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: empanelment :: VAT Audit :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: due date for vat payment :: TDS :: cpt :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT
« VAT (Value Added Tax) »
 Cenvat Credit Of Additional Duties Of Customs [Cvd] On Imported Coal
 Excise Dept puts VAT refund on fast track
 Consumer fora receive 18 VAT plaints
 Appointment of Assistant VATO - F.3(14)/Fin(Rev-I)2012-13/DSVI/334
 Bio-diesel body seeks VAT relaxation
 HC seeks Delhi, centre reply on restaurants charging excess VAT, service tax
 Shakti Autos booked for evading VAT, bogus sales
 VAT sops to IOCL Paradip refinery hits Odisha revenue growth
 Government to announce new VAT rates in October
 World Wide Gst, Vat, Sales Tax Rate
 Article on Transition Process of Registrations under VAT / Service Tax Laws to GST Law

Not to roll back VAT hike
September, 01st 2009

Small traders and small-scale entrepreneurs of Madhya Pradesh are crying for rationalisation of taxes in the state.

They have also demanded from the state finance minister to roll back recent hike of 1 per cent in value-added tax (VAT) and abrogation of entry tax.

The state government has imposed entry tax on even fly-ash, which is procured free of cost all over the country to reduce pollution in the atmosphere, Ranjit Vithaldas, president of Federation of Madhya Pradesh chambers of commerce and industry, a 300-member body of traders and small-scale entrepreneurs, said.

The traders also demanded withdrawal of mandatory disclosure of goods in intra-state transportation in Form 49 and removal of check posts at state borders.

The state finance minister, however, refused to accept all the demands of the traders and entrepreneurs by saying that the central government had reduced its funding to the state and there were no means to meet the budgetary deficits but to increase taxes.

Raising concerns over high tax rates in the state, he said, Why government has not taken us into confidence when we are partners of the state in economic development? We want level playing field in comparison to other states. A promise made by any government should be delivered by the existing government, he said.

The state government in its budget 2009 has raised VAT on various commodities from 4 per cent to 5 per cent.

Further, the central tax, which should have been zero per cent by this fiscal, is still levied at 2 per cent, besides mandi tax of 2.2 per cent, entry tax 2 per cent and few cess and surcharges.

It also has increased stamp duty registration charges from 0.5 per cent to 1 per cent on property transfers even in family businesses.

The state has higher rate of taxes on even used vehicles, stamp duty registration on property transfers have gone up, value added tax is also up by one percent, how can be compete with other states like Maharashtra, Gujarat, Rajasthan and Chhattisgarh, Ashok Jain, an office bearer of Mahakaushal Chambers of Commerce asked and added, increase in VAT is contrary to uniform structure of tax the primary object of VAT.

Turning down demands of the traders and entrepreneurs, state finance minister Raghavji said, VAT has been increased after calculating all other means of revenue generation as centre has slashed our grants by more than Rs 5000 crore from this year. There is an additional strain of Rs 3000 crore on state kitty after implementation of sixth pay commission recommendations.

We have no option but to raise taxes. Alarmingly 40% of the state population is ultra poor, there is a fall in stamp duty and registration fee of more than Rs 300 crore, as a result we have additional financial burden of more than Rs 8000 crore. If economic conditions will permit us we will definitely rationalize taxes. He also refused to slash mandi tax as the funds, according to him, are utilised in rural road construction.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

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