Interviews
FIEO efforts bring exemption of Handmade Carpets from VAT in UP
27 May '08
4 min read
Handmade carpets, wood products/carvings, wax have been exempted from VAT and the finished leather will not be subject to entry tax, announced Shri Govindan Nair, Principal Secretary (Commercial Tax) Govt of Uttar Pradesh in an Interactive Session on VAT organized by FIEO (Northern Region) in association with U.P Export Promotion Bureau on May 14, 2008 at Lucknow.
Shri Nair mentioned that notification in this regard will be issued shortly. He also clarified that Form H is applicable in the state of U.P and export goods are exempted on submission of the same.
Dr R.K.Dhawan, Chairman, FIEO (Northern Region) said that the above exemption will bring relief to the labour intensive sector which has been badly hit due to appreciating rupee.
He also mentioned that the exemption of Kora maal from VAT which will now be classified under schedule 1 as was announced by the Principal Secretary will provide great relief to the manufacturer and exporters of brassware who were working under very thin margins.
He added that the assurance of the govt to rationalize tax rates in accordance with the H.S.Classification will bring more transparency in the system.
Earlier Dr Dhawan in his welcome address mentioned that the issue of VAT will remain a major cause of concern for the exporters and suggested having a committee who could study the existing process and come out with an effective system to exempt the exporters from paying VAT as it leads to huge amount of blockage of funds which have become very important particularly in the current slowdown in global economy.
Dr Dhawan also mentioned that with VAT in place, the assessing officers/Inspectors have been freely authorized to visit any business establishment including industrial unit leading to increase in harassment and corruption for the exporters and suggested that the exporters should be totally exempt from such arbitrary visits by the government officials.
Shri Nair mentioned that notification in this regard will be issued shortly. He also clarified that Form H is applicable in the state of U.P and export goods are exempted on submission of the same.
Dr R.K.Dhawan, Chairman, FIEO (Northern Region) said that the above exemption will bring relief to the labour intensive sector which has been badly hit due to appreciating rupee.
He also mentioned that the exemption of Kora maal from VAT which will now be classified under schedule 1 as was announced by the Principal Secretary will provide great relief to the manufacturer and exporters of brassware who were working under very thin margins.
He added that the assurance of the govt to rationalize tax rates in accordance with the H.S.Classification will bring more transparency in the system.
Earlier Dr Dhawan in his welcome address mentioned that the issue of VAT will remain a major cause of concern for the exporters and suggested having a committee who could study the existing process and come out with an effective system to exempt the exporters from paying VAT as it leads to huge amount of blockage of funds which have become very important particularly in the current slowdown in global economy.
Dr Dhawan also mentioned that with VAT in place, the assessing officers/Inspectors have been freely authorized to visit any business establishment including industrial unit leading to increase in harassment and corruption for the exporters and suggested that the exporters should be totally exempt from such arbitrary visits by the government officials.
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