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: empanelment :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: due date for vat payment :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: VAT RATES :: articles on VAT and GST in India :: list of goods taxed at 4% :: TDS :: Central Excise rule to resale the machines to a new company :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
« VAT (Value Added Tax) »
 Understanding VAT refunds
  Note ban got Maharashtra govt an extra ?125cr from fuel VAT
 Note ban got Maharashtra govt an extra ?125cr from fuel VAT
 Higher tax mop up reflects no slowdown post demonetisation, says Arun Jaitley
 Traders transition from VAT to GST
 FM Arun Jaitley defends note ban with jump in tax numbers
 States record jump in VAT collections after note ban
 Migration from Value Added Tax to GST begins
 VAT is coming: a historic change and leap into the unknown
 Online sales clampdown nets VAT registrations
 Telangana House passes Bill to reduce VAT on cell phones

MP traders want 'rationalised' tax
February, 16th 2012

Industries, traders and businessmen in Madhya Pradesh have demanded an immediate rationalisation of the pertinent tax structure in the forthcoming state budget, reiterating that the present structure of levy on various commodities and trade-related activity has rendered heavy losses to the industry in the state.

The MP Laghu Udyog Sangh said on Wednesday that the states producers are suffering owing to a 2 per cent mandi tax and 1 per cent entry tax, besides other taxes like value-added tax (VAT) and central sales taxes. The government must abrogate these taxes or rationalise them, said Dr R S Goswami, president of the organisation. The industry wanted the next state budget to be soft, he added.

Currently, the taxes were choking cottage industries, like bidi making which is a prime employment-generating activity in the backward districts of Bundelkhand region. Whats more, the state has put a VAT at 25.3 per cent on tendu leaves, the key ingredient of bidi, besides a 2 per cent entry tax and 3 per cent forest development cess, Goswami pointed out, elaborating on the plight of the workers in districts including Sagar, Damoh, Jabalpur and Chhattarpur. Further, the state levies VAT at 12.5 per cent on tobacco, which is another ingredient used to make bidis.

The Bidi Makers Association noted that more and more bidi makers were switching over to other jobs or migrating to other states. This is due to losses the industry is facing, claimed Mina Pimplaure, its president. Agarbatti or joss-stick making units are also under the tax net, much to the frustration of the Federation of Madhya Pradesh Chambers of Commerce and Industry (FMPCCI). Why cant the government exempt agarbatti industry, asked one of its office-bearers. Similarly soyabean processors have also demanded that the government should try to ease burden on taxes, particularly mandi tax and entry tax that are putting state soya traders at a disadvantage of 4.41 per cent. Also, the state has imposed stamp duty on mortgage papers used for industrial loans at banks. States like Haryana and West Bengal levy zero stamp duty, while Rajasthan charges hardly Rs 20 on any industrial loan, Delhi charges Rs 100. As for Madhya Pradesh, it demands Rs 5 lakh maximum on any loan or 0.25 per cent of the total loan besides Janpad Panchyat fee.

The FMPCCI said the states government must levy 5 per cent tax on packed flour products like atta and suji to protect the local industry. More importantly there is an urgent need to rationalise electricity duet which are levied at 15 per cent of the total power bills.

Small- and medium-scale units cant survive if power is heavily taxed, according to an official with the federation.

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

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