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: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: due date for vat payment :: TDS :: VAT RATES :: Central Excise rule to resale the machines to a new company :: empanelment :: articles on VAT and GST in India :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
« VAT (Value Added Tax) »
 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
 Payment systems to remain open on all days from March 25, 2017 to April 1, 2017
 Delhi cuts VAT on ATF to 1% for regional flights; other states to announce the same soon a
 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

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.
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