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VAT panel to meet on April 8 to sort out grey areas
March 26, 2003 14:51 IST
The Empowered Committee of State Finance Ministers has been asked to sort out some of the contentious issues on the value-added tax including the refunds on credit and exemption for exports.
With the deadline for VAT hardly a week away, the government wants the committee to come out with solutions for these issues at its meeting slated on April 8.
"The Empowered Committee is meeting on April 8. Refund of VAT credit is one of the most important issues that will be taken up in the meeting," additional secretary (revenue) in the finance ministry, Anupam Dasgupta, said at a PHDCCI seminar.
While it was proposed that the refund would be provided after nine months, industry had objected to the notion on the ground that it would block working capital funds and sought monthly refund system.
Dasgupta also clarified that exports would not come under the VAT system.
"We have requested all the states to zero-rate (completely exempt) exports. How it will operate or whether there will be any unanticipated delay or not, has to be looked into," he added.
Dasgupta also assured industry that turnover tax, luxury tax and surcharge on sales tax would be abolished once VAT is put in place.
Entry tax would be allowed only if the concerned state has imposed it instead of octroi duty.Dasgupta said all states need to adopt the harmonised system of nomenclature for fixing VAT rates on different items.
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