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Haryana
is the pioneer in introducing the value-added tax (VAT) in
India in 2004. Under VAT, the central sales tax was to be
slashed every year by one percentage point.
Since
other states lagged behind, the reduction of the central
sales tax became effective after two years. So the traders
and industrialists want the exemption limit of the Sales
Tax Form 38 to be raised from Rs 25,000 to Rs 50,000 to
equalise the effect of CST.
Members
of the Haryana Chamber of Commerce and Industry told
Business Standard that the procedure of VAT refund needed
to be streamlined because during scrutiny by the
department concerned, it was often learnt that the VAT was
not deposited in time by the sellers. This laxity,
according to them, causes harassment to the buyers for the
VAT refund.
Tractor
units of Haryana, too, want support from the state
government. According to a tractor ancillary owner, the
state used to manufacture 60 per cent of the total
tractors produced in India ten years ago. Over the years,
Haryana’s market share has dwindled to only 25 per
cent.
Industry
in Haryana also wants a synergy between the vocational
institutes (ITIs and polytechnics) and the corporate and
manufacturing sectors to provide the suitable manpower to
the industry.
“We
have to train the manpower at our own cost despite their
qualification in professional courses. The state took some
initiatives two years back but that remained confined to
the NCR area while the rest of the units in Haryana do not
get the desired manpower,” said one of the
representative.
With
severe power crunch in the state, Haryana should invite
only those units who can arrange power on their own so
that the existing units that are already grappling with
the power shortage do not get taxed further, they
said.
The
representatives of industry also proposed the finance
minister to allow independent feeders to the industry
clusters with the load of more than 1 Mw to procure power
on their own.
Source
: Business Standard, India, dated
26/02/2008
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