The Hindu : Kerala News : Contractors seek early solution to VAT issue

Online edition of India's National Newspaper
Sunday, Apr 10, 2005

Kerala

Kerala

Contractors seek early solution to VAT issue

By Our Staff Reporter

THIRUVANANTHAPURAM, APRIL 9. The Kerala Government Contractors' Association has asked the State Government to resolve the issue relating to the implementation of the Valued Added Tax (VAT) system in Kerala, without any further delay.

The decision to implement VAT in the State had been taken in a haste without adequate preparations and by not taking the parties concerned into confidence, said Varghese Kannampally, the State president of the association.

He said this had resulted in a severe crisis in the trade, industrial and construction sectors. The ambiguities that existed on the manner in which VAT was to be implemented had only confounded the confusion. He said an uncertainty existed over the issue of deduction of tax, whether it was sales tax or VAT that was to be charged on the customer.

Hunger strike plan

He said the Government had given an assurance to the association that there would be separate allocation for various taxes and cess, over and above the tender amount for a specific work.

Such a system being practised in the case of tenders of the Central Government should be introduced in the State as well.

Highlighting this demand, the State president of the association would stage an indefinite hunger strike before the official residence of the Minister for Public Works from May 2, he said.

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