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: cpt :: due date for vat payment :: VAT Audit :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: empanelment :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: TDS :: form 3cd
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

High VAT rate turning away mobile makers from Odisha: ICA
August, 17th 2015

High VAT (value added tax) rate on mobile phones and the lack of a dedicated state policy on ESDM (electronics system design and manufacturing) sector is turning away investors from Odisha, feels the Indian Cellular Association (ICA).

The state government charges VAT at the rate of 13.5 per cent on cell phones priced beyond Rs 5,000 in contravention with the recommendations of the National Policy on Electronics (NPE), 2012 and various industry recommendations by ICA.

ALSO READ: Andhra Pradesh aims to create 60 mn handset production base

ICA has pointed out that the state’s reluctance to slash steep VAT rate has dimmed its prospects of emerging as a favoured destination for mobile phones and electronics goods manufacturers.

“Despite our best efforts in trying to convince them (investors) about your state's prospect and suitability for putting in investments in manufacturing, there has been a tendency to move away from high tax bearing states including yours. Further, the Odisha government has not yet come up with a dedicated policy to promote the ESDM sector unlike other states like Andhra Pradesh, Gujarat and Uttar Pradesh which has made Odisha a less competitive investment destination,” Pankaj Mohindroo, president, ICA said in a recent letter to chief minister Naveen Patnaik.

ALSO READ: For first time in 20 years, Indian mobile phone sales drop

Tamil Nadu, which was not following the floor rate (on mobile phones and other data communication products), has reverted VAT to the floor rate of five per cent in its 2015-16 Budget.

“Representations have come from some sources to reduce VAT rate of high cost mobile phones. But as of now, the matter is not under the consideration of the government,” said a senior state government official.

ICA has urged the Odisha government to reconsider its policy so that the state can attract global and domestic investors in mobile handsets and electronics space.

ALSO READ: Handset makers seek tax breaks, subsidies to grow domestic manufacturing in Budget

An industry analysis done by the ICA research team shows that state tax policies and administration has a very high weightage of 20 per cent in the evaluation criteria set by the investors’ community.

The criteria has components like state policy being in sync with national policies, friendliness of tax administration, predictability and stability, grievance addressal mechanism and adoption of modern classification and valuation system. On the above parameters, Odisha has got a very low rating compared to neighbouring Andhra Pradesh, which is highly rated by the industry due to its stable and rational taxation policies.

According to ICA research, Odisha does not even figure among the top 10 states in the evaluation criteria set by investors.

The parameters include manpower, logistics, industrial relationship scenario, land, infrastructure, social infrastructure, political leadership and stability, state bureaucracy and administration, special package for ESDM sector and tax policies & administration.

ICA research after appraising Odisha on all these parameters has pegged Odisha’s score at 4.6 compared to rating of 6.1 for Andhra Pradesh.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Enterprise Resource Planning Solutions ERP Solutions Enterprise Resource Planning Software Solutions ERP Software Solutions Supply Chain Management Solutions SCM Solutions Supply Chain Management Software Solutions SCM Software Solutions Enterprise Resource Planning Solutions India ERP Solutions India Enterprise Resource Planning Software Solutions India ERP Software Solutions India Supply Chain Management Solutions India SCM Solutions India Supply Chain Management Software Solutions India SCM Software Solutions India

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