Interviews
FIEO efforts bring exemption of Handmade Carpets from VAT in UP
27 May '08
4 min read
Dr Dhawan in his address said that the entry tax ranging from 2% to 5% is being levied on various items which are used for export production in U.P. He demanded that the entry tax on all the items shall be withdrawn as it increases the production cost and makes Indian products uncompetitive in the international markets.
During the Interactive Session representatives from various associations/ chambers from Moradabad, Varanasi, Noida, Bhadohi, Allahabad, Lucknow, Aligarh etc had participated and raised their large number of issues related to VAT like non-transparency in schedule of Taxes, refund claims, check-post, existence of Form 49, entry tax on industrial inputs, large paperwork, payment of 4% tax on furnace oil/lubricants etc which are non-vatable, exemption against Form 3B, purchases from unregistered dealer, tax on DEPB/Advance License Sale, credit on capital goods , refund claims etc. They also mentioned that UP State government should adopt the model of VAT followed by other states like Andhra Pradesh, Karnataka, Delhi etc.
Shri Nair while responding to the queries agreed that exportsare in bad shape due to global slowdown, competition from China and rupee appreciation. He assured that problems of the exporters will be solved as the govt understand that exports are vital not only for economic development but also plays a very important role in the economic development of the state.
Shri Deepak Kumar, Commissioner (Commercial Tax), Govt of U.P in his remarks mentioned that they are instructing the Zonal Officers to have interactions with the representatives of various associations frequently at pre-fixed dates to sort out the issues/problems of the exporters. He also invited the suggestions/issues of the trading body by e-mail and assured to the answer the querres within 2-3 days.
Shri Markandya Singh, Special Secretary (SSI) & Addl Commissioner, U.P Export Promotion Bureau in his address mentioned that exports have become very competitive and in order to survive in the international markets we should not tax inputs used in the export production.
He also highlighted the fact the U.P is a landlocked state and exporters have to pay between Rs 20000 to Rs 30000 per container to transport the goods.
He also informed that from U.P almost 60% of the exports of handicrafts items take place and thus it needs a state protection and it should be exempted from taxes as it provides large scale employment and contributes significantly in the economic development of the state.
During the Interactive Session representatives from various associations/ chambers from Moradabad, Varanasi, Noida, Bhadohi, Allahabad, Lucknow, Aligarh etc had participated and raised their large number of issues related to VAT like non-transparency in schedule of Taxes, refund claims, check-post, existence of Form 49, entry tax on industrial inputs, large paperwork, payment of 4% tax on furnace oil/lubricants etc which are non-vatable, exemption against Form 3B, purchases from unregistered dealer, tax on DEPB/Advance License Sale, credit on capital goods , refund claims etc. They also mentioned that UP State government should adopt the model of VAT followed by other states like Andhra Pradesh, Karnataka, Delhi etc.
Shri Nair while responding to the queries agreed that exportsare in bad shape due to global slowdown, competition from China and rupee appreciation. He assured that problems of the exporters will be solved as the govt understand that exports are vital not only for economic development but also plays a very important role in the economic development of the state.
Shri Deepak Kumar, Commissioner (Commercial Tax), Govt of U.P in his remarks mentioned that they are instructing the Zonal Officers to have interactions with the representatives of various associations frequently at pre-fixed dates to sort out the issues/problems of the exporters. He also invited the suggestions/issues of the trading body by e-mail and assured to the answer the querres within 2-3 days.
Shri Markandya Singh, Special Secretary (SSI) & Addl Commissioner, U.P Export Promotion Bureau in his address mentioned that exports have become very competitive and in order to survive in the international markets we should not tax inputs used in the export production.
He also highlighted the fact the U.P is a landlocked state and exporters have to pay between Rs 20000 to Rs 30000 per container to transport the goods.
He also informed that from U.P almost 60% of the exports of handicrafts items take place and thus it needs a state protection and it should be exempted from taxes as it provides large scale employment and contributes significantly in the economic development of the state.
Federation of Indian Export Organisations
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