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: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: TDS :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: VAT RATES :: VAT Audit :: ACCOUNTING STANDARD :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: empanelment
VAT (Value Added Tax) »
 VAT exemption stays in tax reform bill
 Income Tax Appellate Tribunal Bangalore Banches Bangalore 'A' Bench DB Case Causelist for The Week from 22-05-2017 To 25-05-2017
 Amendments in Second schedule appended to Delhi Value Added Tax Act, 2004
 Haryana govt exempts solar devices from VAT net
 Court rules out VAT on Paradise equity transfer
 VAT gone but riddle of derivatives traded on commodity exchanges lives on
 Rule 2(L) Of Cenvat Credit Rules, 2004 Amended
 Haryana govt exempts solar equipment from VAT
 AP to push for same benefits under GST for VAT exempted goods
 Andhra Pradesh to push for same benefits under GST for VAT exempted goods
 Petrol prices set to rise in Goa with increase in VAT

Small textile units in Haryana oppose imposition of VAT
October, 15th 2013

These units, which make rugs, cotton and woollen durries, druggets and carpets, have already seen their margins squeezed by the escalating cost of power, labour and raw material

Micro, small and medium-scale textile units in Panipat, the textile cluster of Haryana, are up in arms over the imposition of Value Added Tax.

These units, which make rugs, cotton and woollen durries, druggets and carpets, have already seen their margins squeezed by the escalating cost of power, labour and raw material. They want a roll-back of the tax, which they fear may lead to the closure of many small enterprises, and point out that units making similar products in Gujarat and Rajasthan are tax-exempt.

Birender Rawal, vice president of the Federation of Small Scale Industries of Panipat, said, "There has been no tax on small textile firms since the inception of the Panipat cluster. About two months back there were reports of a 12.5 per cent VAT on us, for which we did not get a notification. We met Haryana Chief Minister Bhupinder Singh Hooda and asked for a complete roll-back, and he asked for time to understand the matter. Now it has been reduced to five per cent. But the question is, when there was no tax, where is the scope to reduce it?"

He added that small textile companies, having investment of up to Rs 1 crore in plant and machinery, are exempt from all taxes. About 80 per cent of units in Panipat are in the cottage, micro, small and medium-scale category. So, all associations in Panipat have united to oppose this decision.

A senior official in the excise and taxation department of Haryana said that the Union government had exempted units that are liable for Additional Excise Duty (AED) from paying local sales tax.

In 2011, units producing sugar, tobacco and textiles, among other goods, were exempted from AED, so they become liable for local sales tax and VAT has also been imposed. VAT has already been imposed on tobacco, and sugar is in the process of being brought into the ambit.

The official added that the exemption from VAT under conditional entries (textiles fall under this category of the VAT Act) is liable for Classified Tax of 12.5 per cent.

"The manufacture of bare textiles is tax-free but the manufacture of value added or made-ups is liable for tax and the government has now kept it at a lower rate of VAT (five to six per cent)," the official said.

Ram Niwas Jindal, a senior member of the Blankets Association of Panipat, said that most entrepreneurs in Panipat cater to the local market. Seeking a tax account number, hiring an advocate and filing a return is both cumbersome and unaffordable.

"We switched from handloom to power looms due to labour shortage. But our scale of operation is low, as we do not have resources and market linkages to increase scale. Handlooms are tax exempt. We graduated from handlooms to powerlooms but our inherent strengths are too small to add capacities. Such decisions of government would lead to closure of several units," he added.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Enterprise Resource Planning Solutions ERP Solutions Enterprise Resource Planning Software Solutions ERP Software Solutions Supply Chain Management Solutions SCM Solutions Supply Chain Management Software Solutions SCM Software Solutions Enterprise Resource Planning Solutions India ERP Solutions India Enterprise Resource Planning Software Solutions India ERP Software Solutions India Supply Chain Management Solutions India SCM Solutions India Supply Chain Management Software Solutions India SCM Software Solutions India

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