Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: TDS :: list of goods taxed at 4% :: cpt :: due date for vat payment :: empanelment :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: articles on VAT and GST in India
VAT (Value Added Tax) »
 Shops cannot charge VAT on discounted items: Consumer forum
 Delhiites have to pay lowest taxes as AAP govt announces cuts on VAT on various items
 Tamil Nadu minister justifies VAT hike on fuel
 State Government urged to withdraw hike in VAT on petrol, diese
 High VAT may encourage illegal trading
 Delhi budget unlikely to have any new tax proposals this year
 Date for filing quarterly VAT returns extended
 Framing of Central Assessments - Dated 2-2-2017 - VAT - Delhi
 CENVAT Credit (Amendment) Rules, 2017
 VAT to Give Way to Consumption Tax
 Import stage VAT under new VAT law

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 2017 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