Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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
 
 
 
 
Popular Search: ACCOUNTING STANDARDS :: empanelment :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: TDS :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: cpt :: articles on VAT and GST in India :: VAT RATES :: VAT Audit :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
« VAT (Value Added Tax) »
 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
 Regarding disposal of pending form DVAT 04 & 07 Form Applications
 Disposal of pending Form DVAT 04 & Form DVAT 07 applications: regarding
 Cenvat Credit Rules, 2017 III Part
 VAT phased out in TS
 Cenvat Credit Rules, 2017 II Part
 Cenvat Credit Rules, 2017 – Part I
 How much do you know about VAT as a taxpayer?
 New tax structure not higher than VAT

Tax woes displace Morbi as wall clock manufacturing hub
December, 13th 2011

The town of Morbi, once known as Indias foremost wall clock production hub, is fast losing this distinction, with Delhi, Kolkata, Chennai and Hyderabad providing some tough competition.

According to some clockmakers, the industry can only survive if the government gives it relief in the form of revised VAT prices.
awn
Morbi is now no more a favourite among wall clock buyers, due to hurdles such as heavy taxes and high transportation costs.
In the last five years, the wall clock industry in Morbi has been experiencing negative growth. The main issue that we are facing is the high value added tax (VAT) and increasing transportation costs, said Shashang Dangi, the president of the Morbi Clock and Parts Manufacturing Association.

Having survived the slowdown and fierce competition from Chinese players, the industry is reeling under the burden of VAT. According to manufacturers here, the industry has to pay 15 per cent tax, of which 12.5 per cent is VAT and 2.5 per cent is additional tax.

During the past two years more than 20 per cent of the clock industrys workers have left to join the ceramics and other industries. Some of them also have migrated to other cities like Rajkot and Ahmedabad for work. Several times we have asked the state government to reduce VAT to four per cent, but there is no response from them yet, said Dangi.

The output of even the largest wall clock manufacturer, Ajanta, has declined by 75 per cent over the past decade to 25,000 clocks per day, from more than one lakh clocks a day 10 years back.

The market share of Morbi in the wall clock industry has declined in the past few years, but we are still leading in India. Overall demand has come down drastically in the past few years, as wall clocks are common everywhere and each has a shelf life of nearly 20 years, said Jaysukh Patel, managing director of the Ajanta group.

Due to high fuel prices during the past two years, transportation costs have increased, thereby increasing Morbis wall clock manufacturers production costs by almost 40 per cent. Dangi added that the wall clock industry has also developed in other Indian cities such as Delhi, Chennai, Hyderabad, and Kolkata, which has reduced Morbis business by almost 25-30 per cent.

Five years ago, Morbi had 300 clock units; today only 100-125 are active.

 
 
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