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Sunday, Nov 04, 2007
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VAT: textile exporters get good returns

L. Renganathan

Refund against input tax issued on eight claims totalling Rs.81,000

180 other claims under assessment
Over 12,000 registered dealers in Karur

KARUR: The introduction of Value Added Tax (VAT) has brought good returns to textile exporters here against the input tax that they paid on their purchases. So far, around 200 claims from registered dealers, who happen to be textile exporters, have been filed with the Commercial Tax Office here for a total tax sufferance worth Rs.94.96 lakh paid by the dealers.

While refund has been issued on eight claims totalling Rs.81,000, officials are assessing around 180 other claims involving a tax sufferance of Rs.94.15 lakh. A major benefit for the textile exporters is that for the first time under the VAT regime the dealers get refund on tax credit in cash, while non-exporting dealers can only get the balance credit adjusted against the VAT payable.

Officials say they are racing against time to assess and process the pending claims so that refunds can be issued at the earliest. Over 250 exporters have registered themselves as dealers and are eligible for the benefit while there are over 2,000 dealers involved in the textile industry in the Karur Commercial Tax District. Officials say that over Rs.50 lakh would have been adjusted against VAT payable in the last 10 months.

Also, with the implementation of VAT, the Government has asked the tax officials to return the security deposit to the dealers, who registered themselves under the TNGST Act and got automatically converted under the VAT regime. The total amount involved runs close to Rs.2 crore in the district. There are over 12,000 registered dealers in the district. Despite the best efforts of the officials, the response to the offer has been lukewarm.

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