Business Daily from THE HINDU group of publications
Tuesday, Nov 21, 2006

Cross Currency

Group Sites

Industry & Economy - Taxation
States - Tamil Nadu
`Sales to SEZ units eligible for VAT refund'

Our Bureau

The cardinal principle behind VAT is tax paid on purchase is deductible from tax payable on sales.

Chennai , Nov. 20

Sales of goods made to units in special economic zones would be eligible for refund of Value Added Tax, Mr G. Shanmugam, Joint Commissioner (Commercial Taxes) of VAT Cell,Government of Tamil Nadu, clarified on Saturday.

In an interactive session on VAT organised here by the Rotary Club of Esplanade, Mr Shanmugam said that when a unit in Tamil Nadu sells goods in other States, the unit would be entitled to input tax credit of all but 4 per cent of the input tax paid. For example, if a company buys a product that had suffered a 12.5 per cent tax and sells it in Andhra Pradesh, the company could claim an input tax credit of 8.5 per cent. The State Government would retain 4 per cent tax, he said.


Same for inter-state stock transfers, provided they are done with the C forms, the Joint Commissioner said

Answering a barrage of questions, Mr Shanmugam stressed that the cardinal principle behind VAT was `tax paid on purchase is deductible from tax payable on sales'.

More Stories on : Taxation | Infrastructure | Tamil Nadu

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

Stories in this Section
Wanted: 2 lakh pharmacists a year

`Investors can gain by adopting lifecycle approach'
FDI inflows double in first half to $4.4 b
Manufacturing sees 12.1 pc growth in H1
Chinese President Hu Jintao's visit — More hype than substance?
Visa norms eased for Chinese
Indo-German trade to touch € 10 b
`EU team assessing seafood units'
`Govt to look at public-private model for healthcare'
`SEZs help TN Govt attract Rs 2,750-cr investment'
TN special economic zones get going
Balmer Lawrie upgraded to Mini Ratna Category 1
Petro dealers begin indefinite strike in Maharashtra
Reddy allays fears on K-G gas reserves
`Sales to SEZ units eligible for VAT refund'
`SMEs generate employment'
Bank of India to lend more to small units
Truck, bus tyre production up 6 pc in Sept
Spirit imports: EU favours WTO talks
AP seeks review of statutory warning on bidi
10 killed, 50 injured in Bengal train blast
New York-based Trikona Capital to enter into realty biz in India
AP seeks land in Ajmer for `sarai'
Leather meet begins today
All set for a heated winter session
India ranks second in patent pleas
Bill to remove hand-pulled rickshaws soon: Buddhadeb
Not-so-creditable on microfinance
Rs 30-cr Nabard aid for Kerala
Meet to examine agri-biz relevance
Hotels more caring of staff as poaching is on the rise
Plea to include retail under Apprentices Act scheme
Computer training for labourers
Net direct tax collections up 39 pc in Apr-Nov
Rubber exporters asked to return duty drawback money
`Sarda's arrest affects raw jute futures'

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | 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