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Our Bureau

Coimbatore , Nov. 4

THE Coonoor Tea Trade Association has called for a meeting of the industry stakeholders on November 8 to discuss the issue of doing away with sales under the Central sales tax (CST).

Industry insiders told Business Line that if a consensus was reached on this issue, it would result in double taxation, with the 8 per cent general sales tax collected at the point of sale and the 4 per cent CST on inter-State sale.

While the introduction of VAT would help resolve this issue, they say that for the present, this modification would help in streamlining the tax structure.

They also point out that the difference in the tax rate could be adjusted in the States where VAT has already been introduced.

While on the subject of tax, the source also suggested the need for replicating the system of `auction tax' from the Kolkata tea auction centre. Currently, all teas that are catalogued and sold at auction in Kolkata is subject to 2 per cent auction tax.

Industry sources compared the auction tax with the concessional tax rate of 2 per cent approved by the Tamil Nadu Government for the teas sold through TeaServe, the State-mooted auction centre.

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