![]() Financial Daily from THE HINDU group of publications Sunday, May 01, 2005 |
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Industry & Economy
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Taxation `Centre has no role on waiver of VAT on defence canteens' Our Bureau
New Delhi , April 30 THE Finance Ministry has made it clear that it has no role on the issue of granting any waiver to the value added tax (VAT) imposed on purchases made in defence canteens. The Defence Ministry had sought VAT waiver from the Finance Ministry by highlighting that several serving and retired defence personnel purchase their provisions and daily necessities from defence canteens. "VAT is a tax intended to replace the State sales tax. Hence the Central Government has no role to play either in imposing VAT on any particular item or exempting any item from VAT," Mr S.S. Palanimanickam, Minister of State for Finance, said in a written reply in the Lok Sabha.
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