Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft
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: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: articles on VAT and GST in India :: cpt :: ACCOUNTING STANDARD :: empanelment :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: form 3cd :: TDS :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT
VAT (Value Added Tax) »
 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
 Cos will be reimbursed for exemptions that currently exist in the VAT regime
 GST will get states more than VAT
 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)

M&M may exit Maharashtra over the issue of VAT refunds from the state government
February, 22nd 2012

Utility vehicle major Mahindra & Mahindra (M&M) has threatened to pull out fresh investments to the tune of Rs 4,000 crore from Maharashtra over the issue of VAT refunds from the state government. Some of the major auto investors like the Volkswagen group and Bajaj Auto have also raised concern over this issue and threatened to move out new investments from the state.

M&M, headquartered out of the state and one of its biggest automobile investor, has said the VAT refund issue was impacting its annual cash flows after the government made changes in rules. "It is not a comfortable situation and we are actively considering moving out from Maharashtra as we plan the next phase of expansion," Pawan Goenka, M&M's automotive & farm equipment president, told TOI here.

Goenka said the company - that currently has four of its six passenger vehicle plants in Maharashtra - is in discussion with other state governments for its new expansion of setting up of a greenfield 2.5 lakh units capacity plant. "We had taken up the matter with the Maharashtra government and they said they are finding a solution. However, we cannot wait for long and may take a decision on new investments over the next one month."

The matter revolves around the Maharashtra government changing rules for VAT set-off, which normally is offered as a fixed incentive against new investments in the state. While earlier the state government used to offer set-off for the entire vehicles sold by a company, the new rule (changed last year) gives the set-off only for vehicles sold within the state. This means that the time taken for a company to realise the total value of incentives offered will be spread over many years against a shorter span as per the previous rule. "Only 16% of our sales come from Maharashtra, while the rest is from outside the state. The new rules mean that the set-off is available only on one-sixth of our sales, thus impacting our cash flows," Goenka said.

Maharashtra is believed to have lost potential investment opportunities due to the uncertainty on the matter and sources said Ford decided to opt for Gujarat when going for a second plant due to this issue. Goenka said M&M is looking at a minimum of 400-500 acres for a new facility.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

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