Financial Daily from THE HINDU group of publications
Wednesday, Jan 25, 2006


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Industry & Economy - Taxation


CII for phased removal of CST

Our Bureau

Hyderabad , Jan. 24

THE Confederation of Indian Industry (CII) has called for phased removal of Central Sales Tax (CST) to pave the way for a real uniform regime of Value Added Tax (VAT) across the country.

In its pre-Budget memorandum to the Andhra Pradesh Government, the CII has called for efforts to phase out of the CST in the next two years - from 4 per cent to 2 per cent in the first year and from 2 per cent to 0 per cent in the second.

"A single VAT with no CST, octroi and entry tax is the best option," Mr M.K. Patodia, Chairman of CII's Andhra Pradesh Chapter, said.

The memorandum was submitted to Mr K. Rosaiah, Minister for Finance and Health, last week.

It asked the State Government to remove the Entry Tax of 12.5 per cent imposed on 12 items like caustic soda, chlorine, hydrochloric acid and sulphuric acid with effect from October 15, 2005.

"We appeal to the Government to remove this tax as it goes against the very purpose of implementing VAT - that is to remove anomalies in taxes," it said.

The Chamber also appealed to the Government to bring vital industrial inputs, which were under the 12.5 per cent slab, into the 4 per cent category.

Input tax credit should be allowed on fuel or coal used for captive power generation as well as on capital goods purchased for setting up captive power generation plants. It was desired that medical devices, implants and disposables came under the four per cent category as in most other States.

The CII said that the services sector in the State showed a robust performance, contributing 49.16 per cent of GSDP (Gross State Domestic Product) at Rs 98,057 crore.

More Stories on : Taxation

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Monsoon pattern points to `La Nina' in the making


Air Arabia, Kingfisher tie up for Mangalore to Gulf flights
`New pension system to have sizeable subscriber base'
UN pat for India's `economic performance' — Manufacturing, infrastructure development in forefront
IL&FS seeks to join Mangalore export zone SPV
Industrial infrastructure will be improved: AP CM
Replacing AED on cigarettes with VAT can hit many States — Fall in revenue seen in 44-88 per cent range; consumers may pay more for a puff
CII for phased removal of CST
Tiruchengodu, Namakkal emerging textiles hub
Water levels decline in Kerala reservoirs
`Modern management concepts found in Tamil literature'
ICICIOneSource programme to make youth employable
IBM India, BITES launch project for academic excellence in Karnataka
Manipal group earmarks Rs 150 cr for more buys
Energy prices, global oil demand fuel upturn in Saudi construction activity
India Inc welcomes apex bank's move
`Aircraft supplier for AWACS to be finalised in 3-4 months'
`Ease regulatory burden to attract higher FDI'
King Koil gets FIPB nod to start India operations
Give private credit institutions a chance
Nabard sanctions funds for TN projects
PM for inter-ministerial meets to help solve exporters' woes
Pvt equity, venture capital cos raise $950 m via IPOs: Study
Banks' role in IPO scam — Risk control systems under RBI scanner
Raj Basantani group to face prosecution for fraud


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line