Home / Knowledge / News / Apparel/Garments / TEA wants reimbursement of VAT on diesel to LT industries
TEA wants reimbursement of VAT on diesel to LT industries
03
Nov '08
We wish to submit that as a measure to provide relief to the HT industries , the Energy Department, Government of Tamilnadu issued GO MS No. 120 dated 20.10.2008 stating about the reimbursement of VAT on purchase of high cost diesel by HT industries for power generation through their captive power gensets during evening peak hours between 6.00 p.m. and 10.00 p.m, with effect from 11.10.2008

We wish to note that the above order has not included LT industries for reimbursement of VAT and it may be noted that more than 80% of the Service Connections given to knitwear sector in Tirupur region of Coimbatore Electricity Distribution Circle come under Low Tension category and they are deprived of getting the benefit extended to HT industries. Due to non extension of VAT reimbursement facility to LT industries, they have to pay additionally Rs. 8.74 for every litre of diesel purchased.

More importantly, the knitwear garment exporting units, LT consumers, are working out costing based on the prevailing rates of inputs, wages and the existing power tariff rate fixed by TNEB and many units are taking up the order well before six months / one year and any changes in the price of any of these factors in upward directions, will certainly have a direct impact on their competitiveness in the global market.

Now, our concern is that even with the market price of diesel at Rs. 37.50, the cost of power for producing one unit of electricity through Captive Generation is Rs. 11.50 against the TNEB grid power rate of Rs. 4.70 per unit and if the diesel is purchased from M/s. Essar Oil at Rs. 49.40 per litre, as per the TNEB's instructions, then the cost of power for producing one unit of electricity will increase upto Rs. 15.

Under the circumstances, it is not at all possible for the knitwear units to absorb such amount of increase in power cost and sustain in the global market. Moreover, the increase in power cost is happening at a time when the orders coming from US and EU are getting reduced due to ongoing financial crisis prevailing in these countries and requisition receiving from buyers for revision of garment prices downwards.

Considering the fact, we request the Hon'ble Minister to kindly extend the VAT reimbursement to LT units also immediately so that the knitwear garment exporting units will sustain in the global market.

TIRUPUR EXPORTERS' ASSOCIATION


Must ReadView All

AEPC concern over apparel exports fall; envoys meet CEA

Apparel/Garments | On 17th Nov 2017

AEPC concern over apparel exports fall; envoys meet CEA

India’s Apparel Export Promotion Council (AEPC) has expressed concern ...

Moody's improves India's rating

Textiles | On 17th Nov 2017

Moody's improves India's rating

Moody's Investors Service has upgraded the Indian Government’s local...

Sweden in talks with Birlas for smart textiles project

Textiles | On 17th Nov 2017

Sweden in talks with Birlas for smart textiles project

Sweden is seeking a collaborative project with the Aditya Birla Group ...

Interviews View All

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

November 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search