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‘Take
it from firms’
A
meeting of merchants has been called to chalk out future
plans. “A crisis has gripped the business because of
sales tax officials asking small merchants to pay VAT for
selling SIM cards and recharge coupons.
Major
mobile phone operators sell their SIM cards and recharge
coupons through small merchants. The law says the
manufacturers should pay VAT at four per cent. But major
mobile phone companies have got the rule stayed by an
order of the Supreme Court.
Heavy
burden
Following
this, the government has started asking distributors and
small merchants to pay the tax,” mobile phone dealers’
association president C.V. Iqbal.
Hassan
Koya of Kerala Vyapari Vyavasayi Ekopana Samithi said the
government decision would bring a heavy tax burden on
them. While the commission that merchants got from sale of
SIM cards and recharge coupons was only three percent,
they were being asked to pay VAT at four per cent.
Notices
served
A
number of merchants have received notices from the
Commercial Taxes Department demanding payment of VAT.
A
copy of one such notice, issued by the Commercial Taxes
Officer — Wadakkancherry, was released by the protesting
merchants in Kozhikode on Tuesday.
Source
: The Hindu, India dated 13/02/2008
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