Karnataka - Increase composition limit under VAT: KCCI

The Kanara Chamber of Commerce and Industry (KCCI) in a letter to State Governor Rameshwar Thakur, released to media, listed out 17 demands under the Karnataka Value Added Tax (VAT)-2003 to be included in the coming state budget.

KCCI President Kumble Narasimha Prabhu demanded raising the turnover limit for registration from Rs 2 lakh to Rs 5 lakh.

While turnover limit for registration in state was Rs 2 lakh, it was Rs 5 lakh in neighbouring states. The composition limit under VAT which is Rs 15 lakh should be increased to Rs 50 lakh as in neighbouring Kerala and Andhra Pradesh.

It demanded removing restrictions on goods purchased from outside the state and reducing rate of tax which is now four per cent. The composition limit also should extend to hotels having liquor licences.

It urged the Governor to reduce state tax on petrol and diesel and fixed it at four per cent on par with neighbouring states.

Entry tax on petroleum product should be abolished as there exists no entry tax on items in neighbouring states.

KCCI recommended 0 per cent tax on rice, wheat and its products, raising limit under profession act and under entertainment act. KCCI also recommended raising limit for luxury tax in order to boost tourism in DK district.

Source : Newindpress - Chennai, Tamil Nadu, India, dated 06/02/2008