VAT to be imposed on all textiles goods from next FY
22 Jul '05
1 min read
From coming financial year (FY), all textile goods will be covered under value-added tax (VAT), states Ramesh Chandra, Secretary of Authorized Committee.
Chandra informed that the States approved maximum 4 percent rate of VAT on textile items that will imposed from April 1, 2006.
Currently, textile goods are covered under additional excise duty (AED) and are exempt from VAT.
Chandra urged traders co-operate with those from states that disagreed with the decision.
Some states have denied imposing VAT like Uttar Pradesh, Uttaranchal, Tamil Nadu, Gujarat, Madhya Pradesh, Rajasthan, Chhattisgarh and Jharkhand. However the chief ministers of two states have agreed to implement the decision if traders agree.
VAT board was surprised to learn about traders ignorance on the uniformity in VAT rates, as they were already paying different sales tax structures in their states.
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