The Hindu : VAT will end tax holiday, says official

Online edition of India's National Newspaper
Wednesday, Feb 19, 2003

Southern States

Southern States - Karnataka

VAT will end tax holiday, says official

By Our Special Correspondent

SHIMOGA FEB. 18 . The Commissioner of the Commercial Tax, Ashok C. Manoli, said here on Tuesday that the regime of exemption was over under the "Value Added Tax" (VAT) system.

He said VAT would come into effect from April 1.

Inaugurating a seminar on "VAT", organised by the Shimoga District Chamber of Commerce, he said VAT, which gave scope for the deemed or self-assessment of tax by the assessees, did not entertain complaints. "You fund and get refunded under the VAT," he told the assessees.

He said VAT, which promoted inter-personal relationship between the department and the assessees, would put an end to "tax holiday". Tax holiday period would be treated as deferment of tax.

He said while traditional goods continued to be exempted from tax, there would be only two tax slabs — four per cent on the mass consumption goods and 12.5 per cent on other goods.

He said liquor, narcotics, molasses and rectified spirit would be levied 20 per cent tax, while petrol, diesel, ATF, lottery tickets, and sugarcane, continued to be taxed under the KST Act for time being.

Mr. Manoli said the Commercial Tax Department had been making preparations for implementing VAT by publicising the new tax system. It had been arranging discussions with all stake holders, department heads, trade, industry, and tax practitioners in the State to incorporate their views in it, if possible.

The President of the chamber, T.V. Narayana Sastry, presided over the function.

The Additional Commercial Tax Commissioner, Shivaram, the Deputy Commissioner of Commercial Tax, Sreedhar, the Vice-President of the Taxation Committee of the Federation of Karnataka Chambers of Commerce and Industry, Raghavendra Sharma, and Shoukat Khan of the Shimoga Tax Bar Association, were present.

The President of the District Chartered Accountants' Association, Channappa Shetty, welcomed the gathering.

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