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: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: VAT Audit :: empanelment :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: list of goods taxed at 4% :: TDS :: cpt
 
 
VAT (Value Added Tax) »
 Is it a modified Value Added Tax?
 GST regime: VAT Commissioner and CBEC to work with businesses
 Amendments in the Second Schedule appended to the Act (Delhi Value Added Tax Act, 2004)
 Guidelines relating to downloading of Statutory Forms-Modification thereof
  Grant of Registration under DVAT & CST
 VAT on petroleum products to continue, to be decided by GST Council
 Government rolls out settlement scheme to clear VAT, CST dues
 Maharashtra government offers VAT benefit to realty buyers
 Govt should focus on income tax instead of VAT
 Amendments in the second Schedule received from Finance Deptt.
 VAT exemption stays in tax reform bill

Changes in VAT rules hit fabrication units in and around Trichy
December, 16th 2013

Fabrication units in and around Tiruchi have been hit by the recent amendment to the Tamil Nadu Value Added Tax rules.

Already faced with a slump in orders, the small and medium industries of Tiruchi, most of them dependent on BHEL for orders, are now worried that they would stand to lose orders and their margins will come under heavy pressure. For, BHEL and other customers that sell the value added products, supplied by the ancillary units, in other States by paying Central Sales Tax will not be able to get the full benefit of VAT.

The recent gazette notification on November 8 disallowing 3 per cent on VAT input for items despatched to other States has put almost all the industries manufacturing with own material to great disadvantage. This would force the customers to go in for purchase from other States leading to closure of industries in Tamil Nadu, said M.Srinivasan, president, BHEL Small Industries Association.

“As the 3 per cent input VAT is disallowed, customers are now asking us to give three per cent discount from the already agreed basic rate so that their tax outgo will not be more when they purchase from us (in comparison to purchases from other states),” he said.

Fabrication units in Tiruchi, Mr.Srinivasan said, already operate on very low margin and providing three per cent discount will make the units unviable. The change poses a grave danger to the medium and small industries in Tamil Nadu, he said. Meanwhile, in a representation to Chief Minister Jayalalithaa, Rajappa Rajkumar, vice president, Tamil Nadu Small and Tiny Industries Association (TANSTIA), said the change in the VAT rules would be disastrous for the vendor units. It would also lead to a fall in revenue to the State government and industries will lose order and become sick.

The fabrication units in Tiruchi were dependent on orders from BHEL. Since most of the boilers were sold by BHEL for other States, it would be losing 3 per cent VAT, if it placed orders with the industries in Tamil Nadu. This could make BHEL to place orders outside the State.

The industries in and around Tiruchi were already facing problems in getting orders. Around 430 small and medium units of Tiruchi, with an investment of Rs. 1,500 crore, were providing direct employment to 20,000 people and indirect employment to another 20,000, he said and urged the Chief Minister to intervene to save the MSME units in the State.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
System Testing Solution Manual Software Testing Solutions Automation Software Testing Solutions System Workflow Testing System Manual 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