The Tamil Nadu Government has announced further concessions to the small traders under the Value Added Tax regime to be implemented from January 1, 2007.
According to an official press release, the State Government has decided that traders with an annual turnover of Rs 10 lakh to Rs 50 lakh would have to pay a compounding tax of a maximum of 0.5 per cent.
With this, the State Government has cut by half the tax that these traders would have had to pay under VAT.
Earlier, under the Value Added Tax Act 2006, the traders with a turnover of Rs 10 lakh to Rs 50 lakh were to have paid a compounding tax of a maximum of 1 per cent.
According to the release, over one lakh traders would benefit from this decision.
The Tamil Nadu Assembly approved the Tamil Nadu Value Added Tax Act, 2006, during the recently concluded session.
It has exempted from the purview of VAT traders with a turnover of up to Rs 10 lakh with business restricted within Tamil Nadu.