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AP Govt waives VAT on textiles, introduces 1% tax
April, 23rd 2012
The Andhra Pradesh handloom and textile sector got a relief, with the State Government accepting the industry's plea to waive five per cent VAT and instead impose a one per cent composite tax. Following the development, the AP Federation of Textile Associations called off their nine month-old agitation and commenced operations. The Government has also agreed to waive VAT payable during the agitation period from July 1, 2011 to March 31, 2012.

The industry had launched the agitation after the State Government introduced VAT, which, it claimed, was not in existence in any other State. It had subsequently put forth an alternative proposal envisaging a composite tax of one per cent of the turnover for firms above Rs 7.5 lakh turnover. The Government had constituted a committee to study the proposal and based on its recommendation it took the decision for VAT waiver. Textile traders will now have an option of either paying one per cent tax or five per cent VAT to avail input tax credit, Mr Ammanabolu Prakash, president of the federation, told media persons here on Saturday.
 
 
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