News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
« VAT (Value Added Tax) »
 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
 Cenvat Credit Is Not Income Liable To Be Taxed
 Cos wanting to claim VAT refund on employees' foreign stay can get professional help

Maruti chief meets Gujarat CM, discusses VAT issues
June, 05th 2014

R C Bhargava, chairman of Maruti Suzuki India Ltd (MSIL), on Wednesday met Gujarat Chief Minister Anandiben Patel and discussed issues related to the company’s proposed manufacturing plant in the state.

Speaking to Business Standard, Bhargava said, “I had a meeting with the chief minister and the state finance minister (Saurabh Patel). The chief minister reiterated the Gujarat government’s commitment to the project and explained the problem that had come up due to the two-company model, instead of a one-company one. The finance minister gave some relevant advice on getting legal advisors to see in what way it should be structured to take care of the two-company model.”

Recently, the state government had asked MSIL to come up with a fresh formula to share value-added tax (VAT)-related concessions between MSIL and Suzuki Motor Gujarat Pvt Ltd (SMGPL), a wholly-owned subsidiary of MSIL’s parent company, Suzuki Motor Corporation.

The subsidiary will manufacture cars for MSIL at the Gujarat facility.

In June 2012, MSIL had signed a state support agreement (SSA) with the Gujarat government to purchase land and set up a manufacturing facility. In January this year, MSIL’s board said the Gujarat plant would be built by SMGPL. In March, the company officially approached the state government to incorporate changes in the SSA. After it was discussed by the chief secretary’s committee on mega projects, the proposal was referred to the finance department.

Last week, state government officials held a meeting with senior company representatives and raised concerns related to VAT refund in the two-company model. While MSIL was both producer and seller according to the original agreement between MSIL and the government, in the new scheme of things approved by the MSIL board, SMGPL would be the producer.

“We will get a detailed examination and see what correct formulation we can come up with, one that is acceptable to both parties. This will take some time, until our lawyers can come up with a formula,” Bhargava said, adding the commitment of the state government on the subsidy front remained unchanged.

The state government hasn’t set any deadline for the company to come up with a fresh formula.

The VAT refund granted to the company is for 15 years, with a cap on the net investment by the company in the state. Meanwhile, the company has already started work on developing infrastructure at the site for the plant. Bhargava said construction would begin after the infrastructure was in place. He added the company would continue to invest in Gujarat until capacities at both the sites (Hansalpur and Vithlapur in Mandal) were exhausted. Initially, the company had indicated it would invest about Rs 4,000 crore to build capacity of about 250,000 vehicles a year.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

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