Financial Daily from THE HINDU group of publications
Saturday, Jul 10, 2004
Financial Daily from THE HINDU group of publications Saturday, Jul 10, 2004 |
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Industry & Economy
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Taxation TN: Plea to remove `turnover tax' Our Bureau
Chennai , July 9 COMPANIES located in Tamil Nadu have reiterated their demand that the State Government do away with the `turnover tax', which they say, is putting them in a disadvantage vis-à-vis their competitors from other States. TVS Motor Company, for example, which has invested Rs 750 crore in a manufacturing unit in Hosur and employs over 4,000 people, says that the turnover tax is hurting its sales. "On an average selling price of around Rs 35,000 per motorcycle, the three per cent (turnover tax) works out to Rs 1,050 per vehicle," the company has pointed out in a background note, used for putting its point across. The company's calculations show that for every Rs 100 of basic price, the sale price has to be Rs 116.60. But a manufacturer from any other State can sell in Tamil Nadu for Rs 113.60. "In the year 2002-03, we had a market share of 33 per cent in Tamil Nadu, which went down to 29 per cent in 2003-04 and slid further to 19 per cent in the current year. This tax has helped only manufacturers from other States, such as Bajaj and Hero Honda, to increase their market share," the note says. It points out that the `turnover tax' is unique only to Tamil Nadu. It is learnt that many large companies in the State, such as EID Parry, TAFE and Ashok Leyland, are affected by the turnover tax.
More Stories on : Taxation | Tamil Nadu
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