|
The
Cabinet Sub-Committee on VAT, headed by Finance Minister
K. Rosaiah, which took this decision here on Monday, noted
that the State was losing trade in rubber products and,
consequently, tax also, with people opting to buy them in
Tamil Nadu and Karnataka which collected only 3 per cent
VAT.
Problems
discussed
The
meeting, which was attended by Commercial Taxes Minister
K. Ramakrishna and Industries Minister J. Geetha Reddy,
considered various practical problems faced by officials
in implementing VAT. Mr Rosaiah told reporters later that
the VAT rate on rubber products in the State was seen to
be so high that even a public sector undertaking like
APSRTC wanted to get its tyre re-treading works done in
other States.
The
Committee deferred a decision on representations by
service organisations to allow exemption from VAT on their
purchases, as was done in the case of the TTD and Sri
Satya Sai Trust, Puttaparthi, as also on the plea from the
trade to collect VAT on duplicate automobile spare parts
at the same rate of genuine ones.
Source
: The Hindu, India, dated 22/01/2008
|
