VAT relief for AP cloth traders
Updated: Apr 29, 2013 02:04:24pm
Hyderabad, Apr 29 (KNN) The Andhra Pradesh government has decided to exempt cloth from value added tax (VAT) ending a long stand-off with the traders.
While making the announcement, Andhra Pradesh, Chief Minister, N Kiran Kumar Reddy said his government had never intended to trouble the traders but had taken certain decisions in view of the unhealthy financial scenario in 2010 when he took over as the CM.
Initially, the government had levied a five per cent VAT on cloth, but later modified the tax structure, introducing one per cent tax on the total turnover.
However, this did not appease the cloth traders, who went on an indefinite strike last month.
Significantly, the Commercial Taxes Department did not make much progress on realising the tax, on instructions from the government to not force the issue.
“We estimated that revenue could be around Rs 200 crore every year from the turnover tax,” a senior revenue official said.
He added the government would also take a decision on waiving the arrears. “Money already realised from the traders, however, won’t be returned,” he said. (KNN)
While making the announcement, Andhra Pradesh, Chief Minister, N Kiran Kumar Reddy said his government had never intended to trouble the traders but had taken certain decisions in view of the unhealthy financial scenario in 2010 when he took over as the CM.
Initially, the government had levied a five per cent VAT on cloth, but later modified the tax structure, introducing one per cent tax on the total turnover.
However, this did not appease the cloth traders, who went on an indefinite strike last month.
Significantly, the Commercial Taxes Department did not make much progress on realising the tax, on instructions from the government to not force the issue.
“We estimated that revenue could be around Rs 200 crore every year from the turnover tax,” a senior revenue official said.
He added the government would also take a decision on waiving the arrears. “Money already realised from the traders, however, won’t be returned,” he said. (KNN)
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