Financial Daily from THE HINDU group of publications
Friday, Sep 23, 2005
Financial Daily from THE HINDU group of publications Friday, Sep 23, 2005 |
|
|
|
|
|
Industry & Economy
-
Taxation Traders charge IGL with violating Delhi VAT laws Our Bureau
New Delhi , Sept. 22 THE Confederation of All India Traders (CAIT) today alleged that Indraprastha Gas Ltd (IGL), a joint venture of Delhi Government, GAIL (India), and Bharat Petroleum, is openly flouting Delhi value added tax laws by charging 20 per cent VAT on piped natural gas (PNG) being supplied to residents of different areas in the Capital. Mr Praveen Khandelwal, Secretary General of CAIT, while speaking at a press conference here, charged IGL with issuing false invoices to its consumers of Delhi by overcharging VAT at 20 per cent. Mr Khandelwal said that, the Delhi VAT law exempts compressed natural gas (CNG) from 20 per cent VAT. Whereas in the instant case the piped natural gas, which is also a natural gas like CNG is being charged at 20 per cent by IGL. He also said that any item not mentioned in any tax schedule of VAT is a residual item and is liable to be charged at 12.5 per cent. However, since the raw material of PNG is considered as an industrial input in Delhi VAT law and has been placed under 4 per cent category, the domestic natural gas being an essential item should not be levied a tax more than 4 per cent. The CAIT Secretary General said that IGL has claimed PNG as natural gas in its own Web site, which means that there should not be any VAT on domestic gas supplied by the company. Though IGL does not have any licence for liquefied petroleum gas and even if PNG is treated at par with LPG, a tax more than 12.5 per cent cannot be levied because LPG attracts a tax of 12.5 per cent under VAT.
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
|
