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VAT: State builders object to collection methods
February, 18th 2008
The construction industry in Andhra Pradesh is mired in a deep crisis caused on the one hand by spiralling input costs and on the other by the policies of the State Government, especially in collection of Value Added Tax, according to Mr P.R. Mundle, President of the Builders Association of India (BAI), and Mr S.N. Reddy, Chairman of BAI, Andhra Pradesh centre.

The two were speaking to the press here on Sunday, after a meeting of the association organised by the local centre to discuss the problems faced by the industry.

Suffering in silence

They complained that builders were being treated as tax evaders and criminals in the State and not as partners in progress.

The Commercial Taxes department is making all sorts of demands on us and even when we move the courts there is little relief.

In many cases, after protracted legal battles at the first appellate level, the eligible refunds are withheld, arbitrarily invoking the revision proceedings provision. The smaller players are suffering in silence, they complained.

Award builders

They appealed to the State Government to change its attitude and to treat them fairly. They said the National Treasurer of BAI, Mr D.L. Desai, had led a delegation to the Principal Secretary of the Andhra Pradesh Government and presented their problems.

We hope corrective action will follow and there will be some relief to the harassed builders in the State, they said.

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