Uttar Pradesh - VAT: Govt comes out with explanation

To dispel any doubt in the minds of traders, farmers and people in general about the implementation of VAT in the state following Cabinet’s nod on Friday, the state government on Saturday came up with a detailed explanation.

Contrary to the claims of a section of traders that VAT is not in the interest of the trading community, it has been clarified that once the new arrangement is put in place, the provision of traders’ prosecution will come to an end.

Tax on raw material and information technology related component and equipments would be brought down to 4 per cent.

Other salient features in favour of traders’ includes constitution of an authority for registration which would dispose a related application within 30 days.

Time-limit for refund will come down from 90 to 30 days and there would a provision of ‘kar samadhan’ for sales up to Rs 50 lakh.

Similarly for farmers, tax on fertilisers, insecticides, pesticides, water pumps, tractors, harvesters and thrashers would come down. There will be no tax on seeds.

Likewise for people in general the biggest relief would be 50 per cent reduction in tax on medicines.

Similarly, people will have to pay less on purchase of PDS kerosene, milk products, bicycle, match box, spices, vegetable oil, industrial cables, invertors, transmission wire, packing material and tea. Besides, no tax would be charged on handloom goods, chikan clothes and Banarasi saris.