VAT waived on furnace oil used in gensets
In order to offer some relief to small industries in the State, Tamil Nadu Chief Minister J. Jayalalithaa has announced a series of sops such as waiving of VAT on gensets, VAT exemption on furnace oil used in gensets and margin money on loans for buying gensets.
In a statement, the Chief Minister said that her directive came after a delegation of small-scale industries association, Tamil Nadu paper and board mills association representatives met her at the Secretariat in the morning and discussed the status of the industries.
The statement said the Chief Minister has directed reducing VAT on gensets to 5 per cent from the current 14.5 per cent, besides extending VAT exemption on furnace oil with retrospective effect from October 1, 2012 to May 31, 2013. This would result in a loss of Rs 97 crore to the government.
Further, the margin money on loans obtained to buy gensets through the Tamil Nadu Industrial Investment Corporation has been reduced from 20 per cent to 10 per cent.
These efforts by the government would help entrepreneurs generate additional power through gensets thereby ensuring more production and employment opportunities, she has said in the statement.