?VAT favourable for industry?
HARD-SELLING value-added tax (VAT) system, a team of commercial tax officials made presentations on VAT, followed by an interactive session with the entrepreneurs of Govindpura Industries here today.india Updated: Mar 31, 2006 01:01 IST
HARD-SELLING value-added tax (VAT) system, a team of commercial tax officials made presentations on VAT, followed by an interactive session with the entrepreneurs of Govindpura Industries here today.
In the outset, the industries tried to focus on the pressing issues like input rebate tax, inventory rebate and appealing process. The participants stated the schedule under VAT to be incomplete, as several input items were not covered in the list.
Giving examples, the industry representatives pointed out that input items mentioned in VAT Act’s schedule-2 attract 4% tax, whereas several SSI units manufacturing and supplying machines, insulations, processing and fabrication parts have not been included in 4% slab.
“Resultantly, it would attract 12.5% tax, making it costlier for the small ancillary manufacturers,” they said. Stating VAT to be favourable for industry sector, president, Industries Association Govindpura, the organisers of the seminar — said the commercial tax department needs to come up with a clear list mentioning all the input items manufactured in the SSI sector and bring it under 4% slab.
“Otherwise, MP would be less advantageous to other manufacturing units in other states,” he mentioned. The association has suggested the department that the VAT rate of the industrial inputs should be less or at par with the output / product manufactured by units using these industrial inputs.
Deputy commissioner and assistant commissioner S K Shukla and R S Pandey respectively made presentations dealing with the VAT act and its various nuances.
A similar seminar was organised by iron dealers and manufacturers associations in the City, which was addressed by additional commissioner SK Jain and deputy commissioner P M Janioria.