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Textile machinery, spares at 4% VAT
March, 28th 2007
The textile machinery and spares trade has lauded the Government for bringing textile machinery and spares under the 4 per cent VAT rate. The Coimbatore-based Textile Machinery and Mill Stores Merchants Association has in a statement said that the Government had removed the confusion over VAT rate relating to textile machinery and spares. When the Government had effected the VAT system in January last, textile machinery and spares were listed under the 12.5 per cent VAT rate as against the 4 per cent charged till then under the sales tax and this had led to confusion. However, the Government had reverted textile machinery and spares to the original 4 per cent VAT rate following a representation from the association, a press note from the association said.
 
 
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