The Hindu : Govt. to adopt VAT from Apr. 1

Online edition of India's National Newspaper
Friday, Mar 28, 2003

Other States

Other States - Haryana

Govt. to adopt VAT from Apr. 1

By Our Special Correspondent

CHANDIGARH MARCH 27 .The much-talked about Value Added Tax (VAT) would be effective in Haryana from April 1 as per the national consensus.

A spokesman of the Haryana Excise and Taxation Department said here today that under VAT, tax would be charged at each stage. A dealer would pay tax after deducting the tax paid on purchases made during a quarter from the tax collected on sale of goods by him during that quarter. Tobacco, sugar and textiles would remain tax-free.

The spokesman said that Tax Identification Number (TIN) may be obtained from the Deputy Excise and Taxation Commissioner's office without any fee or may be accessed from the Department's website www.haryanatax.com. Cash memo would be required in case of sale exceeding Rs.100. However, while issuing cash memo to a consumer, tax is not required to be shown separately. The new format of cash memo and account books to be maintained is given on the website as part of the rules and is also available with the Deputy Excise and Taxation Commissioners.

The spokesman said that the rate of tax under VAT would remain the same as was under HGST Act, 1973, with some changes, which include chemical fertilizer to be taxed at the rate of 4 per cent. Goods which were taxed at the rate of 8 per cent would now be taxed at 10 per cent except ice, bamboo, firewood and saw dust which would now be taxable at 4 per cent; incorporeal or intangible goods, uninterrupted power supply (UPS), cellular phones or mobile hand-sets would be taxable at 4 per cent. Dealers having purchase of the taxable goods up to Rs.25 lakhs in a year would have the option to pay one per cent on their purchase value subject to a minimum of Rs.900 per annum and in that case they would not have to maintain any sale accounts. Tax on goods purchased from outside the State would be extra at normal rates.

Meanwhile, the State Finance Minister, Sampat Singh, defended the decision to implement VAT in the State.

Speaking at the CII Haryana State annual session and conference on "Making Haryana Competitive'' at Gurgaon, he said that the State was fast emerging as the ideal investment destination for trade and industry. Since Haryana was already practising VAT in the manufacturing sector, the incidence of tax would practically remain the same, he said, adding that Haryana would continue to have a no-barrier policy at State borders. After the introduction of VAT, the Central Sales Tax (CST) would gradually be phased out. He emphasised that public opinion and involvement of industry had been sought before finalising this step.

Printer friendly page
Send this article to Friends by E-Mail

Other States

Stories in this Section

Govt. to adopt VAT from Apr. 1

`Govt. destroying archaeological beauty'

Extension fee rules modified