The Hindu : Andhra Pradesh News : Andhra Pradesh announces more VAT concessions

Online edition of India's National Newspaper
Friday, May 20, 2005

Andhra Pradesh

Andhra Pradesh

Andhra Pradesh announces more VAT concessions

Special Correspondent

Several items, institutions exempted; refund deadline extended

HYDERABAD: The Andhra Pradesh Government has announced exemption from Value Added Tax (VAT) for several items and institutions, and extended till May 20 the deadline for submission of claims by dealers for refund of tax already paid on stocks purchased earlier.

Items sold by fair price shops, books from temples and other religious places, bio-fertilizers and aids used by disabled persons like Braille machines, which have enjoyed sales tax exemptions earlier, have been exempted from VAT also. Common salt has been given the exemption. The 4 per cent VAT levied on branded salt is likely to go from July 1.

The Commercial Taxes Minister, K. Ramakrishna, and the Commissioner, Commercial Taxes, V. Bhaskar, told reporters here on Thursday that these changes were made following difficulties faced by traders and officials since the VAT regime came into force on April 1. In all, 1.15 lakh traders have become VAT assessees.

They said military canteens, whose items were hitherto exempt from sales tax, would have to pay VAT but it would be collected from the depots. The developer of international airport and some charitable institutions whom the Government promised sales tax exemption would be reimbursed the tax.

Mr. Bhaskar said the implementation of VAT in the State replacing the 48-year-old sales tax was smooth compared to other States except for some teething troubles. The lacuna would be ironed out by making some more changes which would be effective from July 1.

4 p.c. on 671 items

As industries in plastic and pharma sectors suffered on account of paying 12.5 per cent VAT on their input purchases while their finished products were in the 4 per cent category, the difference would be transferred to the dealers' bank accounts. There would be no VAT on cloth, sugar and tobacco if additional excise duty was paid on them. The Minister clarified that 671 items were brought under the 4 per cent category of VAT, including drip irrigation articles, sprinklers, utensils, submersible pumps, readymade garments, towels, sari falls, diagnostic kits and animal food supplements.

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