The Andhra Pradesh Government has brought sugar,
textiles and fabrics under Schedule IV of the VAT (value
added tax). They are going to be taxed at a rate of 4
per cent. In a GO (No. 932) issued on Friday evening,
the Government however excluded khandasari sugar from
the purview of VAT.
After the latest order, cotton fabrics, manamade
fabrics, textile madeups, curtains, zari, embroidery articles, garments made of
handloom and khadi would attract VAT at 4 per cent. The order would come into
force with effect from July 11, 2011.
The trade and industry has reacted sharply. "We regret that the State government
has not taken into consideration our representations regarding offering
level-playing field to our State dealers and industry," Mr Nitin Parekh,
Chairman of Trade and Commerce Committee of FAPCCI (Federation of Andhra Pradesh
Chambers of Commerce and Industry), told Business Line.
"The government should have given time to enlist the traders concerned. Most of
the traders in these business segments are not yet registered as dealers. They
need basic orientation on the tax liability and compliance obligations," he
felt.
