sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« VAT (Value Added Tax) »
 1 step forward, 2 steps back. Is GST going the VAT way?
 1 step forward, 2 steps back. Is GST going the VAT way?
 Pending VAT comes to haunt companies claiming input tax credit
 One-time settlement of VAT, excise disputes in the works
 Haryana government uploads photos of VAT defaulters
 Filing of online return for 4th quarter of 2017-18 extension of period thereof.
 No Cenvat credit admissible on outward transportation services from factory to buyer’s premises
  Filing of reconciliation return in form 9 for the year 2016-17
 Govt may send notice to 162 companies; ask for VAT returns
 Cenvat Credit Is Not Income Liable To Be Taxed
 Cos wanting to claim VAT refund on employees' foreign stay can get professional help

Spices Board urges Kerala to cut VAT on cardamom
October, 03rd 2012

The Spices Board has suggested to the State Government that reduction of VAT on cardamom from 5 to 2 per cent will make the commodity more competitive in the market.

In a letter to the Kerala Agriculture Production Commissioner, the Spices Board Chairman, A. Jayathilak, pointed out that VAT on cardamom in neighbouring States such as Tamil Nadu is 2 per cent, while in Kerala it is five.

Purchase of small cardamom by a dealer registered in Kerala is treated as local purchase and 5 per cent VAT is levied. In neighbouring States, it is treated as inter-State purchase and charged only 2 per cent CST.

A unification of rates will facilitate entry of more dealers from Kerala into cardamom trade and encourage forward integration, Jayathilak said.

The marginal revenue loss in terms of reduced taxes will be more than compensated by the increased volume of trade, he said.

The cumulative effect will be more recovery in prices to the growers due to increased demand arising out of more bidders in e-auction. Spices Board, he said, is committed to issuing more small cardamom dealer licences to increase bidding participation in e-auction.

He pointed out that the small cardamom industry is dominated by inter-State buyers. Despite concerted efforts by Spices Board to issue more dealer licenses, around 80 percent of the dealers who participate in the e-auction are from Bodinaykanur, Thevaram and Cumbum in Tamil Nadu, he said.

It is also observed that as inter-State purchases come under CST, they enjoy the advantage of transferring the goods to any part of the country as stock transfer to own godown at zero per cent additional tax whereas the local dealers have to pay an additional 2 per cent tax for inter-State transaction. This again gives the inter-State dealer a clear edge over dealers from Kerala, Jayathilak added.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions