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UPASI seeks Govt. intervention to sort out tax tangle

By D. Radhakrishnan

UDHAGAMANDALAM NOV. 22. The United Planters Association of Southern India (UPASI) has sought the intervention of the government to sort out the problem relating to the move by the commercial tax authorities for collecting tax arrears from auctioneers. Describing the development, the Chairman of the UPASI Tea Committee, D. P. Maheshwari, in a statement pointed out that at a time when the industry was reeling under mounting losses and seeking sales tax relief from the State government, the recent action of the commercial tax authorities of converting all inter-State sales, which attracted 4 per cent sales tax, into local sales with a levy of 8 per cent sales tax had aggravated the crisis.

"While the question whether a particular sale is an inter-state sale or local sales is a blend of fact and law, the CTO has held that all auction sales are local falling under the TNGST Act and has levied differential tax to the tune of Rs. 8 crores for one year alone," Mr. Maheshwari said.

The Vice Chairman of the Tea Board and President, The Nilgiris Small Tea Growers Association, M. Bhojarajan, has, in a communication to the Tamil Nadu Chief Minister, Jayalalithaa, expressed apprehension that the recent developments in the tea industry vis-a-vis notices sent by the Department of Commercial Taxes.

Meanwhile the Nilgiris Bought Leaf Tea Manufacturers Association has in a statement pointed out that following the suspension of activities by the Tea Trade Associations of Coonoor and Coimbatore the problems of the tea industry had increased.

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