The Hindu : Business : Garment dealers association flays VAT on textiles

Online edition of India's National Newspaper
Saturday, Dec 24, 2005

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Garment dealers association flays VAT on textiles

Staff Reporter

KOCHI: The Kerala Textile and Garments Dealers' Welfare Association has criticised the State Revenue Department's decision to impose four per cent tax on garments and textiles, including on handloom and silk items, despite the Union Government exempting them from the purview of the newly-introduced Value Added Tax regime.

The association described new tax imposition through Kerala Value Added Tax Amendment Act, 2005 as a contradiction to the White Paper brought out by the high-power committee on VAT at the Centre. It also accused the Revenue Department of not taking traders into confidence in implementing new tax laws.

A press release from K. Krishnan, secretary of the association, also said that the decision to impose tax on handloom items was unjustifiable. Tax has been introduced at a time when the Union Government is providing protection to the handloom sector, it added.

The traders have also flayed the Revenue Department's directive calling for turnover details on embroidery articles from April this year. The association press release said that the department was considering these embroidery items as articles of clothing.

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