Industrial units urge MP govt to rationalise tax structure
Local industrial units want the MP government to rationalise taxes on the lines of neighbouring states to give an impetus to the manufacturing sector.indore Updated: Feb 04, 2015 15:59 IST
Local industrial units want the MP government to rationalise taxes on the lines of neighbouring states to give an impetus to the manufacturing sector.
Businessmen have also urged the state government to streamline the process of input tax rebate and take steps to do away with double taxation.
The Pithampur industry association, which will submit a pre-budget memorandum to state finance minister Jayant Malaiya on Wednesday, has highlighted discrepancies in the MP VAT Act and Entry Tax Act. According to businessmen, the Acts are causing hardships to the industrialists.
"Despite repeated requests, VAT Act is not being amended suitably in accordance with entries under the Central Excise and Tariff Act, resulting into creation of huge tax demand," the memorandum states.
"It results into levy of tax at 13% instead of 5% on some commodities and therefore litigations are increasing day by day," association president Gautam Kothari said.
The association has also expressed concern over the abnormal delay in refund of input tax rebate (ITR). "Section 14(4) of the Act authorises to grant refund of excess ITR after adjusting tax liability immediately to an industrial unit whereas traders are eligible for refund of ITR after two years. Even though the provisions are self explanatory, the ITR refund is not being granted for years together."
The association has pointed out that blocking of crores of rupees is resulting into substantial loss of interest and financial crunch for many industrial units.
The association pointed out that in most states the unutilised input tax credit is refunded against bank guarantee within a year. Industrialists has suggested ways in which the entire process could be streamlined.