refrigerators and other such goods costlier. The decision was taken at the Cabinet meeting on Tuesday and would be applicable after issusance of the notification on Wednesday, official sources said.
   As per the decision, in addition to 12.5 per cent VAT, which is imposed on certain items, additional tax has been increased from existing 1 per cent to 1.5 per cent. Though the additional tax has been increased, the state government claimed that it was less as compared to the other states. UP hikes VAT by 0.5 pc; ACs, mobiles costlier It will make ACs, refrigerators, motor cycles, cosmetics, shampoos, sanitary goods, tiles, electrical appliances, transformers, water purifires, cameras, mobile phones (costing more than Rs 10,000), cooked food suppliments, industrial LPG, watches, cranes, cement, machinery and others goods costly. Though the additional tax has been increased, the state government claimed that it was less as compared to the other states.

  Now a retrospective 5% VAT n Maharashtra
 
Mumbai, August 27,2012: In Maharastra VAT was earlier proposed to be at 5% on purchasing homes but was lowered to 1%, and has now been fixed at 5% after all. This will have an obvious negative effect on buyers, because developers are bound to pass the added cost on to them. In cities like Mumbai, this will reduced home sales. On the one hand, the market was awaiting new policies that would aim to boost flagging home sales. However, the Government's need to ramp up its fiscal deficit by generating additional revenue seems to have gained the upper hand.
   Buyers who had purchased their homes in 2006 would have taken possession of their homes by now and would not be affected. However, those who had made their purchases in under-construction projects in 2010 and have not yet received possession will have to pay 5% extra on the final amount. In some cases, developers have protected their customers from possible VAT-induced price escalations by specific clauses in the agreements, but such incidences are exceptions.

  Kerala levies a VAT of 5% for 1/kg of rubber
 
KOTTAYAM, August 13,2012:Kerala levies a value added tax (VAT) of 5% for 1/kg of rubber while the same charged by other states is less. This raises the price by Rs 2/kg in Kerala. Also cess tax (Rs 2/ kg) needs to be paid to the board. Officials said this additional expense is the driving force behind smuggling operations. Large quantity of natural rubber is being smuggled from Kottayam to other states through Kaliyikkavila route . After receiving several complaints, the rubber board has initiated steps to intensify patrolling from its regional centre in Marthandam, Tamil Nadu. Source: Times of India
  VAT increase will dampen growth: Bangalore Chamber of Industry and Commerce

  BANGALORE, July 29, 2012: The Bangalore Chamber of Industry and Commerce (BCIC) has expressed disappointment over the sudden mid-course correction undertaken by the state overnment by way of a 0.5% increase in VAT rates. The new VAT rates effective August 1, 2012, will be 5.5% and 14.5%. The industry body said: "The 0.5% hike may ex facie look minuscule, but on the larger canvas, if one analyses, over the last few quarters the industry has been reeling under pricing pressure resulting in quarter revenues either moving into negative or showing flat trends." BCIC said that the increase in VAT will dampen growth prospects and affect people at large as they are already challenged in sustaining monthly budgets.
  PV Srinivasan, chairman, indirect-state taxes expert committee, BCIC, said: "It is surprising that the government has increased the VAT rates mid-way through the year and that too giving a very short notice as the revised rates are with effect from August 1 itself. This will dampen the demand for several consumer goods, including electronic items, at a time when the trade looks for seasonal pickup in sales, thus adding to the woes of an already sluggish demand." 
  S Venkatramani, co-chairman, indirect and state taxes expert committee, BCIC, said: "There are a number of states where the rates of taxes are still pegged at 4% and 12.5% as against 5.5% and 14.5 % in our state. Therefore, service providers who do not avail input tax set-off may find it cheaper to procure goods from outside the state." Such a scenario, Venkatramani said, could result in flight of trade resulting in a loss to the exchequer. BCIC said: "The higher revenue mobilization on account of the higher rate will be offset by lower tax collection on  lower sales." Source:Times of India

  
Pay Rs 1,000 cr in VAT dues to Gujarat govt: SC to Essar Oil
   New Delhi/ Ahmedabad July 18, 2012: The Supreme Court on Tuesday directed Essar Oil Ltd to pay Rs 1,000 crore to the Gujarat government towards sales tax/value-added tax (VAT) dues by July 30. If this amount is paid, no coercive steps will be taken by the government against the company, the court said. The government had last week moved to attach the company?s bank accounts to recover the sales tax liability of around Rs 6,300 crore and penalty and interest of around Rs 2,000 crore. The company has received temporary relief and the matter will be reviewed on July 31.
   The Supreme Court had, on January 17, set aside the Gujarat High Court order that permitted the company to avail of the sales tax deferment scheme. Essar?s review petition was also dismissed. Therefore, the company on Tuesday mentioned the matter again before a bench headed by Justice A K Patnaik. The company had claimed benefits under a capital investment incentive to premier/prestigious unit scheme of the Gujarat government for its Vadinar refinery project. According to the scheme, projects started in remote areas, if completed within the prescribed time, could claim tax benefit of up to 125 per cent of the capital investments made in the project.
   Essar was obliged to complete the project by August 15, 2003. But it could not do so due to a cyclone that hit the project area in June 1998, litigation and several other factors. Essar's refinery project became operational only in 2006. The high court had allowed the company's plea to extend the benefit of the scheme. In response to the development, the company said: "Today the honourable court has directed the company to pay Rs 1,000 crore to the Gujarat government towards sales taxVAT dues by July 30. Essar Oil had offered to pay this amount in its submission to the court. On payment of this amount, coercive steps already taken by state would be stayed." Source: Business Standard

   Garment shops observe bandh against hike in VAT

   GUWAHATI, July 12, 2012: The day-long strike of Assam Textile Merchants' Association (ATMA) left the busy Fancy Bazaar area deserted on Tuesday with all garment shops in the market remaining closed. Even stores of other market areas here and other parts of the state also downed shutters during strike hours.
   The ATMA called the bandh to protest the state government's decision to impose an additional VAT of five per cent on textile products. The association has asked the government to revoke the decision as it would affect the local textile industry and the distributors of garments here badly. "Assam is not a garment manufacturing state, it is only a distribution
hub. At present, textile dealers, wholesalers and retailers of the surrounding states procure their requirements from Assam. In this process of distribution, the textile trade generates indirect employment and revenue for the state. 
    But after the imposition of VAT dealers from other north eastern states will stop buying from Assam. They will shift their purchases to other neighbouring states, mainly West-Bengal, or directly to the manufacturing states. The textile trade in Assam will collapse. This will be detrimental to the economy of the state also," said Subhkaran Maloo, president of ATMA. The textile industry in the state is already subjected to two per cent entry tax, which does not exist in other states. ATMA further said the new taxation rules would not only put additional burden on the common people but will also have a negative impact on the cottage industries of the state.
   "In interior areas, textile trade has taken the form of a cottage industry. Women and small households buy cloth in small quantities, stitch garments and sell them in the local haat or weekly bazaars. After VAT imposition, they will now have to purchase and sell their products at higher prices. As a result, local garments from neighbouring states will start pouring in, which will be more competitive in prices. Our state's cottage industry will be affected," said Maloo. Source:Times of India 

   CM Manohar Parrika scraps 5% VAT on fabric

   PANAJI, June 28, 2012: The government has abolished the 5% VAT levied on fabric with effect from June 1, chief minister Manohar Parrikar announced at a media briefing on Wednesday afternoon. He said that there was 5% special central excise duty on two products till March 31-cotton fabric and sugar. The central government used to collect the special excise duty and remit it to the state government. Now, from that date, the central government has said that if states want to collect tax, they could levy VAT. Parrikar said his government had avoided sugar because it is an essential commodity. But in routine course, the government had levied VAT of 5% on fabric.
   Later, however, the government realized that neighbouring states had not levied such a tax. Parrikar, "Even otherwise, Goans go to Belgaum for their wedding shopping. With an additional 5% tax on fabric, it would only hit Goan businesses more. Goan merchants and traders had come with their representation to me. So we have taken a cabinet decision to reverse our earlier decision." Though the 5% VAT on fabric has been abolished with effect from June 1, the tax for the two months before June will have to be paid, he said. Source: Times of India

   HP Cabinet makes e-declaration of VAT compulsory
  
SHIMLA, June 19,2012: Amending the VAT rules, a cabinet meeting on June 18, 2012 decided to make e-declaration compulsory even as it amended goods entry terms so as to restrict its misuse and approved handing out two parking- cum-commercial complexes on public private partnership (PPP). Presided over by chief minister Prem Kumar Dhumal, the cabinet gave its nod to amend HP VAT Rules, 2005 and make e-declaration for certain class of dealers compulsory before dispatch of taxable goods in intra-state transactions.
  The cabinet also amended Schedule-II of HP Tax on Entry of Goods Into Local Area Act, 2010 for a clearer demarcation and to avoid its misuse by industry. The cabinet approved two built-up parking spaces with a commercial complex at Vikasnagar in Shimla and Mandi town to be let out on PPP mode. To create parking spaces in the capital, three such parking-cum-commercial complexes are already under construction under the PPP model. Source: Times of India

   Meghalaya govt decides to lower VAT on petrol

   Shillong, June 14, 2012 (PTI): The Meghalaya government today decided to bring down the VAT on petrol, a decision which would come into effect from Friday, Chief Minister Mukul Sangma said. Announcing this after a cabinet meeting, Mukul said "We have taken one day to ensure that there is no manipulation of stock," adding that all district Deputy commissioners were instructed to check the stock. The Chief Minister reasoned that intention of his government is "to
extend relief to the consumers," who after the de-regulation, oil companies fixed the price hike which in the end, the result is passed to the consumers.
   After the reduction of VAT on petrol, it would mean petrol would be  cheaper by Rs 1.10 per litre at the retail end in the state. The price of petrol at present in Meghalaya is Rs 72.37 and after the reduction in VAT it would cost Rs 71.27 The OMC?s had reduced the base price of the product by Rs 1.68 a litre (excluding VAT/sales tax). The decrease, however varied from State-to-State depending on the rates of value-added tax or sales tax. 

   Andhra Pradesh to reduce VAT by 2 per cent on petrol

   Hyderabad June 07, 2012 (PTI): Andhra Pradesh government tonight decided to reduce Value Added Tax by 2 per cent on petrol, bringing its price down by Rs 1.19 per litre, a move which has been approved by the Election Commission (EC) ahead of the June 12 byelections in the state. The state government sought the EC's permission to reduce petrol price as the model code of conduct is in force for the bypolls for 18 assembly seats and one Lok Sabha constituency. The permission has been given by the poll panel, official sources said here.
  An official release said Chief Minister Kiran Kumar Reddy has given his consent for reducing VAT on petrol and a formal order in this regard would be issued tomorrow.

   VAT on CNG dropped by 5% in Delhi

   New Delhi, June 4, 2012 (DNA): Giving relief to the common man, Delhi Chief Minister Sheila Dikshit on Monday announced withdrawal of a proposal to impose 5% VAT on CNG, which had drawn flak not only from the opposition but even a section of Congress MLAs. Replying to a discussion on the budget, which was passed by the Delhi Assembly, Dikshit said considering the demands in this regard, the government has decided to withdraw the VAT on CNG.
  The Delhi government has also decide to cut VAT on the hiked component of petrol, which would make the fuel price cheaper by 92 paisa. Presenting the budget on May 28, Dikshit had proposed imposition of VAT on CNG to generate around Rs 110 crore in revenue while withdrawing VAT on the increased component of petrol. The VAT would have pushed up the CNG price to Rs 37.20 per kg from the current Rs 35.45 per kg, a rise of Rs 1.77. The government's decision to impose VAT on CNG, which fuels public transport on Delhi roads, had met with strong protests not only by the opposition BJP but a number of Congress MLAs had also openly criticised the move.
  Congress MP from West Delhi constituency Mahabal Mishra and around 15 party MLAs had demanded a roll back arguing that any increase in price of the fuel would result in hike in taxi and auto fares which would have a negative effect on the party ahead of next year's assembly polls. Any hike in the price of the fuel would result in rise in price of essential commodities as goods carriers also use CNG, they argued. Demanding immediate rollback of VAT on CNG, Delhi BJP had called for a 'Delhi bandh' on Thursday last to protest against spiralling price rise, including that of petrol and the proposal for introduction of VAT on CNG by the Delhi government.

  States can reduce VAT on petrol, says Narayanasamy

  Chennai, May 28, 2012 (PTI): Amid the mounting pressure for rollback of petrol price hike, Minister of State in the PMO, Mr V Narayanasamy has said states could reduce the Value Added Tax on petroleum products to provide relief to the people. “The states can lower the VAT and that can help reduce the petrol price,” he told reporters at the airport here on Saturday night. The latest hike in petrol price by Rs 7.50 has come under flak from opposition and also key UPA allies DMK and Trinamool Congress. On Tamil Nadu Chief Minister, Ms J. Jayalalithaa writing to Prime Minister, Dr Manmohan Singh demanding more kerosene allocation to the State, he said, “There has been an increase in the LPG allotment to the State. However, the Centre will look into Tamil Nadu's demand (for kerosene).”

  Cabinet may consider VAT reduction on Petrol

  PUNE, May 25, 2012: Chief minister Prithviraj Chavan on Thursday said the cabinet will consider a reduction in value added tax (VAT) on petrol. However, any immediate relief may not be possible in view of the requirement of funds for mitigation of a drought-like situation in the state. He was speaking to reporters at a function to lay the foundation stone of Indian Institute of Tropical Meteorology's (IITM) High Altitude Cloud Physics Laboratory and Monitoring (HACPLM) in Mahabaleshwar. Chavan said, "The reduction in VAT on petrol will be considered at the cabinet meeting. However, this year it will be difficult to reduce VAT in view of the drought-like situation in the state where there is expenditure on several drought-related and developmental works.''
  He said VAT on petroleum products was not high, when compared to other states. The rise in petrol price was inevitable because of increase in import bills and depreciation of the rupee, he said. Source: Times of India

  Stamp duty, VAT bills introduced

  CHENNAI, May 16, 2012: Commercial Taxes Minister C Ve Shanmugam on Thursday introduced Bills on consolidation of stamp duty and VAT assessment for dealers. The Bill to amend the Indian Stamp Act (ISA) provides for consolidation of stamp duty in respect of various types of instruments like bonds, debentures, policies of insurance, share certificates, etc. Now, the State� government has decided to provide for composition or consolidation of stamp duty in respect of memorandum sent by a broker or agent to his principal intimating the purchaser or sale on account of such principal, the Bill said. Shanmugam also introduced another Bill to amend the Tamil Nadu VAT Act. 
  The Bill said the State government has decided to dispense with the existing procedure of passing an assessment order by the assessing authority and replace it with a system of deemed assessment. Under the system, a dealer shall be deemed to have been assessed if the returns are filed as prescribed.� The government will treat the returns filed for 2006-07 to 2010-11 as deemed to have been assessed on June 30, 2012, if they had been filed as prescribed.  

  UP Chief Minister requested to reduce VAT

  April 9, 2012: UP Petroleum Traders Association at its meeting held on Sunday passed a resolution requesting Chief Minister Akhilesh Yadav to reduce value added tax on petrol and diesel and bring it at par with Delhi and Haryana. The resolution also demanded to bring lubricating oil out of vat's ambit, abolition of licence for diesel, payment of pending bills for diesel and petrol supplied during elections etc.

   Petrol prices in Goa slashed by Rs 11, cheapest in India

   Goa, April 2, 2012: Long queues were witnessed near petrol pumps throughout Goa after Manohar Parrikar government slashed the petrol prices by Rs 11 since midnight. The state government has brought down 22 per cent VAT on petrol to just 0.1 per cent pulling down the prices. A litre of petrol now costs Rs 54.96 here as against Rs 65 per litre priced till yesterday. The vendors at the petrol stations stated that majority of the people were topping up full tanks which drained the
stocks within hours of the opening of the station. Cars were queuing on the road to get into the petrol station, causing a problem for other road users. Goa Petrol Dealers Association President Paresh Joshi said the scarcity of fuel was a temporary phenomenon. "People were waiting for today to fill the petrol as it would cost cheaper. Also several fuel stations had not accepted the stock on Saturday as they will have to bear the Value Added Tax (VAT) on it," he said.
   Chief Minister Manohar Parrikar had said he was ready to abolish entire VAT on petrol but negligent 0.1 per cent is retained to know the quantum of petrol sold in the state. Money collected from 0.1 per cent VAT will also be utilised to fund the monitoring mechanism on the borders to ensure that there is no smuggling of the fuel to neighbouring states. The BJP in its manifesto for March 3 elections had promised to slash the petrol prices. The assurance was fulfilled in the state budget presented on April 26.Source: Times of India

   5% VAT may slash cotton prices further
  
NAGPUR, March 30, 2012: Cotton prices in the state fell further by around Rs 200 at Rs 3,400 a quintal following the state government's budget announcement of imposing a value added tax (VAT) of 5% on cotton. The additional tax burden has hit the market sentiment which was already low with the virtual stalling of exports since March 5. While on the one hand the state government has decided to extend a relief of Rs2,000 crore to around 5 million cotton farmers after crop failure in more than nearly 40 lakh hectares, it took a harsh measure to put 5% VAT on cotton.
  Prices which were ruling around Rs4,200 in the first week of March have steadily declined to Rs 3,400 in the current week. "This will only add to economic losses of the already distressed cotton growers," said Kishore Tiwari of Vidarbha Jan Andolan Samiti (VJAS). He has urged the state to roll back the VAT proposed in the budget. In other cotton growing states it was no more than 2%, he claimed. The director general of foreign trade (DGFT) literally stalled cotton exports by sea and road since March 5 leading to crash in raw cotton prices. VJAS has demanded that the group of ministers (GoM), which is
likely to meet on April 3, should review the situation and lift all restrictions on cotton exports.
  "When cotton arrival as per data is only 242 lakh bales as against 278 lakhs bales of last year and at least 120 lakh bales awaited in the markets, such restrictions will expose more than 7 million cotton growers, traders and exporters to huge economic losses and will damage Indian cotton trade. Just to protect a few garment manufactures, the DGFT should not be allowed to dictate its terms," said Tiwari. Source: Times of India
 
  Rajasthan government reduces VAT on petrol
 
Jaipur, March 27, 2012 (PTI): The Rajasthan government today imposed new taxes to earn about Rs 300 crore but gave away about Rs 225 crore by reducing the VAT on petrol by 2% in the budget for 2012-13. In his fourth budget, Chief Minister Ashok Gehlot has presented an annual plan size of Rs 33,500 crore with a fiscal deficit budget of Rs 8,650.60 crore for 2012-13. In his budget speech, Gehlot announced reduction in VAT on petrol from 28% to 26%, from 14% to 5% in automobile parts, and similar reduction in wood glue used in handicrafts.
  Taxes on machineries and parts which are used in energy generation from bio mass, solar and wind power, and waste paper have been exempted. Gehlot, who also holds the finance portfolio, reduced one-time tax on two-wheelers with 125cc power to 4% from 8%, and on two-wheelers with power more than 125cc to 6% from 8%. Along with this, he also gave a
relief of 2% in tax on non-transport four-wheelers worth over Rs 10 lakh. The chief minister also exempted tax on all activities which were covered under entertainment tax. Showing commitment to the health of citizens, Gehlot increased 10% VAT on pan masala and tobacco products. Gehlot increased 10% of DLC rates of all kinds of lands, 6% in goods tax
for explosive, 5% in yarn, 0.2% stamp duty on agreements related with BOT related projects. Gehlot made an estimated surplus budget of Rs 396.62 crore in the next fiscal with total revenue receipt of Rs 63,146 crore. 

   Gold, cloth traders observe three-day strike

   BHOPAL, March 19, 2012: Jewellery shops in the Old Sarafa market in the state capital remained closed on Saturday following the three-day strike called by the All India Gems and Jewellery Trade Federation (AIGFTF) against the one percent increase in excise duty over gold proposed by the Finance Minister Pranab Mukherjee in the Budget 2012. Meanwhile, the cloth merchants also observed a bandh following a call by the clothes merchants association to protest against the 5% VAT levied of clothes by the state government.

   Manohar Parrikar promised to abolish VAT on petrol prices
   Panaji, March 12, 2012: Manohar Parrikar, 56 was sworn in as chief minister of Goa for the third time Friday. "My immediate priority is the state budget and we have promised to abolish VAT on petrol prices. We will tackle all issues, consult experts in taking decisions regarding environment," Parrikar said. With people voting emphatically against the Congress, Parrikar, the former chairman of the Public Accounts Committee, which unearthed illegal mining, has his task cut out. Asked what action he would take against those who face severe charges, Parrikar said: 
  "We will act against the corrupt. However, to rule out allegations of vendetta, we will give major complaints to the Lokayukta. We will set up a Lokayukta in 100 days."  He is no stranger to corruption charges himself. In 2006, he was accused of siphoning off the funds from the International Film Festival of India in 2004. The CBI could not find any evidence and closed the case last year.

   JK govt exempted from paying VAT on domestic cooking gas 
   Srinagar, March 6, 2012 (DNA): Jammu and Kashmir Finance minister Abdul Rahim Rather presented the 'please-all' budget and tried to reach out to every strata of society with focus on youth, women and students who form the major chunk of voters in Jammu and Kashmir. The highlight of the budget was the concessions to the housewives who have been exempted from paying VAT on domestic cooking gas. To ease the burden of the masses from rising food inflation, Rather announced the continuation of exemption from the levy of VAT on atta, maida, suji, besan, paddy and rice etc for one more year. Other highlights include- Rs five crore provision for 'Beti- Anmol' scheme and another Rs10 crore for empowering skilled young women, exemption from levy of VAT on all types of chemical fertilizers, bio-fertilisers and micro-nutrients, a slew of incentives to tourism industry including 30% capital outright investment subsidy on fixed assets created by new investments subject to a maximum of Rs30 lakh, full exemption of levy of VAT on computers and all the IT related items
and Rs130 crore for return and rehabilitation of Kashmiri migrants. Levy on the cigarettes and liquor has been increased to curb smoking and drinking in the state.

   Imposition of 5% VAT on garment in MP state budget

   Indore, March 02, 2012: Already hit by Bangladeshi and Chinese invasion in its domain, the garment industry in Indore is seething with anger over imposition of 5% value added tax (VAT) announced by finance minister Raghavji in the state budget. The fresh tax, industry bodies say, will further cripple whatever is left in the textile sector in the city that once prided itself as Manchester of Central India. The industry had begun to show signs of revival in last couple of years after a long spell of trouble in the wake of closure of all the seven mills in Indore. “In the sluggish atmosphere post- Diwali, the demand has already gone down by 30% to 35%, especially from South India, which accounted for a sizeable business,” rues secretary, readymade garments manufacturers’ association, Ashish Nigam. 
  He claimed that cheap products dumped by manufacturers from China and Bangladesh are hampering their business as manufacturing cost is quite low in these countries. Competitiveness in manufacturing cost is heavily odd against Indore’s growth as textile hub. That’s why, the textile industry thought the state government would announce some positive steps
to at least shore up the damage from unequal competition from China and Bangladesh goods. The industry, however, feels badly let down by the finance minister.
  Giridhar Gopal Nagar, president of cloth market association, says apart from 1% entry tax, 2% GST and now this 5 % VAT, the traders would be required to pay 8% taxes. This will spell doom on the industry, he fears. The oldest and the biggest market of Indore, the Cloth Market, with annual turnover of Rs 300 to Rs 500 crore is upset with the state government. The gloomy scenario can be seen in larger perspective of cotton industry in Madhya Pradesh as well. “Madhya Pradesh has 4% share in fixed capital, 3% in output and less than 2% in employment in Indian textile sector. Contrast this with Punjab and the gloom becomes apparent. Punjab, a much smaller state in size, has 9.8% share in fixed capital, 8.8% in output and 6% in employment”, points out MC Rawat, secretary of MP Textile Mills Association. Source: DNA

   Electric bikes to get cheaper due to reduce VAT

   Mumbai/ Rajkot February 29, 2012: Gujarat government's decision to reduce value added tax (VAT) on battery-operated two-wheeler seems to have started yielding results. Some of the leading players see prices of electric two wheelers in Gujarat coming down in the range of Rs 2,500 to Rs 3,500 as the electric bike makers in the state plan to pass on the benefit of reduced VAT to end users. Some of the leading electric two wheeler manufacturers such as Hero Electric, Electortherm and Ajanta are likely to cut the prices of their products.
   "Liker other players, we will also pass on this 10 per cent reduction to the customers," said Sohinder Gill, CEO, Hero Electric. Gill is also director, corporate affairs, at Society of Manufacturers of Electric Vehicles (SMEV). The demand for reduction in VAT levied on battery-operated two-wheeler in Gujarat was long pending.
  "Finally, the Gujarat government reduced the VAT on e-bikes following which the cost of the product will come down by Rs 2500-3000 per unit in the state," said Jaysukh Patel, managing director of Morbi-based Ajanta Group, which produces electric two wheeler under the brand name "Oreva". It may be mentioned here that Gujarat finance minister Vajubhai Vala
slashed the rate of tax on battery-operated two-wheelers from 15 per cent to 5 per cent including additional tax in the annual state budget presented in the Gujarat assembly on February 24, 2012. Source: Business Standard 

  Tax revenues in Jammu and Kashmir touch a high of Rs 4,800 crore

  JAMMU, February 21, 2012: The total tax revenue collected by the state has touched a high of Rs 4,800 crore this year, Jammu and Kashmir Minister for Finance and Ladakh Affairs Abdul Rahim Rather said today. "This year, the total tax revenue has touched a high of Rs 4,800 crore compared to Rs 3,400 crore during last year," Rather said.
  The state's finance department is continuously and comprehensively reviewing its fiscal updates, by virtue of which the state's VAT has increased to about 41 per cent, which is highest in the country, he added. At the foundation stone laying ceremony of the branch of the Institute of Chattered Accounts of India's (ICAI), Rather said, "Chartered accountant's professional advice and expert role in formulation of policies, legislation and standardisation and improvements in accounting practices are indispensable for governance..." 
  The ICAI branch here shall prove beneficial for the local youth to venture in the field of Chartered Accountancy and update their knowledge and the acumen of its members, he said. Source: The Economic Times

   Indian Film industry to strike on February 23
 
Mumbai, February 16, 2012: The Indian film industry will strike on February 23 to oppose the 10.3 per cent service tax that the government has levied on it last October. "The high service tax is killing the film industry. Both regional and Bollywood industry members - producers, distributors and exhibitors will be on token strike that day," confirmed TP Aggarwal, VP, Film Federation of India.
  The Indian film industry has united for this cause after several rounds of discussions on it failed to make any headway. The government announced the 10.3 per cent service tax last October, increasing the industry's tax burden. According to producer and V-P of the film producers' guild in Mumbai, Mukesh Bhatt, more than 50 per cent of a film's budget comprises various taxes, such as excise, stamp duty, VAT, Octroi and so on.  "This will further shoot up a film's budget, reducing the chances of its success when released," he points out. It's the cinema-goers who would finally bear the brunt of this government move when the ticket prices go up in order to offset the service tax that the distributors and exhibitors will pay at their end. "We are already paying huge taxes on the lease with the mall owners. A further 10.3 per cent tax will have a trickle-down effect, even for single screens, thus hiking the ticket prices and possibly hampering the ticket sales," explains Sunil Punjabi, CEO, Cinemax India Ltd. He adds that theatres have started paying the taxes since October 2011 when the
order was passed.

   Textile bandh against VAT 

  VIJAYAWADA, January 23, 2012: With no signs of the State government responding to their request to withdraw the Value Added Tax (VAT) on textiles, the traders have decided to organise bandh from Monday onwards. Some of the traders have already downed their shutters in Vastralatha and others areas in protest against the VAT being imposed on textiles.The Andhra Pradesh Textile Federation has given a call to observe a week-long bandh from January 22, which happens to be a Sunday. So, the bandh would come into force effectively from Monday.
  The traders observed three-day bandh in December following raids by commercial taxes department. The CT officials raided the shops in a strategic manner in December which is Christmas-Sankranti season. The tussle ended with the intervention of Vijayawada (West) MLA Velampalli Srinvasa Rao.
  The federation strongly condemned the raids and the government's indifferent attitude towards the cloth merchants. The traders also planned to organise ‘Chalo Hyderabad' if the government fails to respond to the demand. Strongly deploring imposition of VAT on textiles, the traders said VAT would become a big burden on consumers and affect the textile business in the State. Only Andhra Pradesh government was imposing it. “We don't mind if any tax is imposed across India as it will impose burden equally. Our concern is that the business is going to neighbouring states such as Tamil Nadu where there is no VAT on textiles,” they said. Source: The Hindu
  

[ 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.