Business Daily from THE HINDU group of publications
Friday, Dec 29, 2006
ePaper
Business Daily from THE HINDU group of publications Friday, Dec 29, 2006 ePaper |
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Industry & Economy
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SSI States - Tamil Nadu Tanstia seeks VAT exemption Our Bureau
Chennai , Dec. 28 The Tamil Nadu Small and Tiny Industries Association (Tanstia) has sought exemption from Value Added Tax for small manufacturers along the lines of exemptions given to traders. Addressing a meeting of its members at a programme on VAT awareness, Mr A. Shanmugavelayuthan, President, Tanstia, said just as traders with a turnover of up to Rs 10 lakh were exempted from VAT, the manufacturers too should be exempted. VAT now exempts only manufacturers with a turnover of Rs 5 lakh, he said. Tanstia welcomes the shift to VAT from sales tax but there were some concerns that need to be addressed. The exemption to small manufacturers from registration could affect them in the present form because the buyers have to tax and claim a refund. Taxes should be fully exempted because the refund procedure complicates issues and buyers would rather prefer to buy from registered manufacturers than from those with exemptions, according to Mr Shanmugavelayuthan. Also, the option of traders up to a turnover of Rs 50 lakh paying compounding tax of 0.5 per cent should be extended to manufacturers, he said. Interstate sales which attract 4 per cent VAT when C-form is produced can be set off. The same facility has to be extended to purchases without C-form, which attract 12.5 per cent tax.
More Stories on : SSI | Taxation | Tamil Nadu | Industry Associations
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