13/08/2010
Single window system for VAT refunds for Delhi exporters
Exporters in Delhi will no more have to rush from one department to another for refund of the value added tax (VAT). The Delhi government Thursday started a single window service to speed up the process of payment of VAT refunds to the exporters. "Export promotion has been an important effort of the government at all levels. As exports are free from any tax liability, exporters become entitled for refund of VAT paid on all such purchases before export out of India," said Delhi Finance Minister AK Walia.
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11/08/2010
Haryana cuts VAT on CNG, PNG by 50%
In what could come as a relief for residents of Gurgaon, Faridabad and other NCR cities of Haryana, the state cabinet has decided to reduce the value added tax (VAT) on CNG and piped natural gas (PNG) by over 50%. A government spokesperson said that the VAT on CNG and PNG will reduce from the present 12.5% to 5%. The decision was taken under the chairmanship of chief minister Bhupinder Singh Hooda. The cabinet also gave its approval to the proposal of Excise and Taxation Department for amending Rule 9(1) (xiv) of Punjab Passengers and Goods Taxation Rules, 1952 to facilitate implementation of new composite fee regime for national permit.
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10/08/2010
UP govt not to lower tax on petro products
The Uttar Pradesh government today clarified it was not considering to reduce tax rates on the various petroleum products in the backdrop of high inflation numbers. The government maintained the tax rates had been fixed rationally keeping in mind both the financial requirements of the state and the interest of people. Commercial Tax Minister Nakul Dubey said the government had already reduced the Value Added Tax (VAT) on kerosene sold under the public distribution system (PDS) and diesel compared to earlier trade tax. Besides, the domestic liquified petroleum gas (LPG) had been exempted from tax.
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29/07/2010
Low VAT hurt states: Finmin
Even as states are worried they may not be able to increase rates after the introduction of the Goods and Services Tax (GST), an analysis by the finance ministry has found that most states levied Value Added Tax (VAT) at a rate lower than that prescribed by the empowered committee of state finance ministers. This resulted in substantial revenue loss, for which no compensation was paid by the Centre.
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17/07/2010
Delhi cuts VAT on diesel,more states to follow
THE Delhi government on Friday decided to roll back an increase in sales tax on diesel it had announced in the state budget,a move that could force other states to cut local levies on the auto fuel.Diesel in Delhi will be cheaper by Rs 2.70 a litre from Tuesday after the state government reduced value-added tax (VAT) from 20% to 12.5%.The state government was under pressure from both the central government and consumers to reduce tax on the key transportation fuel,a measure seen as central to the efforts to curb inflation. Increase in diesel prices hike has a spiralling impact on the prices of essential commodities such as milk,eggs and vegetables.The duty reduction will protect the common man, said a government official.
The Centre has been blaming state taxes for high fuel prices.
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21/05/2010
Petrol pump owners demand roll back of VAT hike
Petrol dealers, today, decided to close down pumps every Monday, starting May 24, to protest against the hike in VAT on diesel even as CM Sheila Dikshit promised to look into their demand for parity with neighbouring states like Haryana. In a 'Gandhigiri-style' demonstration, the Delhi Petrol Dealers Association members placed bouquets outside Dikshit's residence demanding a roll back of increase in VAT rates. The VAT rate was increased from 12.5 per cent to 20 per cent on April 1. Later, representatives of the association held talks with the CM who, sources said, explained the reasons that compelled the government to effect the hike, mainly to finance an additional expenditure of Rs 1,100 crore incurred for the Commonwealth Games preparations.
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15/05/2010
States raising VAT to drive a hard bargain on GST
With less than a year left for the scheduled introduction of the Goods and Services Tax (GST), most states have increased their VAT (value-added tax) rates. The move is seen as an attempt to extract better compensation from the Centre for loss on account of GST rollout. This will also allow states to negotiate with the Centre for a higher State GST rate.
The industry fears this “blackmailing” by states may delay GST rollout beyond April 2011 and make things more difficult for the Union government when the Centre and states come to the negotiating table. It also fears this would lead to a higher GST rate, which should have been “around 14-15 per cent.”
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05/05/2010
Handset majors trim grey area
Nokia, Samsung and LG have cut mobile handset prices in Delhi, Maharashtra and West Bengal to check grey market growth and ensure standard retail prices across the country in spite of higher tax rates in these states. These vendors have come together, arguably for the first time, to reduce prices by up to 8% to stop customers flocking to grey markets due to higher value-added tax (VAT).
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08/04/2010
Chandigarh VAT collection rises 9%
The economic meltdown, as it seems, has had little impact on the earnings made by the Excise & Taxation Department of Chandigarh. In fact, the VAT and excise revenue collection figures for 2009-10, released on Wednesday, showed substantial improvement over the preceding year. Putting all the counts together, the administration earned revenue in the form of excise on liquor, entertainment tax and VAT of Rs 921.18 crore in 2009-10.
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02/04/2010
Delhi's snazzy mobile retailers reeling under leap in VAT
The hike in value added tax (VAT) on mobile handsets priced over Rs 10,000 from April 1 in Delhi is giving nightmares to large mobile
phone retailers, even as they met Delhi chief minister Sheila Dikshit this week to persuade her to roll back the levy. Delhi is the largest market in the country for high-end phones. The VAT rate hike from 4% to 12.5% announced in the Delhi Budget is bound to hit the Capital’s largest retailers as well as the government’s realisations from handset sales, said retailers.
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