The Hindu Business Line : Tea exporters await VAT waiver

Coonoor March 13 Exporters are seeking VAT exemption for tea purchases at auctions in Coonoor and Coimbatore. There are indications that they will not buy at this week's auctions also until they are assured nil-tax operation.

"In Kochi auctions, exporters are not required to pay tax at all. In Coonoor and Coimbatore, with the auction organisers deciding to conduct all sales under VAT, we did not buy any teas last week. This is upsetting our commitments with importers," a leading exporter told Business Line.

Exporters contend that VAT does not supersede the existing provision exempting export purchases from the levy.

"VAT was introduced in Tamil Nadu on January 1, 2007. On January 3, 2007, the Government extended the exemption for exports. So, the exemption continues," the exporter said.

Although the exporters can claim refund of VAT, they are not prepared to block finances now. "Also, for most exporters who have shifted their operation to Kochi, the refund would not be allowed on stock transfers for the 4 per cent VAT. This is also upsetting the 100 per cent EOUs," an exporter said. Meanwhile, the sellers say VAT would help them get input credit although the quantum of refund still remain unclear.

More Stories on : Tea | Exports & Imports | Taxation

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Plains may see fair skies until March 20

Spot rubber rules steady

Tea exporters await VAT waiver

`Allow sick tea cos to access special purpose fund'

Irrigation benefits

ITC, Rajasthan tie up for watershed development

NFO period for UTI Gold ETF extended

Mumbai to host 2-day cotton meet

Palm oil industry upbeat; experts foresee volatility

Malaysia hopeful of more trade with India

Call to increase oilseeds production

Speculation keeps pepper futures hot

Steps on cards to raise agriculture cover

Fears of lower output prop up barley, chana contracts

Wheat bonus issue referred to Cabinet

First issue