Financial Daily from THE HINDU group of publications
Tuesday, Feb 01, 2005
Financial Daily from THE HINDU group of publications Tuesday, Feb 01, 2005 |
|
|
|
|
|
Industry & Economy
-
Taxation Assocham opposed to VAT on imports Our Bureau
New Delhi , Jan. 31 THE Associated Chambers of Commerce and Industry of India (Assocham) said on Monday that it was opposed to any levy of value-added tax (VAT) on imports. The Empowered Committee of State Finance Ministers on Value-Added Tax and the Union Finance Ministry are currently discussing a proposal for VAT on imports, including the collection mechanism with adequate safeguards for the protection of interest of land-locked States. "We are opposed to any VAT on imports", Mr Mahendra Sanghi, President, Assocham, said when asked whether the chamber favours levy of VAT on imports. The Assocham President released a paper prepared by the chamber on the proposed VAT regime. Indications are that the Empowered Committee may suggest to the Centre a 4 per cent VAT rate on imports. The chamber is opposed to VAT on imports even though set-off would be allowed and an assurance is available from the empowered committee that this would not result in any tax cascading effect, but will only improve tax compliance. This is because the imposition of VAT on imports would require the importer to park his funds upfront, according to Mr Bharat Goenka, Managing Director, Tally Solutions Pvt Ltd. Mr Goenka also said that the VAT regime would lead to a marginal increase in prices in the immediate period after its introduction. He however held that the prices of products would come down in the medium term (within the next few weeks) in respect of those sectors where there is good level of competition and there are no monopolies.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|