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Sources
said that the proposal was made in the overall national SEZ
policy drafted by the Union government, that the goods sold
to the SEZ for its establishment and maintenance need not
pay sales tax.
"No
tax shall be payable by any (registered) dealer in respect
of sale of any goods made by such dealer to a registered
dealer for the purpose of setting up operation, maintenance,
manufacture, trading, production, processing, assembling,
repairing, reconditioning, re-engineering, packaging in an
unit located in any SEZ …," says the proposed section
7-A being inserted into the VAT Act through amendment. The
amendment bill was approved by the state Assembly on
Tuesday.
The
State has about 70 SEZs have obtained approvals, while 46
SEZs have committed an investment of about Rs 32,000 crore.
These include 33 IT and ITES SEZs spread across 15 districts
in the State.
Further,
the government also proposed an amendment enabling to deduct
tax in full from the bills of works contractor, wherever a
separate provision for tax at the rate of 4% is provided in
the estimates in respect of works of government and local
bodies. As of now, only 2.8% tax is being deducted while the
contractor is provided 4% tax to the contractor over and
above the estimates. This would reflect in the accounts of
the government works including irrigation projects, source
said.
Further
to minimize the defaults, the government by an amendment
authorizes the sales tax authorities for attaching the bank
balances including over draft amounts for recovery of VAT.
It is also proposed to amend the Act to levy higher penalty
of 200% in the case a false or fabricated declarations are
filed claming concessions under the Act.
Source
: Financial Express - Bombay, India, dated 27/08/2008
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