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Friday, Mar 29, 2002

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TN Budget: Industry welcomes proposals

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CHENNAI, March 28

"THE Budget shows the State Government's commitment to VAT," says Mr T. Ananthnarayanan, Executive Director-Finance, Ashok Leyland.

He said the one per cent tax on second sales would help the Government garner some revenues. The industry should not be overtly concerned about the impost which would be available for set-off from next year after VAT comes in to force, Mr Ananthanarayanan said.

He also welcomed the proposal on `knowledge industry townships', pointing out that Tamil Nadu was a "knowledge State" and infrastructure for making use of knowledge was essential.

"Even though it is a little unpalatable, the infrastructure surcharge could show some tangible results on the infrastructure front in a year," he said.

Reacting to the budget, Mr N. Gopala Ratnam, Chairman, Seshasayee Paper and Boards Ltd, said the hike in sales tax on paper to 10 per cent from the existing eight per cent would affect the industry. However, the Government has balanced the effect of the hike vis--vis the paper produced outside the State through the entry tax. This will help maintain the status quo, he said.

Mr D.E. Ramakrishnan, President, Industrial and Financial Reconstruction Association for Small and Tiny Enterprises (IFRASTE), has welcomed the proposal for online registration of small and tiny enterprises and for obtaining temporary registration certificates online. He has also requested that the data generated "should be used to frame a comprehensive `sick, revival and rehabilitation' policy, coupled with a clear exit policy with a OTS for all dues of the sick tiny enterprises."

The Small Electrical Equipment Manufacturers' Association has welcomed the enhancement of the limit for the self-assessment scheme, from Rs 20 lakh to Rs 40 lakh. It has said the "4 per cent sales tax for all Tamil Nadu Government purchases will be a boon to the industries in the State." According to Mr S. Baskhara Pandian, Treasurer, Madras Printers and Lithographers Association, the provision to set-off taxes paid in the State directly to the dealer at the first point of sale of paper and ink was a welcome move. However, the Association had reservations about the option of compounding three per cent of the transaction without the set-off, he said.

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