Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« VAT (Value Added Tax) »
Open DEMAT Account in 24 hrs
 Gujarat slashes tax on ATF by 5 per cent
 CENVAT Credit can’t be denied If ISD invoices issued for distribution of ITC prior to Registration
 1 step forward, 2 steps back. Is GST going the VAT way?
 1 step forward, 2 steps back. Is GST going the VAT way?
 Pending VAT comes to haunt companies claiming input tax credit
 One-time settlement of VAT, excise disputes in the works
 Haryana government uploads photos of VAT defaulters
 Filing of online return for 4th quarter of 2017-18 extension of period thereof.
 No Cenvat credit admissible on outward transportation services from factory to buyer’s premises
  Filing of reconciliation return in form 9 for the year 2016-17
 Govt may send notice to 162 companies; ask for VAT returns

MP raises VAT on bidi to 13%, makers sulk
March, 09th 2012

The Madhya Pradesh government has raised the value-added tax (VAT) on bidi to 13 per cent from five, brushing aside demands from the industry to lower it. The states bidi manufacturers, though, will enjoy an input tax rebate facility on the VAT paid on tendu leaves (the leaf used to wrap the ethnic cigarette), according to state officials.

The move, overall, has disappointed the bidi manufacturers. The Madhya Pradesh Bidi Industry Association has, for a while, been demanding a slash on the VAT on their product. The state has the highest VAT rate on bidi vis--vis bidi-manufacturing states such as Rajasthan, Haryana and Bihar besides Delhi all of them pegging it at four per cent. The VAT on tendu leaves in Madhya Pradesh is 25.3 per cent.

This raise in VAT on bidi will further escalate its prices, according to Mina Pimplapure, president of the association. It will also boost illegal business of bidi, and encourage smuggling of the product from neighbouring states.
On its part, the government says the rise in the VAT on bidi will create a competitive environment for the industry in the state. We have offered an input tax rebate on the bidi industry, points out A P Shrivastava, principal secretary (commercial tax department). It will offer a facility to adjust the tax that the industry pays on tendu patta, he told Business Standard.

Explaining, the official says that though the manufacturers will have to pay 13 per cent tax on bidi, they will get a set-off in the tax they pay on tendu leaves. The excess tax will thus be adjusted, he adds. This will not only protect the domestic industry; it will also ensure higher returns to the manufactures and employees.

The bidi industry, which is mainly centered in tribal-dominated areas like Jabalpur, Sagar, Raisen and most of the Bundelkhand region in Madhya Pradesh, has a combined turnover of roughly Rs 300 crore. It generates employment for thousands of people, even as it poses a risk of blindness to the makers that largely involves children.

Further, bidi manufactures do not maintain any record or data for turnover or volume. It is very difficult to maintain data, maintains Piplapure. We do not know the number of bidi manufacturers or labourers in the industry. Our association does not keep any data on the matter.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting